Personal Accounting System

Introduction

Accounting is one of the most challenging courses in the education. Due to the various effects of globalization, the accounting strategies that applied in the businesses are the most effective way to secure the financial resources. The financial aspect of the business is the most important strength in all of the type of businesses. Accounting system in the businesses plays an essential role in helping the business leaders generate their own decisions. And with the appropriate application of the accounting methods, the entire organization can be drive directly to the success of the business.

Background and Statement of the Problem

Accountancy or accounting functions in today’s world is expected to be competitive because of the impact of the globalization or international markets. Accounting functions are often perceived as the tools for the business leaders to create the sound decisions. Thereto, many experts as well as business analysts congregate the idea that appropriate functions of accounting managers can contribute to the overall efficiency of the company. With due respect to the accounting professions, many successful companies hire more than two accountants which many analysts stated as a strong signal of the organizations effectiveness. However, what is the most appropriate and effective method in the application of the accounting in the system?

Research Aim

The research is aiming to provide the quality answer regarding the use of the accounting system. With the help of the appropriate knowledge and use of the methods, the study can reach the required solution in consideration of answering the applicable accounting methods.

Objectives of the Study

The objective of the study is divided in to two. The first objective is to address the various problems regarding the application of the accounting principles in the system.. Second is to recognize the various methods being applied in the accounting system, and as a result, the most comprehensive accounting method can be recognized.

Research Questions

The study recognizes the need of the organization in the alignment of their accounting system. Therefore, there are several questions that can help the study meet its own objectives.

1. What are the recognized applications of accounting methods in the accounting system?

2. What are the common problems that may arise in the accounting system?

3. What is the most eligible method in the accounting system?

Literature Review

Various accounting education became part of the education. Through the educational settings, the control in the financial resources is placed in the hands of the accountants. Moreover, they can assess the various difficulties that might involve in the accounting profession (McKinstry and Fletcher, 2002). The participation of the accounting system in the control of the resource can be the technology of control (Yayla, 2007). Every accounting manager is given a chance to perform his function and the same time with the level of control. Accounting, as a form of transactions, also conceptualized the importance of the relationship or interaction between the control and the trust building. The accounting control being given by the managers is under the organizational structure therewith having the potential in safeguarding the organizations long-term interests. As a technology of control, the accounting enables the leaders or the managers to commit themselves in giving decisions in relation to the calculations and presentation of accounts of the reports. Through the deep understanding of the business corporate, the control can be given which will result in positive behavioral expectations. The performance of the manager depends on how well he used the allocated resources in finishing the business operation without any additional costs and in a given time (Tanner, 2007).

The strategic control functions in providing the information about the enterprise’s financial and long-run competitive performance, different market conditions, the consumers taste and preferences, and various technological innovations (Heeren, 2001). In the relation of the technology, accounting professionals welcomes the idea of the software that can help them in their everyday tasks. Aside from the computers, the managerial accountants can use different templates or database where they can easily access on the recorded data. Meanwhile, the costing system can be used by the financial manager to help them guide in thorough decision making (Brierley, 2004).

Study Methodology Design

The applied study methodology is the use of the secondary data. Through the past studies of the researchers regarding the application of the accounting system can be the most applicable instrument. Based on the applied research method, the assurance of the quality answer can attain. Based on the secondary studies, the accounting methods in the financial system of the organization can be identified. In addition, this includes the role of the accounting in the financial system can be emphasized.

References:

Heeren, A., 2001. Management Accounting for Sustainable Development [Online] Available at: http://www.p2pays.org/ref/26/25585.pdf [Accessed 23 March 2010].

McKinstry, S., & Fletcher, M., 2002. The Personal Account Books of Sir Walter Scott, The Accounting Historians Journal, Vol. 29, No. 2.

Tanner, D., 2007. Comparison of Management Accounting and Financial Accounting, Introduction to Managerial Accounting [Online] Available at: http://www.unf.edu/~dtanner/dtch/ch1.pdf [Accessed 23 March 2010].

Yayla, H., 2007. Accounting and Language [Online] Available at: http://www.cf.ac.uk/carbs/conferences/abfh07/yayla.pdf [Accessed 23 March 2010].