Large organizations have in the staff and the chief accountant and a few more accountants, small enterprises have only one accountant. Often , accounting in the organization is conducted by a third-party specialist or organization under a service agreement. Sometimes the manager himself is engaged in accounting independently. The concept of accounting is a whole system in which information on the property of an enterprise, financial liabilities, expenses and income is collected, recorded and summarized continuously and fully on the basis of primary documents in monetary terms.
Accounting can be of several types:
Management accounting is based on an analysis of the cost of production, the cost of its manufacture, ways to improve production, reduce costs.
This takes into account information on receivables and payables, on costs and profits, on property and various funds of the enterprise. Financial accounting is necessary for calculating taxes, for investor information, and for reporting. If financial accounting is regulated by state norms and rules, is public information, is often published in the media, then management accounting is individual and strictly confidential.
The peculiarity is that the records are kept not only by the payer, but also by the tax authority. In practice, all types of accounting are closely interconnected.
The general concept of accounting of each type is important to know and apply in practice to accountants, managers, auditors, tax inspectors and ordinary citizens alike. Specialists use deep knowledge and experience in their work, and constantly improve them. And it helps citizens to remain law-abiding and not have unnecessary problems.
Continuity, the use of double entry is considered as the main concept of accounting in the design of business transactions at the enterprise. In practice, accountants use offsetting accounts to form postings.
At any enterprise, the concept of accounting includes the formation of information on business transactions, and control over the movement of property and cash, and reporting and identifying the financial result in the end.
Against the background of various forms of ownership, the main functions of accounting are gaining importance:
- Control
Shipped and sold goods, services, rational use of money, production workers, raw materials and fixed assets are controlled. Profit is maintained that remains at the enterprise and which is taxed. In addition, it is important to know the solvency and financial situation of your competitors.
- Informational
Accounting information is used in the planning of contracts and contracts, profit forecasting, in the statistical accounting and reporting of the organization.
- Analytical
The analysis of labor and financial resources, production costs, checks the correctness in pricing policy.
- Feedback
Accounting provides data on property, relationships with suppliers and customers, with tax and other government agencies, with banks and foreign partners.
- Property Security
This function at the enterprise is carried out with the help of measuring instruments and containers, the use of flow meters and taking inventories.
In the sale of goods, finished products, in the provision of services, in the performance of work, accounting of income and expenses is carried out at the enterprise.
At the same time, they necessarily reflect taxes and highlight the cost of production in accounting entries.