The structure and functions of accounting, accountant job descriptions.
Responsibility for organizing accounting within the enterprise rests with its management, which is required to create the necessary conditions for proper accounting, to ensure that all departments, services, employees involved in accounting (who perform the primary accounting of business operations), and the requirements of an accountant regarding the recording and submission for accounting of the necessary documents or information. If a small business has an accounting department, it is headed by a chief accountant who is appointed and dismissed by the head of the enterprise and reports to him.
The primary link in accounting is organizational accounting. Accounting – an independent structural unit of the organization and cannot be part of any other organizational unit; a non-accounting organization may include a specialized organization or a suitable specialist for accounting purposes on a contractual basis.
The structure of the accounting apparatus depends on the content and volume of accounting work. The federal law “On Accounting” No. 129-RIM of October 21, 1996 (as amended on January 10, 2003) stipulates that, depending on the volume of accounting work, accounting in an enterprise may be carried out:
- accounting as an independent unit;
- an accountant in the company's condition;
- a special centralized accounting system that serves several enterprises;
- Contract accountant;
- The head of the company personally.
In large organizations and enterprises, accounting is divided into a number of departments.
The Accounting Department conducts payroll and social security processing for workers and employees, settles accounts with financial authorities, banks, and depositors, and prepares reports on work and wages.
The Materials Department is responsible for supplier accounts and tracks the movement of fixed assets, materials, and containers. It verifies the accuracy of inventory accounting for material assets and prepares a report on the availability and movement of material assets and other property.
The production and costing department considers production costs, calculates production costs, and reports on the implementation of the production plan and its costs. The functions of this accounting division also include overall management and control over the availability, movement, and safety of its semi-finished products and work in progress.
The Sales Operations Accounting Division considers the presence and movement of finished goods in the sales department's warehouses. This department maintains records of finished goods and their sales. The department handles accounts receivable, overseeing the accuracy and timeliness of payments received from customers.
The Settlement and Currency Operations Department handles the accounting for banking and foreign exchange activities. In the absence of financial services, the same department is assigned the function of organizing financial work.
The general department of the company's accounting department records all other business transactions, prepares consolidated and summary documents, and organizes an accounting archive.
The considered structure of organizing the accounting apparatus is implemented in most medium-sized enterprises and sometimes large ones, and is called vertical.
In small enterprises, a linear structure is generally used, in which all accounting staff report directly to the chief accountant.
In large enterprises, a combined system of organizing the accounting department is used, where the accounting department has dedicated services for performing a closed work cycle (according to the type of production). In these cases, the chief accountant's rights will be transferred to his deputies within the scope of their authority.
In modern times, accounting is based on the broader use of computer technology. Organizational forms of accounting mechanization vary and depend on the type of computer technology, its location, the extent of its industry equipment, the volume of information processed, and the service sector.
Accounting issues
In recent years, during the audits of various organizations I had the opportunity to participate in, there wasn't a single organization whose accounting, bookkeeping, and reporting fully complied with the requirements of its governing documents. I note that earlier, during the audits of the financial and economic activities of an organization in which no violations had been found, it was not unusual. The presence of significant deficiencies in the submitted accounting and tax reports is confirmed by the tax authorities. For example, according to the 2004 tax audits (i.e., in practice, when checks are made only on a formal basis) of VAT returns filed by organizations, only 10–15% did not have any deficiencies.In most cases, frankly speaking, the abnormal situation with the accounting is explained above all by the overloading of accountants, who are responsible for maintaining various types of accounting, the rules for which do not always align, the instability and ambiguity of accounting and reporting rules, other (often several times a year) changes made to governing documents, etc. But alongside the “objective” reasons for the emergence of accounting deficiencies, there are also “subjective” ones, the appearance of which depends solely on the organization of accounting work and its personnel.
Solving problems “in your own way”
We present some “subjective” conditions for the emergence of accounting deficiencies and ways to prevent them.
Double document check. First of all, this is the failure in most old organizations (but they never lose their meaning!). The rules for document control (summary, payment, reporting, etc.) Prepared by the accounting department's own staff, second-level control is that once a document is compiled by one accountant, another reviews the entire document, the control markings, and is responsible for the accuracy of the data together with the employee who prepared the document. Internal document controls are mandatory because, as you know, only those who do nothing make no mistakes. It takes much less time (about 10%–30%) to review a document than to prepare it. But the quality of the preparation and the accuracy of the documents after verification increases significantly. In addition, this increases the accountants“ overall efficiency and significantly reduces the time needed to correct any deficiencies that third-party auditors may identify in the reporting documents that have already been submitted to them.
