Project Introduction The project aims at automating of ABC Ltd. accounting system through an upgrade of the current manual system. The project involves the installation of a computerized accounting system instead of the company’s IT system and accounting processes. Due to the increasing demand for transparency in processing of accounting data and proper reporting of financial information, the company found it worth installing automated accounting system. In installing the system, the company will make a valuable investment in an asset that will reduce management costs. The new system will also enable the company to reduce employee costs by lowering the number of accounting staff and improve the accuracy of the financial information. Project Scope The primary scope of the project is to install an automated computerized accounting system to operate the company’s accounting process. The main objective of the project is to provide an effective system to facilitate accuracy and efficiency of accounting for transactions as well as financial information. The system needs to be user friendly and supported by a centralized IT infrastructure. The system will be configured to ensure simplified posting of accounts payable and accounts receivable. The system should also eliminate the need for multiple postings in the books of accounts in order to maintain accounting records and comply with accounting principles. This project will necessitate the company to acquire new computers with more efficient processors and reliable memory capacities. In addition, the project should include installation of secure and reliable data storage and backup system and devices. The project will also incorporate training of the company’s staff to match their skills with the demands of both the new system and the accounting principles. Project Cost The cost of the project depends on the selected software and the properties of the hardware installed for the new system. The investment for the project will involve the cost of disposing the current computers used by the accounting department. It will also include purchasing new computers, procuring the accounting software and the installation of the system to substitute for the existing procedures. Another cost driver is the training of the users of the new system for accounting and auditing processes. The total budget of the system is $75,000, which are broken into the five cost items. First, the cost of disposing the current system is estimated at $7,500. Secondly, it will cost the company $30,000 to acquire new computer systems for the sales, accounting and auditing departments. Thirdly, the company will spend about $20,000 to purchase automated accounting software and applications to run the new system. Additionally, the company will incur up to $10,000 to install and configure the new system and applications to the installed computer system. Finally, the company will spend up to $7,500 to train all the employees on the new system demands as well as comply it with accounting standards. To cover these costs, the company will plough back previous year’s profit of $50,000 and take a loan on the remaining $25,000. Net Present Value Table 1: Net Present Value Net Present Value for Automated Accounting System Project