Accounting - this is one of the main components of a business or production, as this keeps records of all types of business transactions. This type of recording information is also called “financial”. In this case, the subject of accounting is the economic activity of any organization or individual entrepreneur only in monetary terms.
Basic concepts
Consider what are the subject and purpose of accounting. The main reason for conducting this type of registration is a reliable reflection of the state of the enterprise (organization, company, and so on) in financial and property terms. This type of report is necessary for internal use (to managers and other users), and it is also required for presentation by tax committee employees during inspections. Accounting documents can be used as evidence of the profitability of the enterprise, for provision to investors, creditors and others.
In a more complete definition, the subject of accounting is the availability of household assets (x / s) in conjunction with the sources of their education, as well as the circuit of these components as a result of the activities of the organization or enterprise.
Let us give a decoding of the above concepts:
- household assets - this is all property owned by this organization (company, enterprise);
- sources of education x / s - this is the basis for the emergence of property (loans from the bank, equity and others).
Accounting principles
Considering that the subject of accounting is the work of an enterprise (organization, company, and so on), one can single out the principles or features that distinguish this type of data registration from others. These concepts contain the following points:
- accounting is strictly regulated by the requirements specified in the relevant documents of the Legislation of the Russian Federation (Tax Code);
- when recording information, only monetary indicators are used;
- this type of registration of information should be carried out continuously, and in terms of coverage it should be continuous, that is, all changes in activity during economic and financial operations are recorded here;
- in accounting, information processing methods are used that are unique to this type of registration.
Accounting methods
Based on the fact that the subject of accounting is the presence and change of the organization’s business operations recorded only in monetary terms (as indicated above), it is possible to conditionally divide registration methods (data processing methods) into the following types:
- Documentation - a reliable assessment of a business transaction. In this case, written certificates are issued, which, in turn, are classified into primary (filled out at the time of the completion of a process and confirming this fact) and consolidated (used to summarize information about previously issued documents, these can be magazines, registries, reports and etc).
- Inventory - reconciliation of the availability of actual property with data in the registration of accountants to identify errors (if any) and check employees (conducted at least once a year).
- Balance - a generalization of the means of the economy, grouping the sources of their occurrence by time.
- Double entry.
- Valuation - the translation of physical indicators in monetary terms.
- Costing is the process of calculating production costs.
- Score.
- Reporting - the introduction of all business processes for the period.
Here we provided initial information on the theory of bookkeeping, such as the subject and principles of accounting, as well as its purpose. We hope that this information will be useful to readers.