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PREFACE

Practice orientation of management student is must generating competence to


deal with issues at grass root level it is for this reason that Research project
study is prescribed as apart of syllabus for MBA Degree in . The main
objective of this project is the
Study

on

Computerization

accounting

system

of

TAEHWA

ENTERPRISES INDIA PVT.LTD. .


This project was also carried out to understand the future Outlook of the
TAEHWA ENTERPRISES INDIA PVT.LTD. . Another motive includes finding
about the key financial condition of TAEHWA ENTERPRISES INDIA
PVT.LTD. .. . .

Computerization accounting system, Accounting is a necessary function for any


business. All businesses must keep a record of their income and expenses and
the records should be as detailed as possible. For some, the idea of spreadsheets,
general journal books and ledger sheets is frightening. For these people,
computerized accounting could be a welcome relief.

The Performance of TAEHWA ENTERPRISES INDIA PVT.LTD. . are


increasing day by day. Profits of the company are also increasing; E.P.S of all
the companies is also good.
I have tried to put my maximum effort to get the accurate statistical data.
However I would appreciate if any mistakes are brought to my by the reader.

TABLE OF CONTENT

S.NO

CONTENTS

PAGE NO.

01

INTRODUCTION

03

02

COMPANY PROFILE

38

03

OBJECTIVE OF THE STUDY

50

04

RESEARCH METHODOLOGY

52

05

DATAANALYSIS &INTERPRETATION

56

06

FINDINGS

67

07

SUGGESTION

70

08

CONCLUSION

72

09

BIBLIOGRAPHY

74

10

ANNEXURE

76

CHAPTER NO-01

INTRODUCTION

1. The Accounting System

Accounting is the method in which financial information is gathered, processed,


and summarized into financial statements and reports. An accounting system
can be represented by the following graphic.

Fig 1.1 The Accounting System


The purpose of accounting is to provide information used in decision making.
Accounting may be viewed as a system (a process) that converts data into useful
information.
Information processes include:
o

Recording

Maintaining

Reporting

Every business has numerous processes. Some simple, others complex and
cumbersome. But as the business grows, acquires new customers, enters new
markets and keeps pace with constant changes in statutory regulations... the
company will need to maintain highly accurate and up-to-date accounting,
inventory and statutory records.
This is where a computerized accounting helps simplify, integrate, and
streamline all the business processes, cost-effectively and easily.
2. Salient Features of Computerized accounting
2.1. Fast, Powerful, Simple and Integrated

Computerized accounting is designed to automate and integrate all the business


operations, such as sales, finance, purchase, inventory and manufacturing. With
Computerized accounting, accurate, up-to-date business information is literally
at the fingertips. The Computerized accounting combine with enhanced MIS,
Multi-lingual and Data organization capabilities to help the company simplify
all the business processes easily and cost-effectively.
2.2. Complete Visibility
Computerized accountings giving the company sufficient time to plan, increase
the customer base, and enhance customer satisfaction. With Computerized
accounting the company will have greater visibility into the day-to-day business
operations and access to vital information.
2.3. Enhanced User Experience
Computerized accounting allows the company to enter data in a variety of ways
which makes work a pleasure. Adapting to the specific business needs is
possible.
2.4. Accuracy, Speed
Computerized accounting has User-definable templates which provides fast,
accurate data entry of the transactions; thereafter all documents and reports can
be generated automatically, at the press of a button.
2.5. Scalability
Computerized accounting adapts to the current and future needs of the business,
irrespective of its size or style.
2.6. Power

Computerized accounting has the ability to handle huge volumes of


transactions without compromising on speed or efficiency.
2.7. For Improved Business Performance
Computerized accounting is a highly integrated application that transforms the
business processes with its performance enhancing features which encompass
accounting, inventory, reporting and statutory processes. This helps the
company access information faster, and takes quicker decisions. Computerized
accounting also guarantees real-time optimization of operations and enhanced
communication.
2.7. Quick Decision Making
Generates real-time, comprehensive MIS reports and ensures access to complete
and critical information, instantly.
2.8. Complete Reliability
Computerized accounting makes sure that the critical financial information is
accurate, controlled and safe from data corruption.
3. Advantages of Computerized accounting

Automation of tedious clerical jobs

Speed and accuracy

Low cost of packages

Automatic generation of standard reports

Redundant data storage permits efficient generations of some reports

Increase revenue while lowering operating costs and enhancing


competitive advantage of the company.

4. Disadvantages of Computerized accounting

Transactions orientation only

Periodic not real time reporting

Limited flexibility for ad hoc reports

Computerized Accounting System

This is the question which arose many a time when we came face to face with
the first time buyers of an automated computerized Accounting Solution. Well
there are five major points which can make you rethink whether you want to
stay manual or you want to move with the world. Most organizations seek the
following benefits from accounts automation:

Efficiency Increment

Costs Reduction - Time costs can cut into half or may be less even

Elimination of Human Error - can reduce the risk of error to almost nil

Reports Generation - you no longer have to wait for a whole day to get
the reports

Know Your Position - you are constantly aware of all the transactions
being processed in the system.
What should I look for before the Implementation of the System?
You have to evaluate your employees for a start. You have to know at what level
of ease they can use the computers in general, before the implementation of the
system. Because this will create its impact on the timelines as well as the overall
understandings of the product. Remember, decisions are made by people, not
computers. Computers can help you reduce your time of evaluations and
decrease the time cost. Someone in the organization still has to understand
debits and credits, decide what account code to charge each transaction to,
determine whether an error has been made and, if so, how to correct that error.
Which Software Should I Buy?

Well, there is no one definite answer to this question. To understand why,


imagine answering the question, What's the best car to buy? In order to answer,
you would first need to ask questions such as: How many passengers do you
normally have? How much are you willing to spend? What features are
important to you? One of these considerations might outweigh all of the others.
Once you have all the information, there might be two or three cars which meet
the criteria. The final decision will be based on personal preference. So, you
have to decide what you want in the software.
What should be My Selection Criteria?
We have a detailed list of all the items that you should incorporate in your
decision making list. But give you a brief understanding of what you should
look for in the system, these points can help you to a great extend.

Cost of Ownership - What is the price of the product?

Implementations Difficulties - what hurdles can I and must I face during


Implementation

Usage Difficulties - What difficulties will I encounter during the actual


usage

Functionalities of the Solution - Does it cater all my needs?

Hardware Requirement - Will I have to buy additional machines?

Growth of the Solution - Will the solution able to support me during the
long run?

Local Support - What are the local expertise of the solution?

Developers Background - What is the credibility of the vendor?


