Developing Software Solution in accounting management System

“Akaunting System Software”

Submitted By
Syeada Shakila Akram

ID: 171112, Batch: 11th

PMIT (Regular)

A project report submitted to the Institute of Information Technology

In partial fulfillment of the requirements for the degree of
Master of Science in Information Technology

Supervisor
Fahima Tabassum
Associate professor

Institute of Information Technology

Jahangirnagar University
Savar, Dhaka-1342

1
 Declaration

I hereby declare the work “Akaunting System Software” presented in this project paper is outcome of
research performed by us with supporting supervision Fahima Tabassum, Associate Professor,
Jahangirnagar University Institute of Information Technology (IIT).

This project work is submitted in the partial fulfillment of the requirements for the degree of Master
of Information Technology in Institute of Information Technology (IIT). It is also declared that, this
report has been prepared for academic purpose and has not been/will not be submitted elsewhere for
any other purposes.

___________________________________

Syeada Shakila Akram

Student Id: 171112

Batch: PMIT 11th (Regular)

Jahangirnagar University

Institute of Information Technology (IIT)

Savar, Dhaka-1342.

Supervisor’s Declaration

2
This is to certify that the project report submitted to the Jahangirnagar University, Syeada Shakila
Akram prepares Institute of Information Technology (IIT) department titled “” for the partial
fulfillment of Master of Information Technology program. This project is an original work completed
under my supervision and is free from plagiarism.

She is permitted to submit the Report.

___________________________________

Project Supervisor

Fahima Tabassum

Associate Professor,

Institute of Information Technology (IIT)

Jahangirnagar University

Savar, Dhaka-1342

3
 Letter of Acceptance

The project report entitled “Akaunting System Software” submitted to the Jahangirnagar University,
Institute of Information Technology (IIT) department, is prepared by Syeada Shakila Akram, Student
Id: 171112, Batch: PMIT 11th (Regular), Jahangirnagar University, Institute of Information
Technology (IIT) Savar, Dhaka. This project is accepted as on Date for the partial fulfillment of
requirement of Master of Information Technology program.

BOARD OF EXAMINERS

________________
_____________________________
Dr. M. Shamim Kaiser
Fahima Tabassum
Associate Professor
Coordinator
Member of PMIT Coordination Committee
Associate Professor
IIT, JU
PMIT Coordination Committee
IIT, JU

___________________________ ___________________

Md Fazlul Karim Patwary Risala Tasin Khan

Professor Associate Professor
Member of PMIT Coordination Committee Member of PMIT Coordination Committee
IIT, JU IIT, JU

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 ACKNOWLEDGEMENTS

Praise is to Allah who made it possible to write to this thesis and gave me talent and ability to
complete this research book. This is the core point of our heart that would like to extend the deepest
sense respect and reverence to our honorable supervisor Fahima Tabassum, Associate Professor, IIT,
Jahangirnagar University. This is to kind and sympathetic co-operation, help, guidance, and
supervision from her that has been constant source of inspiration to carry on our project work. It
would not have been possible for me to complete for me the work without the advice and
encouragement and every possible help of them throughput the work and preparation of the project
paper.

I am thankful to my entire classmate and the office stuffs of IIT Jahangirnagar University, Savar,
Dhaka.

5
 ABSTRACT

In this study, the research team studied “Akaunting system software” as decision making tool in small-
scale business with the major objective of to investigate the influence of computerized accounting
system on decision making in small-scale business, and to determine the extent to which management
decision is influenced by Akaunting System Software. Data was analyzed using descriptive statistics
of mean and standard deviation. The research revealed that: The most respondents were significantly
agreed that computerized accounting system actually have an influence on decision making process
and Akaunting System Software has contribution on decision making process, fraud reduction and
contribution when accompanied with effective internal control. Based on the findings, the research
team recommended that: Using of Akaunting System Software will assist to the small business to
develop the internal control structure, and also the researcher’s recommended small business to use
Akaunting System Software because Akaunting System Software is very useful decision making tool.

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Table of Contents

DECLARATION ......................................................................................................2

SUPERVISOR'S DECLARATION...........................................................................3

LETTER OF ACCEPTANCE....................................................................................4

ACKNOWLEDGEMENT.........................................................................................5

ABSTRACT .............................................................................................................6

CHAPTER ONE......................................................................................................10

INTRODUCTION...................................................................................................10

1.1 BACKGROUND OF THE STUDY.................................................................10

1.2 PROBLEM STATEMENT..............................................................................13

1.3 PURPOSE OF THE STUDY...........................................................................13

1.4 OBJECTIVE OF THE STUDY........................................................................14

1.5 SCOPE OF THE STUDY................................................................................14

1.7 SIGNIFICANT OF THE STUDY....................................................................14

1.8 OPERATIONAL VARIABLES.......................................................................14

CHAPTER TWO .......................................................................................................16

LIRETURE REVIEW……………………………………………………………….16

2.1INTRODUCTION.................................................................................................16

2.2ACCOUNTING INFRMATION SYSTEM..........................................................15

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 2.3 Accounting Systems: Concepts, Uses and Principles ....................................17

