FYP 1 REPORT

TITLE :

EXPENSES TRACKER SYSTEM USING LEAST SQUARE METHOD

NAME : SITI ZULAIKHA BINTI MAHIZAN

MATRIC NO : BTAL 17046376

COURSE : BACHELOR OF COMPUTER SCIENCE

SUPERVISOR : PN. FAUZIAH BINTI AB. WAHAB

CHAPTER I 1

INTRODUCTION 1

1.1 Background 1

1.2 Problem Statement 2

1.3 Objectives 3

1.4 Scope 3

1.5 Limitations 4

1.6 Implementation And Planning 4

1.7 Expected Result 5

1.8 Summary 5

CHAPTER II 6

LITERATURE REVIEW 6

2.1 Introduction 6

2.2 Related Research And Technique 7

2.3 Related Software 9

2.5 Summary 9

CHAPTER III 10

METHODOLOGY 10

3.1 Introduction 10

3.2 Waterfall Methodology 11

3.2.1 Phase 1: Requirement Gathering 12

3.2.2 Phase 2: System Design 12

3.2.3 Phase 3: Implementation 12

3.2.4 Phase 4: Testing 13

3.2.5 Phase 5: Deployment 13

3.2.6 Phase 6: Maintenance 13

3.3 System Requirement 14

3.3.2 Hardware Requirement 15

3.4 System Design And Modelling 16

3.4.1 Framework Design 17

3.4.2 Context Diagram 18

3.4.3 Data Flow Diagram 19

3.5 Entities Relationship Diagram(ERD) 25

3.5.1 Data Dictionary 27

REFERENCES 32
 CHAPTER I

INTRODUCTION

1.1 Background

Management of finance and accounts has been an actual issue for a long time.

People are less likely to keep track of their spending, be it, in checkbook or even

spreadsheets. Despite that, for the recent decades, it has got a new perspective with

the advent of modern technologies and the internet which is becoming more and more

accessible.

Expenses Tracker is a way that can help us to keep up with our spending. Not

only that, it can help us pinpoint areas that we have been spending and track

upcoming bill payments.

It is a web-based system that can keep track of their expenses and determine

whether they are spending as per their set budget. Potential users need to input the

required data such as the expense amount, merchant, category, and date when the

expense was made. This mobile system is a full detailed expense tracker tool that will

not only help users keep a check on their expenses, but also cut down the unrequired

expenses, and thus will help provide a responsible lifestyle.

1
1.2 Problem Statement

As for the time being, there a lot of budget planner software that are available

online but some of these software fall short in helping users to actually create and

stick to a budget.

One of the drawbacks is the on-going maintenance, a lot of budget software offer

the simplicity of integrating with all users financial accounts and consolidating their

activity into one dashboard. However though, some of this existing software mostly

have complicated features that are not user friendly.

Also, due to the busy and hectic lifestyle people tend to overlook their budget and

end up spending an excessive amount of money since they usually didn’t plan their

budget wisely. Last but not least, user cannot predict future expenses. While they can

wirte down their expenses in a piece of paper or manage them in excel spreadsheet,

their lack of knowledge in managing finances will be a problem.

2
1.3 Objectives

1. To design a user friendly and an attractive interface so that users can easily access

the system.

2. To develop a systematic system that will help to improve users’ financial

management and forecast future budget planning.

3. To test and evaluate the reliability of the system to generate monthly report and

forecast budget for the users.

1.4 Scope

The scope of this study are divided into:

Admin

⚫ The role of an admin is to login the system to make changes or update.

⚫ Admin can control user data and do the system maintenance.

User

⚫ User needs to input their monthly income and expenses to manage their financial.

⚫ Able to log in to system.

⚫ Can view the generated report.

⚫ Can view previous spending

3
1.5 Limitations

This system can only be used by individuals as it includes only personal expenses.

And only admin is allowed to manage the maintenance of the system. The system

cannot be performed offline.