But My Manual System is Good Enough for Me!
That is what they all thought before the first implementation of any
computerized solution!. For example, if we take the example of spread sheetsSince there are so few controls for spreadsheet; numbers can be easily changed,
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damaging the integrity of your financial reports. And guess what- if you are
comfortable with the looks of the spreadsheets, you can easily export the reports
to excel thus maintaining the integrity of the data while having a customized
report!
Similarly, it is not a good idea to keep your books on database software which
does not have the controls or reporting capability of accounting software.
Finally, many consultants do not recommend using checkbook software for
nonprofit bookkeeping. The attraction of checkbook software is that it is easy to
use. However, most nonprofits outgrow checkbook software quickly because it
does not use double-entry bookkeeping and its reporting capabilities are often
very limited
Computerized Accounting; Internal Control
[Abstract]: With the rapid Development of electronic Technology and the
popularity

of

the

use

of

computerized Information systems,

computerized accounting internal controls in the continuous


emergence of new issues on the enterprise internal control system
would be a great impact on the enterprise the internal control system
in the new environment seems behind the curve, due to the
particularity of computerized accounting system, establish a set of
computerized accounting system for the internal control system has
become particularly important. Through analysis, the author from
the basic norms of internal control, function control, safety control,
internal audit carried out briefly on several aspects.
Computerized Accounting is based on contemporary Computer technologybased electronic Technology and Information Technology applied to
the accounting practice in the short based on its own characteristics,
and manual accounting as compared with the computing speed,
storage capacity, a high degree of data sharing, Search query speed
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fast, easy to produce reports, data analysis and accurately and so on.
Its use, the accounting staff can save a lot of human, material and
time. Control and accounting are inseparable. Internal control is to
maintain units in accounting for the reliability of accounting data,
business effectiveness and integrity of the property to develop the
rules and regulations, organizational measures management
methods, business process procedures and other control measures in
general.
1, the accounting impact of computerization on the internal
control
Computerized Accounting traditional accounting system,
organization, accounting and internal control systems and other
forms of great changes have taken place, including the impact of the
internal control system is most evident. Mainly manifested in the
following areas:
1. Control object to change
Computerization conditions, the internal control of the control object from
the right into people's control-oriented people, machine control. In a
transaction

occurs,

the

relevantInformation relating

to

the

transaction by the business staff entered into the Computer by


the Computer automatically records each transaction must have
previously used a variety of documents, documents are pArt of the
cancellation, the original in the accounting process needed to
perform

the

procedure,

considerable

portion

becomes

automatically by a computer.
Application for permit to adopt Computerized Accounting System (CAS)
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DESCRIPTION
Computerized Accounting System (CAS) refers to the integration of different
component systems to produce computerized books of accounts and computergenerated accounting records and documents.
TAX FORM
BIR Form 1900 - Application for Authority to Adopt Computerized Accounting
System or Components Thereof
OCUMENTARY REQUIREMENTS
A. Initial Application to Adopt CAS And Or Components Thereof
-Accomplished BIR Form 1900 (Application for Authority to Adopt
Computerized Accounting System (CAS) and/or Components Thereof/Looseleaf Books of Accounts, 2002 Enhanced version) and/or BIR Form 1907
(Application for Permit to Use Cash Register Machine/Point of Sale Machine,
2002 Enhanced Version)
Company Profile:
-Photocopy of BIR Certificate of Registration
- Photocopy of Previously Issued Permit, if applicable
- Photocopy of Current Registration Fee Payment
- Location map of the place of business
- Inventory of previously approved unused Invoices and receipts, if applicable
- List of branches that will use CAS, if any

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Technical Requirements:
- Application Name and Software Used (Development & Database)
- Functions and Features of the application
- System Flow/s
- Process Flow
- Back-up Procedure, Disaster and Recovery Plan
- Sworn Statement and Proof of System Ownership
- List of Reports and Correspondences that can be generated from the system
with their description, purpose and sample layout
- Facsimile of System Generated Loose-leaf Books of Accounts and List
thereof/Receipts/Invoices
- Additional requirements in case of affiliated companies/sister companies,
franchisees and branches:
- Photocopy of previously issued permit for mother/sister company or another
branch using the same system, if applicable
- Certification from the Computerized System Evaluation Team (CSET), which
previously evaluated the approve system

B. Application For System Enhancement/Modification

- Photocopy of the previously issued Permit to Adopt CAS or Components


Thereof; and
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- Letter to the BIR detailing the enhancement/modification to be made on the


previously approved CAS or Components Thereof
PROCEDURES
A. For Initial Application

All Applications for Permit to Use CAS, whether by the Head Office or
branches, shall be filed at the RDO /LTAD I or II/LTDO having jurisdiction
over the Head Office (HO) of the taxpayer, except in the following cases:

1. The branch adopts CAS ahead of the HO - the application shall be filed by
the Branch with the RDO having jurisdiction over the Branch with a
certification that the HO does not use CAS. In the event that the HO later adopts
the same CAS and the branch with the previously issued permit shall be linked
to it, the permit to be issued to the HO shall include a new permit for the said
Branch, which shall supersede the previously issued permit.
2. The Branch adopts a different CAS from that of its HO - it shall apply for
permit to adopt CAS at the BIR office having jurisdiction over the Branch.

The Permit for CAS shall be issued after a demonstration of the applied system
has been evaluated and recommended for approval by the CSET.

B. For Application for System Enhancement/Modification on the Previously


Approved CAS or Components Thereof

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Taxpayer submits a letter to the RDO or the concerned office of the LTS that
previously issued the permit to adopt CAS about the enhancement and/or
modification on the system together with a photocopy of the previously issued
Permit to Adopt CAS or Components thereof.
DEADLINES
Application for authority to use CAS must be filed before the system is used.
FREQUENTLY ASKED QUESTIONS
1) What is a Computerized Accounting System (CAS)?

It is the integration of different component systems to produce computerized


Books of Accounts and computer generated accounting records and documents.
(RMO 29-2002)

2) What are the components of CAS?

The components of CAS are:

a) General Journal and other subsidiary records


(Note: For General Ledger, though it is a component of CAS, taxpayer must
apply for Permit to Adopt a complete CAS)
b) Sales Book, Purchases Book, Accounts Receivable Book, Accounts Payable
Book, Inventory Book, Payroll Ledgers, Subsidiary Ledgers and other
accounting records
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c) Any application system which generates subsidiary ledger and is part of


official accounting documents such as official receipts (OR), sales and cash
invoices, cash vouchers, journal vouchers, billing statements, sales tickets, etc.
d) Any application system which generates reports required by the BIR (e.g. a
separate report for void and suspended transactions to explain the deduction
from sale, compilation of their integrated/consolidated sales report produced
every end of the day); and
e) Point of Sale (POS) Machine/Cash Register Machine (CRM) connected to a
network or linked to CAS. (RMO 29-2002)

3) Who are required to apply for a Permit to Adopt CAS or Components


Thereof?

a) Taxpayers who will use/adopt:


A complete CAS
Any or some of the components of CAS
e-Invoicing System

b) Taxpayers with valid permits to adopt CAS or component/s thereof but made
systems enhancement/modification that result to change in system release
and/or upgrade in version number. (RMO 29-2002)

4) Who shall apply for permit to use CAS or components thereof if taxpayers
consultants provided the system?

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Taxpayers whose CAS are provided by their consultants (e.g. accounting firms)
shall apply for a separate permit for the use thereof. (RMO 29-2002)

5) In cases of affiliated companies, sister companies, franchisees and closely


held corporations, who shall apply for Permit to Use CAS or Components
thereof?

Affiliated companies, sister companies, franchisees and closely held


corporations shall secure separate permits for the use of CAS at LTAD I or II,
LTDO or RDO. This requirement is without regard whether they are sharing a
server and using exactly the same system previously approved for use by its
mother company or other sister companies. (RMO 29-2002)

6) Where should taxpayers apply for permit to adopt CAS or components


thereof?

