What is integrated accounting System
In integrated accounting system one set of books of account are kept for both financial reporting and cost accounting. The profit is not required to be reconcile instead the cost accounting profit is adjusted for some non cost items like investment income, interest charges.
Advantages of Integrating Accounting System
1. Time Saved
Double set of account require a huge amount of time of finance department. The time can be saved by adopting integrated system
2. Cost Saved
Keep one book of account instead of two definitely save a lot of cost like cost of an additional staff required to maintain the cost accounting record cost of books and stationary and other cost and resources utilized by the staff maintaining the record like lightening and heating.
3. Duplication is avoided
In integrated system the duplication of record is avoided. Duplicate
record creates many confusion within organization.
4. Space is saved
Book of accounts preservation require a lot of space. Due to
statutory requirement record are to be saved for couple of year. The integrated system
less space is required as only one set of book of account is being maintained.
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