2.4Importance of AKAUNTING..........................................................................18

2.5 SMALL ENTERPRISES...................................................................................18

2.6The Challenges of Small-scale Businesses ....................................................19

2.7 DECISION –MAKING.....................................................................................20

2.8 Conclusion......................................................................................................21

CHAPTER THREE ................................................................................................22

3..1 DATABASE DESIGN ....................................................................................22

3.2 E-R DIAGRAM.................................................................................................22

CHAPTER FOUR .................................................................................................24

MANUAL ..............................................................................................................24

DASHBOARD........................................................................................................24

TOOLBAR..............................................................................................................25

COMPANIES..........................................................................................................26

ITEMS.....................................................................................................................27

INVOICES...............................................................................................................29

REVENUE ..............................................................................................................32

REPORT..................................................................................................................34

BANKING...............................................................................................................37

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CHAPTER FIVE ..................................................................................................40

CONCLUSION AND RECOMMANDATION ......................................................40

5.0 Introduction.......................................................................................................40

5.1 Conclusion ........................................................................................................40

5.2 RECOMMENDATIONS...................................................................................41

5.3 AREA FOR FURTHER RESEARCH...............................................................42

REFRENCES...........................................................................................................43

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 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The accounting profession has emerged as one of the pillars holding all sphere of our economy which
involves the individuals, organizations, corporate bodies and government. In our daily living, we are
faced and challenged with the problems of accountability, transparency and other wise which
necessitates the need for accurate and timely decision making as managers of small organizations,
corporate bodies and government.

Accounting: as many professional accountants and auditors state, is a language of business which is
accepted in all developed and developing countries, but what exactly is accounting? Accounting has
been defined by many authors in various ways. Accounting is the way business owners manage their
company’s financial information in orders to make better decision regarding their companies.

Making decisions is part of our every day’s lives. Considering organizational life, it is often one of the
main functions and tasks of management. Indeed, management and decision-making are often
regarded as belonging together, as management usually makes the major decisions of the organization.
[1]

Decision-making involves the selection of the best course of action. In order to decide on the best
option, management has to judge the effectiveness of various alternatives. Therefore they need some
guidance that is usually provided in form of data and information

Management accounting can be defined as the process of identification, measurement, accumulation,

analysis, preparation, interpretation, and communication of information that assists executives in
fulfilling organizational objectives, a formal mechanism for gathering and communicating data for the
ends of aiding and coordinating collective decisions in light of the overall goals or objectives of an
organization. [1]

As can be derived from this definition, accountants play a crucial role in providing information for
making economic and financial decisions. These decisions are an important element for the
organization. Implementing the wrong ones can affect the company in a very negative way and may
sometimes also lead to its bankruptcy. Even goes so far to claim that “The road to bankruptcy is

10
paved with poor decisions.”[2] As the outcome of a decision cannot always be predicted with certainty,
management often faces the risk of choosing the wrong ones. Hence, management always needs to
have some courage as well when facing decisions. Apparently, good decisions are important and
ensure the well being and also the survival of an organization.

In the context of small business, accounting information is important as it can help the firms manage
their short-term problems in critical areas like costing, expenditure and cash flow, by providing
information to support monitoring and control. Accounting information is also useful for firms
operating in a dynamic and competitive environment as it can help them integrate operational
initiatives within long-term strategic plans. [2]

Akaunting System, according to Nicoloau (2000), is a computer based system that increases the
control and enhances the cooperation in the organization. [2]

Pandey (1997), illustrates in his explanation that the AKAUNTING gathers, classifies, analyses and
processes, interprets and communicates data about economic activities in a firm.[3]

Akauntings could be described as systems used to record the financial transactions of a business or
organization. These systems combine the methodologies, controls and accounting techniques with the
technology of the IT industry to track transactions provide internal reporting data, external reporting
data, financial statements, and trend analysis capabilities to affect on organizational performance .

Information Systems provide an opportunity for business to improve their efficiency and effectiveness
and even to gain competitive advantage. Today the benefits of information system are accessible event
to smallest business. Yet, while large businesses have been using computer for some time, small and
medium business enterprises have been slow in adopting these technology innovations .

Akaunting being an asset of methods, people, procedures and devices regularly used to process
business transactions, information is therefore much more useful when it is conveyed through a proper
reporting system which gives it good qualities such as accuracy and reliability among others and this
can be achieved by use of computerized accounting system. [3]

AKAUNTING can help a small business improve their survival and success rates by providing the
owner/manager with information pertinent to running their business successfully. Akauntings are
readily available for purchase and provide businesses with the means of entering financial
transactions, preparing financial statements, preparing budgets, and performing variance analysis. Yet,
many small business owners do not use them, or do not use them to their full advantages. According
to accounting industry thought leaders, “the lack of an accounting system precludes or limits almost

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every recurring financial task”. [4]

In most third world countries, budget execution and accounting processes are either manual or
supported by very old and inadequately maintained software applications. This has had deleterious
effects on the functioning of their public expenditure management (PEM) systems, which are often
not adequately appreciated.

