Manual Methods
It will have become apparent that in the accounting department there is a large amount of routine work to be performed. Cash accounting must be strictly controlled, and the various day books and ledgers must be entered. In a small business it may be possible for the proprietor to make the necessary entries day by day and, perhaps, leave the final accounts to be written up by a professional accountant. As the size of the business grows the entering of the books of account becomes an increasing burden, and if conventional double-entry books continue to be written up by hand, every increase in business involving additional transactions adds still further to the amount of routine work un the accounts department. At the end of the accounting period balancing the books will become an extended process, and the preparation of the final accounts may delayed. The importance to management of prompt financial information has been emphasized, and with this object in view simplification of the accounting routines is essential.

Simplification of accounts, particularly in the smaller firm, does not of necessity mean the purchase of expensive equipment or machines. Consider first the question of balancing the ledger accounts. This must be completed at least monthly for the collection of debt and payment of suppliers, and also at the end of the accounting period to produce the necessary schedules of debtors, creditors, expenses, etc. In connection with the ledger the first simplification which might be considered us the adoption of the three- column ledger- debit, credit, balance. Under this method the balance of the accounts is thrown out after each entry, thus eliminating the necessity at the end of the month or accounting period of ruling and balancing.

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