This research discussed the project management accounting system for Mecel Construction and Electrical Inc. (MCEI). The study aimed to identify the strengths and weaknesses of the accounting system, meeting the company’s requirement in terms of efficient transaction processing and controls, and enhancing internal control through the integration of computerization. It also tried to recommend appropriate methods to successfully implement the accounting system.
The study discussed the results taken from the answers of the respondents on the questionnaires and interview administered to them. The respondents were asked to answer the top opportunities and challenges of the company. Data gathered were then analyzed and evaluated.
It was found out that the system needs improvement especially in the area of internal control. A thorough system evaluation revealed several areas for improvement. The most visible was that the patchwork of manual and semi-automated processes lacked the capability for automated roll-up of financial information which can provide top management a complete financial picture of the company when needed. Another area to be improved was the insufficient control in the management of inventory. This finding was validated by the results of the survey on top management and critical staff where it was imperative that the accounting system be able to grow with the business while an internal control was robust.
The solution for the company’s challenges was to do away with multiple systems and set up just one accounting system. That one system can be customized or off-the-shelf dependent on the resources of the MCEI to acquire such system. Such solution can point to the capacity for automated roll-up of needed information. A very good candidate for customized system is to use and modify the existing Excel Spreadsheet for all the accounting system procedures or modules such as inventory, purchasing, payables, subcontract billings, payroll, equipment, costing, receivables, ledger, and financial statement. This would result to a seamless flow of data between the modules and provide an information dashboard to top management. It would not only be cost-effective but also very achievable.