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Accounting system

Updated: Aug 20, 2021

The particular methodology of record-keeping employed within an organization. There are many systems. the most elementary being the single-entry system employed by the small businessman who is unskilled in accounting techniques. The more complex systems, often restricted to the largest companies because of cost, are the increasingly sophisticated electronic data-processing systems. The choice is dictated by the needs of the business, the demands of the law and the ever-present an of cost. Ideally the answer will lie in the cheapest system consistent with the information that must be produced. There is a basic distinction between manual and mechanical accounting, though most organizations opt for an admixture of both.

Reference: The Penguin Business Dictionary, 3rd edt.

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