Budget accounting: the concept, organization and maintenance

Budget accounting is used in all institutions and organizations, which are without exception, which are related to the state form of ownership. It is somewhat different from the usual work of accounting, but the basic principles are observed in it. All actions, templates of documents and other elements that can only be used for the activities of the organization are approved by higher authorities and are not binding, but mandatory. There are also specific examples, samples and similar supporting documents that facilitate the work of employees.

What is budget accounting?

This variant of accounting is a clearly regulated system in which all the elements of the management of an institution are collected and processed by specialists. It is characterized by the existence of a large number of instructions and similar documents that indicate how certain actions are to be performed in different conditions. This greatly facilitates the process of work, because the information given by the instruction on budget accounting allows you to immediately start working and clearly fulfill all requirements without being distracted by all sorts of individual elements inherent in its classical version.

Tasks of accounting

There is a certain list of main tasks that are the basis of accounting. The total number of such elements is very large, but if we shorten and briefly consider this problem, we can distinguish some of them.

So, this type of accounting is necessary to seek out unobvious, hidden reserves that would allow the state to function more effectively. In addition, budget accounting allows you to make a total control of the actual situation and the availability of any amounts of cash, as well as various assets. If properly managed, it also provides an opportunity to identify and timely prevent any inappropriate spending and generally give an understanding of where, in what amount and how the money was used. Accounting for this type, among other things, shows the results of the activities of a particular organization. That is, how profitable or unprofitable it is.

Not the least role is played by statistical and reporting data, which are also collected with the help of this accounting. They are necessary for the accumulation of certain information, its analysis, provision of interested persons and, as a result, for the formation of new instructions and documents, and also for the subsequent changes in the budgetary accounting to correspond to the current situation and be most effective at a particular time.

Regulations

All the basic principles are specified in the special Instruction No. 148n, which includes not only clear definitions of how to act under certain conditions, but also what penalties may be imposed if the requirements are not used. It should be noted that in this document there are only the basics and the base, which, of course, cover all spheres of activity and elements of the organization's work, but may be incomplete.

In addition, there is still a huge number of all kinds of changes, additions and other similar factors that also affect the work of the enterprise and in some cases can very significantly change previously approved norms. In theory, the head of the organization and other persons endowed with a certain authority in an individual institution are required to bring all of these documents to the staff accordingly and in the required time.

In practice, the employee is encouraged to monitor the situation on his own and, as new information is received, clarify it with the management, in order to avoid possible problems in the future. But this is not all, in addition to all this documentation, should be dealt with in standard accounting with all its normative acts. Accounts of the budgetary account though and differ from classical, but work with them all the same is made approximately in the same way that does attempts to understand all this rather complex.

Requirements

Instruction on budget accounting, as well as some other similar normative documents, exposes certain requirements for its management. They are rigidly fixed in the legislation, and violating these requirements can be followed by strict sanctions.

1. So, any actions must be performed on time.
2. The reporting information should correspond to the actual state, and the accounting itself must be made, starting from the very first day of the organization's existence.
3. The simplest and most understandable requirement is the condition of keeping it exclusively in the state currency.

Of course, in certain situations, other features of the work may be added, but there already much depends directly on how the organization functions, what it does, what its features are, and so on. For each such item, an additional check should be carried out for the existence of conditions and requirements that are at least partially applicable to the work of the institution.

Duties

The basic requirements are set directly to the head and chief accountant of the institution. It is they who are obliged to constantly monitor the work being done, fixing them in documents and recording budgetary funds. Only they are responsible for everything according to the law, and only then, if necessary, they can punish independently by accessible and adequate methods of their employees.

This is a sensible approach, since only they know (or must know) all the features that a normal person engaged in works simply do not need for a full-fledged activity. At the same time, the same chief accountant has the opportunity to require management to take the necessary measures, the purpose of which will be appropriate and proper accounting in budget institutions. This item refers to the requirements for the organization of workplaces, their technical equipment, hiring of qualified employees and so on.

