Financial Accounting System Setup and Operation: Assignment Solution

This assignment delves into the core aspects of setting up and operating a computerized accounting system. It begins by identifying the key characteristics of such systems, highlighting their efficiency and accuracy in handling large transaction volumes, as well as their ability to generate quality reports and reduce paperwork. The assignment then outlines the organizational requirements for implementing a computerized accounting system, including software selection, chart of accounts maintenance, and payment processing. It also explores the legal requirements for information privacy and security within the financial services industry, emphasizing the protection of customer data under the Privacy Act 1988. The assignment further examines the essential information that should be included in financial source documents, such as invoices and bank statements. It provides resources for technical support with MYOB AccountRight software. Finally, it addresses the crucial topic of securing financial information, detailing methods like encryption, two-factor authentication, activity tracking, and cloud-based storage. The provided solution covers all the questions in the assignment brief and provides detailed answers, including relevant references.

Running Head: Set-Up & Operate A Computerized Accounting System
Set-up & operate a computerized accounting system
Accounts
STUDENT NAME:
Professor Name:
Date:

Set-Up & Operate A Computerized Accounting System
1. Identify the main characteristics of computerised accounting systems. (List 5)
Answer 1. Characteristics of Computerized Accounting System (CAS) are as follows:
1. Computerized Accounting System has the ability to handle large number of
transactions with the required speed and accuracy
2. This system can provide quality and quick reporting because of its high-level speed
and accuracy
3. Earlier companies had to keep large stack of accounting books and reports but with
the introduction of Computerized Accounting System all the above books and reports
are stored in computer. A considerable reduction in paper work and wastage of papers
have been noticed (Jensen, 2017)
4. Uniformity in maintaining accounting statements and financial reports has been
successfully achieved due to CAS.
5. CAS produces real time and comprehensive MIS reports facilitating easy and instant
access to complete and significant information (Leonard, 2019).
2. What are the organisational requirements related to setting up and operating a
computerised accounting system?
Answer 2. The organisational requirements related to setting up and operating a computerised
accounting system are as follows:
1. Extensive research is required for selecting the accounting software package which
depends upon the nature and size of business. Examples of such accounting software
package include Peachtree, QuickBooks etc.
2. Maintain chart of accounts accounting to national standards and organisational
requirements
3. Process payments in according with organisational procedure
4. Setting up bank accounts and enter any important details or information relating to the
suppliers or customers
5. The source documents like invoices, bank statements, credit card receipt, sales order
etc should be analysed and verified thoroughly to check accuracy and ensure it
complies with the tax laws
6. Petty cash system should be put into place and maintain properly
7. Transactions through credit card are processed against source documents like invoices
and then verification and reconciliation take place against the statements of credit
cards
8. Proper management of bank reconciliations and preparation of required financial
reports (Nelson, 2017).
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Set-Up & Operate A Computerized Accounting System
3. Explain the requirements of relevant financial services industry legislation relating to
information privacy and security when using computerised accounting systems
Answer 3. Requirements of relevant financial services industry legislation relating to
information privacy and security when using computerised accounting systems are as
follows:
i. Under Privacy Act, 1988 it is mandatory to protect the customers’ personal
information
ii. The collected personal information should be deleted once it is used or no longer
necessary for business records
iii. There exist many other obligations under Privacy Act that are required to be kept in
mind during the process of securing personal information. It may include “Cross-
border disclosure of personal information) under APP 8 and “Access to personal
information” under APP 12 (Office of Australian Information Commissioner, 2018).
4. What the information should be included in the source documents of financial data?
Answer 4. Following information should be mentioned in the source documents of financial
data:
1. Name and logo of business
2. Transaction date
3. Transaction related description
4. Transactions’ specific value
For instance, invoice of a company should have the following information mentioned
over it:
 Details of the goods and services provided
 Prices of the provided goods and services
 Date on which payment is supposed to be made
 Banking details of the business account for receiving the payment etc.
Bank statements is another type of source document which enlist all the transactions taken
place in the bank account.
5. Find the sources (e.g. website) of technical supportwith MYOB AccountRight software
