BUSINESS START UP - WORKSHOP - COMPUTERIZED ACCOUNTING

J.a. COMPUTERIZED ACCOUNTING

This section deals with computerized accounting and the requirements pertaining thereto. If your books are not being done by a bookkeeper/accountant, there are certain legal requirements as well as many practical requirements as listed and discussed here under. This section ensures that computerized accounting systems are properly controlled to ensure validity, accuracy and completeness of the accounting data. THIS IS A VERY IMPORTANT SECTION, particularly if you are doing your own books. It is also a good idea to ask these questions of your bookkeeper/accountant to ensure that they have your best interests at heart.

1. There is a huge risk, in terms of confidentiality and fraudulent transactions taking place, not only within your own environment but also within the environment where your books are processed. This should be considered and controls should be in place (in the case of outsourced work) and be put into place should you be doing your own books. Again, I would like to stress the importance of you not doing your own books if you do not know what you are doing – it is the shortest route to financial failure! Getting back to the point in question, control procedures should pertain to both the physical security of the reports and the information resident on the hard drive. In the instances where the computer system is linked through electronic funds transfer with any bank (let’s face it, most of us do internet banking these days), an additional risk is created and adequate security measures should be in place. These are for your own protection and you should take careful note of the following.