Modern Accounting Systems in Modern Organizations

Topics: Asset, Bookkeeping, Balance sheet, Enron, Generally Accepted Accounting Principles / Pages: 10 (2464 words) / Published: May 17th, 2012
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 organizations resources.

The modern accounting systems have made a difference in modern day organizations by finding ways to manage the financial records and revolutionize the way accounting helps improve businesses. Modern accounting systems have evolved over the years and are vital for current and future operations of an organization by implementing a strategy to follow starting with accounting in the business environment. The business environment plays a strong role in accounting because there certain individuals that rely on the information to make sound decisions which will affect the organization as well as outside organizations. “Business owners use accounting information to set goals, to measure progress toward those goals, and to make adjustments when needed” (Horngren, 2012).

The financial statements give owners the information they need to help make those decisions. The investors, creditors and even taxing authorities rely on modern accounting systems to ensure they are not being lied to and the financial records are completely sound. There are also certain organizations that govern the accounting procedures in an organization as well as the ethics along with standards of professional conduct because accountants



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