An accounting system analysis includes three main parts which are as follows:
• Analysis
The accounting system is the concrete base on which every business company is dependent. It is through the accounting process by which the performance and the financial position of a business are measured. As the business environment is dynamic in nature, the requirements of the business companies also keep on changing. In addition to that, it is very important for the company to analyze the accounting system from time to time in order to identify the changes required to be made with the change in the nature and type of the business and the transactions. After analysis of the changes, the company start to modify the accounting system as per the requirements.
• Design
After the analysis process, the designing of the accounting system gets started. The new accounting system must fulfill the requirements of the company as well as the requirements of the individuals who play an important role in the accounting business. It must contain revised and updated accounting laws and principles and other updates related to tax rates etc.
• Implementation
After the analysis and designing of the required accounting system, the next part is implementation. It is a time-consuming process, even after the implementation of the new system there may be many things that may require changes. The accounting team of the business must also be provided with adequate training regarding the new accounting system. The complexity of the accounting system is also a factor that decides the time for implementation of the system.
These are the main three parts of the accounting system analysis that must be focused on by the businesses. Through a proper accounting system, the company can attain the required growth without any constraints.
