Integral and non-integral accounting

 Integrated Accounting System: Integrated accounting system is a method of accounting for financial and costing transactions in which self-integrated accounts are maintained such that the cost profit and financial profits are one and the same.

The main advantages of the integrated accounting system are:

• Accounting procedure is simplified.

• Here transactions are not accounted for twice thereby saving labour, time, and money.

• There is no possibility of omission of any business transaction in this system. .

• Mechanized Accounting can be applied to this system.

Limitations of the integrated accounting system are: 

The accounting system is sophisticated and requires efficient and trained staff.

• Not suitable if cost and financial data are required to be separately presented.

• This accounting system is complicated and costly.

Non-integrated Accounting System: Other name of cost control accounts system is the Nonintegrated system of accounting. It is an accounting system where separate account books are maintained to record financial and cost transactions with the help of cost control accounts.

Advantages:

• Control account presents detailed information recorded in memorandum account books in an abridged manner to help managers in planning policy.

• Control accounts serve the purpose of internal check too.

• It helps to prepare to costing profit and loss account.

Limitations:

• Separate account books are maintained to record financial and cost transactions. 

• Financial and cost accountant both are responsible to record transactions in the book separately.

• The double entry system is adapted for recording the transactions in both accounts books.

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