Branch Accounting: How to Manage Multiple Locations Efficiently
Branch accounting can be classified into two main types: dependent branch accounting and independent branch accounting. Dependent branches do not maintain separate accounts and rely on the head office for financial reporting. In contrast, independent branches maintain their own books and prepare financial statements separately. The choice between these systems depends on the company’s structure and operational needs. A well-defined branch accounting system ensures accurate tracking of financial transactions and enhances overall business performance.