Accountancy 101

Accounting is a necessary component of any enterprise activity. The essence of accounting is reduced to the constant and scrupulous recording of all business transactions that the company carries out, and the reflection of the collected information in a documentary form. All expenses and incomes of the enterprise, in other words – all movements of its liabilities and assets, must be recorded in cash and in-kind in accordance with accepted norms.

As you can see, accounting plays a crucial role in the life of any enterprise, so its value cannot be overestimated or underestimated. The main goal of this type of activity is to collect, systematize and provide truthful information about the activities of the enterprise and its condition, which is necessary for the effective management of this enterprise.

Features useful in this profession
As in every profession, also in the case of an accountant/accountant, there is a set of features that greatly simplify the work. People in this position should be above all meticulous, thorough, honest, ambitious and committed – the continuous acquisition of new knowledge should be completely trouble-free for them.

Accordingly, accounting performs a lot of functions: control, informational, analytical, and also ensures the safety of funds and feedback between indicators reflecting the state of the enterprise at the moment, and plans for the future.

The control function is implemented in three forms: control, preliminary, current and final. Preliminary control is carried out by the personnel department by selecting qualified employees. The current control is performed by the technology department, whose duties include the development of quality standards for materials and the verification of their compliance. The final (final) control makes it possible to further plan the activities of the enterprise on the basis of the existing balance sheet.

The information function of accounting is to provide the management of the enterprise, as well as supervisory authorities, with all the necessary information about business transactions for a certain period. Such information should be not only reliable but also understandable for the user, operational, maximally systematized and orderly, correspond to his needs and be formed quickly.

The analytical function assumes a constant analysis of the work of each department (subdivision) of an enterprise and its activity as a whole at each stage of the production cycle.

The safety of assets accounting provides through an inventory of the property of the company, its calculations and financial investments. This allows not only to take into account possible losses in the production process but also to identify cases of theft and embezzlement of funds and to prevent similar phenomena in the future.

The function of providing feedback is to correlate information about the results of an enterprise with data on the work of its departments during a certain period, to provide information about the obligations of an enterprise and its interaction with consumers, suppliers, tax authorities and banks.

Thus, accounting is one of the most significant aspects of the economic activity of any enterprise, regardless of its scale and form of ownership. Today, due to the active development of the market, the importance of accounting is increasing.