This study focuses specifically on the Accounting Office which is a vital component of and the key player in the University of Southern Mindanao. It describes the general functions of the Accounting Office traces and analyzes the flow of transactions involved in the requisition of supplies and processing of disbursement vouchers, and payrolls determines the problems and concerns involved in the performance of functions in the Accounting Office and formulates alternative solutions to solve such problems. The data gathered are confined within the operations of calendar year 1995 at the USM.