Budget accounting is used in all institutions and organizations without exception, which relate to the state form of ownership. It differs somewhat from the usual work of accounting, but the basic principles are observed in it. All actions, document templates and other elements that may be needed for the organization’s activities are approved by higher authorities and are not advisory, but mandatory. There are specific examples, samples, and similar supporting documents that facilitate the work of employees.
What is budget accounting?
The aforementioned accounting option is a clearly regulated system in which all the elements of the institution's management are brought together and processed by specialists. It is characterized by the presence of a large number of instructions and similar documents that indicate how certain actions are required to be performed under various conditions. This greatly facilitates the work process, because the information provided by the budget accounting instruction allows you to immediately start work and clearly fulfill all the requirements, without being distracted by all sorts of individual elements inherent in its classic version.
Accounting Tasks
There is a certain list of main tasks that are the basis of accounting. The total number of such elements is very large, but if we reduce and briefly consider this problem, we can highlight some of them.
So, this type of accounting is necessary in order to find non-obvious, hidden reserves that would allow the state to function more efficiently. In addition, budget accounting allows for total control of the actual condition and the presence of any amounts of cash, as well as various assets. When properly managed, it also makes it possible to identify and timely prevent any inappropriate expenses and generally give an understanding of exactly where, in what amount and how the money was used. Accounting of this type, among other things, shows the results of the activities of a particular organization. That is, how profitable or unprofitable it is.
Not the least role is played by statistical and reporting data, which are also collected using this accounting. They are needed to accumulate certain information, analyze it, provide it to interested parties and, as a result, to formulate new instructions and documents, as well as to ensure that subsequent changes in budget accounting are as relevant as possible to the current situation and are most effective in a specific period of time.
Regulations
All the basic foundations are specified in special Instruction No. 148n, which includes not only clear definitions of how to act in certain conditions, but also what penalties may follow if one refuses to use these requirements. It should be noted that this document has only the basics and the base, which, of course, cover all areas of activity and elements of the organization’s work, but may be incomplete.
In addition to it, there are still a huge number of various changes, additions and similar factors that also affect the operation of the enterprise and in some cases can very significantly change previously approved standards. In theory, the head of the organization and other persons vested with certain authority in a particular institution are required to communicate to employees all these documents in an appropriate manner and within the required time frame.
In practice, the employee is advised to independently monitor the situation and, as new information is received, check it with the management in order to avoid possible problems in the future. But this is not all, besides all this documentation, it is necessary to understand standard accounting with all its normative acts. Budget accounts, although they differ from the classic ones, are still managed in approximately the same way, which makes trying to figure it all out quite complicated.
Requirements
The instruction on budget accounting, as well as some other similar regulatory documents, set certain requirements for its maintenance. They are firmly enshrined in law, and tough sanctions can follow for a violation of these requirements.
- So, any actions must be completed on time.
- Reporting information must correspond to the actual state, and the accounting itself must be carried out starting from the very first day of the organization’s existence.
- The simplest and most understandable requirement is the condition of its conduct exclusively in state currency.
Of course, in certain situations, other features of the work may be added, but here a lot depends directly on how the organization functions, what it does, what its features are, and so on. For each such item, an additional check should be carried out for conditions and requirements that could at least partially relate to the work of the institution.
Responsibilities
The main requirements are set directly to the head and chief accountant of the institution. It is they who are obliged to constantly monitor the work performed, their fixation in documents and budget accounting. Only they are responsible for everything according to the law, and only then, if necessary, can they punish their employees on their own with accessible and adequate methods.
This is a reasonable approach, since only they know (or are required to know) all the features that an ordinary person engaged in work simply does not need for a full-fledged activity. At the same time, the same chief accountant has the opportunity to require the management to take the necessary measures, the purpose of which will be appropriate and correct accounting in budgetary institutions. This item includes requirements for the organization of jobs, their technical equipment, the hiring of qualified employees, and so on.