All applications for CAS or components thereof whether by Head Office or


Branches shall be filed by the Head Office at the Large Taxpayer Assistance
Division (LTAD) I or II, Large Taxpayer District Office (LTDO) and Revenue
District Office (RDO) having jurisdiction over the taxpayers Head Office
except in the following cases:

In case the branch adopts CAS ahead of the Head Office, the application shall
be filed by the Branch with the RDO having jurisdiction over the branch with a
certification that the Head Office does not use a CAS. In the event that the Head
Office later adopts the same CAS and the branch with a previously issued
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permit shall be linked to it, the permit to be issued to the Head Office shall
include a new permit for the said branch, which shall supersede the previously
issued permit.

In case the branch adopts a different CAS from that of its Head Office, it shall
apply for permit to adopt CAS at the BIR office having jurisdiction over the
branch (RMO 29-2002)

7) When should the application be filed?

The application for permit to use CAS should be applied before the system is
used or the enhanced system is adopted.

8) What are the documents required to be submitted in applying for Permit to


Use CAS?

Accomplished BIR Form 1900 and/or BIR Form 1907


Photocopy of BIR Certificate of Registration
Photocopy of Previously Issued Permit, if applicable
Photocopy of Current Registration Fee Payment
Location map of the place of business
Inventory of previously approved unused invoices and receipts, if applicable
List of branches that will use CAS, if any
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Application Name and Software used (Development and Database)


Functions and Features of the Application
System Flow/s
Process Flow
Sworn Statement & Proof of System Ownership
Back-up Procedure, Disaster and Recovery Plan
List of Reports and Correspondences that can be generated from the system
with their description, purpose and sample lay out
Facsimile of System Generated Loose-leaf Books of Accounts and List
thereof, Receipts/Invoices
Photocopy of previously issued permit of mother/sister company, another
branch using the same system, if applicable
Certification from Computerized System Evaluation Team (CSET) which
previously evaluated the approved system, if applicable (RMO 29-2002)

9) Is the CSET limited to the requirements indicated in the checklist stated in


RMO 29-2002?

As a general rule, yes, provided that CSET shall be allowed to ask for additional
requirements if the need arises during a system demo or upon evaluation of the
application. Provided further, that the taxpayer shall submit the additional
requirements within the required period to process the application otherwise, the
same shall be denied.
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10) Will the BIR issue a temporary permit for the use of CAS?

As a general rule, no temporary permit to adopt CAS shall be issued except


upon approval of the Deputy Commissioner for Operations Group. Temporary
permit shall be issued only based on valid and meritorious cases (e.g., systems
enhancement that need to be done abroad)

The validity of temporary permit approved by the Deputy Commissioner of


Operations may either be shortened or renewed depending on the compliance on
the reason(s) for issuance of the temporary permit by the taxpayer. (RMO 292002)

11) After filing the application, when will the Permit to Adopt CAS and/or
Components Thereof be issued?

Application not requiring systems demo and no cross RDO evaluation 10 days
Application not requiring systems demo with cross 20 days
RDO evaluation
Application requiring systems demo with no cross 30 days
RDO evaluation
Application requiring systems demo with cross 40 days
RDO evaluation (RMO 29-2002)

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12) In case there is an open case, would the issuance of permit be allowed?

Existence of open cases (stop-filer (RCS) cases, audit cases, accounts receivable
(AR) cases, etc.) in the name of the applicant-taxpayer should not be a
hindrance to the issuance of the permit to use CAS and/or Components thereof.

13) Will BIR hold the issuance of permit in case the taxpayer has a penalty
payable, pending collection or audit case?

No, the collection of the penalty or pending collection or audit case is not a
condition precedent in the issuance of permit.

14) In case there is a transfer of application to adopt CAS of the taxpayer from
one district to another, who shall issue the permit to adopt CAS?

In case the evaluation on the application for permit to adopt CAS or


components thereof requires a system demonstration, the RDO that performed
the system demonstration shall issue the permit to adopt CAS or components
thereof. Otherwise, if system demonstration was not yet conducted, the
application including the corresponding documents submitted should be
forwarded to the transferee RDO within five (5) days upon receipt of notice of
transfer who shall then continue the processing of the application. The period to
process shall start as day one (1).

In cases where system demonstration is not required, the originating office


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where the application for CAS was submitted shall issue the permit if at least
80% of the required period (10, 20 days whichever is applicable) to
process/issue the permit has been consumed. Otherwise, the permit shall be
issued by the transferee RDO.

15) In cases of applications for permit requiring Cross-RDO evaluation, who


shall coordinate?

The CSET of the BIR office where the application was filed shall co-ordinate
with the CSET of the other concerned BIR Office in case of evaluation of
application involving branch within the jurisdiction of other office.

16) What is e-Invoicing (Electronic Invoicing System)?

The electronic invoicing system or e-Invoice System refers to the system


developed and maintained by the e-Buyer or e-Seller or both in issuing invoice
electronically through the Internet.

E-Invoice shall include sales invoice, official receipt, billing invoice,


debit/credit notes or such other similar accounting documents issued
electronically through the internet.

17) Is Authority To Print (ATP) Receipts/Invoices still required if the taxpayer


adopts CAS?

Yes. In case of systems downtime, taxpayer shall be required to use pre-printed


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receipts and invoices with ATP which shall not exceed one thousand (1,000) sets
or issue its remaining receipts/invoices out of the inventory of previously
approved unused manually printed receipts and invoices. Also, in cases wherein
the taxpayers system cannot generate official receipts and invoices and the like,
ATP shall be applied following RMO No. 28-2002. (RMO 29-2002)

18) In cases where taxpayers do not qualify under the guidelines on RR No. 1099 and RMO No. 29-2002, what guidelines shall be imposed?

Applications for permit that do not qualify in either issuance shall be elevated to
CSET for proper evaluation and necessary recommendation.

19) Is the manual cash register machine sales book still to be maintained in case
the taxpayer adopts CAS?

Taxpayer with approved CAS capable of generating reports such as but not
limited to daily sales, accumulated sales, etc. need not be required to maintain
manual Cash Register Machine Sales Book provided that all information
required in the manual CRM Sales Book are reflected in the computerized
reports.

However, these computerized reports shall be made available during post


system evaluation of CAS, or duly authorized tax audit of taxpayers records.
(RMO 29-2002)

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20) What are the procedures in the application/approval of the range of serial
numbers to be used for computer-generated receipts and invoices?

Taxpayers shall be required to fill up BIR Form No. 1907 in applying for the
initial range of serial numbers of computer-generated invoices/receipts which
shall be issued.

For the 2nd and succeeding range of serial numbers to be issued in the
generation of invoices/receipts using a Global/National System of Environment,
the following procedures shall be followed:

a) Taxpayers with approved CAS adopting a Global/National System shall be


required to fill up Annex A (Application for Authority to Use the Range of
Serial Number in Generating Invoices/Receipts for a Global and National
System of Environment) for the succeeding range of serial numbers to be issued
in generating computerized invoices/receipts;
b) The properly accomplished Annex A shall be submitted to the TSS of the
BIR office having jurisdiction over the taxpayers principal place of business;
c) The TSS shall receive the properly accomplished Annex A and evaluate the
succeeding range of serial numbers to be issued in generating invoices/receipts;
and
d) After evaluation, the TSS shall prepare a Letter of Approval for the Range of
Serial Numbers to be Used in Generating Invoices/Receipts in a
Global/National System Environment (Annex B) for signature of approving
official and shall issue it to the taxpayer.
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21) Are taxpayers with Global System and using invoices and receipts printed
abroad, required to seek advance approval of the range of serial numbers for
said invoices/receipts?

