System Development and System Analysis

Actually, the only things which is never changing is the changing itself. Everything changes as time goes by and so does the system. Therefore, in Accounting Information System also explains about the system development.

Many companies recognize the importance of changing of technology and market which occur rapidly. Therefore many companies concern to system development in order to be the advanced who take control of information sources.

Actually, in system development, there are five cycles which are related one another and must be in sequence. The first cycle is system analysis which is about how the company analyze the information. As the organization grow and change, they need more and better information.  In system analysis, there is five sub-steps which must be done in sequence too. The first sub-steps is initial investigation which is about to determine the priority of buying or developing a new system.

If you want to know more, click link below to download the files

Chapter 18 and 20 Roomney-Accounting Information System--System Development

Summarizing of System Development--chapter 18 and 20--Roomney.pdf (bahasa Indonesia)

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Budgeting in Governmental Accounting

As we have learned before about the introduction of Governmental Accounting, Let us study further about it. At this time, I would like to post about the budgeting in governmental accounting.

In principles no 10 of GASB (Government Accounting Standard Board)--check Governmental and Nonprofit Accounting--Introduction--  rules about the recognition of the importance of budgeting. The question is why budgeting is important meanwhile budgeting can cause dysfunctional behavior? It can cause dysfunctional behavior because if the budgeting is used as the evaluation of work and if the result is not good enough, mostly people blame on the market as the used of budget become higher than before. Actually, it is not good idea if budgeting is used to evaluate work however it can be used as reference in order to prevent sufficient and inefficiency.

Besides that, budgetary control is needed. It is citizen rights to take a part in control of budgeting. Have you ever used that rights? or even you do not know how? if you want to know more about budgeting, budgetary accounting, and budgetary reporting click link below

Freeman-Budgeting, Budgetary Reporting, and Budgetary Control (chapter III)




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Governmental and Nonprofit Accounting--Introduction

It is still about accounting. Actually, there are many differences between Governmental and Nonprofit Accounting and Financial Accounting.

Before I explain about Governmental and Nonprofit Accounting, I would like to explain about what are the unique characteristics of government and nonprofit organizations.

The Government and nonprofit organizations have their own characteristics such as the absence of profit motive. They do services not to get profit as much as they can but they do service as their dedication to people. The nonprofit organizations get their own fund from the donation of people who care about their dedication to serve people and mankind. Besides from donation, it can be from the sold of merchandise. Examples of nonprofit organizations are WWF (World Wildlife Fund)--They concern about the extinction of endangered animals--, United Nation (ILO, FAO, WHO, etc.). Meanwhile the government gets their own fund to operate the services from the tax who paid of citizens. Some of services in Indonesia must pay first to get services such as Trans Jakarta Busway however the money that you pay to take Trans Jakarta Busway is not for profit purpose, it is for operational cost.

Another differences are There is no cleared owner. Actually, who own WWF or FAO? or Who own Trans Jakarta Busway? well, in government and nonprofit organizations there is no cleared owner since if there is cleared owner it must be the stockholder and if there is the stockholder, there must stock which is there is dividend and it becomes a profit ones. For the government, the owner is citizens, both of the ones who pay taxes and who do not.

Want to know further more?
click link below to download file of governmental and nonprofit organizations accounting
Freeman-Governmental Accounting chapter 1 and 2.rar

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