A business process is a prescribed sequence of work steps completed in order to produce a desired result for the organization. Business processes occur so that the organization may serve its customers. Nearly everything that an organization does to fulfill its day-to-day activities is part of a business process. The examples of beverage or food service to customers are business processes. Each business process has a set of systematic steps undertaken to complete it.
A. Business processes. For nearly all of the business processes in an organization, there are accounting effects. Within any business, there may be hundreds of business processes. As transactions occur, the accounting information system must capture and record the related financial data. For example, a restaurant must have a system to capture and record the revenue generated by your meal, the details of your credit card payment, the food used in your meal and its cost, and any tips.
In traditional, Manual accounting systems, the detailed transaction data is taken from source documents, special journals, and subsidiary ledgers and is summarized and posted to the general ledger. Most accounting systems today are computerized to some extent, but there still remains a need for paper documents.
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