ACCOUNTING INFORMATION SYSTEM FOR MIA EMPLOYEE MULTIPURPOSE

COOPERATIVE (MEMPC)

Balangit, Julius Michael

Pajantoy, Trixie Ann

An undergraduate thesis manuscript submitted to the faculty of the Department of Information

Technology, Cavite State University, Imus City, Cavite, in partial fulfillment of the requirements
for the degree of Bachelor of Science in Information Technology with Contribution No.______.
Prepared under the supervision of Ms. Grace Ibaez.

INTRODUCTION

An accounting information system (AIS) is one that accumulates, stores, and processes

financial and accounting information. The system generates reports that are used to make

decisions regarding how an organization is to be run. These reports are also used by outsiders to

evaluate lending and investment opportunities with the firm. Accounting information system is

usually run using electronic data processing equipment but can be operated less efficiently with a

manual bookkeeping system. Using a computer-based system is highly advantageous since it

automates many accounting processes and thereby reduces transactional error rates. It can also

produce reports much more quickly than a manual system. The accounting information system

(AIS) supply side actors - vendors, consultants and other wholesale actors of AIS - has

addressed the increased use of information systems and, thus, we are in the midst of a massive

diffusion of integrated information systems that are supposed to be used for decision making,

control and performance management. These kinds of systems solution being diffused are today

seen as management accounting innovations. Accounting and financial management system are

used by organizations to oversee and govern income expenses and assets with the objectives of
maximizing profits and ensuring sustainability. An effective accounting and financial

management system improve short and long term business performance by streamlining

invoicing and bill collection, eliminating accounting errors, minimizing record-keeping

redundancy, ensuring compliance with tax and accounting regulations, helping personnel to

quantity budget planning, and offering flexibility and expandability to accommodate change and

growth. (Elbashir, Collier & Sutton, 2011).

Many companies have their own style in processing their finances and other components

when it comes to their business, some already enhance using technology while other still in tack

with their manual procedure like the MIA Employee Multi-Purpose Cooperative (MEMPC).

MIA Employee Multi-Purpose Cooperative (MEMPC) they started in the year 1990 at

Pasay, City and the number of their employees are more than a thousand. Every day the

accountant must record all the transaction in a whole day, writing the transactions manually is

taking too much for them to finish the entire task.

Despite todays modern age, some of the countrys institutions still do not adopt the high

technology. The MIA Employee Multi-Purpose Cooperative (MEMPC) since 1990 is still using

manual process in their accounting and financial transactions. This seems to be somehow

ineffective for the company. MEMPC is located at MIA Admin BLDG. Pasay City.
Statement of the problem

When the day concludes, the accountant will record all transactions that happened for that

day and save it in a physical folder. When the time comes that they need to look for a specific

folder and account, due to the sheer number of it, it can take some time and considerable amount

of effort just to look for a file that is needed for a given day. How will the company lessen the

time of searching for the needed files?

Every meeting the board of directors wants to see the total equity distributions of all the

members and at the same time to monitor the equity distribution individually. In part of it

generating reports needed usually takes 4 to 7 days to be ready. How will the company produce

a faster and accurate reports?

The MEMPC does manual accounting transactions. Therefore, the files are not secured

and there is no specific level of access for employees when retrieving the files and transaction

records. How to help MEMPC monitor and secure their files and records?
Objectives of the study

The general objective of the study is to develop an accounting information system for

MEMPC .

Specifically, it aims to:

1. design a system for a faster way of recording financial transaction;

2. analyze possible feature to accommodate the problems of the client, like providing a

secure data storage of the company;

3. build a system that can implement backup and restore data of their record;
4. create adequate audit trails to assist auditors in the understanding of the flow of

events

and reconstructing of the events; and,

5. test and maintain the system as how it designed for. That is error free.

Importance of the study

The importance of this study is to help the company to be able to create an easy way of

importing and exporting reports, help them to develop backup files of their reports. This study is

very useful and effective for the company for the fast transactions of their records.

The organization can use this system of their accounting departments

The users can use this to prevent loss of document that they may encounter in terms of

financial records.

The research created this research to catch the attention of students. It is important to

fulfill the desire of the researchers to have specifications on how to make an easier way to

accounting process.
Time and place of the study

The researchers conducted the study in Cavite State University- Imus Campus, Palico IV,

Imus City, and Cavite. The researchers gathered data from MIA Multi-Purpose Cooperative

(MEMPC) located in MIA Admin Bldg., Pasay City.