In turn, management may require the allocation of appropriate amounts, to meet the conditions of employees, if they are considered truly worthy of attention and impede the full operation of the organization. For example, a water cooler is unlikely to refer to mandatory equipment, but without even the worst computer to account or perform other similar functions it becomes almost impossible. As a consequence, you will need a suitable infrastructure, communication through a network connection and even an individual who will monitor the safety of all this.

Structuring

In order for the organization to work as efficiently as possible, all actions were carried out accurately and on time, and the accounts did correspond to the requirements presented to it, a sufficiently large staff, each of which will have clearly defined functions, is needed. This helps to break the workflow into parts and gives you the opportunity to work comfortably and efficiently in your field even with minimal knowledge, because a really experienced person will demand a high payment, which the organization may not agree with.

Accounting in budgetary institutions implies the presence of cashiers, leading accountants (or employees who will combine both functions). In addition, there may be substitutes (usually one, but sometimes more) and, of course, the chief accountant. Under such a scheme, the chief supervises the main areas of activity and characteristics. In more detail, they are monitored and forwarded by deputies, and all the work is performed directly by ordinary employees.

Documentation

There are more than 40 basic forms of primary documentation that are required to be used in a public institution so that management accounting is as close as possible to the requirements of legislation. Virtually all of them are divided into two groups, approximately the same in the number of these documents, one of which belongs to firms of any form of ownership, and the second concerns exclusively budgetary organizations.

In turn, budget accounting has its own division of these primary documents into three main groups. All of them are necessary for high-quality work of the enterprise and allow to cover absolutely all spheres of activity.

So, allocate approximately equal in number of templates, responsible for calculating and calculating wages, conducting any operations with the cash register, as well as regulating work with tangible assets. The smallest group of documents are those that have not entered into any of the categories and cover some very specific areas of activity, not all of which exist in the enterprise.

Automation

As in ordinary accounting, all kinds of automated systems are actively used, which greatly facilitate the work of employees, as well as giving the most accurate and reliable data based on the entered figures.

The convenience of such programs has long been checked and approved by all employees who are required to work with accounting, taxation or management accounting. They instantly give out all the required information, do not force the user to learn to work with them for a long time, signal about the deadlines for submitting reports, and so on. Most modern accountants, in principle, vaguely imagine the work of the organization without such aids.

Accounting

All areas of the company's activities are closely related to the reporting. This is one of the foundations that is mandatory for everyone and allows you to accumulate sufficient data for analysis, control and verification. There are several basic versions of reports in budget organizations that must be compiled in a timely manner and submitted to higher authorities:

• Budget execution report;
• On the results of activities;
• On the flow of funds.

As you can see, they all allow the monitoring bodies to conduct a detailed analysis of the organization's status, its features, current problems, the direction of development, and so on. Usually all of these documents are accompanied by an explanatory note, which specifies some information that is not completely clear at once.

In addition, balance sheets and any other documents that will be required by the relevant authorities are submitted, if it becomes necessary to clarify certain points, figures or other features of the enterprise.

Differences from standard accounting

Budget accounting is largely similar to the usual one, which is used at private enterprises, in firms and organizations. The main differences lie in seemingly small details like the chart of accounts and in the features of the classification of certain actions. But in fact, if you delve into all this in detail and in detail, it turns out that these elements are key and affect the entire structure of the organization's work very seriously.

More specifically about this issue can be said only by comparing two different enterprises of a similar type, one of which will be private, and the other - state. Management accounting, like any other, in a private company will, on the one hand, be simpler and more understandable, and on the other hand, if there is a large number of internal regulations, it is much more complicated and confusing. Yes, and in some cases, overlapping with the current legislation.

Results

In general, if we sum up all of the above, the budget type of accounting is at least difficult in the initial stages of understanding, unlike its usual form, but much simpler in the future.

The main task for a full analysis of the problem should be to analyze the entire legislative base, which at least somehow can relate to this problem. After that, it will become much easier and more understandable to work, even taking into account permanent changes and changes. In turn, the standard type of work of almost any more or less large firm implies the fact that employees will take into account not only the requirements of legislation, but also the wishes of the employer, correlating them with laws and regulations.