Accounting System Paper

375 WordsJan 16, 20122 Pages
Accounting System 2 Every business or organization needs to use an accounting system. When planning to create an accounting system for a business, you have to first decide on what needs to be tracked and what types or kinds of accounts. For accounting, a manual system can be used or a computer software system. All is customizable however; whatever is the most appropriate for a business to stay successful. Once the business’ accounts are set up, a general ledger needs to be created. The general ledger is the heart of running the accounting system in the business. In an accounting system, there are three different types of elements. These include: identifying, measuring, and communicating data. There are also five different types of accounting systems. These systems are: cost, financial, tax, national and management accounting. These different types of accounting systems all have different functions, elements and objectives. The three different elements of an accounting system identify the use of its capital resources and measure the effects of cost. This information is communicated all throughout a business. For example, the costs in a business are its raw material and labor. Costs associated with products, services and resources. Management can see and use the business’ capital to reduce costs and improve efficiencies by identifying and measuring costs. The main purpose of the elements in an accounting system is to provide framework to identify financial factors and measurement of the business. In a health care organization, the best accounting system to use would be a computerized software system. There can be many accounting challenges within a health care organization. Accounting System 3 Every patient is considered a customer and money coming in and out needs to be accurately tracked. Using a computerized accounting software will
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