No, taxpayers with Global System and using invoices and receipts printed
abroad (BIR Ruling No. DA 295-98) shall not be required to seek advance
approval of the next set of pre-approved range of serial number for use in the
Philippines but shall present the pre-numbered invoices and receipts to BIR
concerned office for registration prior to their use. The invoices/receipts herein
referred to shall be tracked using office automation tools of the BIR Office.

For global system under which invoices and receipts are system-generated, the
serial number of invoices/receipts issued or used during the year shall be
stated/presented in chronological sequence of issuance by date of issue in the
CD-ROM that will be registered, together with other accounting records, with
the BIR Office having jurisdiction over the taxpayer within 30 days following
the end of the accounting period.

The taxpayer shall also submit a report on the range of serial numbers of
receipts and invoices which have been consumed and/or cancelled during the
immediately preceding taxable year to the concerned office within 30 days from
the close of the taxable year (RMO 29-2002).

22) Is the taxpayer adopting a CAS required to maintain a hardbound computer


generated books of accounts, receipts and invoices and other accounting records
and have them stamped?

24

The requirement of binding and stamping of a hardbound computerized books


of accounts, receipts and invoices and other accounting records shall no longer
be necessary provided that the taxpayer shall submit an Affidavit on the Post
Reporting Requirements for CAS in Lieu of Hardbound Computer Generated
Books

of

Accounts,

Receipts

and

Invoices

and

other

Accounting

Records/Documents (Annex N of RMO 29-2002) and a soft copy in text file


format of the books of accounts and other accounting records in CD-ROM
properly labeled with the name of taxpayer, taxable year and serial no. and
volume no. of the books of accounts and other accounting records, within 30
days from the close of the taxable year.

However, in case the taxpayer has no capability to submit in CD-ROM form,


procedures under the manual system shall prevail.

23) Where does a taxpayer with a permit to use CAS, register his books of
accounts and submit other accounting records?

The taxpayer shall register with the LTAD I or II, LTDOs or RDOs having
jurisdiction over the principal place of business of taxpayer.

24) Are taxpayers with web-enabled electronically generated receipts/invoices


(e.g. payment through credit card, payment through ATM and other similar webenabled electronically operated receipts/invoices) required to secure permit to
adopt CAS?

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Yes, taxpayer with web-enabled electronically generated receipts and invoices


are required to secure permit to adopt a complete CAS.

25) Who shall conduct the post system evaluation of the approved CAS of a
branch?

The CSET of LTAD I or II, LTDO or RDO having jurisdiction over the Head
Office of the branch shall conduct the post system evaluation of the approved
CAS, provided that there should be proper coordination with the concerned
CSET having jurisdiction over the branch.

26) If during the Post System Evaluation, the CSET members discovered that
the taxpayer is using a system other than that of the approved CAS or a
modified version of the approved CAS, would the recommendation for
revocation of permit be final?

Yes, the revocation of the previously approved permit to use CAS shall be final
and executory. Hence, it is mandatory for the taxpayer to apply for a new
permit.

27) Shall the CSET members be allowed to conduct post system evaluation in
case taxpayers modify/enhance its CAS?

The CSET shall have the authority to conduct post system evaluation through a
Mission Order that shall be secured prior to its conduct.
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28) What shall be the alternative course of action by CSET members in case the
taxpayer prohibits them to check into its server during the post system
evaluation?

The CSET members shall report the taxpayer to the Legal and Enforcement
Service, Attention: Tax Fraud Division.

29) Is the six (6) month period of interval from the date of approval of permit
required before the CSET can conduct post system evaluation?

There is no required period of interval to post evaluate the approved CAS of the
taxpayer. The CSET can conduct post system evaluation of the approved CAS
as the need arises.

30) What are the guidelines/procedures for stamping the CDs of books of
accounts and other accounting records submitted by the taxpayer?

Taxpayer Service Section (TSS) shall:

a) Check if the CD is properly labelled (using the Checklist for checking CD


Annex C) in permanent ink with name, TIN, taxable year and the serial
number and volume number of the books of accounts and other accounting
records/documents;
b) Scan the CD using the prescribed virus scan utilities (it should be virus free);

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c) Get the file size (in case there are two (2) or more file for a month, it should
be properly labelled as volumes 1, 2, etc. of that particular month etc);
d) Open the file using any text editor (example: WordPad, Notepad, etc.);
e) Check the validity of the content of the file (it should be on a monthly basis
and in a text file format.)
f) If CD passes the check criteria, stamped the CD Registered with a
permanent ink and affix the signature of the BIR employee and the date
g) Return duly stamped CD to the taxpayer.

However, if any of the above requirements is not satisfied, return the CD to the
taxpayer with the CD Checklist indicating the reason for rejection.

31) What are the responsibilities of TSS in receiving the CD?

The TSS shall be responsible in the following:


a) Ensure that they have the latest version of the virus signature;
b) Raise all technical issues relative to the submission of the CD which should
be forwarded to RDC Helpdesk;
c) Monitoring the issues raised;
d) Keep the CD checklist for future use.

32) What is the difference between cash receipts and invoices under CAS and
loose-leaf receipts/invoices under the manual system?
28

As long as the contents of the receipts/invoices, in accordance with Sections


237, 238 and 113 of the Tax Reform Act of 1997, are generated by the system,
taxpayers receipts/invoices shall be considered under CAS.

Loose-leaf receipts/invoices under the manual system shall refer to


invoices/receipts that are not generated by CAS or components thereof. Hence,
the CRM/POS machines not linked to CAS used to generate receipts/invoices
shall adhere to the provisions of Revenue Regulations No. 10-99.

33) Is it necessary for the RDO having jurisdiction over the branch that adopts a
CAS to issue a certification of the last serial number of Sales Invoice/Receipt
consumed/cancelled?

The RDO having jurisdiction over the branch is not required to issue a
certification of the last serial number of Sales Invoice/Receipt consumed
/cancelled. Instead, the Taxpayer shall inform the BIR Office having jurisdiction
over the branch by accomplishing Annex M of RMO No. 29-2002 (Report of
the Range of Serial Numbers of Receipts and Invoices Consumed/Cancelled).
(RMO 29-2002)

34) Is modification of header of receipt allowed? Is modification of the header


of accounting reports allowed?

Modification of header of receipt shall be allowed provided that the taxpayer


shall follow the provisions of Sections 237 and 238 of the NIRC of 1997.

29

Modification of report header is allowed which shall depend on the taxpayers


nature of business. Provided however, that it should comply with Sec 232 of the
NIRC and its implementing Bookkeeping Regulations and other related
issuances.

35) In cases of taxpayers adopting an Off The Shelf CAS, would there be a need
to evaluate and conduct Demonstration of the system?

