Archive about 'Planning/Designing Accounting System'

Chart Of Accounts

The planning and designing of an Accounting System will culminate into an overall schematic Company’s Chart Of Accounts.This article deals with the following:

Definition of the chart of accounts & salient points to note
Given a sample of the Overall Schematic View of A Typical Chart Of Account & salient points to note
Sample of a partial complex [...]

Part B: Classification Of Accounts-Advantages Of A Properly Designed Classification of Accounts.

Earlier in Part A, the basic principles of classification of accounts have been discussed.This article relates to the readers the various advantages of having designed a proper set of classified accounts.

Advantages of a properly designed classification of accounts:

 
·         It facilitates the recording of business transactions by the provision of suitable and self-defined ledger accounts;

·         [...]

Part A: Classification Of Accounts-Basic Principles

Classification is a very important step when designing an efficient accounting system. Append below are some basic principles used in the classification of Accounts:- 

 
Basic Principles In The Classification Of Accounts

 
·         The classification should be governed by the form in which financial and operating statements are to be presented 

·         Each ledger account should be given a [...]

Features Of An Efficient Accounting System

Some Good Features of An Efficient Accounting System

 1

 The accounting system should be in tailor made to the particular business or industry for which it is designed and not vice versa 

 2

 It should provide for the complete integration of costing and financial records. Wherever possible, have an integrated system rather than one which is interlocking between cost [...]