The Akaunting for the purpose of this study is grouped into three complementary components which
includes the financial accounting system, the management accounting system and the cost accounting
system. The financial accounting system is concerned with financial record keeping, providing
information regarding profit or loss associated with organizations’ economic activities during a given
period and the financial position attained at the end of the period. Management accounting system is
used to allow organizational planning, monitoring and control for a variety of activities. This allows
managerial level employees to have excess to advanced reporting and statistical analysis. The system
can help management to choose and optimal answer among alternatives. The cost accounting system
is used in manufacturing and service environment. It allows organizations to track the costs associated
with the production of goods and/or performance of services.

1.2 PROBLEM STATEMENT

Today’s organizations level playing managers have the duty of planning, organizing, directing, and
control which aids them in quick decision making. Quick decision making is one of the problems
facing the managements of every company, big or small which enables it to formulate policies,
implement, and control result. [4]

Akauntings are considered important organizational mechanisms that are critical for effectiveness in
decision management and control in organizations.

Globally, management practices are faced with the problem of choosing among alternatives in order to
make decision effectively. Considering the fact that resources are relatively scarce and limited, chief
executives do not only face the problem of achieving co-operate goal or accruing loss at various
stages in the process of providing products and services but also to organize, forecast, control, direct
and make appropriate decisions . These processes are facilitated by the utilization of adequate
accounting information (Abiogwu, 2008; Diamond & Khemani, 2006). [4]

Persons that are working as accountant in small business are mostly unqualified accountant due to

12
lack of knowledge of Akaunting, this situation may causes business owners or managers fail to make
effective decision.[4]

1.3 PURPOSE OF THE STUDY

The primary purpose of this study is to describe the importance of accounting information

System as decision making tool in small-scale businesses and to determine whether the adoption and
practice of this system has warranted efficient, effectiveness, timely and accuracy in delivering of
small business services and activities to decision makers as expected.

1.4 OBJECTIVE OF THE STUDY

1. To investigate the influence of computerized accounting system on decision making in small-

scale business.

2. To determine the extent to which management decision is influenced by Akaunting.

1.5 SCOPE OF THE STUDY

The study will focuses on the Akaunting as decision making tool in small-scale business. This study is
cross sectional study, and the time to be taken this research will be one year from Sep 2015 to June
2016.

1.6 SIGNIFICANT OF THE STUDY

A good Akaunting operated in a company is an indispensability aid to effective management. It

assures management of the reliability of the decisions taken by them and that these decisions are in
accordance with goals to be attained.

The significance of this study is to create an awareness of the importance of Akaunting as decision
making tool in small-scale business. In addition, the study will be used by other researchers when
carrying out research on the similar problems. Also, the study will enable the researcher get more
knowledge about Akauntings in relation to the decision making in small-scale business.

13
This study will be a source of knowledge to small business on how to maintain Akaunting and also
can be used as a basis for further academic research and will use any interested party. Moreover the
study will help the researcher to build on his/her skills of conducting investigate studies.

1.7 OPERATIONAL VARIABLES

Akaunting collects, and classifies a processes transaction data and communicates financial
information to decision makers. Our measurements will be first quality of data, second internal
control, and lastly competitiveness. [2]

Decision making is relevant in today’s world because it has been found that the importance of any
decision made lies in the impact it has on an organization, either on its long-term and short-term
performance. In measuring decisions that made small businesses we will take first relevant, and
second timely.

Small enterprises are those enterprises that employ no more than 250 employees and work on small
scale. The technical definition varies from country to country but is usually based on employment,
assets (Jasra , Khan, Hunjra, Rehman, &Azam, 2011).[3]

Our measurements of small-scale business will be number of employers and amount of capital.

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 CHAPTER TWO

LIRETURE REVIEW

2.1 INTRODUCTION

This chapter discusses the literature related to Akaunting as decision making tool in small-scale
business. The review focuses mainly on prior studies of Akaunting as decision making tool in small-
scale business; therefore the research focus on accounting, information system, AKAUNTING, small
and medium business, decision making and the relationship of AKAUNTING and decision making of
small-scale businesses.

2.2 ACCOUNTING INFRMATION SYSTEM

Accounting has been described it as the process of identifying, measuring and communicating
economic information to permit informed judgments and decisions by the users of the information. It
is characterized as the language of business. American Institute of Certified Public Accountants
(AICPA) which defines accounting as “the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events, which are, in part at least, of a
[2]
financial character and interpreting the results thereof”.

