How to administer?

In the process of carrying out operational activities , any enterprise incurs costs that are not included in the cost of services, works or products. They are reflected in the period in which they appeared. These costs include administrative expenses.

Definition

Costs that are not included in the cost include expenses that are not related to commercial or industrial activities. These costs are called administrative. These costs include costs:

1. For the maintenance of the personnel of the management apparatus of the enterprise and its structural divisions. The budget for administrative and management expenses includes funds that are allocated for material and technical and transportation support, including servicing official vehicles and compensation for the use of a personal vehicle for the performance of professional duties.
2. The operation and maintenance of structures, buildings, equipment, premises, equipment, etc.
3. Payment of business trips related to the professional activities of employees.
4. Maintenance and maintenance of technical equipment (alarms, communication centers, etc.).
5. Reception of representatives of other enterprises who arrived at the negotiations to establish cooperation, members of the audit commissions, boards of directors.
6. Payment for communication services.
7. Settlement of litigation.
8. Audit, advisory, information services.
9. Payment of management activities implemented by third parties, if the corresponding functions are not provided for in the staff list or in job descriptions.
10. Payment for the provision of services to housing and communal services organizations to ensure resource conservation, regulation and metering of gas, heat, water consumption.
11. Performing mandatory annual as well as proactive audits of financial and economic activities.
12. Settlement and cash services and other banking services.

Cost recognition

Costs are recognized when economic benefits are reduced, provided that it is possible to reliably estimate its value. Cost accounting is carried out along with an increase in liabilities or a decrease in assets. For example, when calculating salaries or calculating depreciation. Administrative expenses related to the management and maintenance of the organization as a whole are accounted for by invoice. 92.

Articles

Administrative expenses related to the remuneration of the managerial staff are taken into account according to the nomenclature of posts. In particular, accrued remuneration to the director of the company, his deputies, employees of the economic and accounting departments, chief engineer, secretary-typist, and so on. transferred to D-SCH. 92. In this case, the account is credited. 66. Under the article "Deductions for social events", contributions from the calculated salary of the management staff are taken into account. In this case, account 92 is debited, and cf. 65 is credited. According to the article "Business trips" the costs of the management staff, the amount of lifting are taken into account. At the same time, the account is debited. 92, and credits accounts 30, 37.

Other administrative expenses

This article takes into account the costs of:

1. For office supplies, telegraph and mail.
2. The cost of the forms of accounting, reporting, planning documentation.
3. Litigation It should be said that the law allows the return of money spent on litigation. For example, an enterprise may charge the legal costs of an administrative case to the defendants if its requirements are satisfied.
4. Repair, depreciation, lighting, water supply, building heating.
5. Maintenance of official cars, guard, fire services.
6. Remuneration for audit, legal and other services.
7. Settlement and cash and other banking services.

In these cases, the account is also debited. 92. Accounts credited:

1. Depreciation of non-current assets (13).
2. Inventories (20).
3. Settlements for other operations (68).
4. Wearing and low-value objects (22).
5. Cashier (30).
6. Settlements with employees (66).
7. Bank accounts (31).
8. Tax calculations (64).

Documents

The primary sources of information on administrative expenses are:

1. Accounts and reports on the use of funds provided on business trips.
2. Overhead.
3. Accounting calculations.

Write-off of expenses is made out by the certificate. On its basis, the account is debited. 91 and credited to the account. 92. Analytical accounting is made in the report in the context of cost items aimed at managing and servicing production.

Economic justification

Any administrative expenses of the enterprise must be justified. Costs are recognized as such if their implementation is justified from an economic point of view and their valuation is expressed in cash. In accordance with Art. 252 Tax Code, the justification of the costs incurred is determined not only by the actual income received in a particular reporting period. An important condition is the focus of costs on profit.

Validity criteria

As practice shows, the lack of a methodology by which the cost of enterprise management services is determined cannot serve as a basis for not recognizing the justification of expenses. This conclusion is present in the resolution issued by the Federal Antimonopoly Service of the Urals District on April 4, 2007. The increase in sales revenue and profit growth certainly indicate the economic feasibility of costs.

Outsourcing and outsourcing

Any enterprise has at its disposal a limited amount of resources. Sooner or later, the head of the organization needs to reduce costs in all areas in which it is possible. In such situations, as a rule, first of all, the reduction in administrative costs begins . For this, various activities are being undertaken. Changes in administrative expenses can adversely affect the financial condition of employees. However, in many cases this is justified.

Outstaffing is actively used abroad. It represents the withdrawal of staff from the state. However, they do not stop working. They continue to fulfill their professional duties, but on several different conditions.

Another way to cut costs is outsourcing. In this case, non-core functions are taken outside the enterprise. They can be, for example, accounting, jurisprudence, marketing, etc. If necessary, the company may enter into an agreement with a company providing such services. Outsourcing allows you to concentrate on your core business.