1.6 Implementation And Planning

Using a Gantt Chart that describes key of activities and timescales involves in

implementing this project as shown in Table 1.1

Table 1.1 Gantt Chart

4
1.7 Expected Result

The expected outcomes from this project is that the system can precisely keeping

track of user’s expenses as well as their budgeting. A report will be automatically

generated by at the end of the month for user to review their spending. This report is

retrieved from the database that they have entered.

The goals that are achieved by the system are:

⚫ User friendly and flexible interface.

⚫ Efficient calculation and forecsting.

⚫ Improved productivity

⚫ Instant access.

1.8 Summary

The details of Expenses Tracker System has been discussed in this chapter which

include the project’s problem statements, objectives, scope, expected result and

project planning.

5
 CHAPTER II

LITERATURE REVIEW

2.1 Introduction

This chapter will be focusing on the work or research that are related either

directly or indirectly to this project. This part is very important for the development of

the project as it works as a guideline. It is an evaluative report of studies found in the

literature that related to the selected area. Besides, by studying and understanding the

researches, it will help in determining the best approach for the system development.

6
2.2 Related Research And Technique

Some research and journals have been reviewed throughout this project to make

out a distinct image of it. These journals in short, works as a guide for this project to

implement Least Square Method.

Based on article [4], it discusses about regression models. Basically, it holds a

concept where we forecast the time series of interest at y-axis assuming that it has a

linear relationship with other time series at x-axis. The author [4] also stated that, the

least squares principle provides a way of determining the coefficients effectively by

minimising the sum of the squared errors.

A study carried out by author [9], it introduces tools and methods for both finance

and accounting that help with asset pricing, corporate finance, options and futures,

and conducting financial accounting research. How least square method works and

implied in financial forecasting is discussed.

The author [2] applied several of statistical time series models to observe forecast

errors in the demand of juice production are within the expected limit and to choose a

forecasting technique which has a less relative error. The author [2] proved that Least

Square Method is more accurate than the others. Article [3] also did the study in order

to forecast milk production in India using statistical time series modeling- Double

Exponential Smoothing and AutoRegressive Integrated Moving Average and

concluded that Auto Regressive Integrated Moving Average performed better.

7
 In a paper studied by [7] explains that Batch-mode Least Squares SVM (LSSVM)

is often associated with unbounded number of support vectors (SVs). This, makes it

unsuitable for applications if it involves large-scale streaming data.

In this paper [7], it explains how to train the limited-scale LSSVM dynamically.

By applying a budget online LSSVM (BOLSSVM) algorithm, methodologically, by

setting a fixed budget for SVs, LSSVM model is updated according to the current SVs

set dynamically without re-training from scratch. This way, the proposed BOLSSVM

algorithm is especially useful for online prediction tasks. Thus, batch-mode learning

methods were compared, the computational complexity of the proposed BOLSSVM

method is significantly reduced. The validity and effectiveness of the proposed

BOLSSVM algorithm is shown by the experimental results of classification and

regression on benchmark datasets and real-world applications.

The paper [10] aims to describe a computerized system that is able to predict the

budget for the new year based on past budgets by using time series analysis. It will

then show results with most minimum errors and controls the budget during the year.

Through the ability to control exchange, compared to the scheme with the investigator

and calculating the deviation, measurement of performance ratio and the growth of a

number of indicators relating to budgets, it is possible to achieve the objective. For

example, this article [10] uses the rate of condensation of capital, the growth rate and

profitability ratio and gives a clear indication whether these ratios are good or not.

8
2.3 Related Software

One of the most common existing software that is related to this project is MINT.

Mint was formally introduced in September 2007. it is a server-based web, but this

software also can be used using PC or smarphone.

Based on a research from author [1], MINT is aware of users’ daily expense and

if they have a future goal of buying something, user can reduce your current spending

according to it. Most importantly, it keeps a track on users’ credit bills, home bills and

savings. This budgeting software also will notify users whenever user are due to pay a

bill or payment. This will lower the chance for users to forget to make payment.

