Accounting system and the role of technology in modern day accounting

1. Accounting system.

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)

Any accounting system's financial activities can be divided into four key accounting cycles: revenue, purchase, payroll, and general journal. (Bizmanualz, 2013)

(Bizmanualz, 2013)

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 of recordkeeping for financial reporting due to the imprecise and ambiguous data. (Vaidya, 2020)
Double-entry accounting system: When a transaction occurs, it impacts two separate accounts at the same time. This means that an inflow is both income and an asset, whereas an outflow is both expense and liability. (Vaidya, 2020)

The accounting system is useless if users lack the components that aid in the process

Accounting System (wallstreetmojo.com)

2. The role of technology in modern accounting

Accounting has evolved tremendously since its inception approximately five millennia ago. Previously, accountants kept financial records using manual bookkeeping methods. Typically, these systems require time-consuming procedures such as tracking spending in handwritten ledgers and filing paper receipts. The long-held notion of accountants sifting through countless filing cabinets of financial data wasn't always so distant from the truth. (William & Mary, 2023)
However, the development of technology has made it easier for professionals to automate their bookkeeping operations. What used to take weeks now takes minutes, removing time-consuming activities and giving accountants more freedom, responsibility, and time. (William & Mary, 2023)

(technologycounter.com, n.d.)

Reference:

Bragg, S. (2022). Accounting system definition. [online] AccountingTools. Available at: https://www.accountingtools.com/articles/accounting-system.
Bizmanualz (2013). How Does an Accounting System Work? | Bizmanualz. [online] Bizmanualz. Available at: https://www.bizmanualz.com/tighten-accounting-controls/how-does-an-accounting-system-work.html.
‌Vaidya, D. (2020). Accounting System. [online] WallStreetMojo. Available at: https://www.wallstreetmojo.com/accounting-system/.

William & Mary. (2023). The Role of Technology In Modern Accounting. [online] Available at: https://online.mason.wm.edu/blog/the-role-of-technology-in-modern-accounting.
‌technologycounter.com. (n.d.). Technology Change In The Accounting Industry In 2023. [online] Available at: https://technologycounter.com/blog/technology-change-in-accounting-industry.

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An accounting story.