To better understand what accounting is, it is necessary to get acquainted with the concept of financial accounting, which is the main part of the accounting documentation. Translation of the word “accountant” from German literally means “owner of the book”. That is, a book containing a list of systematically filled out documents reflecting the current state of a company or organization in monetary terms. The second part of accounting is tax, which is based on financial.
Financial Accounting
Accounting financial accounting is a set, ordering and generalization of registered information about the financial condition of an organization or enterprise, the state of its property, financial transactions and obligations to tax, social authorities and private enterprises. All financial statements are filled in continuously. Documents confirming the money transaction must be attached to each entry: checks, payment orders, receipts, etc.
Accounting history
Various historical sources indicate that bookkeeping arose more than six thousand years ago, as a practical accounting of funds. The accountant, or accountant, has long been the most respected profession. And no wonder. Indeed, without the proper organization of accounting, the successful operation of no organization or enterprise in each state is possible with any device. Only correctly set financial accounting makes it possible to correctly calculate and pay taxes.
Throughout history, there has been a gradual development and formation of principles and rules for accounting for cash transactions. Many discoveries were made, various forms of accounting in trade and agriculture were used. In the period of the appearance of the first manufactories, accounting received the most powerful development. As a science, financial accounting has only existed for the past hundred years.
Tasks of financial accounting
In the systematic accounting of the movement of financial assets, it is necessary:
- collect and systematize only reliable data, documented, about the financial activities of the organization or enterprise. Provide them to management and founders; and also, at the request of the directorate, to creditors, partners, investors; in the form of reports to statistics, tax authorities, etc .;
- provide guidance on high-quality financial information for the correct observance of Russian legislation in the implementation of various business transactions;
- to control the availability, depreciation and movement of property owned by the company, as well as the competent use of material, cash, labor resources, in accordance with the norms approved by Russian legislation;
- identify possible hidden financial and economic potentials of the enterprise, as well as forecast financial transactions in order to prevent mistakes and negative consequences in the activities of the enterprise.
Mandatory accounting
At present, all enterprises and organizations that are located on the territory of Russia must adhere to financial accounting, adhering to a strictly regulated form and in accordance with the requirements of Russian legislation. Compulsory financial accounting also applies to foreign missions and branches from the moment of registration of foreign organizations as legal entities for the entire period until their activities are carried out until their reorganization or liquidation.
Financial Accounting and Auditing
Financial accounting and audit of funds are closely related. An audit by control bodies is carried out in order to verify the accuracy of the presented statements on cash flows for the enterprise for a specific reporting period. Also, the compliance of the accounting form with the current regulations for the Russian Federation is checked.