Branch Accounting


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.

BREAKING DOWN '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.

  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. Accountant

    A professional who performs accounting functions such as audits ...
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  1. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  4. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  5. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
  6. What can working capital be used for?

    Working capital is used to cover all of a company's short-term expenses, including inventory, payments on short-term debt ... Read Full Answer >>

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