Despite having some great advandtages, MINT also comes with a plenty of

drawbacks such as there no guarantee of the security in this online software. The

chances of getting their account hacked is worrisome as this software stores users’

financial account. The rivalry from other potential software also becomes one of the

big factor. Website has too many ads while browsing through finances.

2.5 Summary

In conclusion, the selection of accurate technique is very important to make sure

that the system successfully implemented and achieved the objective. The selected

technique is artificial neural networks that can be able to predict the financial forecast

correctly. Based on the research study, it can be conclude that the artificial neural

networks is suitable for Expenses Tracker System.

9
 CHAPTER III

METHODOLOGY

3.1 Introduction

In this chapter, it will be discussing about the methodology choosen in order to

develop Expenses Tracker System. A few methodologies have been taken into

consideration such as Agile Methodology and Rapid Application Development(RAD)

Methodology. Agile is a conceptual framework for undertaking software engineering

projects. It is adaptive which means that it responds to changes well. While, RAD is

created to take the maximum advantage of the development software. It makes the

entire development process uncomplicated as it also aid client in taking quick reviews

and uses them to make improvement.

But, at the end of the day, we decided to choose Waterfall Methodology to be

implemented in this project. There are few reasons why we choose the method and

more will be discussed as we get further into this chapter.

10
3.2 Waterfall Methodology

Waterfall Methodology is also one of Software Development Life Cycle(SDLC)

approach. It is choosen to be implemented in Expenses Tracker System because it is

very simple to understand and use. In waterfall model, there will be no overlapping in

the phases as each phase must be completed before the next phase can begin. The

phases consist of requirement gathering, system design, implementation, testing and

maintenance.

Figure 3.1 Waterfall Methodology

11
3.2.1 Phase 1: Requirement Gathering

The first phase is done by brainstorming the solution for the problem occured.

Hence, this project, Expenses Tracker System was decided. At this stage, all possible

requirements are collected in order to develop the system by doing questionnaire. The

requirements then are analysed and documented.

3.2.2 Phase 2: System Design

During this phase, the requirements captured from the first phase are studied and

the system design for Expenses Tracker is prepared which specifies hardware and

system requirements. This is to ensure that every requirement and any related things

need to be done are suitable with the system. This stage will help in defining the

overall system architecture for Expenses Tracker System.

Designing the Context Diagram(CD), Data Flow Diagram(DFD), and Entity

Relationship Diagram(ERD) are also being done here in order to translate the process

flow of Expenses Tracker System.

3.2.3 Phase 3: Implementation

As the name implies, in this phase the source code is written as per

requirements. The information from the previous stage is taken and a working code is

written to create a functional product. Small pieces of code will be implemented and

then are integrated at the end of this phase or the beginning of the next. For Expenses

Tracker System is developed using XAMPP, MySQL and Notepad++ .

12
3.2.4 Phase 4: Testing

Once the implementation is completed, the final product of Expenses Tracker will

be tested and evaluated to find any problem that might occur on its perfomance. Bugs

is fixed in this phase. This is also where the system will be determine whether it meets

the requirements or not.

3.2.5 Phase 5: Deployment

In this phase, the complete product of Expenses Tracker will be released and

tested to the end-users. They will use the system and give their feedbacks on whether

it needs to be improved or modify. Any modifications or changes are being made

based on the feedbacks from the user to make sure the system is completely fulfilling

the requirements.

3.2.6 Phase 6: Maintenance

After the deployment phase, the next step is to provide support and maintenance

for the system, making sure it works perfectly as it should. If users come across any

errors, defects or bugs during the process, fixing them is the main aim of this stage.

To fix those issues, patches are released. Also some better versions are released to

enhance the product.

13
3.3 System Requirement

System requirement contains of software requirement and hardware requirement.

These are needed to ensure the accomplishment of all processes are well covered. So,

every aspect required during implementation phase needs to be determined.

