Introduction Various accounting system have been continuously applied in recording and reporting various business undertakings. The assumed financial accounting systems keep on changing as business environment changes. To keep abreast with the current competitive business environment, firms, companies as well as most business entities tend to adopt the simplest methods of recording the ensuing transactions to ensure market dominance. However, due to the emanating complexities in involved in recording, preparing, and reporting business financial transactions, firms are obliged to adopt proper accounting and financial systems that guarantee accurate statements recording and reporting. The way modern accounting system (MAS) have changed current organization Quick access to financial data is extremely essential for investors, outside parties as well as the business management. These parties require financial data to make appropriate and informed decision. Modern accounting system provides the means through which the data can easily and quickly be accessed. Besides, MAS has enabled business entities and non profit making organizations to meet their accounting needs by enhancing the accuracy in the financial recording (Needles et al., 2010). MAS has further eased the tracking of financial trends for forecasting. Modern computerized accounting system has provided new ways of data classification, reporting in addition to the processing of the transactions. Most importantly, computerized financial reporting system has improved the way financial reports of the company should be viewed. The result is that the external parties now have a wide-range ways through which they can scrutinize and comprehend the financial status of a business entity (Needles et al., 2010). Moreover, managers can now make good use of the available resources through cost savings and reduced spending while improving the gains of the entity. Modern accounting system has led to the value addition The value of the product that the business entities will always offer corresponds to the demand of that product. To add value to their products, business entities have adopted MAS that is capable of keeping accurate and appropriate consumer data. The new methods of keeping consumer data are essential in predicting sales since they follow the demand trends. With accurate estimate in sales, companies can easily match up the client orders and at the same time quickly track their progress. Companies can also add value to their products and services through reduced competition, immediate response to the market demands and reduced production overheads (Needles et al., 2010). Cost reduction More detailed information about the costs incurred by the company can be achieved through MAS. MAS provide direct access to data related to the costs at the lowest working level. MAS provides historical cost data records efficiently when required. Both the historical and the current cost data are very essential in budget making (Horngren et al., 2009). Accurate budgets which control costs increase the company chances of making profits. Ensure continuity With MAS, historical records are constantly being consulted to get enhanced current transaction estimates. Unlike the old paper records whic