What is an secretarial system?
Definition: An office system is clear as a financial system
that helps businesses manage, record, and use their financial transactions.
Business owners recognize the importance of accounting systems when it comes to
decision making.
An accounting system is the system that companies use to
manage income, expenses, financing, and other financial activities. It enables
a business to track various financial transactions such as purchases
(expenses), cash flow, sales (invoices and income), accounts receivable and
payable, liabilities, financial reports, trade finance, sales reports, etc.
In general, accounting systems are a collection of
accounting procedures and controls used by a business to record and monitor its
daily transactions, and to organize and collect financial data.
In the former, this data was collected and processed
manually; however, with the advent of technology, it has become much easier to
collect, modify, store, and analyze data simply by using the required accounting
software on a computer.
The importance of a business accounting system
The accounting system generally covers the most important
areas of an organization's activities, including the purchase and sale of
various goods and services, the payment of salaries and compensation to its
staff, the provision of financing, the purchase and sale of shares, and the
payment. of loans. interest to creditors.
Some other components of the accounting system may include
accounts payable and receivable, inventory, fixed assets, and payroll.
Depending on the volume of transactions carried out in each of these areas,
there may be specialized personnel and separate accounting systems to process
the transactions.
Before the advent of modernized automated accounting systems,
accounting was manual, tedious, and prone to errors. Computerized accounting
has made life easier for aspiring entrepreneurs and accountants, and it has
also made the accounting process simpler, more accessible, and significantly
more reliable.
History and evolution of the accounting system
Accounting records go to the Middle East more than seven
thousand years ago. It was imperative that rulers, citizens, and individuals
record their income and expenses in order to determine taxes and other fees.
In the late 15th century, Luca Pacioli was recognized for
describing the double-entry bookkeeping system that was known among Venetian
merchants of the time and was the forerunner of modern bookkeeping. He received
the "Father of Accounting" award for his contributions to the field
of accounting.
Closer to modern times, in 1880, a man named Herman
Hollerith invented the first working accounting machine. It was known as a
tabulating machine and worked by punching cards, which added numbers to the
card, which could then be used to add and determine the total. Later, Hollerith
founded the company, which was later acquired by IBM.
By the end of the 20th century, tremendous changes had
occurred in the field of computer technology, and access to modern computing
provided everyone with easy access to a particular system. Early DOS-based
computer and accounting systems paved the way for modern accounting and
computer systems.
Types of accounting systems
Some popular accounting systems can be noted as follows
1. Non-commercial accounting
This system is widely used by non-profit organizations to
maintain and publish records of cash inflows and outflows. This ensures that
the funds received are credited to the correct sources. The system is also used
to generate expense reports.
2. Inventory accounting.
This type of accounting aims to plan inventory levels and
keep track of all assets in the company's possession. RFID tags and barcode
tracking are some of the most common inventory tracking systems available.
3. Industry accounting
This accounting system meets industry requirements.
Different industries have different accounting systems designed to meet their
specific needs. For example, a law firm and a nonprofit organization will have
completely different accounting systems.
4. Management accounting
This form of accounting is designed to meet the needs of
managers and provides managers with the necessary information on operations and
planning control. Also includes Lean Manufacturing and TC Bolts