According to Frankwood (1989), Accounting referred to a language of business. It is used in the

[3]
business world to describe financial transactions entered into by all kinds of organizations.

Information system is defined as: "a set of interrelated elements composed of individuals, data and
instruments that address the data and converts it to Information that serve the purposes of
Management " . [3]

The information system is the set of formal procedures by which data are collected, stored, processed
into information, and distributed to users. Two broad classes of systems emerge from the
decomposition: the Akaunting and the management information system. An information system is the
combination of people, facilities, technology, media, procedures and controls that are intended to
maintain essential communication process, certain routine types of transmission and other external
and internal events. Akaunting is a collection of data and processing procedures that creates needed

15
information for its users.

Akauntings could be described as systems used to record the financial transactions of a business or
organization. These systems combine the methodologies, controls and accounting techniques with the
technology of the IT industry to track transactions provide internal reporting data, external reporting
data, financial statements, and trend analysis capabilities to affect on organizational performance.

Cooper and Yuji (1952), define the AKAUNTING as that which applies principles, methods and
procedures relatively to the incidence, classification, records and reporting of transactions of an
organization. [3]

According to Bocinj (1999), Akaunting is used for financial activities that take place in any
organization. [3] Pandey (1997) illustrates in his explanation that the AKAUNTING gathers, classifies,
analyses and processes, interprets and communicates data about economic activities in a firm. [4]
The
Akaunting collects a processes transaction data and communicates financial information to decision
makers.

The accounting system, like other systems component of the input and processors and outputs in
addition to feedback, but it has a specification separate from the rest of the information systems, these
features associated with the function of accounting, system of information accounting for economic
data resulting from internal processes or external events expressed form of financial or will translate
into a financial formula On the output side, the accounting system produces reports and lists and some
other information expressed in financial way .

2.3 Accounting Systems: Concepts, Uses and Principles

Accounting has been described it as the process of identifying, measuring, and communicating
economic information to permit informed judgments and decisions by the users of the information. It
is characterized as the language of business.

Several concepts, theories, and, principles under grid the practice of accounting. Prominent among
them are Going Concern, Consistency, Accrual, Business Entity, Money Measurement, Prudence and
the Double Entry. Accounting manifests in several ways such as financial, cost, management and tax

16
accounting. An accounting system is an orderly, efficient scheme for providing accurate information
and controls.

Regulatory requirements and internal administration policies must be considered in designing an

effective accounting system. Accounting system should show the books, records, vouchers, and files
and related supporting data resulting from the application of the accounting process.

It comprises of steps, procedures, documentation and devices needed to implement a flow of

transaction processing. The non-existence or inadequacy of internal controls is an avenue for wastes,
fraud and defalcation. The existence of sound system guarantees prompt action and customer
satisfaction, thus increasing potentials for greater incomes and growth in real termed.

2.4 Importance of Akaunting

The accounting system touches most or all of an organization’s activities. It touches the organization’s
external activities through the transaction documents sent to customers, vendors, and employees,
through the financial statements prepared for the stockholders and creditors, and through the tax and
regulatory reports sent to government agencies.

The accounting system touches the internal activities through product costing, reflecting the
conversion of raw materials into finished products. It also touches internal activities through budgets
and budget tracking. Budgets are established to provide performance targets and to set limits on
authorized expenses. Accounting data measure actual performance—at least in its financial aspects—
and monitor compliance with the performance targets. How-ever, the measurement system influences
the activities being measured. People are aware that they are being monitored by accounting
measurements and adjust their behavior accordingly.

2.5 SMALL ENTERPRISES

Small Enterprises have been defined in various ways according to the capital of the enterprise, size,
the number of people employed by the enterprises, the ownership and management of the enterprises
and sales volume, all the definitions agree on the common views that small businesses employ few
people and are characterized by a relatively small amount of capital and turnover.

Small enterprises are those enterprises that employ not more than 250 employees and work on small

17
scale. The technical definition varies from country to country but is usually based on employment,
assets.

The International Accounting Standards Committee Foundation (IASCF) (2007) defines small
businesses as an entity that does not have public accountability and thus, publishes general purpose
financial statements for external users.

Small businesses are responsible for most net job creation and they make an important contribution to
productivity and economic growth. They play a significant role in all economies and are the key
drivers of innovation and growth. According to the Organization for Economic Cooperation and
Development (2006:21) small businesses are now recognized worldwide to be a key source of
dynamism, innovation and flexibility.

Small businesses are expected to be an important vehicle to address the challenges of job creation,
sustainable economic growth, equitable distribution of income and the overall stimulation of
economic development. But despite their significance, Small businesses are faced with the threat of
failure with past statistics indicating that three out five fail within the first few months. Because the
availability of reliable data on Small business is in general difficult, a private survey is was needed to
get the data on the use of Akaunting (AKAUNTING).

