WHAT IS ACCOUNTING SYSTEM

WHAT IS ACCOUNTING SYSTEM

Accounting systems is defined by different scholars, among this are:

Hussey (2005) defines accounting system as the system designed to record the accounting transaction and events of a business and account for them in a way that complies with its policies and procedures.

Hartzell (2006) says that accounting system is a consistent way of organizing, recording, summarizing and reporting financial transactions.

The minimum requirements for an accounting systems include the following;

It must provide financial information for management to make policy decisions, prepare budgets and grant proposals and provide other. Useful financial reports, also, similar transitions must receive consistent accounting treatment.

Ama (2004) defines the accounting system as “ a formal system for identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating accounting information about a particular entity to a particular group”.

By formal system, we mean that the accounting system carries out its functions with laid down rules, regulations, methods, procedures and techniques. It is also a routine and an automatic system.

An accounting system as opined by Ama (2001) is a formal mechanism for gathering, organizing and communicating information about an organization’s activities.

An accounting system can also be defined as mechanism for gathering and communicating data for the ends of assisting and co-ordinating collective decision in view of the overall objective of a firm or an organization.

Accounting system by definition is a financial information system which includes accounting terms, records instruction manuals flow charts programs, and reports to fit the particular needs of the business.

Accounting systems is a set of records, procedures and equipment that routinely deals with the events affecting the financial performance and position of the organization.

Finally, according to business online dictionary, a system is an organized set of manual and computerized accounting methods procedures and control established together, record, classify, analyze, summarized interpret and present accurate and timely financial data for management decisions.