The company’s accounting system collects, registers and organizes information about money, property and other assets, as well as reflects on paper all business operations of the company. The organization of accounting means the launch and management of accounting processes.
What tasks does accounting solve?:
- formation of complete and reliable information about the company’s work
- control over the prevention of violations of laws in the field of accounting
- determination of the expediency of concluding transactions, ongoing operations
- accounting of materials and availability of funds and assets
- monitoring compliance with norms and regulations
- Preparation and storage of primary documents containing information about the company’s activities and management orders.
- Correct and timely reflection of documentation in the internal registers of the organization.
Accounting is necessary, first of all, for entrepreneurs themselves to have an objective idea of the financial situation and effectively manage the business. But also the organization of accounting is necessary to interact with state authorities and regulatory authorities. It is on the basis of accounting data that they will form an idea of the company’s activities.
Rules for the organization of accounting
The ultimate and main goal of the organization of accounting is to prepare complete and reliable reporting and bring it to the attention of all interested parties. Such users of reporting indicators are legal entities, private businessmen and people without entrepreneurial status, if, due to the circumstances, they make important financial decisions for themselves on the basis of the information provided in the accounting reports of a particular legal entity.
Accounting and storage is organized by the company’s management. When it comes to a large company, the head or owner of the business should assign this responsibility to the chief -accountant. If we are talking about small businesses, private entrepreneurs and individuals who use a simplified taxation system, they independently set up all the necessary processes and draw up documents – this is their area of responsibility.
Chief accountants working in public stock company, pension funds, insurance and management companies must meet certain requirements: get a higher education, have relevant work experience, and also have no criminal record.
Features of accounting organization
Who organizes accounting in the company? The law assigns this task to managers and chief accountants. At the same time, it should be taken into account that all business units are required to keep records, for which accounting and preparation of relevant reports are an integral part of the work. These include legal entities.
At the same time, individual entrepreneurs are spared from such problems and difficulties if they register income, expenses from their own business activities or other objects of taxation; foreign companies, if they keep detailed and detailed tax records. In order to solve the issues of accounting organization, the company needs to understand who should be responsible for this, who is obliged to perform the relevant functions and who will control the process.
To answer such questions, there is the following methodological approach. It is necessary to divide the basis for regulation into at least two levels: general, the same for all companies in the country; local – at the level of each individual economic entity.
The current national accounting organization procedure is set by key regulations in the field of accounting.
Accounting organization plan
Accounting and storage are organized at the very beginning of the business. Even at the stage of its registration, it is necessary to form an accounting policy and agree on a working chart of accounts. At the same time, the forms of primary documents that the company will use in the future are determined.
As a rule, when planning work with primary documents, it is enough to focus on the requirements established by law. But sometimes companies independently approve the forms of accounting registers. These issues are all the more important to resolve at the very beginning of the business, since each business transaction must be reflected in the primary documentation.
However, the registration of primary documents is not all that should be adjusted immediately. The data from these papers should be promptly registered in accounting registers, which also require preparation, systematization and storage.
Next, you must make accounting entries for each business transaction: receipt of raw materials, purchase of goods, sale, and so on.
At the end of the month, the results are summed up. Accountants must determine the turnover and account balances. At this stage, separate accounts are closed, turnover balance sheets are drawn up. They also close individual accounts at the end of the year. At the same time, the remaining funds are withdrawn as of the last day of the calendar year.
According to this scheme, accounting takes place from month to month. At the same time, the responsibilities of the organization include the preparation of annual financial statements, which are submitted to the regulatory authorities within a clearly specified time frame. For this type of reporting, the period is a calendar year.
It is important to note that before compiling the annual accounting statements, the organization must necessarily conduct an inventory, as required by the order of the Ministry of Finance.
Methods of organization of accounting
As a general rule, the organization of accounting and storage of accounting documents is entrusted to the head of the company. The head is obliged to entrust the accounting to the chief accountant or other official of the company or to conclude an agreement on the provision of accounting services with a third-party company / private owner.
If your company has decided to conclude a contract for the provision of accounting services, it is important to know that such a contract cannot be concluded without taking into account the risks. So, if the contract is concluded with an individual, such an individual must:
- have a higher education;
- if you have a specialized education, have at least three years of work experience related to accounting, reporting or auditing, and in the absence of higher education in accounting and auditing – at least five years out of the last seven calendar years;
- do not have an outstanding or outstanding criminal record for crimes in the field of economics.
If an accounting contract is concluded with an organization, then there must be at least one employee who meets the above requirements.
By the way, in some cases, the head of the company is allowed to assign accounting to himself. For example, it is allowed to do this in companies that have the right to use simplified accounting methods (we will discuss such methods below).
Advantages of accounting outsourcing
One of the options for organizing accounting is outsourcing. It saves you from having to hire an accountant on staff and form a finance department. Outsourcing assumes that all tasks related to accounting and document management will be taken over by qualified specialists of the company that provides the relevant services. At the same time, they will be in touch with you full-time.
The main difference between full-time employees and outsourcing specialists is the type of contract concluded. It just provides the main advantage of outsourcing for all types of companies and forms of management.
With a full-time employee working at a rate or even remotely, you must sign an employment contract. Relations with such a specialist are regulated by the Labor Code. If you sign a contract with a company or a private specialist who provides accounting services, this is a civil contract. Accordingly, your relationship is regulated not by the Labor Code, but by the Civil Code.
The advantages of accounting outsourcing include:
- The responsibility of the contractor is clearly indicated in the civil contract, so you always understand what functions you outsource, what you get as a result of such an agreement.
- Breaking off cooperation with a freelancer or an outsourcing company is much easier than firing a full-time employee.
- You do not need to make contributions and personal income tax calculations from the salary of a full-time specialist; thus, you optimize the tax base. An external accountant, if he is an individual entrepreneur, independently pays all contributions and taxes provided for by law. Or the company with which you conclude the contract does it for him.
- Payments to the outsourcer company are not subject to additional amounts, no additional charges or payments to state funds need to be made from them.
Accordingly, outsourcing costs the company less than hiring a full-time specialist. Not to mention the fact that you get rid of the need to look for an employee whose knowledge and competencies should match your tasks. Outsourcing also offers more flexible terms of cooperation without temporary failures in work. A full-time accountant can go on vacation or take a sick leave, but an outsourcer company in this case will simply delegate tasks to another specialist, so there will be no hitches in accounting.
Finally, outsourcing makes it possible to respond quickly to changes in business processes. Outsourcing companies employ specialists with different experience, they are usually competent in a variety of fields and industries. Thanks to this, outsourcing companies react faster to new market trends and adapt their work to the client’s needs.