Accounting Methods

In practice, all accounting methods are used in close connection with each other. After all, any transaction in accounting is based on documentation, the operations themselves are recorded with 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 method are 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 daily work, the accountant groups the accounting objects using 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 as document 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 the development 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.

When standardizing, the same sizes of forms for the same type of documents are set. 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 the availability and conformity of property 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.
• A double entry reflects all business transactions. Corresponding accounts are made 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 valued in monetary terms for the 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 products, services and work performed is determined.

• Balance sheet

It is made on a certain date and for a 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 (in the division of the organization), a unifying (when merging several enterprises into one) and an introductory balance, if there are funds for the start of operations.

• Financial statements

It is a broader concept and is compiled monthly, quarterly, once a year, while showing the true financial position of the enterprise and the results of its activities for a 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.