Correspondence of accounts in the accounting system is a certain record of postings that are interconnected and continuous to the accounts of accounting support. The relationship is achieved through the use of such a technique as double entry, that is, the recording of each operation is carried out on the debit of the first account with its simultaneous entry into the credit of the second account. It turns out that between the two corresponding accounts a certain relationship is formed, which is called the correspondence of accounts. Such accounts are commonly called offsetting.
Such a display of operations in reporting significantly increases the reliability of the entire accounting system. In addition, the essence of business operations is displayed much more correctly. The result of this is the ability to analyze all operations performed in accounting without any problems, and specialists on the basis of such a mapping of operations have the opportunity to make the most accurate conclusions about how the business of the enterprise is conducted.
The chart of accounts of accounting, as well as instructions for its use, should be applied by organizations, in addition to credit and budget, of various forms of ownership, which record using the double entry method. This allows you to give the whole accounting systemic character, whereby a certain relationship is ensured between accounts. Thanks to the correspondence of accounts, you can control the movement of rights and property, the sources of their formation, as well as find out where they come from and where they are directed. With their help, you can check the economic content of operations, the legality of their implementation. All amounts are recorded on credit and debit of different accounts, so the turnover should be equal. If in the end it turns out that equality is violated, then we are talking about the mistakes made in entering information into the records, and they certainly need to be identified and corrected. Correct correspondence of accounts is the basis of the reliability and accuracy of accounting.
Thanks to the information section, which describes the scheme and rules for applying the principles of double entry, it becomes clear how to properly use the chart of accounts. It reflects the most common transactions, and also describes their reflection using correspondence accounts with a detailed description of each transaction by records on the credit of one account and the debit of another. Correspondence of accounts for each operation is described with an indication of the forms of primary documentation that is used to formalize this operation. Thanks to the primary documents, a continuous and continuous reflection in the accounting of the company's business activities is ensured. The accountant has the right to enter into reports only those records that are documented. Primary documents serve as the basis of the entire system of accounting records, which are carried out through correspondence accounts.
Each organization encounters such cases when it is necessary to perform operations executed in documents that do not have a standard form. This assumes that the form of the document that was created by the organization is approved and fixed in the accounting policy. The document must necessarily have the entire set of necessary details. The Federal Law “On Accounting” says that the mandatory details are: the name of the organization, the name of the document, date, number, a brief description of the transaction, a monetary or quantitative description of the transaction, as well as signatures of those responsible for the operation.
It turns out that correspondence of accounts is a prerequisite for accounting.