THE STRENGHTS AND WEAKNESSES OF THE RECORDING PROCESS

During the recording process, the business will be confronted with a variety of strengths and
weaknesses. F & C United Sdn. Bhd. using the dual entry bookkeeping and accounting
process.
They will confronting numerous difficulties during the recording process that may have a
positive or negative impact on the business.

STRENGHTS

F & C United Sdn. Bhd. uses the dual entry method to record transactions for financial
reporting in recording process since it is more accurate. Dual entry or double entry
accounting, as opposed to single entry accounting, is based on regulations that require
duplicate entries for each transaction recorded. The concept is that for every debit, there is a
credit, and vice versa, even though contra accounts are sometimes used. F & C United Sdn.
Bhd. can keep significantly more complete records of all financial transactions in the business
with this sort of careful accounting than with single entry bookkeeping. Keeping accurate
records is critical for success when running a business. When using dual entry bookkeeping,
you can quickly pull data to make accounting information or summaries. Any vital element
may not be overlooked, and if F & C United Sdn. Bhd. is doing anything wrong; it will be
obvious.

WEAKNESSES

The accountant can choose from a variety of inventory valuation methodologies, depreciation
methods, revenue treatment, and capital expense treatment when calculating the entity's
income. As a result of the absence of objectivity, profits may be erroneous. For example, if
the incorrect depreciation method had been used, resulting in depreciation expenses that are
lower than the actual amount. As a result, the profit will increase.

For example, if any error or mistakes occur during recording process, it will risks F & C
United Sdn. Bhd. records, which might be costly—either hiring a professional to rectify it or
paying too much in taxes.
Finally, they may have entered inaccurate information into such an accounting system, which
is only as reliable as the information entered. Financial results may be erroneous unless those
input data is verified, as most accounting systems involve some manual data entry. It may be
difficult to detect erroneous information if you only look at the final reports or results of an
accounting system. It includes revenue, expenses, bookkeeping, and customer information,
among other things. The data that accounting information contains is crucial, and it must be
properly analysed. F & C United Sdn. Bhd. may suffer a loss if the interpretation is incorrect.