Bpp learning Media is an acca approved Content Provider

 
C5 Financial systems, procedures and related IT applications 
 
 
(a) Identify an organisation's system requirements in relation to 
the objectives and policies of the organisation. 
S 
(b) Describe the main financial systems used within an organisation. 
S 
(i) Purchases and sales invoicing 
(ii) 
Payroll 
(iii) 
Credit 
control 
(iv) Cash and working capital management 
(c) Explain why it is important to adhere to policies and procedures 
for handling clients' money. 
K 
(d) Identify weaknesses, potential for error and inefficiencies in 
accounting systems including computerised accounting 
systems. 
S 
(e) Recommend improvements to accounting systems to prevent 
error and fraud and to improve overall efficiency. 
S 
(f) Explain why appropriate controls are necessary in relation to 
business and IT systems and procedures. 
S 
(g) Understand business uses of computers and IT software 
applications. 
S 
(i) 
Spreadsheet 
applications 
(ii) 
Database 
systems 
(iii) 
Accounting 
packages 
BPP Tutor Toolkit Copy

---

CHAPTER 8
//
THE ROLE OF ACCOUNTING 
 
201 
Study Guide 
Intellectual 
(h) Describe and compare the relative benefits and limitations of 
manual and automated financial systems that may be used in an 
organisation. 
K 
 
1
The purpose of accounting information 
Accounting is a way of recording, analysing and summarising transactions of a business.
1.1 What is accounting? 

The transactions are recorded in 'books of prime entry'. 

The transactions are then analysed and posted to the ledgers. 

Finally the transactions are summarised in the financial statements. 
The accounting function is part of the broader business system, and does not operate in isolation. It 
handles the financial operations of the organisation, but also provides information and advice to other 
departments. 
Accounts are produced to aid management in planning, control and decision-making and to comply with 
statutory regulations.