Accounting system, Financial Management

Accounting System:

The accounting systems are the primary financial systems that any business should have in place to ensure accurate and usable financial information.

The basic records that make up an organisation's accounting system are:

  • Source documents
  • Cash Payments and Receipts Journals
  • Ledgers
  • Trial Balance
  • Bank Reconciliation
  • Profit and Loss Statement
  • Balance Sheet
  • Cash Flow Statement
  • Asset Register
  • Share Register (if company structure)
  • Partners Capital and Drawings account (if applicable)

All these records are linked with the consequence that an error in one particular record will influence the accuracy of information in all other reports.

The flow of information in the accounting system:

923_accounting system.png

Posted Date: 10/1/2012 4:26:58 AM | Location : United States

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