In case there is prior evaluation and approval of an Off The Shelf CAS, hence a
precedent application, the system shall not undergo systems demonstration in its
evaluation. Provided that the Off the Shelf CAS has not been customized in any
manner.

In this regard, a list of approved off-the-shelf CAS shall be monitored and


provided by Information System Group (ISG) to all the CSET members through
a technical bulletin for proper reference.

36) What is the jurisdictional limitation of the divisions under Large Taxpayer
Service in the issuance of permit to use CAS or components thereof?

LTAD I or II and LTDOs, are authorized to issue permit to use CAS or


components thereof of branches of identified taxpayers of LTAD I or II and
LTDOs nation-wide. Provided however, that the concerned RDO where the
branch(es) is(are) located shall be properly notified and necessary coordination
shall be made.

30

Advantages of computerization of accounting


Let me start this article by saying I am a qualified accountant who has
taught accounting at a variety of levels for over 18 years. I have also
worked extensively as a business consultant for small and medium size
enterprises. I am continually amazed when I come across a business either
not using a computerized accounting package or using spread sheets to do
their accounts. Therefore I decided to write a short article on the benefits of
using a computerized accounting package. The package I recommend for
small to medium business is MYOB (Mind Your Own Business) accounting
software package.
Small and medium sized businesses can now buy off the shelf accounting
programs at remarkably low cost. Larger businesses will often have
customized programs made for their business. The accounting programs
carry out functions such as invoicing, dealing with payments, paying wages
and providing regular accounting reports such as trading and profit and loss
accounts and balance sheets.
The

introduction

computerized
systems

of

accounting

provide

major

advantages such as speed and


accuracy of operation, and,
perhaps most importantly, the
ability to see the real-time state
of the companys financial
position. In my experience I
have never seen a business that
has

upgraded

to

a
31

computerized

accounting

system return to paper based


accounting systems.
A

typical

computerized

accounting package will offer a


number of different facilities.
These include:
On-screen input

and

printout

of

sales

invoices
Automatic

updating

of

customer

accounts in the sales ledger

Recording

of

suppliers invoices
Automatic updating of suppliers' accounts in the purchases ledger

Recording of bank receipts

Making payments to suppliers and for expenses

Automatic updating of the general ledger

Automatic adjustment of stock records

Integration of a business database with the accounting program

Automatic calculation of payroll and associated entries


Computerized accounting programs can provide
instant reports for management, for example:

Aged debtors summary a summary of


customer accounts showing overdue amounts

Trial balance, trading and profit and loss


account and balance sheet

Stock valuation
32

Sales analysis

Budget analysis and variance analysis

GST/VAT returns

Payroll analysis

When using a computerized accounting system the on computer, input screens


have been designed for ease of use. The main advantage is that each transaction
needs only to be inputed once, unlike a manual double entry system where two
or three entries are required.
The computerized ledger system is fully integrated. This means that when a
business transaction is inputed on the computer it is recorded in a number of
different accounting records at the same time.
The main advantages of a computerized accounting system are listed below:

Speed data entry onto the computer with its formatted


screens and built-in databases of customers and supplier details and
stock records can be carried out far more quickly than any manual
processing.

Automatic document production fast and accurate invoices,


credit notes, purchase orders, printing statements and payroll documents
are all done automatically.

Accuracy there is less room for errors as only one


accounting entry is needed for each transaction rather than two (or
three) for a manual system.

Up-to-date

information the

accounting

records

are

automatically updated and so account balances (e.g. customer accounts)


will always be up-to-date.
33

Availability of information the data is instantly available

and can be made available to different users in different locations at the


same time.
Management information reports can be produced which

will help management monitor and control the business, for example the
aged debtors analysis will show which customer accounts are overdue,
trial balance, trading and profit and loss account and balance sheet.
GST/VAT return the automatic creation of figures for the

regular GST/VAT returns.


Legibility the onscreen and printed data should always be

legible and so will avoid errors caused by poor figures.


Efficiency better use is made of resources and time; cash

flow should improve through better debt collection and inventory


control.
Staff motivation the system will require staff to be trained to

use new skills, which can make them feel more motivated. Further to
this with many off-the-shelf packages like MYOB the training can be
outsourced and thus making a particular staff member less critical of
business operations.
Cost savings computerized accounting programs reduce staff

time doing accounts and reduce audit expenses as records are neat, upto-date and accurate.
Reduce frustration management can be on top of their

accounts and thus reduce stress levels associated with what is not
known.

The ability to deal in multiple currencies easily many


computerized accounting packages now allow a business to trade in
multiple currencies with ease. Problems associated with exchange rate
changes are minimized.

34

In summary if you have not computerized your accounting you should


seriously consider doing so. I chose to train in MYOB after reviewing all
the small to medium business accounting packages on the market. In my
view MYOB was the best overall package. A free 90 day trial version of
MYOB accounting software can be downloaded from your own countrys
MYOB website. This trial version is the full version but any business set up
with it can only have entries entered for 90 days; after that, purchase of the
software is required. I strongly recommend you download a version and
take a look.
Benefits of computerization of accounting
Accounting is a necessary function for any business. All businesses must keep a
record of their income and expenses and the records should be as detailed as
possible. For some, the idea of spreadsheets, general journal books and ledger
sheets is frightening. For these people, computerized accounting could be a
welcome relief.
The two biggest advantages of a computerized accounting system
are speed and accuracy. When using a manual accounting system, each step in
the accounting cycle must be performed by hand. For example, if a business
pays their electric bill, a check has to be written, an entry must be recorded into
the check register, and the transaction has to be posted to the respective ledgers:
in this case, a debit to the electric companys ledger account and a credit to
cash. This process would need to be repeated for every transaction a business
makes. If the business is small and makes only a few transactions a month, it
would not be much of a problem. But for other businesses, there could be
thousands of transactions, and it could take both a large amount of time and a
substantial staff to keep up.
With a computerized accounting system, the steps described above are
completed with one entry. The journal entries for cash and the electric company
35

are automatically posted to their respective ledgers. What could take several
minutes manually takes only seconds with a computerized accounting system.
Also, because only one entry needs to be made with a computerized system, the
likelihood of an incorrect entry is greatly reduced.
Another advantage is the ease of producing end of period reports. With a
manual system, each general ledger entry would have to be posted to the
financial statements by hand. With a computerized accounting system, each
computerized transaction is automatically posted to both the general journal and
the respective ledgers, which makes producing balance sheets, trial balances,
and end of period financial reports as simple as selecting the desired report from
the menu.
Other advantages to using computerized accounting are:
Instant access to accounting information. Because each entered
transaction is automatically posted to its respective account, all account
information is always up-to-date.
Easy document production. Purchase orders, debit memos, sales receipts,
sales invoices, inventory lists and others can be printed in moments.
Staff motivation. Accounting and bookkeeping departments should run
more smoothly and be more efficient with computerized accounting
software. There will be less time spent on compiling reports.
Legibility. Computerized accounting software eliminates the need to
decipher poor or odd handwriting, eliminating much of the possibility of
error due to misreading a hand-written line item.
Ability for taxes to be computed automatically. This makes paying
quarterly or annual taxes easier since the computerized system will keep a
running total of all taxes owed.

Disadvantage of computerize accounting


36

disadvantages:

Computerized systems are always at risk of being hacked, power failure,


viruses and losing information.

