Accounting System

Organized set of manual and computerized accounting methods, procedures, and controls established to gather, record, classify, analyze, summarize, interpret, and present accurate and timely financial data for management decisions.

 

Components of the Accounting System:

 

Think of the accounting system as a wheel whose hub is the general ledger (G/L). Feeding the hub information are the spokes of the wheel. These include

Accounts receivable

Accounts payable

Order entry

Inventory control

Cost accounting

Payroll

Fixed assets accounting

Cost accounting system:

National Carbon Accounting System

Australia’s National Carbon Accounting System (NCAS) provides world-leading accounting for greenhouse gas emissions from land based activities.

Land based emissions (sources) and removals (sinks) of greenhouse gases form a major part of Australia’s emissions profile. Around 24 per cent of Australia’s human-induced greenhouse gas emissions come from activities such as livestock and crop production, land clearing and forestry.

Land management such as soil preparation, fertiliser use, harvesting and burning all affect emissions of greenhouse gases. A significant proportion of Australia’s land based emissions occur as non-carbon dioxide gases, in particular methane from livestock production and nitrous oxide from fertiliser application.

Actively growing forest systems remove carbon dioxide from the atmosphere through photosynthesis. Growing forests act as a long-term carbon sink by storing carbon in the trees, debris and soils. In 2008, removals associated with reforestation activities were estimated to be approximately 23 Mt of carbon dioxide (based on forests planted since 1990), effectively reducing national emissions by almost 4 per cent.

These modules are ledgers themselves. We call them subledgers. Each contains the detailed entries of its specific field, such as accounts receivable. The subledgers summarize the entries, then send the summary up to the general ledger. For example, each day the receivables subledger records all credit sales and payments received. The transactions net together then go up to the G/L to increase or decrease A/R, increase cash and decrease inventory.
We'll always check to be sure that the balance of the subledger exactly equals the account balance for that subledger account in the G/L. If it doesn't, then there's a problem.



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