CHAPTER 2

PROBLEM DEFINITION AND FEASIBILITY ANALYSIS

2.1 PROBLEM DEFINITION

Every earning people are mostly obsessed at the end of the month as the they cannot
remember where all of their money have gone when they have spent and ultimately have to
sustain in little money minimizing their essential needs. There is no as such complete solution
present easily or we should say free of cost which enables a person to keep a track of its daily
expenditure easily and notify them if they are going to have money shortage. To do so a
person has to keep a log in a diary or in a computer, also all the calculations needs to be done
by the user which may sometimes results in errors leading to losses. Due to lack of a
complete tracking system, there is a constant overload to rely on the daily entry of the
expenditure and total estimation till the end of the month.

The old way of expense tracking typically involves manually recording expenses in a
notebook or spreadsheet. This method can be time-consuming and prone to errors, and it may
not provide users with a comprehensive overview of their spending habits. Here are some
problems associated with the old way of expense tracking:

 Time-consuming: Manually recording expenses in a notebook or spreadsheet can be

a time-consuming process, especially for those who make frequent purchases. This
can make it difficult to keep track of expenses and can result in inaccuracies.
 Limited insights: The old way of expense tracking often does not provide users with
a comprehensive overview of their spending habits. Users may be able to track their
expenses by category, but they may not be able to see patterns or trends in their
spending.
 Human errors: Manually recording expenses can lead to human errors, such as
incorrect calculations or forgotten expenses. This can result in inaccurate data and
limit the usefulness of the expense tracking method.
 Lack of portability: A notebook or spreadsheet may not be easily accessible while on
the go, making it difficult for users to record expenses in real-time.
 No integration with other tools: The old way of expense tracking does not typically
integrate with other financial tools, such as bank accounts or credit cards. This can

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 limit the usefulness of the method and make it difficult for users to get a complete
picture of their finances

Overall, the old way of expense tracking can be inefficient and prone to errors. Adopting a
more modern approach, such as using an Financial management , can help to address these
problems and provide users with more comprehensive insights into their spending habits.

2.1.1 EXISTING SYSTEM

Financial management app have become increasingly popular in recent years, thanks
to their ability to help individuals and businesses keep track of their spending. These apps are
designed to help users manage their finances by recording their expenses and providing
insights into their spending habits.

One of the main features of an Financial management app is the ability to input and
categorize expenses. Users can manually enter expenses such as bills, groceries,
transportation, entertainment, and other purchases, and the app will automatically assign them
to relevant categories. This feature is often customizable, allowing users to create their own
categories or modify existing ones.

Financial management apps also offer the ability to set budgets and spending limits.
Users can set limits for individual categories or for their overall spending, and the app will
provide notifications when those limits are approaching or have been exceeded. This helps
users stay within their budget and avoid overspending.

Another feature of many Financial management app is the ability to generate reports
and visualizations of spending data. Users can view their spending habits over time, see
which categories they are spending the most on, and identify areas where they could cut back.
These reports can be useful for setting goals, making adjustments to spending habits, and
overall financial planning.

Many Financial management app also offer integration with other financial tools, such
as bank accounts and credit cards. This allows for automatic syncing of transactions, making
it easier for users to stay up to date on their spending. Additionally, some apps offer advanced
features such as investment tracking, bill reminders, and receipt scanning.

Overall, Financial management app provide a convenient and effective way for
individuals and businesses to manage their finances. With their customizable features and

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ability to provide insights into spending habits, these apps have become an essential tool for
anyone looking to take control of their finances.

2.1.2 PROBLEM IDENTFICATION

The common issue is the current system, there are still some common problems and
challenges that users may encounter.

One of the main challenges is the need for manual input of expenses. While some
apps offer automatic syncing with bank accounts and credit cards, many users still need to
manually input expenses, which can be time-consuming and may result in errors or
omissions. This can lead to incomplete or inaccurate data, which can affect the usefulness of
the app's insights and reports.

Another problem is the difficulty in accurately categorizing expenses. While many

apps offer pre-defined categories, users may have unique or specific expenses that do not fit
neatly into those categories. This can result in confusion and inconsistency in how expenses
are tracked, making it harder to understand spending habits.

Another challenge is the lack of flexibility in setting budgets and spending limits.
Some apps only allow for rigid budgeting, which may not reflect a user's individual financial
goals and priorities. For example, a user may want to spend more on entertainment and less
on groceries, but the app may not allow for this kind of customization.

Privacy and security are also important concerns when it comes to Financial
management app. Users may be hesitant to input sensitive financial information into an app,
especially if they are not confident in the app's security measures. There is also the risk of
data breaches and hacking, which can compromise a user's personal and financial
information.

Finally, some users may find the cost of using Financial management app to be a
barrier. While many apps offer free versions, the full range of features may only be available
through a paid subscription. This can be a significant expense for some users, especially those
who are already struggling with their finances.

Overall, while Financial management app offer many benefits, it is important to be

aware of the challenges and limitations they may present. By understanding these issues,

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users can make informed decisions about which app is right for them and how to use it
effectively.

