Solution-Which is separate from the clients primary account

Which is separate from the clients primary account

Reference no: EM131337887

Course Project

The project will demonstrate your comprehension of accounting systems and your ability to effectively communicate in writing.

Assume you are the owner of a small CPA practice in a major metropolitan area. You have six professional employees, of which 2 are relatively new CPAs (recent graduates from UMUC), and an experienced office manager. In the past, your practice consists primarily of tax and advisory services, but you want to expand the practice. Based upon your desires to expand the practice, you have found a potential new client. The client has a growing homeowners' association consisting of 1000 homeowners, who is in the process of acquiring with four other homeowner associations within the next 90 days. This acquisition will increase the number of homeowners to 3000. The new client is interested in using a single automated accounting information system that will be able to perform the following functions:

1. Billing - Each month, the system will generate an itemized bill for each homeowner. The fees will vary from $100 to $200 per month, based upon the location of each home, and the type of home (townhouse or single family homes). Late fees are 20 percent per month of the unpaid balance. The bills are mailed the 25th of each month and payment is due by the 10th of the following month. .

2. Collections - Payments can be made in person (at the HOA main office); via mail (via a PO Box); or electronically. Payments will be deposited to the client's account.

3. Payments: It is expected that the system will generate a minimum of 100 checks / payments each month. These payments will cover a variety of services, such as expenses for

office supplies
rental space for the HOA
utility expenses for the HOA office as well as for lighting for each of the 5 HOAs
lawn care
refuse & snow removal

4. Payroll: It is expect that the client will have roughly 20 full-time employees and 30 part-time employees. Employees will be paid on a bi-weekly basis. Payment will be made from the client's payroll checking account, which is separate from the client's primary account.

5. Reporting: It is expected that the system will be able to handle any and all reporting, including periodic financial statements.

Currently two of the four HOAs (including the client) are using an automated accounting system (Sage and QuickBooks), while the others are using Microsoft Excel to perform its accounting functions. Per this, you can see why the client will want to move to a single system. The client is using QuickBooks, but is open to using another system.

As the owner o the CPA firm, you are excited by this opportunity because it is a way to expand your practice, but this is an opportunity that is very new to you. As the result of this opportunity, you have asked your lead CPA to develop a document that will help you to determine if you should proceed with this opportunity. You have given your resources 4 weeks to complete this assignment.

Required: Using the methodology developed in this course, document and illustrate the system from an automated function viewpoint. As part of your documentation, you will need to identify the specific system requirements in the areas of inputs, outputs, and controls for each of the service areas. You will be also required to provide mock-ups of sample forms, documents, and reports. Your finish product will be a paper & a PowerPoint presentation (a summary of the paper), based upon the following outline.

1. Executive Summary

2. Introduction

o Purpose of New System

3. Proposed System Requirements

o Billing