A system of accounting (also called batch-based entry) where multiple items (source documents), after accumulation, are transferred from journal, to ledger, and then to financial statements in a linear order. In this system, transactions are grouped and processed at the level of a subledger where entries are accumulated (through a process called “posting“) rather than transferred immediately to an entity’s general ledger. Thereafter, reporting for period-end results will be conducted.

An entity using batch system can review data entry work prior to posting to the books of account, for out of balance errors, usually system-based, while manually spotting and fixing any errors in the batch. Since the multi-step process (batching and review) allows for peer review before moving on to the posting stage, the batch system is instrumental to set-up internal controls.

An example is accumulation of source documents (e.g., time sheets) and processing them in the accounting system all in one group daily, weekly, or monthly.

Batch accounting is typically set against an opposite concept known as real-time accounting or instant accounting.