The concept of accounting

Large organizations have in the state and the chief accountant and several other accountants, small businesses have only one accountant. Often , accounting in the organization is conducted by a third-party specialist or an organization under a service contract. Sometimes the head himself is an accountant himself. The concept of accounting is an entire system in which information about the property of an enterprise, financial liabilities, expenses and revenues is collected, recorded and summarized continuously and fully on the basis of primary documents in monetary terms.

Accounting can be of several types:

• Management Accounting

The basis of management accounting is the analysis of the cost of production, the cost of its production, ways to improve production, reduce costs.

• Financial Accounting

At the same time, information about accounts receivable and accounts payable, costs and profits, property and various funds of the enterprise are taken into account. Financial accounting is necessary for calculating taxes, for investor information, for preparing reports. If financial accounting is regulated by government regulations and rules, is open information, is often published in the media, then management accounting is individual and strictly confidential.

• Tax accounting

The peculiarity is that accounting is conducted not only by the payer, but also by the tax authority. In practice, all types of accounting are closely interrelated.

The general concept of accounting of each kind is important to know and apply to accountants, managers, auditors, tax inspectors and ordinary citizens alike. Specialists use deep knowledge and experience in their work, constantly improving them. And this helps citizens to remain law-abiding and do not have unnecessary problems.

Continuity, the use of a double entry is considered as the basic concept of accounting when processing business transactions in an enterprise. In practice, the accountant uses correspondent accounts to form the postings.

At any enterprise, the concept of accounting includes the formation of information on economic transactions, and control over the movement of property and funds, and the preparation of financial statements and the identification of financial results in the end.

Against the background of various forms of ownership, the main functions of accounting become important:

1. Control

Controlled shipped and sold goods, services, the rational use of money, workers in production, raw materials and materials, fixed assets. There is a control over the profit that remains at the enterprise and which is taxed. In addition, it is important to know the solvency and financial position of their competitors.

1. Information

Accounting information is used in the planning of contracts and contracts, profit forecasting, in statistical accounting and reporting of the organization.

1. Analytical

The analysis of labor and financial resources, production costs, analysis of the correctness of the price policy is carried out.

1. Feedback

Accounting provides data on property, relationships with suppliers and buyers, with tax and other government agencies, with banks and foreign partners.

1. Preservation of property

This function at the enterprise is carried out with the help of instrumentation and containers, the use of flow meters and the conduct of inventories.

At sale of the goods, finished goods, at rendering of services, at performance of works the accounting of incomes and expenses is conducted at the enterprise.

At the same time, they must reflect taxes and allocate the cost of production in accounting entries.