2.6 The Challenges of Small-scale Businesses

As observed by Wood (1979), many small businesses can have all the information they want by
merely keeping a cashbook and having some form of records, not necessarily in double entry system.
This is an aberration and requires a conversion to double entry system for meaningful reporting. The
mechanics of the conversion involve the preparation of a statement of affairs and estimation certain
data for the updates of full set of ledgers and henceforth a complete double entry system is installed.

The challenge is amplified by the audit requirements for small companies observed that in most small
companies accounting and financial management are carried out by just one person, making
segregation of duties impracticable or irrelevant. Controls may have to depend on the close
involvement of the owners in the management of the business and to extent of their integrity. This
calls for an adaptation of accounting systems to need of these businesses.

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2.7 AKAUNTING AND DECISION MAKING IN SMALL BUSINESSES

In the context of mall business, accounting information is important as it can help the firms manage
their short-term problems in critical areas like costing, expenditure and cash flow, by providing
information to support monitoring and control. Accounting information is also useful for firms
operating in a dynamic and competitive environment as it can help them integrate operational
initiatives within long-term strategic plans. However, despite the importance of accounting
information for their survival, many researchers found small businesses lack accounting information.

Kim (1989) argues that usage of Akaunting depends on the perception of the quality of information by
the users. Generally the quality of information depends on the reliability, form of reporting, timeliness
and relevance to the decisions.

Otley (1980) argues that accounting systems are an important part of the fabric of organizational life
and the need to be evaluated in their wider managerial, organizational and environmental context.
Therefore the effectiveness of Akauntings not only depends on the purposes of such systems but also
depends on contingency factors of each organization. Akauntings are said to be effective when the
information provided by them serves widely the requirements of the system users. Effective systems
should systematically provide information which has a potential effective on decision making process.
The effectiveness of Akauntings has long been a subject of many researches.

Akauntings are considered important organizational mechanisms that are critical for effectiveness in
decision management and control in organizations. Akauntings will be useful when information
provided by them is used effectively in decision making process by the users.

In short, Akaunting is one of information systems that produce many amounts of data for use by
decision makers both within and outside organizations. Small business managers need to exploit
accounting information for job success of their organizations. Therefore, job success must be
obtaining reliable, relevant and timely accounting information for decision making.

In other words, effectiveness of Akaunting is reliability, relevance, and timeliness. In measuring

Akaunting the study suggests that no one measure of the use of Akaunting should be taken on its own
and to obtain a true measure of how a company is using Akaunting, different measures should be used
together on the basis of previous studies.

2.8 Some Existing System

19
Accounting software is an essential system for companies of all sizes and in any industry. The
software offers many benefits which has made it popular. Here is some existing systems name such as

Fresh Books ,Sage 50cloud, NetSuite ERP , FreeAgent , Zoho Books , Xero, Sage Intacct,
QuickBooks Enterprise , Bright pearl , Happay, FinancialForce Accounting, Tipalti, Microkeeper,
New world Stamp, Nummus pay etc.

2.9 Conclusion

In this chapter discussed sections that related variables of the topic that focus on Akaunting concepts,
uses, and principles, important of Akaunting, small enterprises, challenges of small-scale enterprises,
decision making, and relationship of Akaunting and decision making in small business.

The studies mentioned in the above are developed in other countries in the world whether developed
and developing countries. So this study addresses the gap in literature in the context of Mogadishu-
Somalia. In our best knowledge there is a lack of evidence of related literature the Akaunting as
decision making tool in small-scale businesses.

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 CHAPTER THREE
System Design

3.1 Database Design

Database design is the organization of data according to a database model. The designer determines
what data must be stored and how the data elements interrelate. With this information, they can begin
to fit the data to the database model. Database design involves classifying data and identifying
interrelationships. [7]

The term database design can be used to describe many different parts of the design of an overall
principally, and most correctly, it can be thought of as the logical design of the base data structures
used to store the data. In these are the and in the entities and relationships map directly to object
classes and named relationships. However, the term database design could also be used to apply to the
overall process of designing, not just the base data structures, but also the forms and queries used as
part of the overall database application within the DBMS. [8]

3.2 E-R diagram

An entity-relationship diagram (ERD) is a data modeling technique that graphically illustrates an
information system’s entities and the relationships between those entities. An ERD is a conceptual and
representational model of data used to represent the entity framework infrastructure.[9]
The elements of an ERD are:

 Entities
 Relationships
 Attributes
Steps involved in creating an ERD include:

1. Identifying and defining the entities

2. Determining all interactions between the entities
3. Analyzing the nature of interactions/determining the cardinality of the relationships
4. Creating the ERD

21
 Fig 3.1: E-R diagram

3.3 Class Diagram

A class diagram is a type of diagram and part of a unified modeling language (UML) that defines and
provides the overview and structure of a system in terms of classes, attributes and methods, and the
relationships between different classes.

22
It is used to illustrate and create a functional diagram of the system classes and serves as a system
development resource within the software development life cycle.

