Accounting System

An accounting system tracks all the financial activities of an organization that shows when and where the money and commitments were spent. This helps decision making by allowing managers to evaluate organizational performance, indicating the financial risks and benefits of choosing one strategy over another, and highlighting current weaknesses and opportunities. Invest and manage the financial records and operations of an organization to ensure that they follow the regulations of the organization, industry and government. The accounts perform services for clients in a broad spectrum of accounting industries. The accounts present a breakdown of economic activity for all resident institutional sectors in a complete and consistent set of quarterly data.

Accounting functions includes
  • Measurement
  • Forecast
  • Decision making
  • Comparison and evaluation
  • Control
  • Regulation and government taxes

Types of accounting

Financial Accounting
  • Financial accounting has a lot to do with the process, each company has its own processes and software to maintain accurate accounts. In larger companies, this is like a production line, with many people contributing.
  • Financial accounting is what is traditionally expected of an accountant to control the financial transactions of a company.
  • Financial accountants track the company's current financial position based on inputs and outputs, liabilities and how money moves through the company. They monitor the value of the company's stock and make statements of stockholders' equity.

Tax Counters
  • Tax accountants can also work on behalf of individuals, especially wealthy people who want to reduce their tax bills.
  • Tax counters track all transactions that affect the amount of taxes a company pays and calculate how much taxes are owed.
  • They try to find ways to reduce the tax paid, if possible within the legal tax framework.
  • They complete all the necessary forms for HMRC and guarantee that the correct amount of taxes is paid.

Management Accounting
  • Administrative accounting is about interpreting trends, making predictions and considering qualitative non-financial aspects of companies as well.
  • Management accountants provide the financial information that managers need to make business decisions.
  • At higher levels, administrative accountants can make business recommendations or even be part of the company's management team.

Forensic Accountants
  • Forensic accountants are financial detectives.
  • Large companies can have their own forensic accounting team dedicated to detecting fraud.
  • Forensic accountants analyze financial evidence to detect fraud.
  • They can analyze information that will be used in other legal proceedings.

Benefits of the account in industries

The account helps keep business records in a systematic way.

Help account in the preparation of financial statements.

The account helps managers in the decision-making process.

Help account with taxes.

Help account in the valuation of business.