Accounting is a system of an ordered type, designed to collect, register and summarize data in monetary terms through documentary, continuous and continuous accounting of all economic transactions. It is worth noting that this information may relate to the property apparatus, the obligations of the organization and their movement. In this article, we consider the nature, meaning and varieties of a category. In addition, we touch on the principles and objectives of accounting.
Maintenance and objects
Today, in accordance with the law in force in Russia in relation to accounting, it is assumed that it can be conducted by the following persons:
- The chief accountant of the enterprise.
- General Director of the structure, if the chief accountant is absent.
- An accountant who is not the main one.
- Third party organization. Yes, accounting is a system whose main functions can be implemented through third-party accounting support.
You should know that the object of accounting can be the property complex of the organization or business operations that are carried out by the company in the process of its functioning. In addition, the object is considered the obligations of the structure.
Accounting Tasks
The key task of accounting is the formation of reliable and complete accounting statements (accounting information) regarding the activities of the structure and its property status, which is necessary for internal users of accounting. Among them are the founders, managers, owners of the property apparatus of the organization, participants, as well as external investors, creditors and other users of accounting. It is important to note that on the basis of this reporting, it can be assumed that the accounting objectives are as follows:
- Prevention of negative results regarding the economic activities of the company.
- Identification of intra-type reserves associated with ensuring the financial stability of the company.
- Monitoring compliance with the law in the process of implementing business transactions by the organization.
- Verification of the feasibility of economic operations. It should be noted that this task follows from the definition of accounting.
- Control over the presence and movement of obligations and property of the enterprise.
- Checking the use of labor, material and financial resources.
- Monitoring compliance of activities with approved standards, norms and estimates.
Key accounting methods and elements
The main accounting methods are the following points:
- Inventory.
- Documentation
- Costing.
- Accounts.
- Rating.
- Double entry.
- Financial statements.
- Balance sheet.
It is worth noting that the tasks listed in the previous chapter are solved by the above methods, the totality of which is called the accounting method. In accordance with the definition of accounting, consider its elements in more detail:
- Documentation should be understood as written evidence regarding the implementation of an economic transaction, which gives the accounting data legal force.
- Valuation is a way of expressing money and its sources in the material dimension.
- Among the main definitions of accounting, it is important to note the accounting accounts. This is a technique for grouping the current reflection of the property apparatus, operations and obligations.
- A double entry is nothing more than an interconnected display of economic transactions in accounting accounts, according to which each transaction is simultaneously recorded in the debit of the first account and the credit of the second account for the same amount.
- The main definitions of accounting include inventory. This is a check for the presence of property, which is listed on the balance sheet of the organization. It is worth noting that it is carried out by means of a description, calculation, mutual reconciliation, weighing, evaluation of the identified funds, as well as comparing the information received with accounting information.
- Balance sheet. As we found out, the objects of accounting are liabilities, property and business operations. In turn, bang. balance serves as a source of information and a way of forming these objects, expressed in material evaluation and formed on a specific date.
- Under the calculation, it is worth considering the calculation of the unit cost of a product, service, work in monetary terms. In other words, this is a cost calculation.
- In accordance with the definition of the concept of accounting, financial statements must be understood as a set of accounting indicators, which are reflected in the form of tables. It should be added that they characterize the movement of liabilities, property, as well as the company's financial position for the reporting period.
Accounting principles
In short, accounting is a system that has certain principles. Among them, it is important to note the following points:
- The principle of autonomy, according to which any enterprise exists and develops as an independent legal entity. Accounting reflects only property that is recognized as the property of this organization.
- The principle of double entry, according to which all economic transactions are displayed simultaneously on the credit of one account and the debit of another account for the same amount.
- The principle of the current structure assumes that the company performs its own functions and plans to maintain certain positions in the economic market in future periods, in the prescribed manner and within the specified time, paying off obligations arising to partners.
- The principle of objectivity in accordance with the definition of accounting objects consists in the fact that all economic transactions must be reflected in accounting, be recorded during all stages of accounting, and confirmed through supporting documentation, on the basis of which accounting is carried out.
- The principle of prudence implies a certain degree of caution in the formation of judgments, which are necessary in the calculations, implemented in conditions of uncertainty. It is worth noting that this caution allows you to prevent the overstatement of income or assets and the underestimation of costs or obligations. Compliance with this principle prevents the emergence of excessive reserves and hidden reserves, the deliberate understatement of income or assets, the deliberate overstatement of expenses or liabilities.
Accrual basis
The accrual principle should be considered separately, since its content is quite voluminous. As we found out, accounting is a system that operates in accordance with certain rules. The accrual principle assumes that all economic transactions are recorded as they appear, and not when paid, and are included in the reporting period when the action was taken. This rule can conditionally be classified into the following components:
- The principle of registration of revenue (income), according to which the organization’s income is reflected when it is received, but not when payment is realized.
