Wednesday, 7 November 2018

Accounting system

The Accounting System is the methods and procedures to record and report financial information provide to the company or a business organization. Accounting system apply in large companies are very complex. The complexity of the system cause by the peculiarities of the system design for a business organization as a result of the existence of a difference need be inform by the Manager, the form of the transaction and the financial statements. Accounting system consists of the document evidence of transactions, record-keeping tools, reports and procedures use the company to record transactions and report the results. Operation of an accounting system includes three stages:

  1. Must know the document evidence of transactions use by companies, both regarding the number of physical as well as the number of cash, as well as other important data relating to the transactions of the company.

  2. Should classify and record the data contain in the document evidence of transactions into the accounting records.

  3. It should summarize the information contain in the accounting records into reports for management and other parties concern.

Understanding Accounting System According

While the accounting system according to system: the accounting system is the organizational form, notes, and reports that are coordinate in such a way to provide financial information that makes it easier management in order to facilitate the management of the company.

System Design

Accounting systems should be design to meet the specifications of the information require by the company, provide the information is not too expensive. Thus, a major consideration in the design of the accounting system is the balance between the benefits and the costs incurred to acquire that information.

To be effective, the report present by the accounting system should be made in a timely, clear and consistent. The report was present with the knowledge and the needs of users in order to be use as consideration in decision making.

Designer (Designer) the system must have the knowledge to distinguish between accounting system. The data processing method of data processing, either manually or by using computerize. The ability to distinguish transaction processing computer manually. It is quite important, because on certain business organizations not all transactions can be process with computer and system designers in evaluating the ability alternatives consider the knowledge of the basic principles of accounting systems. In short, the basic principle contain in a good accounting system most likely system design on a particular company will experience difficulties when apply. And system accounting must match base and his form.

Elements of Accounting System

The main functions of the accounting system are encourage so that the system may be optimally can produce a variety of structure accounting information that is timely, relevant, and trustworthy. The elements contain within an accounting system interconnect with each other, so that the data processing can be perform from the beginning of the transaction as of the reporting that can be use as accounting information.

In a system of accounting, there are principal elements, namely:


A form is a document that is use to record transactions and occurrence commonly refer to with the document, because with this from happening in the Organization record or document.


The journal is the first accounting entry use to record, classify, and summarize financial data and other data.

Great book

Great book (general ledger) consists of accounts that are use to summarize financial data that has been record before in journals, accounts in this big book is provide in accordance with the elements of information to be present in the financial statements.

Book helper

When financial data that is classify in the great book need more details, can be form helper's book (the subsidiary ledger). The book consists of helper accounts detailing financial data that appear in a specific account in the ledger.


The report is the end result of the process of accounting which is usually call the financial report, could be a balance sheet, income statement, profit change reports that were detain and others.

System implementation

Implementation of the system is not just the responsibility of personnel in certain parts. But all personnel must be responsible for the operation of the system. The operation of the system must be carefully and always carry out supervision over the prior system operate entirely.

The Purpose of the Accounting System

In realizing a good accounting system, essentially accounting system builders need to know itself. Accounting system closely related to human cooperation with other resources in an enterprise to realize the goal of the company. Purpose of the accounting system is a purpose base on the goals to be achieve by the company.

Of any accounting system consisting of various systems have the same purpose. The accounting system itself is made by management in managing his company, therefore for more details, the purpose of the accounting system can be address below.

General purpose accounting system development has the primary purpose as follows:

  • Provide information for management of new business activities.

  • Improve the information generate by the existing system, both regarding the quality, accuracy, and presentation, as well as the structure of the information.

  • To improve the control of internal accounting and check it out, i.e. to improve the level of reliability accounting information, and to provide complete records regarding accountability and protection of corporate wealth.

  • Reduce the cost of conducting clerical accounting records.

Control of A System

There is no system that is close then so that the system can make his life. A system must have the power to defend themselves or the system must have the system control. Control of the system can be feedback control and control of feed forward control and prevention.

  1. Feedback control is the process of measuring the output of the system compare to a certain standard. When occurring differences or deviations will be correct to fix the input system.

  2. Forward feedback control systems, also known as the positive feedback loop that tries to push the process of the system so that yield a positive feedback. These advance feedback control systems are the development of a system for controlling feedback. So that the output can generate positive feedback so control should not be measure. But outputs of measure and control from the process. During the process of occur in the system are always carry out observation. Quickly resolve when deviations occur before fatal already on output.

  3. Preventive control systems, if the system controlling feedback control of output feedback control systems. Advanced click on process, then a preventive control systems try to control the system upfront before the process start by preventing harmful things to fit into the system.

The conclusions of the sense of control system is feedback control is the process of measuring the output of the system compare to a certain standard. Then pushing forward feedback control system in order to generate results back positive control. While prevention is the control of the system before the process starts by preventing things detrimental to the system.

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