Accounting standards are the concepts that guide selection, application, and disclosure of accounting policies and preparing and presenting of financial reports in relation to those accounting policies. Accounting Standards increase the value of information shown in financial statements. Bookkeeping includes recording, storing and retrieving of financial transactions for a business, nonprofit organization, individual, etc. Main objectives are improve the quality and uniformity of reporting, Standardise accounting practice and compel the accounting professional to apply them, Co-ordinate with changing accounting environment and adding to and consolidating accepted conventions and doctrines.Accounting reports are prepared for internal purposes as a management tool to aid decision making and for external purposes to disclose to interested parties the financial affairs of the business. So the design must cater for a wide variety of needs. It also comply with the government requirement such as tax authority, and others like banks, creditors as well as for the management.

We considers the factors for the design are

■ identifying what the business does and type of the business whether product or service is dealing.
■ the location—whether the business is all in one place or has branches and orientation of the particular business whether is a sole trader, partnership, club or company.
■ the information required by the owner or owners, information required by outsiders (for example, banks, accountants, auditors) and the type of information processing (manual or computer).
■ the effect of the law (for example taxation and the Corporate Law).

Stages in designing an accounting system are:

1. Collecting input information, including source documents
2. Recording transactions in journals, ledgers and extracting a Trial Balance
3. Producing financial reports and statements
4. Producing information for use internally to better control and optimise the business potential
5. Storing of information for future reference.