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Practical application of accounting registers

by MAAccountancy 11 days ago in advice

Accountants Near me

Almost an epigraph: It often happens in life that you do something and consider it necessary, but when other people find out about it, they consider it unnecessary. And you don’t understand why they don’t understand that it is necessary? And they do not understand why you need all this, is it unnecessary? But there comes a time when you are already ready to give up something that you considered necessary, and those people who were surprised at you understand that what you did was not so superfluous.

Of all the functions that I have listed in the post” Modern view of the concept of" ledger ", I would like to consider the second, namely, the control function.

For me, for example, it is obvious that before the formation of financial statements (balance sheet and profit and loss statement), it is necessary to analyze the turnovers for all accountants near me. But when I voiced this in the circle of my acquaintance accountants, it turned out that not everyone understands why?

How can you imagine the process of an accountant's work today? We received the primary document from the supplier, entered its data into the accounting program, the program generated the postings, at the end of the month made the necessary operations to distribute and close the necessary accounts (again in automatic mode), clicked the button - and here it is, the balance!

Indeed, gone are the days when the balance “did not converge” - when conducting accounting in an accounting program, it cannot but “converge”! The program initially will not allow you to make a posting in which the debit or credit account is not indicated, and it certainly will not include a different amount in the posting to the debit account than to the credit account. This leads to novice accountants to think that it is not so difficult to make a balance sheet. I do not argue that it is very easy to form a balance sheet in any accounting program. But in this regard, the function of control over how this program distributes certain amounts to accounts, how it distributes, how it closes, etc., increases. Whoever looked for a penny at least once when drawing up a report (rather, when analyzing several reports generated by the program) will understand me!

Accounting registers (printed or saved in a format that prevents the introduction of changes, ie static, fixed at the point in time when changes made "retroactively" are no longer acceptable) allow you to control the correctness of accounting firm in slough for business transactions.

For myself, I have developed a certain control procedure, which for many years has been one of my applications to the accounting policy and is called the “Procedure for controlling business transactions and the correctness of their accounting”.

Someone may say: "There is no need to describe in such detail what any accountant, who has grown to draw up a balance sheet, and so should know." I agree, but:

- firstly, I repeat, it is not obvious to everyone that before drawing up a balance sheet it is necessary to check the turnovers of the accounts step by step (it happens that acquaintances contact me with the question of how to check this or that figure in the balance formed by the program);

- Secondly, if you are not the only best accountant near me in the organization, then you have a fairly large volume of primary documents that need to be processed. If someone besides you processes primary documents, then you must in one way or another check the correctness of the work of subordinates;

- thirdly, it is easier once and for all to develop the type of registers for more than 20 accounts and, so as not to forget, to fix it on paper, than to remember every time how it was before. Again, in this way we achieve a certain uniformity of registers (within a specific organization).

advice
MAAccountancy
MAAccountancy
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MAAccountancy

Bookkeeping or Accountancy is the estimation, handling, and correspondence of monetary and non monetary data about financial elements, for example, organizations and companies.

https://www.maaccountancy.co.uk/

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