What is accounting system ?

An accounting system is a set of processes, procedures, and tools used by an organization to record, analyze, and report financial transactions and information. It involves the systematic recording, classification, summarization, and interpretation of financial data to provide accurate and reliable financial statements and reports. The accounting system helps in managing and controlling the financial activities of a business, ensuring compliance with relevant laws and regulations, and making informed business decisions. It typically includes components such as general ledger, accounts payable, accounts receivable, payroll, inventory management, and financial reporting.