Discipline and supervision Another common cause of errors and irregularities in accounting is that in many organizations, accounting is, figuratively speaking, a “yard.” In accounting at any given time there's “everything and the kitchen sink,” and, in many cases, “just a chat.” At the same time, accounting department employees are constantly distracted by their own accounting issues, which demand special attention, clarity, and absolute focus, and as a result mistakes occur. Often, such idle visits are even covered up with plausible excuses (questions for the accountants), as a result of which you have to put aside your current work and deal with a visitor's question or problem. Thus, the main work is often postponed until the evening, when attention has already waned or one is rushing. Therefore, to ensure normal working conditions for the accountants, it is necessary to have the company head confirm the accounting work schedule (regarding production matters). It is advisable to set aside waiting time – one hour before lunch and one and a half hours after lunch. In other cases, visitors to the accounting department are only permitted with the company head's permission.
Official duties of accountants Also, within the organization it must be clearly articulated and approved by the head of the company's accounting functions and by the job responsibilities of each employee in the accounting department. At the same time, the assignment of functions that are not inherently accounting should be excluded. For example, such as: – drafting and executing contracts with third-party organizations (but the chief accountant must review project contracts, and mandatory reporting to the accounts department of certified copies by authorized personnel must be established); – the preparation of timesheets for work hour accounting (which must be carried out by the heads of the respective departments); – maintaining material accounting (which must be entrusted to the relevant service (division, officer), and accounting must monitor only this area of accounting), etc.
Document management Proper organization of the company's internal document management is of great importance for eliminating deficiencies in accounting, and it must be established by order of its manager. The order must clearly define the presentation of documents in the accounting department, the deadlines for their submission, and the responsible individuals. Strict penalties must also be imposed for processing documents late or in poor quality. At the same time, it is necessary to clearly and at a glance reconcile the accounts receivable in the accounts department with the documents. If it is discovered that document submission is not timely or that the documents are poorly prepared, the chief accountant (perhaps after one or two warnings) should submit a report to management and request the imposition of appropriate sanctions on the authors, who will be notified of these measures in accordance with company policy. In addition, it is important, if possible, to impose an obligation on the same preparers to submit corrected documents. This will convince the latter that it is far better to immediately verify the accuracy of the document received from the parties or from their subsidiary documents than to force them to draft another document correcting the errors.
Visual aid for accountants It wouldn't be excessive to establish, within the accounting department, a visual accounting of the timely preparation and submission of accounting documents to the tax authorities by department employees, specifying deadlines and responsibilities for drafting and review. seminars, etc., the regular receipt and study of specialized literature. It is also advisable that, on a regular basis (at least once a month), a review of existing guidance documents be conducted on the shared accounts (preferably in groups), as well as the timely updating of the software in use.
The new accounting rules must be immediately brought to the interpreters on duty and a copy of the governing document left with them. Copies of the governing documents for the relevant accounting areas must be kept in separate files. In the event of any ambiguity in the accounting provisions, it is necessary to immediately determine the accounting policy for a debatable issue involving auditors, lawyers, etc., possibly by submitting a request to the relevant supervisory authority. You cannot leave ambiguities “for later.”.
Inventory shouldn't be a formality. A comprehensive way to determine the accuracy of an organization's accounting is to compare the inventory results with the accounting records as of the relevant date. As is well known, the inventory should cover not only the verification of inventories but also all assets, liabilities, etc. When the inventory is to be conducted, the actual data for all accounting accounts (balance sheet items) must be recorded as of the relevant date. If the results (the data) taken during the opening inventory at the beginning of the period and when the closing inventory at the end of the reporting period matches the data in the corresponding accounts (balance sheet items), then there is, to some extent, confidence that throughout this period, accounting covers all of the organization's activities. In the event of any discrepancy in any indicator, accounting personnel should start with the accounting data and only after determining the accuracy of the accounting data should they complain to other company divisions.
When will you audit? In our view, the most productive way to identify and correct deficiencies and irregularities in an organization's activities is to conduct audits. Such audits can take the form of internal or external audits. The latter is carried out by specialized auditing firms, while at the same time it is advisable to secure an external audit under a multi-phase contract. For example, first (in July–September), the first half of the year is audited by an audit firm. Based on the audit results, during the September–October period the organization eliminates the deficiencies and violations identified by the audit in the nine-month period, and therefore in the fourth quarter such flaws in the organization must no longer be tolerated. Then, at the end of the year, an annual audit is conducted, and based on its results, the violations and deficiencies are eliminated, the volume of which will be much smaller.
How to improve accounting work
There are other possible ways to improve the organization of accounting work to avoid deficiencies in accounting and tax accounting, which the chief accountant must identify and implement. The main rule should be as follows. If any violation is identified, it is necessary to identify the culprits, determine the cause of the identified deficiency, develop and implement measures (including issuing orders, directives, etc.). To prevent such (and similar) violations in the future.
example
Currently, the most frequent violations uncovered by tax authorities (with significant penalties for organizations) are the disadvantages associated with incorrect (incomplete) invoicing for purchased goods (works, services). What measures should the organization develop and implement to prevent such violations in the future? In our opinion, the following should be done.