- The principle of compliance: the income of the reporting period, one way or another, must be correlated with the costs due to which these incomes have become a reality.
Additional principles
Accounting is a system that includes, in addition to the above rules, the following principles of an additional nature:
- The principle of periodicity, according to which it is important to regularly prepare financial statements and balance sheets for the following periods: month, quarter, half year, year. It is worth noting that this principle organizes the comparability of reporting information, and also after a certain period allows the calculation of the financial results of the company.
- The principle of confidentiality, according to which the content of internal credentials is a commercial secret. So, for damage to her interests or disclosure, liability is provided for by legislation in force in the country.
- The principle of material measurement assumes that a country's currency acts as a unit of monetary quantitative measurement of facts of economic activity.
Category classification
What types of accounting are currently known? It is worth noting that the starting point of economic accounting is the observation of the phenomena and facts of economic activity. Today, there are three types of economic accounting: operational, statistical and accounting. The last one is interesting for us. Its classification is defined as follows:
- Management accounting is accounting, in accordance with which the collection, processing and subsequent provision of accounting information for the management needs of the enterprise is carried out. It should be noted that the main goal of management accounting is the creation of an information system in the company. The task of this variety is to prepare complete and reliable information, which is a source for making necessary decisions by the heads of enterprises in the management process. It is worth adding that the main share of this accounting is not only directly in accounting, but also in the subsequent cost analysis, in other words, the cost of the product. Management accounting is closely interconnected with the analysis of ready-made information for the company’s management (optimal reduction of the expenditure component, improvement of the production process and so on). This information is usually used when making managerial decisions in the case of forecasting and planning activities in order to account for financial resources. It should be added that management accounting data is recognized as a trade secret. They should not be disclosed by employees.
- Under financial accounting should be understood accounting information regarding the income and expenses of the company, accounts payable and receivables, compilation of property, funds and so on.
- It is advisable to consider tax accounting as a kind of accounting, according to which data are generalized to identify the tax base on the basis of primary documentation information, grouped in the order provided for by the Tax Code in force in the Russian Federation.
Functions
The main functions of accounting include the following elements:
- The control function involves the full provision of control over the availability, safety and continuous movement of means of labor, objects of labor, cash, as well as the timeliness and accuracy of settlements with the state and its individual services. It is worth noting that through accounting three types of control are carried out, among which preliminary, current control and subsequent.
- The information function acts as one of the main, because in accordance with it, accounting is considered a source of information for all departments of the company, as well as for higher institutions. It must be borne in mind that data must always be timely, timely, reliable and objective.
- Ensuring the safety of the property apparatus of the company. It should be noted that the implementation of this function to a large extent depends on the current accounting system, as well as on the availability of storage facilities and specialization. Warehouses, one way or another, should be equipped with organizational plan equipment.
- The feedback function assumes that accounting forms and subsequently transmits feedback information.
- The analytical function involves the disclosure of existing errors and deficiencies in the system. Through it, methods of improving the activity of the structure and its individual units are reflected and analyzed.
Accounting meters
You should be aware that bookkeeping primarily involves a quantitative measurement of the objects listed in previous chapters. This goal is pursued by the use of accounting meters, which are labor, in-kind and monetary. Natural meters are used to display processes by mass (tons, kilograms, and so on), measure, count (number of pairs, pieces, etc.), other parameters in kind.
Labor meters are used to record the time spent on work, usually calculated in minutes, hours or days. It must be borne in mind that labor meters along with natural ones can be used to calculate the size of wages, identify their productivity, and also to determine production standards.
The money meter occupies a central position in accounting. It is used to reflect a variety of economic phenomena and summarize them in a single material assessment. It should be remembered that only with the help of a money meter can the total value of the heterogeneous property apparatus of the organization (materials, machines, buildings, etc.) be calculated. The expression of this meter is relevant in rubles and kopecks (in the Russian Federation). It is necessary, in particular, for calculating the cost of a product, calculating losses or profits of a company, and reflecting the results of economic activity of an enterprise.
Conclusion
So, it is advisable to take stock. The article provided detailed information about the concept, definition, varieties, features and main objectives of accounting. Among other things, the nuances associated with the objects, as well as the meters used in accounting today, were agreed.
In conclusion, it is advisable to note that financial accounting data are currently widely used by banking institutions that lend to enterprises, company shareholders, government bodies, and investors. Together, they serve as a characteristic of the efficiency of using production and financial resources, the quality and quantity of the produced and sold product, the value of resource costs (in other words, the cost of production), as well as the use of advanced capital.