Branch Accounting & Reporting

Branch accounting is a bookkeeping system in which separate accounts are maintained for each branch or operating location of an organization.

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What is Branch Accounting?

Branch accounting is a bookkeeping system in which separate accounts are maintained for each branch or operating location of an organization. Typically found in geographically dispersed corporations, multinationals and chain operators, it allows for greater transparency in the transactions, cash flows and overall financial position and performance of each branch.

Branch accounts can also refer to records individually produced to show the performance of different locations, with the accounting records actually maintained at the corporate headquarters. But the term usually refers to branches keeping their own books and later sending them into the head office to be combined with those of other units.

Branch Accounting Methods

There are several different methods for keeping branch accounts, depending on the nature and complexity of the business and the operational autonomy of the branch. The most common include:

  • Debtor system
  • Income statement system
  • Stock and debtor system
  • Final accounts system

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