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The accounting system must be adequate to fulfil these functions
. An organisation's 
accounting systems are affected by the nature of its business transactions and the sort of business it is. 
Factor 
Example 
Size 
A small business like a greengrocer will have a simple accounting system, where 
the main accounting record will probably be the till roll. A large retail business, 
such as a chain of supermarkets, will have elaborate accounting systems covering a 
large number of product ranges and sites. 
Type of 
organisation 
A service business
 
might need to record the time employees take on particular jobs. 
Accounting on a job or client basis might also be a feature of service businesses. A 
public sector organisation
,
such as a government department, may be more 
concerned with the monitoring of expenditure
 
against performance targets than 
recording revenue. A manufacturing company will account both for unit sales and 
revenue, but needs to keep track of costs
 
for decision-making purposes and so 
forth. 
Organisation 
structure 
In a business managed by area, accounts will be prepared on an area basis. In a 
functional organisation, the accounts staff are in a separate department. 
Be aware that accounting work has to comply with a wide range of regulations to avoid penalties, 
including law such as the Companies Act. As a result, it tends to be rather formalised and procedural in 
order to make sure that nothing is overlooked. Organisations often lay down their accounting rules and 
procedures in writing, and this may form part of an organisation manual or procedures manual.
 EXAM FOCUS POINT 
The specifics of accounting systems are highly likely to be examined. The business needs of the users 
of accounting information are also a 'hot topic'.
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