3.3.1 Software Requirement

List of software required:

No. Software Purpose

1. LARAVEL Framework to develop the system.

2. Notepad++ Used for coding and as connection to

database.

3. XAMPP Used as local server.

4. MYSQL Database Acts as the database for the system.

5. WPS Office Writer Used to do the documentation for the project.

6. Flutter Framework to develop the system

7. Google Chrome A browser to run localhost and search for

information.

Table 3.1 List of software requirements

14
3.3.2 Hardware Requirement

Some of the requirements for hardware(PC):

No. Aspect Details

1. CPU intel CORE i5

2. RAM 4 GB

3. ROM 256 GB

4. Operating System(OS) Windows 10

5. System type 64-bit operating system

Table 3.2 List of hardware requirements

15
3.4 System Design And Modelling

Constructing a few work flow diagrams will be taken into account moving into

the next stage in the Waterfall methodology. This will help developers to define a

clearer idea based on the specified requirements. As for Expenses Tracker System, it

will include the Context Diagram and Data Flow Diagram shows the physical design

of the system while the Entities Relationship Diagram act as the logical design of the

system.

16
3.4.1 Framework Design

Figure 3.2 Framework design for the system

The framework for Expenses Tracker System includes Admin, User, Database

and the system itself. Based on Figure 3.2 above, it shows the flow of how the system

works in general where users can input their income, expense and budget to the

system and all the data will be stored in the database. From the database, the data will

be analyzed and new report and budget will be generated.

17
3.4.2 Context Diagram

LEVEL 0

Figure 3.3 Context Diagram of the system

Figure 3.2 shows the main process flow of how Expenses Tracker works. There

two entities involved, Admin and User. The role of Admin is that they can manage the

data of the user and do the maintenance. Meanwhile, user is required to register their

profile in order to use the system. User is allowed to input their income and expenses.

18
3.4.3 Data Flow Diagram

LEVEL 1

Figure 3.4 DFD Level 1 for Admin

Based on Figure 3.4 above, there are six processes involve in Admin module.

Admin can be login to the system as a first step to get into the system. After login,

process that involve admin is Manage Income, Manage Expenses, Forecast Budget

and Generate Report from the system. At the end on the process, admin canlogout

from the system.

19
LEVEL 1

Figure 3.5 DFD Level 1 for User

Figure 3.5 above shows that there are four processes involve in User module. User

can be login to the system as a first step to get into the system. Then, other processes

carried in this module are Manage Income, Manage Expenses and Generate Report

from the system.

20
LEVEL 2

Figure 3.6 DFD Level 1

Figure 3.6 shows the login process of the system in details. User is required to

enter the details needed in order to use the system.

21
LEVEL 2

Figure 3.7 DFD Level 2 Manage Income

Based on Figure 3.7, the process above means that user can enter their income,

edit and delete if needed.

22
LEVEL 2

Figure 3.8 DFD Level 2 Manage Expenses

Based on Figure 3.8, the process above shows that user can enter their expenses,

edit and delete if needed.

23
LEVEL 2

Figure 3.9 DFD Level 2 Report Generation

From Figure 3.9, it shows the process to generate a report based on data has been

entered in income and expenses. The data from these data store will be retrieve to

display a report and forecast next month budget.

24
3.5 Entities Relationship Diagram(ERD)

ERD is a data modelling technique that creates a graphical representation of

the entities and the relationships within a system. Figure 3.10 below shows the

entities involved in Expenses Tracker System and its relationships. There are

several entities which are user, admin, expenses, income, budget and category.

Figure 3.10 Entities Relationship Diagram(ERD)

Figure 3.10 visualizes the entities, their attributes and the relatonships between

the entities.

25
 Figure 3.11 Database Design

Figure above shows the database design of Expenses Tracker System. It

visualized the connection and relationship between the tables involved in the

database.

26
3.5.1 Data Dictionary

A data dictionary is a file or a set of files that contains a database's metadata.