In turn, management may require the allocation of appropriate amounts to meet the conditions of employees if they are deemed truly worthy of attention and hampering the full work of the organization. For example, a water cooler is unlikely to be an obligatory equipment, but without at least the worst computer it is almost impossible to record or perform other similar functions. As a result, you will need a suitable infrastructure, communication through a network connection, and even an individual who will monitor the safety of all this.
Structuring
In order for the organization’s work to be as effective as possible, all actions were carried out precisely and on time, and the reporting really corresponded to the requirements presented to it, a sufficiently large staff is required, each of which will carry out clearly defined functions. This helps to split the workflow into parts and makes it possible to work comfortably and efficiently in their field even with minimal knowledge, because a truly experienced person will require high payment, which the organization may not agree to.
Accounting in budgetary institutions implies the presence of cashiers, leading accountants (or employees who will combine both functions). In addition, there may be deputies (usually one, but sometimes more) and, naturally, the chief accountant. With this scheme, the head controls the main areas of activity and features. In more detail, they are monitored and directed by deputies, and ordinary employees perform all the work directly.
Documentation
There are more than 40 basic forms of primary documentation, which is required to be used in a public institution so that management accounting is as close as possible to the requirements of the law. In fact, all of them are divided into two groups, approximately the same in the number of specified documents, one of which relates to firms of any form of ownership, and the second concerns exclusively budget organizations.
In turn, budget accounting has its own division of these primary documents into three main groups. All of them are needed for the quality work of the enterprise and allow you to cover absolutely all areas of activity.
So, they allocate approximately equal in number templates, which are responsible for calculating and calculating wages, conducting any operations with the cash desk, as well as regulating work with tangible assets. The smallest group of documents are those that are not included in any of the categories and cover some very specific areas of activity, not all of which exist in the enterprise.
Automation
As in ordinary accounting, all kinds of automated systems are actively used, greatly facilitating the work of employees, as well as providing the most accurate and reliable data based on the numbers entered.
The convenience of such programs has long been tested and approved by all employees who are required to work with accounting, tax or management accounting. They instantly give out all the required information, do not force the user to learn how to work with them for a long time, signal the deadlines for submitting reports, and so on. Most modern accountants, in principle, vaguely imagine the work of the organization without such auxiliary means.
Accounting and reporting
All areas of the company are closely related to reporting. This is one of the foundations that is mandatory for everyone and allows you to accumulate sufficient data for analysis, control and verification. There are several basic versions of reports in budgetary organizations, which must be compiled in a timely manner and submitted to higher authorities:
- budget performance report;
- performance results;
- about the movement of funds.
As you can see, they all allow regulatory authorities to conduct a detailed analysis of the state of the organization, its features, current problems, development directions, and so on. Usually, an explanatory note is also attached to all these documents , which clarifies one or another information that is not immediately clear.
In addition, balance sheets and any other documents that are required by the relevant authorities are submitted if it becomes necessary to clarify certain points, figures or other features of the enterprise.
Differences from standard accounting
Budget accounting is in many respects similar to the usual one, which is used in private enterprises, in firms and organizations. The main differences lie in seemingly small details like a chart of accounts and in the classification features of certain actions. But in fact, if you delve into all this in detail and in detail, it turns out that these elements are key and affect the entire structure of the organization’s work very seriously.
It is possible to say more specifically about this issue only by comparing two different enterprises of a similar type, one of which will be private and the other state-owned. Management accounting, like any other, in a private company will, on the one hand, be simpler and more understandable, and on the other hand, if there are a large number of internal regulatory documents, it will be much more complicated and confusing. Yes, and in some cases overlapping with current legislation.
Summary
In general, to summarize all of the above, the budget type of accounting is difficult at the initial stages of understanding, unlike its usual form, but much simpler in the future.
The main task for a full analysis of the problem should be the analysis of the entire legislative framework, which may at least somehow relate to this problem. After that, working will become much simpler and more understandable, even taking into account constant changes and changes. In turn, the standard type of work of almost any more or less large company implies the fact that employees will take into account not only the requirements of the law, but also the wishes of the employer, correlating them with the laws and regulations.