Accounting Methods
In practice, all accounting methodsapply in close connection with each other. After all, any operation in accounting is based on documentation, the operations themselves are recorded using a double entry, an inventory is used to verify the data, and in the end, they make up a balance sheet and financial statements.
The main elements of the accounting methodare connected with accounting supervision. To do this, use the primary documentation and inventory. In addition, the accounting dimension is used in the form of valuation and costing. In the day-to-day work, the accountant groups the accounting objects by applying a chart of accounts and a double entry, and then summarizes the accounting data when forming a balance sheet for a certain date.
To understand the methods of accounting, it is necessary to dwell in more detail on its individual elements:
- Documenting.
It is closely connected with such concepts asdocument circulation, documentation, standardization and unification. At the initial stage of accounting, primary documents are used in accounting, on the basis of which all business transactions are correctly and timely executed.
Unification of documents is adevelopment of standard forms of documents used by enterprises when processing the same transactions, regardless of the form of ownership and departmental affiliation and approved by the decision of the State Statistics Committee.
At standardization identical sizes of forms on the same documents are established. This facilitates both the processing and storage of documents in the archive.
The document circulation is developed by the bookkeeper and is approved by the head. If it is absent, the account is started and there is an opportunity for abuse.
- Inventory
When checking for availability and complianceproperty and goods to these documents. Inventory helps in a timely manner to respond to their absence. When carrying out inventories, for normal document circulation in the organization, employees apply in practice methodological guidelines for accounting, use forms, adhere to standards and standards, use meters.
- Accounting accounts are a double table, where to the left - a debit, and to the right - a loan.
- Double entry reflects all economicoperation. Corresponding accounts are issued in the form of accounting entries. If two accounts are linked, then this will be a simple posting, with the interconnection of several accounts, complicated posting is made.
- Evaluation
The property is estimated in monetary terms forthe amount of its acquisition, at market value or at the cost of manufacturing by the enterprise itself. Using the methods of accounting, assess the material stocks, the means of production, all income and expenses of the enterprise, accounts receivable and accounts payable.
- Calculation
At the same time, costs are taken into account and the cost of production, services and works performed is determined.
- Balance sheet
Composed on a specific date and fora certain period, when the final balance of all accounts is reduced. In practice, the reporting and liquidation balance of the enterprise is often used. If necessary, a separative (when the organization is divided), unifying (when merging several enterprises into one) and an introductory balance, if there are funds to start activities.
- Financial statements
It is a broader concept andis compiled monthly, quarterly, once a year, while showing the true financial position of the enterprise and the results of its activities for the period or on a certain date. Accounting reports include balance sheet, profit and loss statement, an explanation to the balance sheet and the report, if necessary, an audit report.
All accounting methods are used simultaneously, so it is simply impossible to isolate them, to study in isolation.