Fig 3.2: Class Diagram

23
 CHAPTER FOUR
Result With User Manual

Requirement
When selecting a hosting company, you should check if the following requirements are provided:

Environment

 PHP 5.6.4 or higher

 Database (eg: MySQL, PostgreSQL, SQLite, SQL Server)
 Web Server (eg: Apache, Nginx, IIS)
 URL Rewrite (mod_rewrite)

PHP Extensions

 PDO
 OpenSSL
 Mbstring
 Tokenizer
 XML
 Zip
These requirements are provided by almost all hosting companies.

During the installation process, Akaunting will check if you have them all and not let you continue if
any is missing. In such a case, you should contact your hosting provider to make them available.

24
Dashboard

The dashboard is the first thing you will see when entering Akaunting. The main function of the
dashboard is to give the owner an overview of how the business is performing. Dashboard reports
show the accrued incomes and expenses, except Cash Flow chart. Here you can learn more about cash
and accrual accounting.

Totals and charts are displayed under the default currency. Invoices, revenues, bills, and payments
created under a different currency will be converted based on the currency rate at the time they were
created.

Totals: Sum up the income, expense and profit state of your business. They also show the upcoming
(not paid) invoices/bills.

Cash Flow: Shows the income, expense and profit in cash per day and/or month.

Incomes By Category: A pie chart to show the distribution of incomes. Invoices are a shown as a
category of itself.

Expenses By Category: A pie chart to show the distribution of expenses. Bills are a shown as a
category of itself.

Account Balance: It shows the balance of each account you've added.

Latest Incomes: A list that displays the last 5 incomes.

Latest Expenses: A list that displays the last 5 expenses.

25
 Fig 4.1: Dashboard

Toolbar
The toolbar is used to gives quick access to the most used or common parts of Akaunting.

Quick Add

The plus button at the left side of toolbar speeds up the progress of adding new Income, Expense and
Banking records.

Fig 4.2: quick add

26
 Fig 4.3: Notifications

Companies
Company is all where it starts with Akaunting and it ships with multi-company feature.

You can manage the money of unlimited companies from one Akaunting installation and admin panel.
Furthermore, there is no need to login and logout to see that data of different companies, just switch
between companies, that's all.

You can switch between companies and manage them from the left top select box.

Fig 4.4: Companies

27
Items

On this page you can see all items, search for any, create a new one, edit the current ones and delete
them. Items can be products or services. You can use items when creating invoices and bills to have
the price, tax etc fields populated.

The following fields are displayed:

Picture: Item's picture.

Name: Item's name.

Category: Category of item, if applicable.

Quantity: How many items are available? This is useful for stock management. Quantity gets
decreased whenever an invoice is created and increased when a bill is created.

Sale Price: This price will be populated in invoices.

Purchase Price: This price will be populated in bills.

Status: Disabled items don't get populated when creating invoices/bills.

Actions: You can use this button to edit, duplicate, and delete the item.

28
 Fig 4.5: Item list

New Item

The following details are displayed as blank to be filled, some are required and some not. Those
marked with red star are required.

Name: Item's name.

SKU: Item's sku. SKU is a unique field.

Description: Item's description, if applicable.

Sale Price: This price will be populated in invoices.

Purchase Price: This price will be populated in bills.

Quantity: How many items are available? This is useful for stock management. Quantity gets
decreased whenever an invoice is created and increased when a bill is created.

Tax: Tax of item, if applicable. It will be populated when creating invoices/bills.

Category: Category of item, if applicable.

Picture: Item's picture.

Status: Disabled items don't get populated when creating invoices/bills.

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 Fig 4.6: New Item

Invoices

Invoices page is located under Incomes > Invoices menu. On this page you can see all invoices,
search/filter for any, create a new one, edit the current ones and delete them.

The following fields are displayed:

Number: The number assigned to the invoice.

Customer: Who will pay the invoice.

Amount: Amount of the invoice.

Invoice Date: Date when the invoice is issued.

Due Date: Date when the invoice is due to be paid.

Status: The status of the invoice.

Actions: You can use this button to show, edit, duplicate, and delete the invoice.

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 Fig4.7:Invoices

New Invoice

The following fields are displayed as blank to be filled, some are required and some not. Those
marked with red star are required.

Customer: Who will pay the invoice.

Currency: Currency used.

Invoice Date: Date when the invoice is issued.

Due Date: Date when the invoice is due to be paid.

Invoice Number: The number assigned to the invoice.

Order Number: A number assigned to an order for that invoice.

Items: The list of all items that can be assigned to that invoice. You can add multiple items.

Actions: There are 2 (two) actions; Add and Delete.

Name: The name of item. It will populate records from Items page after you start typing their name.
It can also be a custom item.

Quantity: Default is 1. You can enter decimal quantity (1.7)

Price: The sale price of item. It will bring it automatically but you have the opportunity to change it
if you want.

