What Is the Meaning of the Term Accounting System?
Accounting systems are the primary data collection areas for many companies in today’s business climate. Both financial and nonfinancial data may be stored and organized in the company’s accounting system.Financial InformationAccounting systems store and organize financial data that is entered. This information can be easily retrieved and formatted into reports for managers to use.Nonfinancial InformationAccounting systems can also store and organize nonfinancial data, such as labor hours, inventory quantities or customer contact information. This information can be easily retrieved as needed.Computerized SystemsMost accounting systems are maintained using computerized software. This minimizes the potential for errors that may occur in a manual system. It also allows information to be easily stored and retrieved when needed.Accounting System UsersThe accountants are the obvious users of the accounting system. They work with the system entering data and retrieving data. But anyone who u