Systems can be costly as they require constant updating and staff need ot
be trained to effectively use the system.

Security issues are posed with a risk of computer fraud.

Human error is often not as quickly identified, and records input need to
be validated for accuracy.

Computerized systems can be difficult to understand and if the systems


are not specifically adapted or set up for the business it can cause havoc to the
accounts.
Disadvantages:

Computerized systems are always at risk of being hacked, power failure,


viruses and losing information.

Systems can be costly as they require constant updating and staff need ot
be trained to effectively use the system.

Security issues are posed with a risk of computer fraud.

Human error is often not as quickly identified, and records input need to
be validated for accuracy.

Computerized systems can be difficult to understand and if the systems


are not specifically adapted or set up for the business it can cause havoc to the
accounts.

37

CHAPTER NO-02

COMPANY

PROFILE

38

TAEHWA ENTERPRISES INDIA PVT. LTD.


Products manufacturing and supplying of house hold, electrical appliances,
meter core system.
Business Type

Manufacturer / Supplier

Year Established

2004,

No. Of Employees

100Products

Manufacturing and Supplying

: House hold, electrical appliances, meter core

system
Products
Voltage meter
Below are the listings of Voltage meter products and suppliers. You can browse
related product categories, and further refine your search by product keywords.
You can also view profiles of other suppliers offering
Voltage meter.

Features:
1. Standard size: 48 x 96mm; 96 x 96mm
2. Sampling speed: 3times/ second
3. Zero adjusting (fixed decimal point)
4. Display range: 1999
5. 0.8 inch large red LED display

39

Technical parameters:
Items of properties: Specific parameters
Power supply voltage: AC220V15% 50/60Hz
Maximum display: 1999 (AC displays effective values)
Input mode: Single terminal input
A/D conversion: Dual integral
Measurement speed: Approx. 3 times/second
Frequency range: 40-200Hz (only for counterflow)
Overflow display: 1 or -1
Polarity

display:

Only

display

-,

only

for

direct

current

Display: 0.8-inch red digital tube


Ambient temperature: -10~60C
Ambient humidity: 0~90%RH
Power consumption: 4VA
Voltage resistance: AC 1500V 1min
Insulating resistance: DC 500V100 M
Accuracy: 0.5%FS 2 digit
Weight: Approx. 350g

Battery voltage meter


We manufacture wide range of Battery Voltage Meters which are made from
high quality materials. These Battery Voltage Meters can availed at industrial
leading price. 0-200 Volts.

40

Digital measuring meter


These X series Digital Measuring Meter is suitable for measuring and
displaying current, voltage, power, frequency, power factor and other electric
parameters, which has the advantages of direct view, high accuracy, high
stability and other characteristics. Widely used in electric power system,
automation control system. Technical Specificatio

Voltage standing wave ratio meter


The SWR meter or VSWR (voltage standing wave ratio) meter measures the
standing wave ratio in a transmission line. This is an item of radio equipment
used to check the quality of the match between the antenna and the transmission
line. The VSWR meter should be connected in the line as close as possible to
the antenna. This is because all practical ...

Digital ampere-voltage-frequency meter (c.t. selectable)Following are the


specifications of Digital Ampere-Voltage-Frequency Meter (C.T. Selectable):
Dimension(H x W x D) mm 96 x 96 x 65 Features CT Ratio
Programmable (up to 800 / 5Amp input) Auto scrolling or manual mode

41

selectable Auto decimal shifting for current (resolution 0.01A, 0.1, 1A)
Brighter Amber Seven Segment LED...

Wall mounting sleek volt meters


These Wall Mounting Sleek Volt Meters are manufactured from very high
quality raw material which ensures hassle free work performance at its user end.
These Wall Mounting Sleek Volt Meters are widely finds its applications in
various electrical sectors.

Portable Submersible Density Meter


We are a trusted name in offering valuable services to our clients all across the
country offering Portable Submersible Density Meters (DM 250.1) that are
certified under ATEX Hazloc. These are highly efficient in measuring liquid
density & temperatures and are operational even in severe climatic conditions at
-30C to +50C (-22F to +122F). These devices can measure with an
accuracy up to 0.0005 g/cm3 (0.5 kg/m) and requires power supply of NiMH
3.6V-1200 mAh.
Features:
* Offers liquid density and temperature measurements

directly in

the storage or process tanks


42

* Automatic temperature compensation


* At any depths up to 30 meters
* Record level density and average per tank

Handheld digital pressure manometer


TOTAL RANGE OF PRESSURE GAUGES / PRESSURE SWITCHES /
TEMPERATURE

GAUGES

THERMO

WELL FOR

SENSORS

TEMPERATURE SENSORS & THERMOCOUPLES.

Handheld ultrasonic flowmeter


Following are the Main Features of Handheld Ultrasonic Flowmeter :Accuracy: 1% Linearity: 0.5% Repeatability: 0.2% Non-intrusive, clamp-on
transducer, no pressure drop, no pipe disturbance. Several types transducer for
selection, measuring pipe size from DN15mm to DN6000mm Built-in 24K data
logger, store over 2000 lines measuring data .

Analog meter

43

Below are the listings of Analog meter products and suppliers. You can browse
related product categories, and further refine your search by product keywords.
You can also view profiles of other suppliers offering Analog meter.

Portable analog meter


PORTABLE

ANALOG

METER

IN

VARIOUS

RANGES

&

SPECIFICATIONS.

Analog meters
ANALOG METERS IN VARIOUS RANGES & SPECIFICATIONS.

Liquid limit apparatus


Below are the listings of Liquid limit apparatus products and suppliers. You
can browse related product categories, and further refine your search by product
keywords. You can also view profiles of other suppliers offering Liquid limit
apparatus.

44

Liquid limit apparatus


Our company deals in liquid limit apparatus that is fabricated to match the
standard specifications of IS: 2720-V. It is made of hard rubber and has a sliding
carriage structure. Its parts included brass cup hinged, casagrande grooving
tools and gauge block. It is operated with hands and is provided with counters.

Liquid limit apparatus


These Liquid Limit Apparatus are made from very high quality raw material
which ensures hassle free work performance at its user end. These Liquid Limit
Apparatus are widely finds its applications in various industrial sectors.

Liquid limit apparatus


Fabricated as per IS: 2720 (Part V), Liquid Limit Apparatus is especially
designed to determine the liquid limit of soil. It is also used to determine the
plasticity index of soil. Liquid Limit is a specific water content at which a
definite part of soil is cut by a groove of standard dimension that will flow
together up to a distance of 1.25cm...

Refractometer
Below are the listings of Refractometer products and suppliers. You can
browse related product categories, and further refine your search by product

45

keywords.

You

can

also

view

profiles

of

other

suppliers

offering Refractometer.

Hand-held refractometer for brix


The series is developed for working with sugar related liquids (fruit juices, soft
drinks wine), help monitor and control sugar concentrations in foods and
beverages. Whether users are checking the ripeness of fruit in the field,
verifying product quality after harvesting, or controlling concentrations during
processing and packaging, refractometer...

