The-definition.com

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

  • Cost Drivers
    A cost driver refers to any factor or activity that has a direct cause-effect relationship ...
  • Current liability
    A current liability is a debt that a company can reasonably expect to pay (1) from existing ...
  • Extraordinary items
    Extraordinary items are events and transactions that meet two conditions: They are (1) ...
  • Transactions
    Transactions (business transactions) are a business’s economic events recorded by accountants. ...
  • Closing the books
    At the end of the accounting period, the company makes the accounts ready for the next ...