Thursday, June 5, 2014

Accounting system

Accounting system

The accounting system is the oldest and most information systems used in many companies. They record and report business transactions and other economic activities. Computer-based accounting system to record and report flow of funds through the setting and making of historical financial statements such as balance sheet and income statement. Such a system is also produce forecast future conditions such as forecasting the financial statements and financial budget. Finance a company's performance is measured through such forecasts by other analytical accounting reports.

Operational accounting system emphasizes the maintenance of historical records and making financial reports are accurate. Typically, these systems include transaction processing systems such as order processing, inventory control, accounts receivable, accounts payable, payroll, and general ledger systems. Management accounting system focuses on the planning and control of business operations. The system emphasizes on cost accounting reports, and analytical reports that compare actual performance with predicted.

Relationship illustrated some important accounting information systems are generally computerized by companies large and small. Many accounting software packages are available for this application. The illustration gives a good summary of the fundamental objectives of the six general accounting information systems and critical, which is used by companies large and small.

Online Accounting System

It is not surprising that the accounting information system is illustrated, and transformed by the Internet technology. By using the Internet and other networks, changing the way how the accounting information system to monitor and track business activity. Online and interactive nature of this kind of network requires a new form of transaction documents, procedures, and controls. This is especially true for systems such as order processing, inventory control, accounts receivable and accounts payable. Illustrated these systems are directly involved in the processing of transactions between the company and customers as well as suppliers. Thus, many auto companies use the Internet and other networks that connect to these trading partners for online transaction processing system of this kind that have been discussed in the initial post.

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