Financial Accounting

To better understand what accounting is, it is necessary to get acquainted with the concept of financial accounting, which is the main part of accounting records. The translation of the word "accountant" from German literally means "the owner of the book". That is, a book containing a list of regularly filled documents reflecting the current state of the firm or organization in monetary terms. The second part of accounting is tax, which is based on financial accounting.

Financial Accounting

Accounting financial accounting is the aggregate, ordering and generalization of the registered information about the financial state of the organization or enterprise, the state of its property, the conduct of financial transactions and obligations to the tax, social authorities and private enterprises. All financial statements are filled continuously. Each document must be accompanied by documents confirming the transaction: checks, payment orders, receipts, etc.

History of accounting

Various historical sources indicate that bookkeeping emerged more than six thousand years ago, as a practical accounting of cash. Accountant, or accountant, since ancient times were the most respected professions. And no wonder. After all, without the correct organization of accounting, the successful operation of any organization or enterprise in every state is impossible with any device. Only a competently put financial account provides an opportunity to correctly calculate and pay taxes.

Throughout history, there has been a gradual development and development of principles and rules for accounting for cash transactions. Many discoveries were made, various forms of accounting were used in trade and agriculture. In the period when the first manufactories appeared, accounting was the most developed. As a science, accounting financial records exist only the last hundred years.

Tasks of financial accounting

In the systematic management of the movement of funds, it is necessary:

  • Collect and systematize only reliable data, documented, about the financial activities of the organization or enterprise. Provide their leadership and founders; And also, at the request of the Directorate, creditors, partners, investors; In the form of reports to statistics, tax authorities, etc .;
  • Ensure the management of high-quality financial information for the correct compliance with Russian law in the implementation of various business transactions;
  • Control the availability, depreciation and movement of the property owned by the company, as well as the competent use of material, monetary, labor resources, in accordance with the norms approved by Russian law;
  • To determine the possible hidden financial and economic potentials of the enterprise, as well as to forecast financial transactions in order to prevent mistakes and negative consequences in the activities of the enterprise.

Mandatory accounting

Financial accounting should now be compulsorily carried out by all enterprises and organizations that are located on the territory of Russia, adhering to a strictly regulated form and in accordance with the requirements of Russian legislation. Mandatory financial accounting also extends to foreign representative offices and branches from the moment of registration of foreign organizations as a legal entity for the entire period while their activities are in progress, prior to their reorganization or liquidation.

Financial accounting and audit

Financial accounting and audit of funds have a close relationship. Auditing by the control bodies is carried out with the purpose of verifying the accuracy of the submitted statement of cash flows for the enterprise for a specific reporting period. Also, the compliance of the accounting form with the current Russian regulations is checked.

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