Definition

Manual accounting system

Manual accounting system is a system in which someone performs each of the steps in the accounting cycle by hand.

For example, someone manually enters each accounting transaction in the journal and manually posts each to the ledger. Other manual computations must be made to obtain ledger account balances and to prepare a trial balance and financial statements.

Share it:  Cite

More from this Section

  • Temporary & Permanent accounts
    Temporary accounts relate only to a given accounting period. They include all income statement ...
  • Liabilities
    Liabilities are claims against assets-that is, existing debts and obligations. Businesses ...
  • Efficient Auditing
    Efficient Auditing is generally conducted in case of public enterprises to see whether ...
  • Conversion costs
    Conversion costs consists of the sum of labor costs and overhead costs. In other words, ...
  • Contingent liability
    Contingent liability is a potential liability that may become an actual liability in the ...