Abbe refractometer
Features of Abbe Refractometer: Compact and easy to carry Calibration with
water

Battery

operated

Digital

display

External

Light

Interference

Specifications : Refractive Index : 1.3306 to 1.5284 Resolution : 0.0001


Accuracy : 0.0003 (water at 20C) Ambient Temperature : 10 to 40C

Handheld refractometer
Salient features of Handheld Refractometer: Test the Concentration of the
Battery Fluids. Antifreeze Liquid and Cleaning Fluids. Indicate Freezing Point
for Propylene and Ethylene Glycol. Check the Strength of Electrolyte Solution
Batteries. These Handheld Refractometers are available at industrial leading
price.

46

Gemology refractometer
We are offering our customer a wide range of Gemology Refractometers, which
are manufactured from high grade quality raw materials. These Gemology
Refractometers are widely known for its durability and quality. These
Gemology Refractometers are available at industrial leading price.

Digital hand-held refractometer


The PAL-1 is a completely new and redesigned digital hand-held instrument
that will change the traditional conceptions of refractometers. The PAL-1's
surprisingly compact size allows you to easily carry it around and use it indoors
as well as outdoors. The size, design, function and performance will surprise
you. The PAL-1 with expand your range

Universal hand refractometer


We manufacture and provide precision engineered universal hand refractometer
which is available with a selector knob to indicate measurement. Our hand
refractometer is built in with Amici prism and special light reflection system for

47

color elimination to obtain sharp critical boundary line and optimum contrast.
Our refractometer is available .

Refractometer
These refractometer is a laboratory or field device for the measurement of an
index of refraction. Our refractometer is designed for quick and accurate
examination of the Refractive Indices and Mean Dispersion of Liquid, Solid and
Powder. We offer portable versions of refractometer such as Hand held
Refractometer and Pocket Refractometer.

Oil & sugar refractometer


We have carefully designed and manufactured a range of oil & sugar
refractometer. The optics in the refractometer are nearly entirely enclosed and
protected from the environment. Reflective index range is 1.42 to 1.49 by
conversion table. Our scientists and engineers have offered a range that gives
accurate result and is widely demanded by our clie...

48

Hand held refractometer


he Hand-Held Refractometers are specially designed for measuring the
concentration of many kinds of solution listed as following: Juices, Beverages,
Honey, Salt water, Brine, Cleaning fluid, battery fluid, Antifreeze and Industrial
fluids etc. And they can also test for the proportion of the water-soluble
solution. They can be easily used

49

CHAPTER NO-03

OBJECTIVE OF
STUDY

50

OBJECTIVE OF THE STUDY


PRIMARRY OBJECTIVE:
1. To study about the importance of computerization of accounting
system..
2. To find out the financial condition of TAEHWA ENTERPRISES
INDIA PVT.LTD..
SECONDARY OBJECTIVE:
1. To know how the computerization accounting system is useful for
TAEHWA ENTERPRISES INDIA PVT.LTD
2. To give suggestions, if any, for better accounting system in
TAEHWA ENTERPRISES INDIA PVT.LTD.

51

CHAPTER NO-04

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

52

Research comprises of defining & redefining problems, formulating hypothesis


or suggested solutions, collecting, organizing & evaluating data, making
deductions & reaching conclusions. In research design we decide about:
Type of data
From whom to get data
About sample size
How to analyze data
How to make report
Data collection Methodology
Research refers to the systemic method consisting of enunciating the
problem, a hypothesis, collecting the facts, analyzing the facts and reaching the
certain conclusion either in form of solution towards the concerned problem or
for some theoretical formulation.. The study is based on the facts collected by
observation and internet.
Secondary sources of data mainly include annual reports of TAEHWA
ENTERPRISES INDIA PVT.LTD. .. Apart from this, the website of TAEHWA
ENTERPRISES INDIA PVT.LTD. is referred to know the products, product
facilities, network etc.
Method of Data collection
Sources of secondary data: Books
Websites
Business Magazines
Annual reports of company

53

TOOLS AND TECHNIQUES


As no study could be successfully completed without proper tools and
techniques, same with my project. For the better presentation and right
explanation I used tools of statistics and computer very frequently. And I am
very thankful to all those tools for helping me a lot. Basic tools which I used for
project from statistics are- Pie charts
- Tables
bar charts and pie charts are really useful tools for every research to show the
result in a well clear, ease and simple way. Because I used bar charts and pie
charts in project for showing data in a systematic way, so it need not necessary
for any observer to read all the theoretical detail, simple on seeing the charts
any body could know that what is being said.
Technological Tools
Ms-Word
Ms-excel
Internet
Above application software of Microsoft helped me a lot in making project
more interactive and productive..
Scope of the study
The study gave me a chance to carry Computerization accounting system
along with its various tools used in TAEHWA ENTERPRISES INDIA
PVT.LTD. Computerized accounting is a highly integrated application that
transforms the business processes with its performance enhancing features
which encompass accounting, inventory, reporting and statutory processes. This
helps the company access information faster, and takes quicker decisions.
Computerized accounting also guarantees real-time optimization of operations
and enhanced communication. .

54

Limitations of the study:


Although every effort has been made to study the Financial
Management in detail, in an organization of TAEHWA ENTERPRISES
INDIA PVT.LTD. size, it is not possible to make an exhaustive study in a
limited duration..
The time allocated for the study was limited
Majority of respondents are hesitant in giving their responses whole
heartedly.
The sample size was restricted to 50

55

CHAPTER NO-05

DATA ANALYSIS
&
INTERPRETATION

56

Q.1 Do u think that computerization accounting makes sure that the critical
financial information is accurate?
Response

% No. of respondent

Yes

70

NO

30

INTERPRETATIONOut of 50 respondent 70% respondent were agree while 30% were not agree
with the statement that computerization accounting makes sure that the critical
financial information is accurate.

Q.2.DO you think that Computerized accounting helps in Speed and accuracy?
57

Response

% No. of respondent

Yes

70

NO

30

INTERPRETATIONOut of 50 respondent 70% respondent were agree while 30% were not agree
with the statement that Computerized accounting helps in Speed and accuracy.

. Q.3 Do you think that Computerized accounting helps Increase revenue while
lowering operating costs?
58

Response

% No. of respondent

Yes

65

NO

35

INTERPRETATIONOut of 50 respondent 65 % were agree while 35% were not agree with the
statement that Computerized accounting helps Increase revenue while lowering
operating costs

Q.4 Do you think that Computerized accounting helps enhancing competitive


advantage of the company?

59

Response

% No. of respondent

Strongly agree

33

Agree

47

Neither agree nor disagree

05

Disagree

10

Strongly disagree

05

10 %

05 %

33 %

05 %

47 %

INTERPRETATIONOut of 50 respondent 33% were strongly agree while 47% were agree and only
05% were neither agree nor disagree and 10% respondent were disagree and
05% were strongly disagree with the statement that Computerized accounting
helps enhancing competitive advantage of the company
Q.5. Do you think that Computerized accounting helps in

Automatic

generation of standard reports?

60

Response

% No. of respondent

Strongly agree

37

Agree

43

Neither agree nor disagree

10

Disagree

05

Strongly disagree

05

05 %

05 %

37 %

10 %

43 %
INTERPRETATIONOut of 50 respondent 37% were strongly agree while 43% were agree and only
10% were neither agree nor disagree and 05% respondent were disagree and
05% were strongly disagree with the statement that Computerized accounting
helps in Automatic generation of standard reports.