It has records about other objects in the database, such

as data ownership, data relationships to other objects, and other data. The following

tables below are showing the specification of each table involves in the database:

1. TABLE Users

2. TABLE Income

3. TABLE Expenses

4. TABLE Category

5. TABLE Budget

27
 Column Type Null Length Key Description

username varchar no 10 PK

firstName varchar yes 20

lastName varchar yes 20

email varchar yes 50

password varchar yes 12

Table 3.3 Users Table

Column Type Null Length Key Description

income_id varchar no 10 PK

username varchar no 10 FK

inc_amount decimal yes 7

inc_date datetime yes

inc_source varchar yes 20

Table 3.4 IncomeTable

28
 Column Type Null Length Key Description

expense_id varchar no 10 PK

username varchar no 10 FK

exp_amount decimal yes 7,0

exp_date datetime yes

category varchar yes 20

exp_status varchar yes 20

Table 3.5 Expenses Table

29
 Column Type Null Length Key Description

username varchar no 10 PK

groceries varchar yes 7

entertainment varchar yes 7

automobile varchar yes 7

household varchar yes 7

loans varchar yes 7

insurance varchar yes 7

rent varchar yes 7

bill varchar yes 7

others varchar yes 7

Table 3.6 Category Table

30
 Column Type Null Length Key Description

budget_id varchar no 10 PK

username varchar no 10 FK

income_id varchar no 10 FK

budgetName varchar yes 20

budget_amount decimal yes 7,0

firstDate datetime yes

secondDate datetime yes

category varchar yes 20

period varchar yes 10

Table 3.7 Budget Table

31
REFERENCES

[1] Morgan L. (2017). Why Do People Think Mint is Bad For Budgeting. Investing

Education.[online] Retrieved from:

http://www.investinged.com/why-do-people-think-mint-is-bad-for-budgeting/

[Accessed 1 April 2017].

[2] Kumar, R and Mahto, D 2013, ‘A case study : Application of Proper Forecasting

Technique in Juice Production’, Global Journal of Researches in Engineering,

vol. 13, no. 4, pp. 1-6

[3] Pal, S, Ramasubramanian, V and Mehta, SC 2007, ‘Statistical Models for

Forecasting Milk Production in India’, Journal of Indian Society of Agricultural

Statistics, vol.61, no.2, pp. 80-83.

[4] Hyndman, R. J., & Athanasopoulos, G. (2018). Forecasting: Principles and

Practice.

[5] Thanapal, P., Patel, M., Lokesh Raj, T., & Satheesh Kumar, J. (2015). Income

and Expense Tracker. Indian Journal Of Science And Technology, 8(S2), 118-122.

32
[6] Chauhan, B. D., Rana, A., & Sharma, N. K. (2017, September). Impact of

development methodology on cost & risk for development projects. In 2017 6th

International Conference on Reliability, Infocom Technologies and Optimization

(Trends and Future Directions)(ICRITO) (pp. 267-272). IEEE.

[7] Jian, L., Shen, S., Li, J., Liang, X., & Li, L. (2016). Budget online learning

algorithm for least squares SVM. IEEE transactions on neural networks and learning

systems, 28(9), 2076-2087.

[8] Gaither, G. H., Dukes, F. O., & Swanson, J. R. (1981). ENROLLMENT

FORECASTING: USE OF A MULTIPLE‐METHOD MODEL FOR PLANNING

AND BUDGETING. Decision Sciences, 12(2), 217-230.

[9] Lee, C. F., Chen, H. Y., & Lee, J. (2019). Econometric Approach to Financial

Analysis, Planning, and Forecasting. In Financial Econometrics, Mathematics and

Statistics (pp. 125-157). Springer, New York, NY.

[10] Elbasheer, F. A., & Samani, A. T. (2014). Forecasting Budget Estimated Using

Time-Series. Intelligent Information Management, 2014, 6, 142-148, Published

Online May 2014 in SciRes. http://www. scirp. org/journal/iim.

33