Scope and limitations

The proposed system was broken down into separate modules of functionality, dealing

with particular areas of accounting in MIA Employee Multi-Purpose Cooperative and based on

the functions that the business requires. The following modules include the following Accounting

Report module, Chart of Accounts module, Logs module, Payroll module, Purchase module,

Sales module, and Tax module. The manager and the accountant are the different level of access.

An Accounting Report module allows the user to produce financial reports with includes

balance sheet, journal, trial balance, audit trail, and profit and loss statement.

The Chart of accounts module, where in the system manages the cash-flows and separate

modules such as the creditor and debtors would be required. This module would also allow the

user to complete reconciliations.

The Logs Module, which shows all the transaction of the accountant inside the system

can be previewed by the Administrator only.

The Payroll module handles transactions related to employee information such as the

attendance which is needed for payroll transactions. The system only provides the Summary of

Payroll. *fix not sure

 The purchase module handles transactions related to cash purchases and credit purchases.

As with the Customers module, the system would also provide functionality to simplify the

process of recording credit transactions

The Sales Module handles transactions related to cash sales and credit sales. The module

maintains an account for each debtor. The system recognizes that every transaction with a debtor

generates certain documentation such as invoices. The proposed system would standardize the

process by generating the required documentation and then link these documents to a particular

transaction. This allows tracing any financial transaction.

Tax module.

The study was intended and limited to the requirements of MIA Employee Multi-Purpose

Cooperative.
Definition of terms

Accounting. This refers to the art of recording, classifying and summarizing in a

significant manner, and in terms of money, transactions, and events which are in part at least of

financial character and interpreting the results thereof.

Account Receivable. This refers to the short-term monetary assets that arise from sales

on credit to customers at either the wholesale or the retail level.

Account Payable. This refers to the money owed to creditors, vendors etc.

Audit Trail. This is a record of every transaction, when it was done, by whom and

where, used by auditors when validating the financial statement.

Balance Sheet. This is a statement that gives the financial condition of a business as of a

given date.

Capital. This denotes the investment of the owner or his claim on the business.

Cost. This indicates the amount pertaining to the value of the goods that were sold.

Credit. This refers to an account entry with a negative value for assets, and positive value

for liabilities and equity.

Database. This refers to the collection of the information that is organized and can easily

be accessed, managed, and updated quickly. This was used to store the records of accounting

transactions and other important information.

Debit. This is an account entry with a positive value for assets, and negative value for

liabilities and equity.

Estimates. This refers to an approximation of the amount to be credited or debited on

items for which there is no precise means of measurement.

Expenses. These are the amounts that were paid or to be paid.

 Financial Management. This encompasses everything that involves finances, assets and

resources.

Income. This increases in the resources of the business, results to an increase in the claim

or equity of the owner as a result of services rendered to customers.

Invoice. This refers to the original billing from the seller to the buyer, outlining what was

purchased and the term of sale, payment, etc.

Journal. This is where the transactions are recorded, also known as an account.

Liabilities. These are the financial obligations or values owed by the business.

Profit/Loss Statement. This is a summary of income and expenses.

Computer. It is a device where the system runs.

General Ledger. This is the main accounting record of a company or organization.

Trial Balance. This refers to a listing of accounts in the general ledger with their debit or

credit balances in respective columns and a computation of the columns; used to test the equality

of debit and credit balances in the ledger.

 REVIEW OF RELATED LITERATURE AND STUDIES

This chapter present the related literature, studies and comparison of the study.

The concept of this study was formed through gathering data resources, materials, and

actual observation itself. The knowledge that was gathered from different materials was of great

help in exploring the further objective that the authors have set in this study. The proponents

reviewed some studies in this area of local and foreign references that would be beneficial for the

study.

The following chapter highlights the analysis of the related literature and studies prior to

those research and writing of recognized expert, both of which were significant bearing on the

relation to the problem under investigation. This includes the theoretical framework of the study,

review of related literature, and related studies, presented with adapted annotations and

relationship of the present study.

Accounting

Philippine Financial Reporting Standards (PFRS) defined accounting as a service activity.

They said that the main function of accounting practices is to provide quantitative information,

primarily financial in nature, about economic entities that is intended to be useful in making

economic decisions (as cited by Baysa and Lupisa, 2011). They stated that the primary duty of

accountants is to render services by providing information about economics entities that is

measure in terms of money.

Information System

Richard (2004) emphasized that information about students is vital, but time consuming

to manage and it is essential that the most effective tools be used to aid both staff and students go

about their work and studies. The Cambridge Student Information System (CAMSIS) replaced

various student records system used by the colleges, departments and universities. CAMSIS

provides comprehensive and accurate information about student body and also improves data

quality, reduce the administrative burden dramatically and provides better services to both

academic staff and students.

