Describe how to manually process financial transactions and outline the key features of manual
and computerised accounting systems. (300 words)
When we need to process non cash transactions such as credit cards, cheques, vouchers and
EFTPOS, we need to make sure we group them and calculate each group by itself. Then, I
calculate and make sure that all was accounted for. I can add all the amounts together to get
the total amount for noncash transactions. Before I go to the bank, I need to prepare a bank
slip that contains all the information such as number of items, amounts, and detailed the
information from each cheque such as name, date and bank details. Using the organisation’s
policies and procedures, these envelope with all the non-cash transactions, we arrive to the
bank by an employee or an outside company and the bank will recheck and verify the
accuracy of our slip and only then will provide us with a lodgement proof.
We also need to process petty cash and vouchers according the organisation policies and
procedures. When dealing with petty cash, we must follow the company’s procedures and
document all transaction to avoid error in the end of the month. The company can use
either a non- impreset system, or the impreset method.
When performing any type of transaction, we need to validate the accuracy of the
documents by checking the nature of the transaction, date, amount, terms and conditions
and who is involved in this transaction. For every transaction we need verify against a source
documents such as cash register, summary and cash receipts for cash transactions, cheques
butt for payment of cash and sales invoices for all goods, services sales on credit. Other
document source may include, adjustment notes, credit notes, invoices, purchases order, tax
invoices and receipts.
When dealing with cheques, we need to make sure that all information is correct including
date, amount the payee address and name, payment description. When we record these
transactions, we need to validate it against a purchase order and see that all details are
correct including the account that will be charged, invoice number, GST and total amount. All
parts of the document must be accurately completed, and we have the required evidence
(PO) to validate the payment.