ACCT326 Course Project The project will demonstrate your comprehension of accounting systems and your ability to effectively communicate in writing.
ACCT326 Course ProjectThe project will demonstrate your comprehension of accounting systems and your ability toeffectively communicate in writing.Assume you are the owner of a small CPA practice in a major metropolitan area. You have sixprofessional employees, of which 2 are relatively new CPAs (recent graduates from UMUC), and anexperienced office manager. In the past, your practice consists primarily of tax and advisoryservices, but you want to expand the practice. Based upon your desires to expand the practice, youhave found a potential new client. The client has a growing homeowners' association consisting of1000 homeowners, who is in the process of acquiring with four other homeowner associations withinthe next 90 days. This acquisition will increase the number of homeowners to 3000. The new clientis interested in using a single automated accounting information system that will be able to performthe following functions:1. Billing - Each month, the system will generate an itemized bill for each homeowner. Thefees will vary from $100 to $200 per month, based upon the location of each home, and thetype of home (townhouse or single family homes). Late fees are 20 percent per month ofthe unpaid balance. The bills are mailed the 25 th of each month and payment is due by the10th of the following month. .2. Collections – Payments can be made in person (at the HOA main office); via mail (via aPO 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 expensesforoffice suppliesrental space for the HOAutility expenses for the HOA office as well as for lighting for each of the 5 HOAslawn carerefuse & snow removal4. Payroll: It is expect that the client will have roughly 20 full-time employees and 30 parttime employees. Employees will be paid on a bi-weekly basis. Payment will be made fromthe 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 accountingfunctions. Per this, you can see why the client will want to move to a single system. The client isusing 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 expandyour practice, but this is an opportunity that is very new to you. As the result of this opportunity, youhave asked your lead CPA to develop a document that will help you to determine if you shouldproceed with this opportunity. You have given your resources 4 weeks to complete thisassignment.Required: Using the methodology developed in this course, document and illustrate the systemfrom an automated function viewpoint. As part of your documentation, you will need to identify thespecific system requirements in the areas of inputs, outputs, and controls for each of the serviceareas. 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), basedupon the following outline.1. Executive Summary2. Introductiono Purpose of New System3. Proposed System Requirementso Billingo Input Requirementso Output Requirementso Control Requirementso Collectiono Input Requirementso Output Requirementso Control Requirementso Paymentso Input Requirementso Output Requirementso Control Requirementso Payrollo Input Requirementso Output Requirementso Control Requirementso Financial Reportingo Input Requirementso Output Requirementso Control Requirements4. Proposed Outsourcing Functions5. System Selection6. Challenges to Automation7. AppendixListed below is a summary of each section, including projected page lengths.