Zwass (2016) stated that IS (information system) is the collection of technical and human

resources that provide the storage, computing, distribution, and communication for the

information required by all or some part of an enterprise. A special form of IS is a management

information system (MIS), which provides information for managing an enterprise. It is a

common name for an organization within an enterprise that is responsible for its data processing

and information system or systems.

In the book information System Success in 21th Century, the five main components that

can be found in almost every system including information system are stated.

Moreover, inputs like machines, manpower, raw materials, money time, and so should be

carefully defined. The input of an information system is data. Processes such as policies,

procedures, and operations convert data into information. Outputs are the information in the right

format, conveyed at the right time and place to the right person. Feedbacks are the data about the

performance of the system. Control processes the feedback and taking necessary action, such as

modifying the process, input, or output (Uma Gupta 2011).

Transaction Processing System

Transaction process is widely used all over the world based on the system of process.

Different systems are used for transaction and the process has different functions. A transaction

processing system collects and stores data about business transactions and sometimes controls

the decisions made as part of a transaction. Moreover, the transaction is the activity that changes

the stored data. Transaction processing system provides an execution environment that ensures

integrity, availability, and security of data. It also ensures fast response time and high transaction

throughput; provide administrative support that lets the users configure, monitor, and manage

their transaction systems; provide functions for use in custom business applications, including

functions to access data, to perform inter computer communications, and to design and manage

the user interface (Ahamed, 2012)

Game Machine Accounting Monitoring System

Base on the study conducted by Watson and Raven (2011), a gaming machine accounting

and monitoring system includes plurality of accumulative, non-resettable accounting meters and

an event processor for sensing game activity at the gaming machine and updating meters in

response.

MySQL Query Browser

Is an alternative to phpMyAdmin when it comes to managing your MySQL databases. It

can use it to create, drop, and edit tables and perform queries. Setting up MySQL Query Browser

to work with your account is relatively simple. The main Query Browser window has three

important areas. Along the top is the text area where can build and execute SQL queries. Below
this is the results area. It can use manage multiple result sets at once using tabs and even split a

tab and can compare two sets. To the right of the results area is a list of databases and their

tables. These allow us to quickly switch between databases and view or edit tables. Although it

can do everything manually via SQL query, the Query Browser has decent GUI tools to create

and edit table structures, which can often save time and stress over a misplaced quotation mark.

It also comes with built-in documentation, allowing to recall query syntax at the click of a button

(A Small Orange June 01, 2015).

Visual Studio 2012

The Visual Studio 2012 IDE retakes the infrastructure that was first introduced by its

predecessor, which is written in managed code and in which several parts are based on the

Windows Presentation Foundation framework, such as the code editor, menus, and floating

windows. On the other hand, Visual Studio 2012 has a completely different look, which is now

based on the Microsoft Design Style, with a simplified approach to commands and tools via a

flattened user interface in which there are only a few colors.

The goal is helping the developer focus on writing code or on designing the application,

not on the development environment. So, the environment now has fewer colors than in the

previous versions, but commands are still recognizable via familiar icons; parts of the IDE that

can interact the most with (typically the code editor and designers) are still rich with helpful

colorizations. Although this innovation is important, these will still feel at home with the new

version. (Alessandro Del Sole. Jan 28, 2013)

Programing Language C#

C# is a multi-paradigm programming language encompassing strong typing, imperative,

declarative, functional, generic, object-oriented (class-based), and component-oriented

programming disciplines. It was developed by Microsoft within its .NET initiative and later

approved as a standard by Ecma (ECMA-334) and ISO (ISO/IEC 23270:2006). C# is one of the

programming languages designed for the Common Language Infrastructure. (C_Sharp.org)

Crystal Report

According to Mark Cunningham and Terry Cunningham (2010), popular reporting and

analysis software for Windows were used to retrieve data from more than 30 types of databases.

Queries and reports can be made via a web browser, and the functionality can also be added to

proprietary programs written in languages such as C, C++, C#, J++, Delphi and Visual Basic.

Crystal Reports was originally product from Crystal Decisions (formerly Seagate Software) and

was acquired by Business Objects in 2003. It later became part of the SAP Business Objects

family.