First, it requires accountants to tighten invoice verification and not to include in the purchase ledger information about purchases for which invoices are missing or contain errors.
Secondly, the public order requires the relevant departments (officials) to enter into contracts for the purchase of goods (works, services) to include the condition that the supplier will reimburse the buyer for all material losses the buyer will suffer due to late delivery or incorrect invoicing. .
Third, by order of the company to determine that the responsibility (with the sanction indicator) for the timely delivery of suppliers and the accuracy of their documents (including invoices) for transactions related to the suppliers, are borne by the officers appointed by the head of the firm and by the recording of the respective transactions.
Fourth, the accounting department provides these officials with sample templates for drafting the relevant documentation (including properly completed invoice samples).
Fifth, any issue of late delivery or incorrect issuance of invoices by suppliers to the chief accountant must be reported (after notifying the responsible parties) to the company's head.
Sixth, the imposition of sanctions on company officials should be included in the relevant provisions for salaries, bonuses, etc.
Seventh, they ensure the proper incorporation of changes into the company's accounting policies for the coming year.
In organizing the activities of the accounting department and, consequently, all of the company's financial and economic operations, the head of accounting must take into account that, as practice shows, the true administrative and criminal liability for deficiencies in the organization's financial and economic activities, which are uncovered by external regulatory bodies, not a chief financial officer, not lawyers, and not other “executives,” but only the head of a firm and the firm's chief accountant. However, this does not mean that within the company sanctions cannot be imposed on other individuals responsible for submitting documents to the accounting department.
The system includes legal documents, comments, consultations, references, and other materials necessary for the work.
Cause – time
Every employee must know their responsibilities. The accounting manager doesn't need to assign a task every day – he can provide instructions, for example, to an accountant at a client's bank: who and how much to pay, attaching the invoices for payment, if any. Checking details, exchange rates, whether the payment amount is fixed in arbitrary units, reconciling tax payment details—this is the subordinate's job.
Ideally, the service manager's presence on the job shouldn't be mandatory when the problem is clearly stated. In my practice, every employee knew what to do within an hour of the workday's start. Until then, the specialists carried out tasks such as checking cash or processing invoices.
Big mistake
The result is high-quality, uninterrupted work by the department. First and foremost, this means there are no complaints from users, for example employees whose pay has been miscalculated. Many senior accountants achieve this by reviewing all the data after their subordinates – this is also a mistake.
Don't do this. Look for ways to minimize oversight. For example, how can you oversee the work of a payroll accountant? Friendly tip: you need to take the compiled payroll and check both the planned and actual figures. If there are discrepancies between the plan and the actuals, check whether the gaps between employees are properly spaced and even review the formulas in the tables.
Full interoperability
Lockdown is a state in which you can easily replace one employee with another for two hours without a monotonous transfer of tasks, uncovering what's been left unsupervised, searching for a missing “primary organization,” and so on.
The employee should not have a pile of unprocessed cash tapes that have accumulated, burying the keyboard underneath them. If this happens, then the workload doesn't match the employee's abilities, or vice versa. So there's no need to take the situation to extremes—it's necessary to seek a solution to the problem much earlier.
The head of accounting is required to be fully familiar with all areas of record-keeping. This is essential, above all, in order to precisely define the tasks and to be able to verify the work results. Additionally, he must be able to explain everything to any new specialist in his department. There should be no haphazard transfers from one register to another; otherwise, mistakes cannot be avoided.
Don't forget about interaction. During vacations, specialists must be able to cover each other in their primary roles. A non-supervising accountant should work for the retired employee. How do we achieve this? First, someone can perform the absent person's mechanical tasks—a role that's easy to set up and just as easy to remove when the lead specialist returns. Replacing the cashier with a senior accountant, if performing his duties takes more than two hours of work time per day, is like driving a nail with a microscope.
Secondly, the head of accounting is required to have a thorough understanding of all areas of accounting. This is essential, above all, in order to clarify the task and verify the work's results. Additionally, he must be able to explain everything to any new specialist in his department. There should be no haphazard transfers from one ledger to another; otherwise, mistakes cannot be avoided.
Here's a little life story. It so happened that at one point I ended up doing the entire payroll accountant's job, and I replaced the cashier and the second accountant when they took a month off for the summer. It was especially tough with the duties of a tour – they had me working four hours a day. As a result, I worked a month on a schedule from 10 a.m. to 11 p.m.
One for all
Now let's talk about accounting. Unfortunately, not all CEOs understand that a lot of time must be spent on preparing high-quality financial statements. They sincerely believe they make their chief accountant's job easier and that he has plenty of time to carry out his current duties.
