WHAT are the essential pre-requisites for integrated accounts?

(a) The essential pre-requisites for integrated accounts include the following steps: The management's decision about the extent of integration of the two sets of books. Some concerns find it useful to integrate up to the stage of prime cost or factory cost while other prefers full integration of the entire accounting records.A suitable coding system must be made available so as to serve the accounting purposes of financial and cost accounts.An agreed routine, with regard to the treatment of provision for accruals, prepaid expenses, other adjustment necessary for preparation of interim accounts.Perfect coordination should exist between the staff responsible for the financial and cost aspects of the accounts and an efficient processing of accounting documents should be ensured. Under this system there is no need for a separate cost ledger. Of course, there will be a number of subsidiary ledgers; in addition to the useful Customers' Ledger and the Purchase Ledger, there will be: (a) Stores Ledger; (b) Stock Ledger and (c) Job Ledger.