ACCOUNTING

What is
Accounting?!
!
Accounting is the process of
recording,identifying,measuring and reporting
economic transactions from an organization or
company that si created as information in the context
is making economic decision by parties need that
information
History of
Accounting
Accounting in the world was introduced by Luca
Pacioli through his book entitled “ Summa de
Arithmatica, Geometrica Proportioni et
Propotionalita”. Luca Pacioli began to introduce the
double book system which is now known as debit
and credit. initially, the bookkeeping system
introduceed by Luca Pacioli was intended to help
the recording stystem for traders in italy. However,
the accounting system developed until it was known
by the wider community,including indonesia.
The first bokkeeping system appreared in indonesia
starting around 1642.
ACCOUNTING SYSTEM
a)Warren,Reeve,and Duchac’s approach: According to
Warren, Reeve, and Duchac’s view, an accounting
system is a sctructure used by an organization to
record and report financial transactions. The goal is to
provide relevant information for intelligent dicision
making.
b)Definition from M.Y.Safriadi: the accounting system
in M.Y.Safriadi’s perspective is a series of procedures
used by companies to record,measure,classify and
report financial information relate to the company’s
operatioanl activities.
Main componnets of the
accounting system:
●The first recording stage identifies a
transaction or even by producing evindence.
● Record transactions in a journal Book
● Post to Leadger
● C reate a work balance sheet
● Preparw Financial Statement
● The cloasing Journal
Elemnts of an
Accounting System:
☆ ACC OUNTS :
• Real Account
• Nominal
Account
☆ TRANSAC TION
☆ REC ORDING
☆ REPORTING
Type Accounting
System:
■ MANAG EMENT

■ STOCK UP

■ FINANCE

■ COST

■ GOVERMENT

■ NON-PROFIT
Financial
Statem ent
Financial statemenet are basecally the result of
many reflectioms transactions that occur within a
company.
Transaction and events financial matters are recorded
classified and summarized in a manner that is precisely
in monetary units and then interpretations are made for
various objective.
Types of Financial Statement:

♡ INCOME STATEMENT
♡ S TATMENT OF C HANG E IN EQUITY
♡ BALANCE SHEET
♡ CASH FLOWS STATEMENT :
• C ash Flow from Activities Operation
• C ash Flow from Activities
Investement
• C ash Flow from Financing Activies
♡ NOTES TO FINANCIAL STATEMENT
Parties who Require
Financial
Statement:
◇ C OMPANY OWNERS

◇ MANAGEMENT

◇ CREDITORS

◇ GOVERMENT

◇ INVESTORS
Accounting VS
Public Sector
Accounting
Public sector accounting is a branch of
accounting taht focuses on entities and
organizations operating in the public sector.
Public sector accounting is a scientific
discipline concerned wuth the financial
management and reporting of public sector
entities, inluding govermenets, public
institutions, and statement owned enterprises.
The term “ public S ector” itself has various
meanings
Development of
Public Sector
There have been various criticims regarding the role

Accounting
of public sector organizations in development
experienced dramatic changes. In the 1959s and
1960s the public sector play a major role as creator
and implementers of development strategies. Term “
public sector” was first used in 1952. At the btime, the
public sector often said tobe part of macroeconomic
management related to development and
development implementation institutions. It was only
in the 1980s that public sector reforms were carried
out in industrialized countriesw fowerd in response
to various existing criticisms. Various changes were
made for example by adopting the new public
management (NPM) approach and reinventung
govermenet in many countries, especially Anglosaxon
cpountries.
 Differenc Public Private
e Sector Sector
Organizational Goals Non-Profit Private
Motive Motive
•Internal financing: capital own,
Taxes, levies, debts, bonds,government, rentaids earnings, sales assets
Source of Financing BUMN/BUMD profits, •External financing: debt
banks,bond,stock issuance

Accountabily to society ( public) and Accountability to

Accountability Pattern parliament ( DPR/DPRD) shareholders and
creditors
Fleksibel: datar, pyramid,
Organizational structure Bureaucratic, rigid and
lintas fungsional,
hierarchical
dsb.
Budget and
Open to the Closed to the
stakeholder
Public Public
characteristics

Accounting system Cash Accrual

Application of Accounting
in Public life and Business
The applicaton of accounting is very important for a business
unit, including MSME. The application of accounting to
MSME is not just about bookkeeping which is good and
neat, but can facilitate elated collaboration with finanace,
namely funding from third parties ( Banks) and to see
affectiveness and efficiency of business.

MSME are the largest group of economic actors in the

economy indonesia and one of the leading drivers of
economic development. As the axis of national economic
revival, MSME are not a sector without problems. Apart from
capital problems, one of the problems faced by at the same
time, the weakness of MSME is the impelemtation of
appropriate accounting with S AK ETAP.
 COCLUSION
●Accounting is very important to help companies or organizations
in running their company. With the introduction of accounting by
Luca Pacilio, accounting was very useful for the world economy
and the
implementation of accounting in Indonesia occurred in 1747.

●Financial reports are an important component in the journey of money

circulation. Financial reports can make it easier for companies to analyze
company finances.

●In our opinion, both private accounting and public sector accounting are
good to use depending on the company/organization and also the scale
of the company/organization.

●MSME is one of the accounting application platforms that is widely used

in various accounting businesses, very effectively and efficiently.
Thank you
for listening!
I Hope you
Understand 💸 🙏