Branch Accounting

AAA

DEFINITION of 'Branch Accounting'

An accounting system in which separate accounts are maintained for each branch of a corporate entity or organization. The primary objectives of branch accounting are better accountability and control, since profitability and efficiency can be closely tracked at the branch level.

INVESTOPEDIA EXPLAINS 'Branch Accounting'

Branch accounting may involve added expenses for an organization in terms of accounting and infrastructure. This is because it may be necessary to appoint branch accountants to ensure accurate financial reporting and compliance with head office procedures and processes.

RELATED TERMS
  1. Shell Branch

    A branch location of a U.S. chartered bank located outside the ...
  2. Mini-Branch

    A special type of bank branch that offers only limited products ...
  3. Branch Banking

    Engaging in banking activities such as accepting deposits or ...
  4. Branch Office

    A location, other than the main office, where business is conducted. ...
  5. Branch Manager

    An executive who is in charge of the branch office of a bank ...
  6. Expanded Accounting Equation

    The expanded accounting equation is derived from the accounting ...
Related Articles
  1. How Budgeting Works For Companies
    Budgeting

    How Budgeting Works For Companies

  2. Financial History: The Rise Of Modern ...
    Professionals

    Financial History: The Rise Of Modern ...

  3. International Reporting Standards Gain ...
    Insurance

    International Reporting Standards Gain ...

  4. Reading The Balance Sheet
    Investing Basics

    Reading The Balance Sheet

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center