Tax: The list of applicable Tax Rates. You can add new taxes or change the rate of tax from "Settings
> Tax Rates page".

Total: It will calculate automatically the total price of item according the quantity and tax. It is not an
editable field.

Subtotal: The total prices of items without taxes.

Tax: The total price of taxes.

Total: The final amount of invoice, including everything.

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Notes: You can add a custom note to the invoice.

Category: Category of the invoice to be used in reports.

Recurring: Automatically create invoices for ongoing jobs. Times=0 means infinite. Don't forget to
set the Cron Command available at Settings > General >Scheduling.

Attachment: You can attach file related to the invoice.

Fig 4.8 : New invoice

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Show Invoice

The following image shows the details page of an invoice:

Fig 4.9: Show invoice

Revenues

Revenue is a non-invoice able and paid income. You can also record the money deposits from the
revenues page. Check out this page for the difference between invoices and revenues.

Revenues page is located under Incomes > Revenues menu. On this page you can see all revenues,
search/filter for any, create a new one, edit the current ones and delete them.

The following fields are displayed:

Date: Paid date.

Amount: Amount of the revenue.

Customer: Who paid the revenue.

Category: Category of the revenue.

Account: Account paid to.

Actions: You can use this button to edit, duplicate, and delete the revenue.

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 Fig 4.10: Revenues

New Revenue

The following fields are displayed as blank to be filled, some are required and some not. Those
marked with red star are required.

Date: Paid date.

Amount: Amount of the revenue.

Account: Account paid to.

Description: Custom description for the revenue.

Category: Category of the revenue to be used in reports.

Recurring: Automatically create revenues for ongoing jobs. Times=0 means infinite. Don't forget to
set the Cron Command available at Settings > General >Scheduling.

Customer: Who paid the revenue .

Payment Method: Method used to pay the revenue.

Reference: Any possible reference.

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Attachment: You can attach file related to the revenue.

Fig 4.11: New revenue

Income Summary

Income Summary page is located under Reports > Income Summary menu. This report give you as a
business owner a good idea of where your business income stands, month by month and categorized.

The report is displayed under the default currency. Invoices, revenues, bills, and payments created
under a different currency will be converted based on the currency rate at the time they were created.

All: Gives you the Accrual Flow summary which means it will combine the Paid and Receivables
summaries.

Paid: Gives you the Cash Flow summary that shows the funds moving in your accounts based on the
actual date of payment.

Receivables: Gives you the Upcoming Flow summary that shows the funds that you have invoiced
but not been paid by your customers, yet.

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 Fig 4.12: Income summary

Expense Summary

Expense Summary page is located under Reports > Expense Summary menu. This report gives you
as a business owner a good idea of where your business expense stands, month by month and
categorized.

The report is displayed under the default currency. Invoices, revenues, bills, and payments created
under a different currency will be converted based on the currency rate at the time they were created.

All: Gives you the Accrual Flow summary which means it will combine the Paid and Payable
summaries.

Paid: Gives you the Cash Flow summary that shows the funds moving out of your accounts based on
the actual date of payment.

Payable: Gives you the Upcoming Flow summary that shows the funds that you have been billed but
not paid to your vendors, yet.

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 Fig 4.13: Expense Summary

Income vs. Expense

Income vs. Expense page is located under Reports > Income vs. Expense menu. This report gives
you as a business owner a good idea of where your business profit stands, month by month and
categorized.

The report is displayed under the default currency. Invoices, revenues, bills, and payments created
under a different currency will be converted based on the currency rate at the time they were created.

All: Gives you the Accrual Flow summary which means it will combine the Paid and Upcoming
summaries.

Paid: Gives you the Cash Flow summary that shows the funds moving in and out of your accounts
based on the actual date of payment.

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Upcoming: Gives you the Upcoming Flow summary that shows the funds that have not been paid,
yet.

Fig 4.14: Income vs. expense summary.

Banking

Accounts

Accounts are where we keep our money at the end. They may be in cash or a bank account.

Accounts page is located under Banking > Accounts menu. On this page you can see all accounts,
search for any, create a new one, edit the current ones and delete them.

The following fields are displayed:

Name: Account's name

Number: Account's number

Current Balance: Account's current balance. This is the result of opening balance + incomes -
expenses assigned to that account

Status: Status of the account.

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Actions: You can use this button to edit, and delete the account.

Fig 15: Accounts

Transfers

Sometimes you may want to transfer money from one account to another. For example, moving your
cash money to bank. In such a case, Akaunting will create a revenue and payment record for the
respected accounts.

Transfers page is located under Banking > Transfers menu. On this page you can see all transfers,
search for any, create a new one, edit the current ones and delete them.

Money transferred between accounts with different currencies will be converted automatically by
Akaunting, based on the currency rates you have set up from Settings > Currencies page.

The following fields are displayed:

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Date: Transfer date.