2.1.3 PROPOSED SYSTEM

An expenditure tracker app is a tool that assists users in tracking their costs, managing
their budget, and planning their money. The following functionalities should be included in
the suggested system for an expenditure tracker app:

 User Registration: The app should allow users to register by providing personal
information such as their name, email address, and password. This guarantees that the
software is only accessible to authorised users.
 Expense Tracking: Users should be able to track their spending by category, date,
and amount using the app. Users should be able to enter new costs, modify old ones,
and remove them as needed. The software should also have an option to automatically
classify spending.
 Budgeting: The software should allow users to create budgets for various categories
of spending such as grocery, entertainment, transportation, and so on. The app should
keep track of costs in relation to the budget and give visuals to assist users understand
their spending habits.
 Notifications: The app should tell users when their budget has been exceeded or
when a payment is due. The software should also tell users if their account or
spending have been changed.
 Reports and Analytics: The app should give users with expenditure reports and
analytics. The reports should be simple to read and include suggestions on how users
might improve their spending patterns.
 Security: The app should have strong security measures in place to secure users'
personal and financial information. To safeguard data, the app should employ security
and demand strong passwords for user accounts.
 User Experience: The app should have a simple, clean, and easy-to-navigate
interface. The app should also include a help centre or customer assistance to solve
any concerns or questions that customers may have.

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In conclusion, this project's users will have a great visual experience, and the app will be
user-friendly, engaging the users more and more in their everyday lives.

2.2 FEASIBILITY ANALYSIS

Feasibility analysis is an essential step in determining the viability of a project. Here

are some key factors to consider when conducting a feasibility analysis for an Financial
management project.

Evaluate the technical requirements for the project such as the software and hardware
needs, the development costs, and the technical expertise required to build and maintain the
Financial management. Analyze the market demand for an Financial management, the target
audience, and the competition. Determine if the product is unique and if there is a need for it
in the market. Assess the financial viability of the project, including the expected revenue, the
costs associated with building and maintaining the Financial management, and the potential
return on investment. Ensure that the online test tool complies with all relevant laws,
regulations, and ethical standards. This includes data privacy and security regulations,
copyright laws, and other intellectual property rights. Examine the operational feasibility of
the project by assessing how the Financial management will fit into the current operations of
the organization, the potential impact on other systems, and the availability of resources such
as staff and equipment. Consider the social impact of the Financial management, including its
potential effects on the user experience, accessibility, and inclusivity.

2.2.1 OPERATIONAL FEASIBILITY

Operational feasibility is a crucial aspect of the feasibility analysis for an Financial

management app project. It involves assessing whether the app can be developed and
operated within the existing resources and infrastructure of the organization. Here are some
key factors to consider when evaluating the operational feasibility of an Financial
management app project:

 Technical expertise: The development of an Financial management app requires

technical expertise in various areas, including app development, database
management, and user interface design. It is essential to assess whether the

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 organization has the necessary technical expertise or whether it needs to acquire or
hire external expertise.
 Infrastructure: The app requires an appropriate infrastructure to support its
development and operation. This includes servers, storage, network connectivity, and
other IT equipment. It is necessary to evaluate whether the organization has the
necessary infrastructure or whether it needs to acquire or upgrade its infrastructure.

 Resources: The development and operation of the app require significant resources,
including time, money, and personnel. It is essential to assess whether the
organization has the necessary resources or whether it needs to allocate additional
resources to the project.
 Integration with existing systems: An Financial management app must integrate
with existing systems, including accounting software, payment gateways, and other
financial management systems. It is essential to evaluate whether the app can be
integrated with existing systems or whether it requires additional development or
customization.
 Scalability: The app should be scalable to accommodate future growth and changing
business needs. It is necessary to evaluate whether the app can scale to support
increased usage and whether it can handle increased data volumes.

Overall, the operational feasibility analysis for an Financial management app project
involves evaluating the organization's technical expertise, infrastructure, resources,
integration with existing systems, and scalability. By conducting a thorough operational
feasibility analysis, the organization can ensure that it has the necessary resources and
infrastructure to develop and operate the app effectively.

2.2.2. TECHNICAL FEASIBILITY

This assessment focuses on the technical resources available. It helps to determine

whether the technical team is capable of converting the ideas into working systems. It also
involves evaluation of the hardware, software and other technology requirements of the
proposed system.

Hardware Specification:

 Android mobile phones

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  10 MB memory

Software Specification:

 Front End : Angular JS

 Back End : Firebase
 Android version 4.0 (Ice cream sandwich(MIM)).

2.2.3 ECONOMICAL FEASIBILITY

Each business must assess the economic feasibility of an expenditure tracker software
project. It entails weighing the project's possible expenses and benefits to see if it is
financially sustainable. The app's development and operation expenses must be carefully
analyzed, taking into consideration the app's complexity, the development approach
employed, and the competence of the development team. It is also critical to assess
prospective income streams such as subscription fees, in-app sales, and advertising revenue.
A competitive study is also required to examine the possible influence of rivals on the app's
performance. Finally, a detailed economic feasibility study will assist the organization in
determining if the initiative is financially sustainable and developing a strategy to assure its
success.

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