What are the steps to set up an integrated accounting system?

Accounting SystemsStep1Choose the accounting method that your new business will use. There are two methods: cash and accrual basis accounting. Choose the method that fits your business needs the closest. Cash basis accounting records cash receipts and cash payments when they occur. There is not a need for accounts payable or accounts receivable. Accrual basis accounting recognizes revenue when it is earned not paid, and expenses are recorded when incurred.Step2Choose whether you will use an accounting software program or employ a manual accounting ledger system. It is much easier and less problematic to buy an accounting software system. The user does not have to be an accountant to use several of the accounting software programs on the market. Choose Quickbooks or Peachtree for smaller businesses. The tutorial will walk you through setting up your company and its chart of accounts. Establish accounts for each type of activity, including revenue, expenses and owners equity. Step3Establish a method for entering invoices, bills and revenues. Establish parameters around who will enter the data into the accounting system, when the data will be entered and who will be the one responsible for entering it. Write these steps down, and map them using a process mapping format. Use either Microsoft Visio or a graphing tablet. Once this process is mapped out, it will easier to train people how to follow your process, and it will keep you on track.Step4Choose an accountant that can review your books once a month or once per quarter. It is not enough to simply enter the data. An accountant is trained to extrapolate information from the data that is critical to the success of your business. Choose an accountant that you can gain good references on and that is close to your place of business. Choose an accountant that is credentialed and certified in your state.Things NeededAccounting SoftwareBusiness DictionaryGraph PaperFolders

To set upan accounting systemande-learning as accounting programs are designed according to the company's activity and its size can be purchased ready to use  the program or a specialized company to preparethe program and secure the programs of  the dangers of manipulation and fraud in the financial statements and reports