This is by no means the case, and not every specialist can accurately complete the annual simplified tax system return on the first attempt for the taxable object “Revenues minus Expenses.” After all, on top of that, the accountant will have to break down the leftovers according to the predecessors' accounts. It takes time, which, as usual, isn't available.
Before taking on a new job, review the file of tax reports for the past three years. It's worth paying attention to who signed the documents. Your task is to determine how often the chief accountant changes within the company.
Thus, in an enterprise with a continuously large volume of current work involving documents and people, the same chief accountant will not be physically able to properly prepare the accounting statements.
For preparing and submitting the final official documentation, as well as for tax compliance, there must be an individual within the company. This is especially important when the firm has multiple legal entities and individual entrepreneurs under different tax regimes. You can call this position, for example, the lead accountant for reporting. This employee can work for a low salary or part-time, but such a person must exist.
Inappropriate questions
Another useful tip. You don't have to chase the company's big name. After all, someone worked there before you. But for some reason, neither the salary nor the company's name suited that person, and they left. Try to understand. Carefully read the work history of their predecessors. Frequent turnover of senior accountants doesn't necessarily mean they were all incapable of handling their duties. The issue might be a level of responsibility so high that a qualified senior accountant simply can't take on, knowing they won't do the job well. Don't hesitate to ask uncomfortable questions about your predecessors and your employer—your reluctance could prove costly to you and your business in the future.
What else can you do? For example, review the file with tax records for the past three years. In this case, it's worth paying attention to who signs the documents.
Take a few days to see how accounting works with the former chief accountant. If the hunt for a job swap has taken over not only them, then get ready to quickly master several theoretically familiar areas at the same time, such as inventory management and cashier duties. Indeed, in such a situation it may not be about “tricks,” but about the coordinated work of the team.
Work in all areas of accounting
In the universal encyclopedia “Practical Accounting,” comprehensive and reliable information has been gathered on accounting and tax regulations. Detailed information on a company's operations, from its formation through profit distribution.
The head of accounting at a company simply needs to have knowledge in various fields, especially in personnel management. What recommendations can be made to him or to the company's director if this organization does not have a chief accounting officer position? Perhaps establishing a diverse and coordinated accounting function? How should accounting be organized?
Don't be afraid to delegate a lot of authority, but don't forget to check the work that's been done. The main part of the chief accountant's work time is “turnover.” Very often, employees turn to the accounting manager or the company's leader to approve any kind of work schedule. Try to show an interest in the accountants' work. After that, things will move much faster.
It is very important to organize operational work in all locations. Daily, they prepare the cash register and perform bank reconciliations.
Each employee is responsible for their own work area and at the end submits a report on all the work done. For example, it might be printing invoices or calling customers. You must fully check each employee's work. With such an organizational structure in the company, the balance sheet must be prepared every month, and this makes you feel much more at ease when it's time to submit quarterly reports.
The most important component of the chief accountant's work is the accurate completion of primary documentation. If one of the employees creates this document in a specialized accounting program, then he is required to provide all the details. You should not separate important details from unimportant ones—those that could be entered later or left out of the documents altogether. All available information must be entered immediately.
The democratic management style of employees is the primary foundation of accounting for maintaining stability and operating smoothly. The team should have a friendly, reliable, and respectful atmosphere, which must be combined with accuracy and professionalism. This is why the chief accountant's role is crucial: they must know how to organize the accounting department within the enterprise, since the entire company's operations depend directly on them.
How to organize accounting
Accounting in a company should be handled by employees who are well-prepared in this area; economists can do this. If your company is large enough and has high production volumes or turnover, then you need to hire a large staff of accountants. Since one person cannot handle a large amount of work.
The organization of accounting within an enterprise should begin with the organization's accounting policies. This document should include the organization of documentation within the enterprise (accounting formats, forms, procedures for documenting various business transactions), as well as taxes.
In the accounting policies document, you must adopt the Chart of Accounts and specify the content of the company's accounting and tax reporting. Appoint responsible accountants who will be involved in drafting the reporting forms. Here you need to specify the form of accounting, which can be centralized or decentralized. If you recruit a full staff of accountants, including a chief accountant, then you have a decentralized form of accounting. If you occasionally use the services of external accounting firms, this means your company operates with the help of centralized accounting.
If you have a large company, you should appoint certain employees whose responsibility will be managing the workflow with clients, processing payments and payroll, and handling banking operations.
Continuously monitor the accountants' work; all documentation must be prepared on time and without errors. Appoint a person to oversee the workflow in the accounting department as well as the organization of the documentation.
The work of each department of an enterprise depends on how the accounting is organized, Since accounting is the primary department in a company responsible for accurately preparing accounting and tax reports, calculating and paying employee wages, and handling the company's bookkeeping.
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