Accounting system and the role of technology in modern day accounting
1. Accounting system. What is it? An accounting system is a collection of accounting processes that include integrated procedures and controls. It is used to record business activities, consolidate those transactions into an aggregated form, and provide reports that may be utilized by decision-makers to monitor, analyze, and improve operations. (Bragg, 2022) How accounting system work? Any accounting system's financial activities can be divided into four key accounting cycles: revenue, purchase, payroll, and general journal. (Bizmanualz, 2013) (Bizmanualz, 2013) Types of accounting systems Accounting systems can be classified into two categories Accounting System (wallstreetmojo.com) Single-entry accounting system: Only one entry is made to reflect the spending and income at the same time. In addition, small businesses like this arrangement since they do not have to deal with large inflows or outflows of resources. The tax authorities, however, do not recognize this type
