Principles of Accounting Information Systems Design

A. Design of Accounting Reports1. Evaluate performance2. Pinpoint operating problems, deficiences and opportunities3. Evaluate alternartive courses of action in quantitative terms with recommendations

B. Design of Procedures1. Be consistent with company policies.2. Consider the company's organizational structure.3. Accomplish their objective efficiently and effectively.4. Provide for necessary management.5. Interrelated with other company procedures.6. Consider capabilities and limitations of personnel.

C. Classification and Coding of Accounts1. Report requirements.2. Company's organizational set-up.3. Requirement to establish accountability and control.4. Use of equipment and devices.

D. Design of Ledgers1. Be adequate to provide the information needed for various reports.2. Contain only one kind of data.3. Be arranged to facilitate economical and speedy preparation of report.4. Clearly indicate and describe the data contained in it.5. Be useful in establishing accountability and control.6. Conform to any laws and regulations affecting the company.

E. Design of Journal

1. Special journals should be used to record repititive transactions of the same class or nature.2. General journal is used to record those transactions that cannot be entered in the special journal.3. Specific column headings fir most frequently used account should be written in advance.4. "Sundry accounts" column should be provided for by classifying and posting accounts not provided for by special columns.5. Economical and efficient recording of transactions should be facilitated.

F. Design of Forms1. Be properly identified.2. Be serially numbered.3. Carry necessary instructions.4. Logically arrange data.5. Facilitate the recordinh of data.6. Provide for all necessary signatures together with dates, title and other data.7. Consider internal control requirements.