Management Accounting

As Stated by Nolke (2009), a case study research has been increasingly used as a research

method for studying management accounting practice. However, little has been written about the

nature and role of case study research. This paper examined different uses which can be made of

case studies and attempts to locate a role for case study methods in researching management

Context Flow Diagram

 The flow of system use context flow diagram as top level (also known as Level 0) data

flow diagram. It is similar to Block Diagram, showing a possibly software based on the system

as a whole and its input and output from/to external factors. It shows the entire system as a single

process. Interactions with users and other external entities are shown as dataflow (Mariano,

2013).

Data Flow Diagram

This diagram is one of the most commonly used system-modeling tools, particularly for

operational systems in which the functions of the system are of paramount importance and more

complex than the data that the system manipulates. Data Flow Diagram were first used in the

software engineering field as a notation for studying systems design issues. In turns, the notation

had been borrowed from earlier papers on graph theory, and it continues to be used as a

convenient notation by software engineers concerned with direct implementation of models of

users requirements (Smith, 2012)

Fish Bone Diagram

Kumar (2012) said that, fishbone diagram shows the causes of a certain event. Each cause

or reason for imperfection is a source of variation. Cause is usually grouped into major

categories to identify these sources of variation.

Uniform School Accounting System

The uniform School Accounting System (USAS) is based upon the use of combination of

dimensions (different sets of codes, each which supplies different elements of information). By
selecting the most appropriate code within each required dimension, each financial transaction of

the school district will be adequately identified. The use of certain dimensions to identify each

type of financial transaction is the responsibility of management of the school district. The

determination should consider the information needs of the school district, the Ohio Department

of Education and other regulatory agencies. For various reasons, certain financial transaction

should be coded in more detail than others. The study used the Spiral Model as a software

development life cycle during the creation of the system (Yost, 2013).

Less Accounting

Less Accounting has the right idea. There is lots of business with simple accounting

needs, so not every solution has to be all things. The site offers the very basic with some flashes

of excellence, but one can do better for the same cost or less.

Less accounting take a light-hearted, sometimes irreverent approach to the business of

accounting. But its tools are based on serious double-entry accounting rules. If one is not familiar

with standard bookkeeping procedures, he would not notice this because the technical stuff was

done in the background. The team behind Less Accounting displays a friendly, positive attitude

towards its customers through its program language and its online support, and it tries to supply

workarounds when a particular feature is not available on the site (Bristol, 2013).

Wave Accounting
 Wave Accounting does offer functionality that is unusual in a free financial website. It

follows double-entry accounting protocol, so one can modify the Chart of Accounts provided and

create Journal entries (activities which are not recommended unless for an accounting

professional) and run standard business reports. An individual create and assign multiple sales

tax levels and work in multiple currencies, two features that are normally found in more

sophisticated applications that levy a subscription fee. While the site offers a lot, gratis, the lack

of development since 2010 is troubling (Solms, 2013).

Computerized Accounting System

A computerized accounting system is an accounting information system that processes the

financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to

produce reports as per user requirements. Every accounting system, manual or computerized, has

two aspects. First, it has to work under a set of well-defined concepts called accounting

principles. Another, that there is a user - defined framework for maintenance of records and

generation of reports. In a computerized accounting system, the framework of storage and

processing of data is called operating environment that consists of hardware as well as software

in which the accounting system, works. The type of the accounting system used determines the

operating environment. Both hardware and software are interdependent. The type of software

determines the structure of the hardware. Further, the selection of hardware is dependent upon

various factors such as the number of users, level of secrecy and the nature of various activities

of functional departments in an organization.

Employee Payroll System

 According to the researcher of AMITY University UTTAR Pradesh (2012) that develops

a system, it is an application that enables users to create and store employee records. This

application also provides a facility which enables an administrator or an employee to generate a

Pay Slip. This application is helpful to the organization as it maintains data of employees related

that organization. Java is used to create this application as it is a platform independent language

and can be used on a standalone machine as well as on a distributed network that insisted the

benefits of the application. Easy calculations, accuracy in payroll calculation is necessary in

every company. It requires efficiency to pay employees the right amount of money they have

earned. Moreover, it provides a reliable backup and keeping large amount of data for payroll can

be challenging. This application stores your data in the database of your system because you

cant store files of papers and data manually; it can be easily handled by the person who has

basic knowledge of computer because it provides a user friendly environment.

In this study, the researchers will adopt and apply the concept of generating pay slip that

will serve as the payroll history of each employee in our proposed payroll system.

