Modern Accounting Systems in Modern Organizations

Modern accounting systems have become the foundation from which the modern organization can rely and depend upon to maintain a strong efficient strategy that will help the organization grow. The modern accounting systems embraces the old accounting practices that have been used for hundreds of years and builds upon that platform to give modern organizations control over the finances. There must be set in place internal controls to keep the company assets from being stolen and that is why modern accounting systems utilizes many internal controls with the organization. The modern accounting system is one of the most valuable assets that a modern organization has in its possession because modern accounting systems make better use of the†¦show more content†¦Knowing exactly which accounts are being debited and which accounts are being credited is essential to maintaining financial records and keeping the organization on the right track for success. Modern accounting uses debi ts and credits through the accounting equation which is used to determine what accounts are debited and what accounts are credited to keep a harmonious balance between the debits and credits. The accounting equation is like the groundwork for the debits and credits and that is why modern accounting systems utilizes the accounting equation no matter what the account may be because the assets must always equal the liabilities, owners equity. In the modern accounting systems each debit must have a credit to keep the balance in the accounting equation. [At] the heart of modern financial accounting is the double-entry book-keeping system. This system involves making at least two entries for every transaction: a debit in one account, and a corresponding credit in another account. The sum of all debits should always equal the sum of all credits, providing a simple way to check for [errors] (Sharda Gangwar, 2009). The third way in which modern accounting systems have made a difference in modern organizations would be with the adjusting process of accounting to maintain records that are up to date and includes all transactions. If every transaction is completely accounted for in the financial records then the company will not be in violation ofShow MoreRelatedAcc205 Final Paper1272 Words   |  6 PagesPaper Matthew Duncan ACC205: Principles of Accounting 1 LaKeitha Givens June 13, 2011 Final Paper What makes a large organization like Wal-Mart financially successful? One could say it is the result of outstanding personnel or perhaps a strong determination to succeed. These factors certainly contribute. However the key to financial success in organizations lies in good accounting. 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