The chart of accounts is ... Instructions for applying the Chart of Accounts

The chart of accounts is an integral part of the accountant's work, both with experience and a beginner. In fact, all the accounts used to reflect the operations of the organization are systematized in a common document. He was called the Chart of Accounts. This is a kind of table in which all the necessary digital symbols used in the posting are collected. Also it is worth remembering that an enterprise can create its own working Chart of Accounts. However, follow the instructions for using this document. It allows the accountant to find answers to many questions related to the accounts.

What is the Chart of Accounts?

It's no secret that in the accounting of any organization, so-called wiring is used. They help to reflect both the arrival, as well as the loss of various elements. Invoices are actively accepted. In fact, they are the basis of operations.

In fact, the Chart of Accounts is a table that contains a list of all accounts used by the accounts department. This is a scheme that helps to correctly record the conduct of economic and financial operations of any organization. It should be noted that any enterprise conducts this kind of accounting. Even "Accounting for Dummies" offers first of all to familiarize with the Chart of accounts, and also with its sections.

Legislative regulation

The chart of accounts is not just a paper used by individual accountants. It is not changed for all kinds of organizations. So, the issuance of the current chart of accounts was fixed by the Federal Law in 2000, and later there was a new version from 2010, that is, after ten years. That is, these regulatory documents specify which accounts and for what are used by the enterprise.

If the organization needs to use additional accounts, the "Instruction on the application of the chart of accounts" can help here. In it you can find the structure of a specific account. Probably, you can display this or that action on it. If this option was not found, then it is allowed to use accounts that were not affected in the main chart of accounts. However, these innovations should be fixed in the accounting policy of the organization.

Organization Chart of Accounts

As mentioned above, an enterprise can structure its own chart of accounts. Thus it is necessary to adhere to a number of rules. So, based on the Instruction to the Chart of Accounts, the company can choose those accounts that are necessary to work with specific operations.

By the way, in agreement with the Ministry of Finance, the organization can use additional systems of accounting accounts. This is possible in cases when the specifics of the organization require this. The ready chart of accounts of a particular organization is fixed in the accounting policy. This becomes an instrument for conducting quality activities by the organization, and also simplifies economic activity.

Schematic diagram

In existing allowances, such as "Accounting for Dummies", not only an approximate content of the work plan for an enterprise of different profiles is given, but also a theoretical basis.

For example, a work plan is a branched structure. In the first place there are synthetic accounts. They take into account capital, its movement, other liabilities and property, as well as economic processes.

Analytical accounts can reflect more specific actions. The presence of such accounts allows you to conduct an audit of transactions. However, the availability of this type of account is optional.

There are also sub-accounts that help to detail the operations. So, at the enterprises connected with manufacture, it is possible to allocate separate subaccounts on kinds of production or products. The chart of accounts with explanations helps the accountant to make a work plan "for himself."

Composition of the Chart of Accounts

At present, the Chart of Accounts consists of eight sections. In total, sixty accounts are described in them. It is interesting that in the plan itself there are figures from one to ninety nine. This means that a number of figures remain free of a specific account. This is just in case if the specifics of the organization's activities allow the use of additional synthetic accounts, that is, the company can use the available numbers. The accounting chart of accounts with subaccounts also has off-balance accounts, which reflect, for example, leased property or material assets that have been accepted by the organization for storage.

In total, the Chart of Accounts has eight large sections, in which all accounts are distributed, except for off-balance accounts. Also there are instructions as to which sub-accounts to each of the synthetic accounts can be opened and under what number.

Briefly on off-balance sheet accounts

Off-balance accounts are those accounts that do not belong to any of the sections of the Chart of Accounts. They indicate operations related to funds that do not belong to the organization, but, for example, are in her temporary storage.

Off-balance sheet accounts are also called ancillary accounts. It is noteworthy that transactions on them are not ultimately reflected in the balance sheet, they also do not influence the financial result of the organization's activity in any way. In the chart of accounts they are presented in the form of three-digit numbers, starting from zero. That is, the first account of such a plan is number 001, and so on. Completes this kind of section account with the number 007.

What sections are included in the Chart of Accounts?

As already mentioned, the Chart of Accounts consists of eight sections with their accounts. They are structured, which allows you to quickly find the necessary information.

• Non-current assets of the enterprise. These include fixed assets on the balance sheet of the organization, their amortization, as well as intangible assets;
• Productive reserves. In this section, you can find accounting synthetic and analytical accounts for accounting for the movement of materials, company reserves or, for example, the acquisition of any tangible assets;
• Production costs. As it becomes clear from the title, it includes accounts directly related to all kinds of production.
• Finished products. Accordingly, in the accounts located in this section, you can take into account the finished products, calculate its value.
• Cash. This includes such accounts as "cash", "checking account", "money transfers".
• Calculations. This extensive group includes a variety of options for settlements, from repayment of debts to creditors and ending with the payment or payroll to employees of the organization.
• Capital. This section helps to structure accounts related to the charter, reserve or additional capital of the organization.
• Financial accounts. This, the final section includes accounts that help to identify the result of the sale, as well as the final financial result for the enterprise at the end of the year.

Synthetic and analytical accounts: what's the difference?

As you know, we can distinguish three groups of accounts of accounting, namely, synthetic, sub-accounts and analytical. All three groups are interrelated, but there is a possibility that they may be misunderstood, especially by novice accountants.

Thus, synthetic accounts are located in the chart of accounts. That is, account 10 with the name "materials" is in the section "production costs". This includes all the funds that are present in the production activities, except for the main ones.

In turn, this account has sub-accounts. This is a more specific option. That is, to the synthetic account "materials" you can open a sub-account number one and the name "raw materials". That is, there are no longer any animals or spare parts, only what is described in the name of a particular sub-account.

Analytic account allows even more specific accounting. That is, oil, for example, it will be a separate analytical account, which opens to the sub-account. Thus, the analytical account helps to structure the accounting of economic activities, and also allows you to check which articles of costs can be saved.

Instructions for the use of the ready-made Chart of Accounts

The instruction is called the document, which helps the accountant to correctly use the existing Chart of Accounts. It contains the following information:

• Account number.
• Full name.
• Purpose of the account, namely its content and general structure.
• Ways of application, that is the order of its filling.

That is, the instruction helps accounting to use each of the accounts correctly. Having familiarized with this document, the organization can begin to compile a work plan for a particular enterprise.

Practical advice on drawing up a work plan for enterprise accounts

After acquaintance with the instruction on the application of this document, it is possible to start the concrete drawing up of the Chart of accounts of the enterprise.

It should be borne in mind that in the future there may be changes, involving the introduction of new, additional accounts in the structure of the enterprise. Therefore, you need to make sure that there are backup sub-accounts.

It is also better to minimize the number of accounts used to make a record. This helps to facilitate ways of reflecting economic activity. That is, if it is possible to refuse the use of an account, it is better to do this.

Also it is worth remembering that the global changes to the already existing Chart of Accounts of the organization to make is not so simple. Therefore, it is better to think about how the future of the enterprise is seen in a couple of years. Probably, there is a prospect for a new type of product.

Do not forget that now the accounting is automated, but this does not prevent many specialists from performing manual checks. For example, a popular invoice account, which allows you to identify errors on a specific account, is also perfectly created using the 1C program.