Accounting System

Basic Definition

a system that records information for analysis and presents the information in a specific format

Main types of Accounting Systems

Financial Accounting - The administrative task of recording, classifying, and interpreting transactions and financial events.

Network Accounting Systems - Electronic collection of usage and other network information mainly for billing and security reporting

Financial Accounting Systems

• Written and manual Accounting Systems usually compliant with Generally Accepted Accounting Principles (GAAP)
• Electronic Financial Accounting systems example Cubit Accounting, Accpac, The_Sage_Group, and a few others that are GAAP, IFRS and compliant with many other standards, rules and regulations. Generally Electronic Financial Accounting Systems would also comply with ICT best Practise, governance, CAAT and many other standards, guidelines and regulations. As Electronic systems are gaining complexity and users rely more on such systems it is very important that Electronic Financial Accounting systems are audited by system accountants on a regular basis. One of the main functionalities of Electronic Financial Accounting systems is also budgeting and cash flow enabling comparisons to be made for budgets against actual income and expenditures. There are many Accounting software commercial companies claiming to be and Accounting System but very few that actually meet the minimum requirements.

Network Accounting Systems

Electronic, or system, collection of information regarding resource usage for the purpose of billing, capacity planning and trend analysis, Accounting management requires that resource consumption be measured, rated, assigned, and communicated between appropriate parties. Typical information that is gathered in accounting is the user information, services accessed, amount of data transferred, date and time.

The administrative task of recording actual costs and expenditures so that comparisons may be made to budgets (planned costs and expenditures) for the sake of financial control.

The function of compiling and providing financial information primarily by reports referred to as financial statements. Accounting includes bookkeeping, systems design, analysis and interpretation of accounting information.

The process of recording, summarising, and allocating all items of income and expense of the company and analysing, verifying, and reporting the results