From Account: The account money gets out.

To Account: The account money gets in.

Amount: The amount of the transfer.

Fig 4.16: Transfers

Transactions

Transactions page is located under Banking > Transactions menu. This page shows up all the actions
made for each account. You can easily see the transaction date, type, and category, amount etc and sort
the records as you wish.

The following fields are displayed:

Date: Transaction's date.

Account Name: The account affected by the transaction

Type: Type of the transaction.

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Category: Category of the transaction.

Description: Any applicable description.

Amount: The amount of the transaction.

Fig 4.18: Transactions

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 CHAPTER FIVE

CONCLUSION AND RECOMMANDATION

5.1 Introduction

Having completed the study, presented data and analyzed the findings, this chapter reviews the
outcomes of the study in line with the research objectives.

5.2 Conclusion

This study was demonstrating accounting information system as decision making tool of small-scale
businesses. The sample size of this study was 60 and the instrument used in the study was
questionnaire the first objective was to investigate the influence of computerized accounting system
on decision making in small-scale business. The second objective of this study was to determine the
extent to which management decision is influenced by accounting information system. After data
collection the researchers revealed that computerized accounting system actually have an influence on
decision making process. However findings of this study revealed that accounting information system
has contribution on fraud reduction and contribution when accompanied with effective internal
control, so, having an accounting information system is very useful fraud prevention and reduction.
However findings of this study revealed that accounting information system has contribution on
decision making process, fraud reduction and contribution when accompanied with effective internal
control, so, having an accounting information system is very useful decision making tool.

5.3 RECOMMENDATIONS

From the findings and summary, the researcher recommends that first and for most, the company
needs to acquire a computerized accounting system that suits the organizational needs. Enough
resources need to be saved for a tailor made software and system analyst need to be consulted in this
important issue.

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There should also be routine system maintenance programs put in place so that the system can get rid
of shortfall such as viruses, fraud among others that may affect the system operations. This should be
done so that the system can operate to the expectation of management and other users. On the
management point of view, it is important that staff for handling transactions is trained so as to
improve on the accuracy and speed in posting. With increased improvements and versions of
accounting packages, staff needs constant and continuous training by the authorized dealers of the
packages so that they remain well acquainted with the knowledge and experience of the package. In
addition to the training, it is important to constantly appr Akauntinge the staff to check which staff is
failing the system as regards reporting unbiased financial information.

Also, the researchers of this study suggest the following to small business in Mogadishu Somalia in
order to develop their business.

1. using of Accounting Information System that will assist their business to develop the internal
control structure.

2. Using of accounting information system will help the small business collecting recording and
storing company’s data to make decision. .

3. The researcher’s recommend, small Businesses use accounting information system, because
accounting information system assist the business awareness of which profitable customers among
business

4. Using accounting information system will assist the small businesses to make effective decisions.

5.4 AREA FOR FURTHER RESEARCH

The impact of accounting information system on effectiveness of internal control structure of the
company.

The effect of accounting information system on small business profitability.

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44
 REFRENCES

1. Harash, E., Al-Timimi, S., & Radhi, A. H. (2014). The Influence of Accounting Information
Systems (AKAUNTING) on Performance of Small and Medium Enterprises (SMEs) in Iraq.
Journal of Business & Management, 48-57.

2. Ismail, N. A., & Zin, R. M. (2009). Usage of Accounting Information among Malaysian
Bumiputra Small and Medium Non-Manufacturing Firms. Journal of Enterprise Resource
Planning Studies, 1-7.

3. Medina, J.-M., & Jiménez, K. (2014). Training in Accounting Information Systems for Users’
Satisfaction and Decision. International Journal of Business and Social Science.

4. Mudashiru, A. (2013). Accounting Information System as an Aid to Decision Making In Food

and. Australian Journal of Business and Management Research, 26-34.

5. Nwaigburu, K. O., & Mark, B. U. (2014). THE USE OF ACCOUNTING INFORMATION IN

DECSION MAKING FOR SUSTAINABLE DEVELOPMENT IN NIGERIA: A STUDY OF
SELECTED TERTIARY INSTITUTIONS IN IMO STATE. International Journal of Scientific
Research in Education, 167-175.

6. Smirat, B. Y. (2013). The Use of Accounting Information by Small and Medium. Research
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7. TUNJI, S. T. (2012). ACCOUNTING INFORMATION AS AN AID TO MANAGEMENT

DECISION MAKING. International Journal of Management and Social Sciences Research
(IJMSSR), 29-34.

8. Mudashiru, A., A, I. K., & Babatunde, Y. (2013). Accounting Information System as an Aid to
Decision Making In Food and. Australian Journal of Business and Management Research, 26-
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9. Swalhah, A. (2014). The role of Accounting Information Systems (A.I.S.) in rationalized

Administrative Decision- making (field study) Jordanian banks. INTERDISCIPLINARY
JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS.

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