Integrated Accounting is a system in which the accounts are integrated and only a single set of accounts are maintained for Cost & Financial records. It avoids maintenance of Accounts under cost accounting & financial accounting. This enables a firm to eliminate separate Profit & Loss Accounts under financial accounting and cost accounting systems & only one Profit & Loss Accounts are prepared.
The benefits of Integrated Accounting System are as follows:
- No need for reconciliation as it maintains single set of accounting records.
- Easy method to maintain accounts and avoid unnecessary complications.
- There is no possibility of different profit figures being reported in integrated accounting system.
- There is economy of scale due to the savings in the maintenance of books and general accounting
- There is saving of time, because two different sets of books need not be maintained