Organisation of financial and management accounting

Last updated: 28.03.2016

Almost any company is required to maintain financial accounting records for the purpose of financial reporting. Management accounting is voluntary and depends on whether management requires it. If the entity maintains management accounts as well, the accounting system can be organized as:

  • Double (or more) ledger systems – two or more accounting systems are maintained separately. It is more difficult and the entity can have two (or more) sets of profit or balance sheet figures then. But multiple ledger systems provide better information for decision-making and it better fits the information needs of different users. It is advisable to prepare a regular reconciliation of the differences between the two (or more) ledgers. This can be fulfilled by having the systems linked by control accounts.


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