So what goes to the accounting and bookkeeping department? What are these people doing on a daily basis?
Calculate salary for everyone who is so important and working. You must earn all salaries and taxes and record all pay periods that all employees pay. Payroll departments need to ensure that appropriate federal, state and local taxes are deducted. Pay stubs attached to your salary will record these taxes. They usually include income taxes, social security taxes pous employment taxes that must be paid to federal and state governments. Other deductions include personal things such as retirement, vacation, sick wages and medical benefits. That is an important function. One company has their own payroll section; others outsource it to an expert.
The accounting department receives and records payments or cash received from business or service customers or customers. The accounting department needs to confirm that the money is accurately supplied and deposited in the appropriate account. They also manage where money goes; how much it is kept for a field such as salary, or how much it should also be invested.
The other side of the receivables business is the debt area, or cash expenditure. The company writes many checks during the course of the year to pay for purchases, supplies, salaries, taxes, loans and services. Does the accounting department prepare all these checks and record for payee, how much, and for what? The accounting department also tracks purchase orders placed on stock, such as products sold to customers or customers. They also track assets such as business properties and equipment. This includes office buildings, furniture, computers, accessories such as pencils and pens.
Accounting principle
If everyone involved in the accounting process follows their own system, or the system at all, there is no way to say whether the company was truly beneficial. Most companies follow generally accepted accounting principles, or what is called GAAP. As long as it is our country, we will assume that anyone can read and settle the criteria for assumption.
If GAAP is not the principle used to prepare financial statements, the business needs to clarify other forms of accounting they are using, and that is
GAAP is a gold standard for preparing financial statements. Do not disclose that you are using a principle other than GAAP will be liable for misleading or misleading data. These principles have been tweaked for decades and effectively manage accounting methods and corporate financial reporting systems. Different principles are established for different types of business entities, such non-profit for-profit enterprises, governments and other companies.
GAAP, however, is not cut and dry. They are guidelines and are often open to interpretation. Estimates must be made from time to time and require sincere efforts towards accuracy. Surely you have heard the phrase "creative accounting" and this is because the company has a little (or more) envelopes than actually may have their business than this, with a massage both numbers It is called. This becomes uncontrollable, and there is a possibility that it will turn into an accounting fraud soon. The result of these practices may destroy and destroy hundreds, thousands of lives, as in Enron, ceremonial aid etc.
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