Transaction Processing & Accounting.pptx

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1. Transaction Processing & Accounting By Inst. Nanecga G.

2. Introduction This presentation reviews key concepts behind transaction processing systems and accounting applications, focusing on how sales orders are processed, physical and financial phases of revenue cycles, and integration of real-time technology to improve accuracy, control, and efficiency.

3. Transaction Processing 01

4. Definition and objectives Transaction processing involves the collection, storage, modification, and retrieval of all data related to business transactions to ensure timely and accurate recording of economic events, supporting operational and financial activities with integrity and control.

5. Types of transaction processing systems Common systems include batch processing, where transactions accumulate before processing, and real-time processing, which handles transactions immediately as they occur, enabling faster updates and improved accuracy in inventory and customer accounts.

6. Key components and workflow Workflow begins with order receipt and credit check, followed by goods picking, shipping, billing, and updating inventory and accounts receivable records. Each step is supported by control documents and automated updates to maintain a seamless transaction flow.

7. Accounting Applications 02

8. Role in financial management Accounting applications process transactions to update ledger accounts, support financial reporting, enforce internal controls, and provide accurate data for decision-making. They facilitate segregation of duties and independent verification to maintain data integrity.

9. Common software tools Accounting software integrates modules like accounts receivable, inventory control, billing, and general ledger. Real-time systems reduce manual errors by automating tasks, improving efficiency, and ensuring that data is securely maintained and regularly backed up.

10. Integration with TPS Accounting applications integrate closely with transaction processing systems by updating subsidiary ledgers and general ledger accounts. This integration ensures real-time data flow between modules like billing, inventory control, and accounts receivable, facilitating accurate financial reporting and operational efficiency.

11. Data Integrity & Security 03

12. Accuracy & Consistency Ensuring data accuracy involves automated checks, real-time editing, and control documents. Consistency is maintained by segregating duties and verifying transactions to prevent errors, maintaining an audit trail from source documents through accounting records.

13. Security Challenges Key challenges include unauthorized access, data tampering, and fraud risks. Solutions involve access controls, segregation of duties in programming and operations, continuous supervision, and physical and digital security measures to safeguard both data and system programs.

14. Compliance & Audits Accounting systems must comply with internal controls and regulatory standards. Independent verification, audit trails, regular reconciliations, and backup procedures support compliance and enable detection of unauthorized changes or errors in financial data.

15. Performance & Scalability 04

16. Transaction Volume Systems are designed to handle large volumes of transactions efficiently via batch or real-time processing. Real-time processing shortens the cash cycle, allowing faster updates and order fulfillment to handle peak workloads without delay.

17. Processing Speed Optimizing speed involves real-time data entry, automated controls, and batch updates for summaries. Properly designed workflows and system architectures reduce delays, minimize errors, and improve responsiveness to business demands.

18. Future Trends Emerging technologies such as cloud computing, AI-driven analytics, and blockchain aim to enhance transaction processing speed, data security, and accuracy. Automation and integration will further streamline accounting workflows and improve scalability.

19. Conclusions Transaction processing and accounting systems are vital for accurate financial management and operational efficiency. Leveraging real-time integration, rigorous controls, and emerging technologies ensures integrity, security, and scalability in managing business transactions.

20. Thank you! Do you have any questions? www.yourwebsite.com