Differences in Accounting Systems and Procedures
The system is a network of procedures made according to an integrated pattern for carrying out the company's main activities. Procedure is a sequence of clerical activities, usually involving several people in one or more departments, which is created to ensure the handling of corporate transactions that occur repeatedly.
From this definition it can be concluded that a system consists of a network of procedures, while the procedure is a sequence of clerical activities for recording information in forms, journals and ledgers (writing, duplicating, counting, coding, registering, selecting, moving and comparing).
System An integrated structure of physical resources and other components to convert data into accounting information, with the aim of providing useful information for various users.
Ledgers (general ledger)
Consists of accounts used to summarize financial data that has been previously recorded in a journal. This ledger account can be seen on the one hand as a forum for classifying financial data on the other hand and can also be viewed as a source of financial information for the presentation of financial statements.
Ledgers (Susbsidiary Ledger)
Consists of supporting accounts detailing financial data contained in certain accounts in the general ledger. Ledgers and ledgers are final accounting records, which means there are no other accounting records after accounting data is summarized and classified in the accounts of ledgers and ledgers.
Report
Is the final result of the accounting process in the form of a balance sheet, income statement, statement of changes in retained earnings, statement of cost of production, report on marketing costs, cost of goods sold, list of accounts receivable, register of debt to be paid and list of inventory balances that are slow to sell.
Main Components of Accounting Systems
An accounting system is an information system among various information systems used by management in managing a company. Each information system consists of the building blocks that make up the system. The components of an information system building consist of six blocks, namely:
Input Block (input block)
Is the data entered into the information system along with the methods and media used to capture and enter the data into the system.
Model Block
Consists of logico mathematical models that process input and stored data, in various ways to produce output (can combine data elements into a concise report) for example:
profit = income - cost
Output Block (output block)
In the form of quality information and documents for all levels of management and all users of information both internal and external. This output is the main factor that determines the other blocks in an information system, if the output does not match the needs of the information user, the design of the input block, model, technology, database and control are of no use.
Technology Block
Capture input, run the model, store and access data, produce and deliver output, and control the entire system.
Database Block
Is a place to store data that is used to serve the needs of information users.
Control Block
To protect all information systems from disasters and threats, such as natural disasters, fire, fraud, system failures, errors and embezzlement, bugging, inefficiency, sabotage, and crime.
Accounting System Design
Some ways that are designed to ensure the protection and smooth running of information systems are:
Use the records management system
Application of accounting controls
Development of an information system master plan
Making contingency plans if the information system fails
Application of employee selection procedures
Making complete documentation about the information system used by the company
Protection from fire and power outages
Creating a support system to anticipate the failure of the inf system being used and making data storage outside the presh as a backup
Making procedures and using security devices and controlling access to information systems
Financial management consists of two words that have their respective meanings and are combined into one complete entity. Management is a process or framework that involves the guidance or direction of a group of people towards organizational goals or tangible goals.
Understanding Financial Management According to Experts
Some definitions of financial management are as follows:
Bambang Riyanto
overall company activities related to the effort to obtain the funds needed with minimal costs and the most favorable terms and conditions to use these funds as efficiently as possible.
Suad Husnan
management of financial functions.
James Van Horne
all activities related to the acquisition, funding and management of assets with overall objectives.
Grestenberg
how businesses can be funded, how they get funds, how they are used and how professional businesses are distributed.
Liefman
businesses to be able to provide money and use money to get or also obtain assets.
Financial Management is a process in the company's financial activities related to efforts to obtain company funds and minimize company costs and also financial management efforts of a business entity or organization to be able to achieve financial goals that have been set.