program
Answer 5. The sources of technical support with MYOB AccountRight software program are
as follows:
i. For Starting out and installing:
https://www.myob.com/au/support/download-accountright
https://help.myob.com/wiki/pages/viewpage.action?pageId=5668930
https://www.myob.com/au/support/accountright?
productFamily=AccountRight&productVersion=AccountRight%202019
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Set-Up & Operate A Computerized Accounting System
https://help.myob.com/wiki/display/ar/Personalising+invoices
https://academy.myob.com/?_ga=2.25618429.1122821749.1582975291-
2007933276.1582975291
https://academy.myob.com/?_ga=2.61761516.1122821749.1582975291-
2007933276.1582975291
ii. For Upgrade AccountRight:
https://help.myob.com/wiki/display/ar/Upgrade+to+the+new+AccountRight
http://help.myob.com.au/showme/index.htm?
_ga=2.223783771.1122821749.1582975291-2007933276.1582975291#upgraded
http://help.myob.com.au/showme/index.htm?
&_ga=2.223783771.1122821749.1582975291-2007933276.1582975291#moveforms
http://help.myob.com/wiki/x/LoBW?_ga=2.223783771.1122821749.1582975291-
2007933276.1582975291
http://help.myob.com/wiki/x/WYBW?_ga=2.65963886.1122821749.1582975291-
2007933276.1582975291
iii. For End of financial year:
https://www.myob.com/au/small-business/end-of-financial-year
https://www.myob.com/au/small-business/end-of-financial-year-webcasts
https://help.myob.com/wiki/display/ar/Setting+up+Single+Touch+Payroll+reporting
http://help.myob.com/wiki/x/v4BW?_ga=2.268807857.1122821749.1582975291-
2007933276.1582975291
https://help.myob.com/wiki/display/ar/
End+of+year+finalisation+with+Single+Touch+Payroll+reporting
http://help.myob.com/wiki/x/voBW?_ga=2.24094586.1122821749.1582975291-
2007933276.1582975291
iv. For Classroom training
https://academy.myob.com/classroom/au/business-tools/basics
https://academy.myob.com/classroom/au/myob-accountright/day-to-day
https://academy.myob.com/
https://academy.myob.com/classroom/au/myob-accountright/inventory-management
https://academy.myob.com/classroom/au/myob-accountright/end-of-period
v. For Troubleshooting
http://help.myob.com/wiki/x/XoBW?_ga=2.268255822.1122821749.1582975291-
2007933276.1582975291
https://help.myob.com/wiki/display/ar/Activation+and+confirmation+errors
https://help.myob.com/wiki/pages/viewpage.action?pageId=5668902
http://help.myob.com/wiki/x/NYFW?_ga=2.20884344.1122821749.1582975291-
2007933276.1582975291
https://help.myob.com/wiki/display/ar/Troubleshooting+online+files
http://help.myob.com/wiki/x/r4Be?_ga=2.20884344.1122821749.1582975291-
2007933276.1582975291
https://www.myob.com/au/support/downloads
vi. For My Account:
https://my.myob.com.au/Pages/ProductRegistration.aspx?
_ga=2.224233179.1122821749.1582975291-2007933276.1582975291
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Set-Up & Operate A Computerized Accounting System
https://my.myob.com.au/Pages/Default.aspx?
_ga=2.190271339.1122821749.1582975291-2007933276.1582975291
http://help.myob.com/wiki/x/jYFW?_ga=2.190271339.1122821749.1582975291-
2007933276.1582975291
http://help.myob.com/wiki/x/WYBW?_ga=2.190271339.1122821749.1582975291-
2007933276.1582975291
https://www.myob.com/au/contact-us
6. How will you make sure that financial information in your organisation is stored
securely?
Answer 6. In the following ways business can store their financial information securely:
1. files that contained banking information should be encrypted
2. Two-factor authentication should be added on the business bank accounts
3. Activity tracking software should be installed to keep a track on login and other
related activity. This would help in knowing when and by whom the files with
sensitive information were accessed
4. Cloud based services should be used by business. All the financial information should
be stored on cloud to reduce the risk of fraud and hacking. The data stored on cloud
are encrypted and can be securely accessed by accountants
5. The financial information stored on the hard disk of device can be protected through
image overwriting or disc encryption which are in-built functions.
6. Staff should be told to make use of ‘secure print’ option with the help of which files
are secured with password at the time of printing. The set password should be entered
for releasing the document at device (Bluestar direct, 2014).
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Set-Up & Operate A Computerized Accounting System
Referencing
Bluestar direct. (2014). HOW TO PROTECT YOUR ORGANISATION’S DATA FROM A
SECURITY BREACH. Available at: https://www.bluestardirect.com.au/how-to-protect-your-
organisations-data-from-a-security-breach/ (29 February, 2020).
Jensen, J. (2017). How to Update Peachtree Accounting.50. Available at:
https://bizfluent.com/how-7347251-update-peachtree-accounting.html (29 February, 2020).
Leonard, K. (2019). Advantages & Disadvantages of Computerized Accounting. Available at:
https://smallbusiness.chron.com/advantages-disadvantages-computerized-accounting-4911.html
(29 February, 2020).
Nelson, D. (2017). How to Prepare to Switch From Manual to Computerized Accounting.
Available at: https://bizfluent.com/how-5896824-prepare-switch-manual-computerized-
accounting.html (29 February, 2020).
Office of the Australian Information Commissioner. (2018). Guide to securing personal
information. Available at: https://www.oaic.gov.au/privacy/guidance-and-advice/guide-to-
securing-personal-information/#what-is-personal-information-security (29 February, 2020).
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