In the process of carrying out their business activities, any enterprises and organizations are faced with the need to acquire certain material values, services or work, not by bank transfer, but for cash. It is often much faster and more convenient to pay for the goods “on the spot” in cash, for example, when buying stationery, household equipment or gasoline for a company car. Usually, in this case, an employee of the enterprise is given cash for the report.
Accounting for settlements with accountable persons: what can I issue money for?
Under the report, funds are issued to perform any actions on behalf of the enterprise or organization. In addition, cash under the report can be issued for upcoming travel expenses, for the purchase of products and payment of household expenses, for representation purposes, for payment of work performed or services rendered by third parties, for other business and operational purposes. The issuance of cash funds from the cash register for the report is documented, namely, a cash register warrant, which after execution must be signed by authorized persons of the enterprise or personally by the chief accountant and manager.
Accounting for settlements with accountable persons: who can receive money under the report?
Not everyone can take money for a report. An order must be drawn up at the enterprise with a list of accountable persons having this right. Accountable persons are employees of an organization or enterprise who receive cash advances for expenses in connection with business expenses and business trips. Cash may be issued for reporting only to a person who is in an employment relationship with the organization, issuance to other persons is strictly prohibited. In the absence of a report by the accountable person on an advance payment already received, the issuance of a new advance is prohibited. It is also forbidden to transfer funds received for any purpose from one employee to another.
The procedure for issuing cash and accounting for settlements is determined by the established procedure for accounting and conducting cash transactions. Issuance of funds can be made both with a cash desk, and without it. Naturally, accounting should be kept with accountable persons. The funds received in advance are allowed to be spent exclusively for certain purposes agreed upon when the funds were issued.
Settlements with accountable persons who received cash for the purchase of certain goods and services, or for travel expenses, are made by providing an advance report on the amounts spent. Within the established time frames (from 3 to 30 days), the accountable person, together with the expense report, is obliged to submit documents to the accounting department of the enterprise or organization confirming all expenses, i.e. facts of the acquisition of services or goods for administrative needs. If there is any unspent money, the accountable person is obliged to return it to the cashier of the enterprise, while issuing a cash receipt order. In the event that there is an overspending and the employee had to add his cash, the amount of the overpayment must be compensated to the employee. Accounting for settlements with accountable persons should be kept on an active-passive account.
Employees of the enterprise can be sent by the head on a business trip, i.e. on a business trip for a specified period. In this case, in addition to issuing cash, a travel certificate must be issued. It must be returned upon return with the expense report and supporting documents.
The expense report form must be correctly and completely executed, must contain information about the accountable person, the amounts spent, as well as a list of expenses. In addition, all supporting documents must be attached. Filing an advance report upon disbursement of funds for various household expenses is thirty calendar days. Upon receipt by the accountable person of cash for a business trip, upon return from it, a report should be made within the next three days.