Accounting System

Business, Legal & Accounting Glossary

Definition: Accounting System


Accounting System

Quick Summary of Accounting System


An accounting system is the system used to manage the income, expenses, and other financial activities of a business.



Video Guide For Accounting System




Full Definition of Accounting System


An accounting system is a collection of interconnected accounting processes, procedures, and controls. Accounting systems are designed to capture company transactions, aggregate them, and provide reports that decision-makers may utilise to monitor, evaluate, and improve operations.

While an accounting system may be totally paper-based, this is a rare occurrence in small organisations. Accounting systems are typically built on off-the-shelf accounting software, augmented with any procedures required to enter data into the software.

The Accounting System’s Components

Accounting systems often cover all of an organization’s primary functional areas, including the acquisition of products and services, the sale of goods and services, the payment of wages to employees, and finance operations such as borrowing debt, selling shares, and paying interest to lenders. Accounts payable, billings and accounts receivable, fixed assets, inventories, and payroll are the specific components of an accounting system. Depending on the amount of transactions completed, each of the previous modules may have specialised accounting employees allocated to it.


Synonyms For Accounting System


cost-accounting system, accounts system, system of accounting, accountancy system, bookkeeping system


Cite Term


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Modern Language Association (MLA):
Accounting System. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/accounting-system/.
Chicago Manual of Style (CMS):
Accounting System. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/accounting-system/ (accessed: March 29, 2024).
American Psychological Association (APA):
Accounting System. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/accounting-system/

Definition Sources


Definitions for Accounting System are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th August, 2022 | 0 Views.