Q.6 DO you think that computerized accounting helps in Automation of tedious


clerical jobs?
61

Response

% No. of respondent

Yes

65

NO

35

INTERPRETATIONOut of 50 respondent 65 % were agree while 35% were not agree with the
statement that computerized accounting helps in Automation of tedious clerical
jobs
Q.7 Do you think that Computerized accounting helps in Up-to-date
information ?

Response

% No. of respondent
62

Strongly agree

33

Agree

47

Neither agree nor disagree

05

Disagree

10

Strongly disagree

05

10 %

05 %

33 %

05 %

47 %

INTERPRETATIONOut of 50 respondent 33% were strongly agree while 47% were agree and only
05% were neither agree nor disagree and 10% respondent were disagree and
05% were strongly disagree with the statement that Computerized accounting
helps in Up-to-date information
Q.8Do you think that Computerized accounting have ability to deal in multiple
currencies easily ?

63

Response

% No. of respondent

Strongly agree

37

Agree

43

Neither agree nor disagree

10

Disagree

05

Strongly disagree

05

05 %

05 %

37 %

10 %

43 %
INTERPRETATIONOut of 50 respondent 37% were strongly agree while 43% were agree and only
10% were neither agree nor disagree and 05% respondent were disagree and
05% were strongly disagree with the statement that Computerized accounting
have ability to deal in multiple currencies easily..
Q.9 Do you think that Computerized accounting have Ability for taxes to be
computed automatically?

64

Response

% No. of respondent

Strongly agree

33

Agree

47

Neither agree nor disagree

05

Disagree

10

Strongly disagree

05

10 %

05 %

33 %

05 %

47 %

INTERPRETATIONOut of 50 respondent 33% were strongly agree while 47% were agree and only
05% were neither agree nor disagree and 10% respondent were disagree and
05% were strongly disagree with the statement that Computerized accounting
have Ability for taxes to be computed automatically
Q.10 Do you think that Computerized accounting helps in Staff motivation
Efficiency, Legibility ?

65

Response

% No. of respondent

Strongly agree

37

Agree

43

Neither agree nor disagree

10

Disagree

05

Strongly disagree

05

05 %

05 %

37 %

10 %

43 %
INTERPRETATIONOut of 50 respondent 37% were strongly agree while 43% were agree and only
10% were neither agree nor disagree and 05% respondent were disagree and
05% were strongly disagree with the statement that Computerized accounting
helps in Staff motivation ,Efficiency, Legibility

66

CHAPTER NO-06

FINDINGS

Findings
70% respondent were agree while 30% were not agree with the statement
that

computerization accounting makes sure that the critical financial

information is accurate
67

70% respondent were agree while 30% were not agree with the statement
that Computerized accounting helps in Speed and accuracy
65 % were agree while 35% were not agree with the statement that
Computerized accounting helps Increase revenue while lowering
operating costs
33% were strongly agree while 47% were agree and only 05% were
neither agree nor disagree and 10% respondent were disagree and 05%
were strongly disagree with the statement that Computerized accounting
helps enhancing competitive advantage of the company
37% were strongly agree while 43% were agree and only 10% were
neither agree nor disagree and 05% respondent were disagree and 05%
were strongly disagree with the statement that Computerized accounting
helps in Automatic generation of standard reports
65 % were agree while 35% were not agree with the statement that
computerized accounting helps in Automation of tedious clerical jobs
33% were strongly agree while 47% were agree and only 05% were
neither agree nor disagree and 10% respondent were disagree and 05%
were strongly disagree with the statement that Computerized accounting
helps in Up-to-date information
37% were strongly agree while 43% were agree and only 10% were
neither agree nor disagree and 05% respondent were disagree and 05%
were strongly disagree with the statement that Computerized accounting
have ability to deal in multiple currencies easily
33% were strongly agree while 47% were agree and only 05% were
neither agree nor disagree and 10% respondent were disagree and 05%
were strongly disagree with the statement that Computerized accounting
have Ability for taxes to be computed automatically
37% were strongly agree while 43% were agree and only 10% were
neither agree nor disagree and 05% respondent were disagree and 05%
68

were strongly disagree with the statement that Computerized accounting


helps in Staff motivation ,Efficiency, Legibility .

69

CHAPTER NO-07

SUGGESTION

SUGGESTION

70

The measurement of profitability is a tool of overall measurement of efficiency


an overall study profitability of TAEHWA ENTERPRISES INDIA PVT.LTD.
has been Dade in relation to computerization accounting system.
Computerized accounting is a highly integrated application that transforms the
business processes with its performance enhancing features which encompass
accounting, inventory, reporting and statutory processes. This helps the
company access information faster, and takes quicker decisions. Computerized
accounting also guarantees real-time optimization of operations and enhanced
communication

Operating expenses, administration. Expenses should be specially


considered to be reduced.

The service staff should be given proper training for computerization


accounting system.

71

CHAPTER NO-08

CONCLUSION

CONCLUSION:
72

After studying the components of Computerization accounting system of


TAEHWA ENTERPRISES INDIA PVT.LTD. . It is found that the company
has a sound and effective policy and its performance is very good even in this
bad recession situation company has managed to post good profit. proper
management of finance.
Computerized accounting system is very useful for organization . The factors
contributing to the increase are:

Automation of tedious clerical jobs

Speed and accuracy

Low cost of packages

Automatic generation of standard reports

Redundant data storage permits efficient generations of some reports

Increase revenue while lowering operating costs and enhancing


competitive advantage of the company.

73

CHAPTER NO-09

BIBLIOGRAPHY

BIBLIOGRAPHY:
74

Books:
Dr. S. N. Maheshwari, Financial Management, English Revised
Edition.
M.Y. Khan and P. K. Jain, Financial Management,
Ravi M. Kishore, Financial Management, 6th Edition.
I.M. Pandey, Financial Management.
Website:
http://www.TAEHWA ENTERPRISES INDIA PVT.LTD. .com
http://www.google.com
http://www.wikipedia.com
http://www.scribd.com

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CHAPTER NO-09

ANNEXURE

76

Q.1 Do you think that Computerized accounting makes sure that the critical

financial information is accurate?


Yes
NO

Q.2.DO you think that Computerized accounting helps in Speed and accuracy?
Yes
NO

Q.3 Do you think that Computerized accounting helps Increase revenue while
lowering operating costs?
Yes
NO

Q.4 Do you think that Computerized accounting helps enhancing competitive


advantage of the company?
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

77

Q.5. Do you think that Computerized accounting helps in Automatic generation


of standard reports?
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

Q.6 DO you think that Computerized accounting helps in Automation of tedious


clerical jobs?
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

Q.7 Do you think that Computerized accounting helps in Up-to-date


information ?
Strongly agree
Agree
Neither agree nor disagree
Disagree
78

Strongly disagree

Q.8 Do you think that Computerized accounting have ability to deal in multiple
currencies easily ?
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

Q.9 Do you think that Computerized accounting have Ability for taxes to be
computed automatically?
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

Q.10 Do you think that Computerized accounting helps in Staff motivation


Efficiency, Legibility ?
Strongly agree
Agree
Neither agree nor disagree
Disagree
79

Strongly disagree

80