Comparison Table
 USAS LA WA CAS EPS Proposed System

YEAR 2013 2013 2013 2013 2012 2017

Methodology Spiral Scrum SDLC FDD Water Fall Iterative

Model

Features

Authorization Control

Sales order processing

Payroll

Purchasing Order Processing

Cash Disbursement

Audit Trail

TABLE 1. Comparison Table of the study

Legends:

USAS Uniform School Accounting System

LA Less Accounting

WA Wave Accounting

CAS- Computerized Accounting System

EPS- Employee Payroll System

 Conceptual Framework

Input c
Process Output

Knowledge Development over All

Requirements Model

C# Determine Scope
Programming through interview
Language and consultation.
Create overall Accounting
Computer
Graphics model System for
MySQL MIA
knowledge Employee
Build Feature
Database Multi-
Concepts Identify a list of
Purpose
Accounting feature
Principles Break large Cooperative
process into (MEMPC)
Software smaller processes
Requirements Verification of the
functionality of the
Visual Studio system
2012
Graphics
Plan by Features
Editing
Software Produce development
( Adobe
Photoshop CC ) plan
MySQL Query
Browser
Microsoft Office Design by Feature
Notepad++
Develop design
Operating
packages for
System
Windows 7 and
up Evaluation
Microsoft Visio
A conceptual model is an analytical tool with several variations and contexts, and
Hardware
is used to convey systems fundamental in the overview of information technology education. It
Requirements

is the
System Unit Atinvestigation tool in the systems development processes. In contemporary
preliminary
least 1-60 GHz
information technology, it is almost always discussed as a four component model in which the
fourth is optional. Data has to flow into the system in some form. Input is the data flowing into
Figure 1. Conceptual model of the study
the system from outside. The next stage in the information flow is the input data being

manipulated in some way. Processing is the action of manipulating the input into a more useful

form. The final stage in the information flow is normally to present the information in a user-

friendly way. Output is the information flowing out of the system.

The conceptual model shows the breakdown of the inputs and process made to able to

create the output in the development of the study. The inputs of the study include the knowledge

requirements, software requirements, and hardware requirements. This requirement shows the

things necessary in developing and continuing the study. The process on the other hand, includes

the phases of the methodology applied: requirement definition, high-level design, low-level

design, coding, and testing. Following these phases are significant in building a project

systematically. Lastly, the diagram shows the output which is developing the Accounting System

of MIA Employee Multi-Purpose Cooperative.

MATERIALS AND METHOD

 This chapter deals with the methods of research used weather it may historical,

descriptive, experimental, or a case study. The techniques used under descriptive method

research as well as the data gathering tools and analytical tools used will be further explained in

this chapter as well as the methods used in developing the software and for evaluation.

Materials

The researcher used the Visual Studio 2012 for the design and function of the system and

MSQL for the database, Adobe Photoshop CC for the images that were used for the Graphical

User Interface. The researcher also used different materials for the Accounting Information

System for MIA Employee Multipurpose Cooperative (MEMPC). One of the needed materials

were the devices like computer that has at least 1GB RAM, Dual Core 100GB hard drive and

Windows 7 and up.

After opening the software, the user will be able to use it. The user will login and choose

the menu. The menu contains (MENUS). The interface will help the user to have idea about the

software and how to use it.

Methods
 Figure 2. Iterative model of Accounting Information System for MIA Employee Multipurpose

Cooperative (MEMPC)

The researcher used the Iterative approach in this study; Iterative development is a way of

breaking down the software development of a large application into smaller chunks.

In iterative development, feature code is designed, developed and tested in repeated cycles. With

each iteration, additional features can be designed, developed and tested until there is a fully

functional software application ready to be deployed to customers.

The first phase of Iterative model was concerned about determining the need for and

feasibility of developing a new database system. Requirements for the software are gathered and

analyzed. Iteration should eventually result in a requirements phase that produces a complete and

final specification of requirements.

The second phase involved the design. In which a software solution to meet the

requirements is designed. This may be a new design, or an extension of an earlier design.

 The unit implementation phase aimed to get the new database system working, in which a

software solution to meet the requirements is designed. This may be a new design, or an

extension of an earlier design. The company will verify the system if it is working well. This was

the testing and evaluation phase of the system.

In review and testing phase, running, and maintaining the system monitoring of system

performance, and user satisfaction were done. In which the software is evaluated, the current

requirements are reviewed, and changes and additions to requirements proposed.

Project Design

Accounting Information System for

MIA Employee Multipurpose
Cooperative (MEMPC)

User Input

Output

Figure 3. Context Flow Diagram of the study

The Accounting Information System for MIA Employee Multipurpose Cooperative (MEMPC)

software that record financial information. The following diagrams below show the processes of

the system.