Week 1
Environmental Course code: GST211
Sustainability Topic: Environmental Studies
Course Name
Introduction to Financial
Accounting
Topic: Accounting Systems
Week 4
© Copyright 2021 MIVA Open University All Rights Reserved
Week 4
Introduction to Topic: Accounting Systems
Financial Accounting
In Summary
This week, you learned about accounting systems and their
significance in managing financial transactions. You explored
accounting records, data sources, books of prime entry,
the nominal ledger, and the choice between manual and
computerised accounting. You understood how accurate
records tracked cash flows, receivables, payables, sales,
and purchases, providing valuable insights into a business’s
financial position. Various documents, like invoices and
statements, served as data sources. Finally, you also learned
about the benefits of using a nominal ledger and the option
of manual or computerised accounting systems.
Bullet point summary
• Accounting systems are crucial for managing • The choice between manual and computerised
financial transactions and recording business accounting systems offers different advantages
events accurately. and can streamline the accounting process.
• Accounting records help track cash flows, receivables,
payables, sales, and purchases, providing insights
into a company’s financial position.
• Various documents such as invoices, statements,
and remittance advice serve as data sources for
recording transactions.
• Books of prime entry, including the sales day book,
purchase day book, cash book, petty cash book,
and journal, ensure organised and consistent
recording of transactions.
Key references:
© Copyright 2021 MIVA Open University All Rights Reserved
“Akesinro, S., Abayomi, Adetoso, J., & Adegoke. (2016). The Imperatives of Accounting and Financial
Records in the Development of Small Scale Enterprises in Nigeria. Research Journal of Finance
and Accounting, www.iiste.org, ISSN, 7(14), 2222–2847.
Week 4
Introduction to Topic: Accounting Systems
Financial Accounting
Case study
Title: Streamlining Accounting Processes for Objective: The objective of this case study was to
ABC Corporation implement an automated accounting system that
would streamline processes, improve accuracy,
Introduction: ABC Corporation, a medium-sized provide real-time financial insights, and enhance
manufacturing company, was facing challenges decision-making for ABC Corporation.
in managing its accounting processes efficiently.
The existing manual accounting system was Methods: This study involves conducting a needs
time-consuming, prone to errors, and lacked assessment to identify areas for improvement,
adequate data analysis capabilities. As a result, selecting and implementing accounting software,
financial reporting was delayed, decision-making and providing training for a smooth transition to
was hindered, and there was a lack of visibility an automated system, enhancing efficiency and
into the company’s financial performance. accuracy.
Questions to ponder
• What are the current accounting
systems and processes in place,
and how effective are they in
meeting the organisation’s needs?
• What are the main challenges or Skills and competencies you have
pain points experienced in the acquired after this lesson
current accounting processes?
Financial literacy, Bookkeeping, Financial analysis,
• What specific requirements and Software proficiency, Attention to detail, Problem-
objectives should be considered solving, Communication, Ethics and integrity, Time
in improving the accounting management and Continuous learning
systems?
Personal reflection
Accounting systems ensure accurate recording of
financial transactions for effective management,
analysis, and decision-making in business
operations. Accounting systems play a crucial role
in recording and organising financial transactions,
enabling businesses to track their performance and
make informed decisions.
© Copyright 2021 MIVA Open University All Rights Reserved Key references:
“Akesinro, S., Abayomi, Adetoso, J., & Adegoke. (2016). The Imperatives of Accounting and Financial
Records in the Development of Small Scale Enterprises in Nigeria. Research Journal of Finance
and Accounting, www.iiste.org, ISSN, 7(14), 2222–2847.
