A system may be automated as well as manual. How people sees a system may vary as per their requirements. It is the job of the financial and accounting system to cater to needs of all users.
Different perspectives from different Professionals Different Requirements from Different Persons;
| Persons/Professionals | Perspectives/Requirements |
| Accountant’s view | Balance Sheet and profit & loss Account must be prepared easily without putting much time / efforts. |
| Auditor’s view | Balance Sheet and profit & loss Account must be correct at any point of time. |
| Business manager/Owner’s view | I need right information at right point of time for right decision making. |
INTEGRATED (ERP) AND NON-INTEGRATED SYSTEMS
System
“A set of principles or procedures per which something is done; an organized scheme or method”
or
“A set of things working together as parts of a mechanism or an interconnecting network; a complex whole”
or
“A set of detailed methods, procedures and routines created to carry out a specific activity, perform a duty, or solve a problem”.
All systems generally have:
- Inputs, outputs and feedback mechanisms,
- Maintain an internal steady-state despite a changing external environment,
- Have boundaries that are usually defined by the system observer.
Examples:
- Human body is natural and a complete system and is part of Eco System.
- Financial and accounting system
Process;
We can define process from two perspectives;
| Definition: Process; | |
| System engineering perspective | Business perspective |
| A Process is defined as a sequence of events that uses inputs to produce outputs. | A process is a coordinated and standardized flow of activities performed by people or machines, which can traverse functional or departmental boundaries to achieve a business objective and creates value for internal or external customers. |
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