What is business accounting? Specific roles, tasks and requirements

Business accounting plays an extremely important role for companies and organizations. Although this position is not a unit that directly generates revenue, this is the department that helps ensure the business's finances are stable, transparent and clear. So what is corporate accounting and what is its responsibility? Let's find out with 1C Vietnam in the article below.

1. What is business accounting?

Business accounting is also known as financial accounting. This is an important department in charge of collecting, processing and reporting financial information of the enterprise. The goal of corporate accounting is to provide financial information to stakeholders such as shareholders, tax authorities, managers, banks and business partners.

2. Components of corporate accounting

Based on legal regulations, corporate accounting includes the following components:

• Accounting: Including cost accounting and cost accounting, accounting for goods, products and materials.
• Transactions: Manage and monitor transactions in cash, deposits, foreign currencies, tangible fixed assets and intangible fixed assets.
• Accounting: Including salary accounting with employees, accounting with partners, budget accounting and accounting with advance recipients.

3. The role of corporate accounting

Business accounting plays a very important role in monitoring and managing business activities. As follows:

• Business accounting helps manage and develop financial activities in a legal and proactive manner. At the same time, this activity also helps businesses analyze, measure, evaluate and provide directions to increase business profits.
• Through synthesizing and processing financial data, corporate accounting visually represents the current financial situation. From there, businesses can evaluate the situation in an overview and come up with timely solutions.
• If business accounting activities are carried out accurately and seriously, businesses can minimize the risk of fraud as well as demonstrate transparency in business. From there, businesses can develop sustainably and easily achieve their set goals.
• Business accounting also plays an important role in maintaining credibility with business partners. Thanks to clear and transparent financial reports, customers will have more confidence in the business's ability to provide services.

4. Main tasks of corporate accounting

Depending on the size, the field of accounting activities in businesses may be different. However, most business accountants must perform the following common tasks:

• One of the most basic tasks of business accounting is to synthesize and evaluate the validity of papers and documents arising during business operations. These documents will be used as the basis for calculating, comparing, accounting and recording accounting entries as well as the organization's debts.
• The second task of a business accountant is to account, check, print, submit, sign and arrange documents scientifically and carefully according to accounting principles.
• Prepare financial reports as required by leadership to serve the decision-making and planning process. Most of these tasks will be performed regularly by the accountant to ensure that the business owner can monitor and track the financial situation in the most regular way.
• Declare and report taxes periodically to submit to the tax authority on time.

5. Business accounting workflow

Accounting is a relatively complex operation in businesses. Therefore, most businesses set out specific working procedures to ensure smooth operations. Below are 6 steps to perform the tasks of corporate accounting .

5.1 Step 1: Summary of arising transactions

In this step, the accountant will collect all documents and papers arising during the operation of the business. At the same time, business accountants will check the legality and validity of these documents before accounting.

5.2 Step 2: Prepare original accounting documents

Creating original documents is the step of creating a complete set of accounting records based on the compiled documents. Original documents include all types of documents such as material import and export slips, invoices, revenue and expenditure orders,... used as a basis to authenticate, prove and evidence financial transactions. in business.

5.3 Step 3: Record in accounting books

Based on the documents and papers that have been checked and compared, the enterprise accountant will conduct accounting and entries according to the provisions of law. Nowadays, this accounting task has become much easier thanks to the support of professional accounting tools and software.

5.4 Step 4: Make adjusting and transferring entries

At the end of the period, business accountants often have to make adjustments to accurately and fully measure costs and revenues and prepare accounts for financial statements. This is an extremely important step, directly affecting the data for future reports.

5.5 Step 5: Create a balance sheet

Next, the accountant needs to create a balance sheet. This document shows the general situation of existing assets and capital sources from the beginning to the end of the enterprise's reporting period. Corporate accountants will prepare a balance sheet according to Circular No. 133/2016/TT-BTC (August 26, 2016), form F01-DNN or Circular No. 200/2014/TT-BTC (December 21, 2016). 2014) form S06-DN, depending on the accounting regime previously registered by the enterprise.

5.6 Step 6: Create financial reports and tax finalization

The final step in the work of a business accountant is to prepare financial reports, prepare tax declarations and finalization. Financial reports serve the management activities of tax authorities and business decision making.

6. Requirements of a business accountant

Business accounting needs to meet the specific requirements below:

• Knowledge of accounting operations: Accountants need to understand and apply basic accounting principles and rules including double-entry bookkeeping principles, depreciation, taxes and international or national accounting standards ( e.g. GAAP, IFRS).
• Data analysis skills: Ability to collect, process and analyze financial data to understand the financial situation of the business. At the same time, accountants need to have analytical thinking ability to understand and solve complex financial and accounting problems.
• Tax knowledge: Understanding of local and national tax regulations and laws to calculate and report taxes according to regulations.
• Time management skills: Able to manage work to complete accounting tasks on time.
• Communication skills: Able to communicate effectively with stakeholders including management, colleagues and other departments within the organization.
• Business domain knowledge: Understanding of the industry, business model, and strategic goals of the organization or business.
• Professional ethics: Comply with professional ethical principles in the accounting field including honesty and information security.

7. Questions related to business accounting

7.1 What are business accounting methods?

The accounting method used by corporate accountants is often not fixed. There are many different methods such as accounting documents, accounting accounts, price calculation and accounting balance synthesis. Each method has certain advantages and disadvantages and is used for different purposes.

7.2 What is the object of corporate accounting?

Based on the provisions in Clause 3, Article 8 of the 2015 Accounting Law, the subjects of corporate accounting include:

• Materials, money and fixed assets.
• Funds and funding sources.
• Payments within and outside the accounting unit.
• Revenues, expenses and handling of differences in operating revenues and expenses.
• Revenue, expenditure and state budget balance.
• State credit, financial investment.
• Debt and public debt handling.
• Public property.
• Receivables, assets, and other liabilities related to accounting.

7.3 What is the difference between corporate accounting and public accounting?

Business accountants need to be equipped with knowledge about finance, taxes, management, accounting and especially law. To be able to do this position well, corporate accountants need to have high qualifications and experience as well as be well-trained from university programs related to accounting, finance, and economics.

Corporate accounting is the backbone of the entire organization and plays an important role in ensuring that financial activities run smoothly and in accordance with the law. The tasks of corporate accounting are relatively complex and require high expertise. However, with the development of technology, many modern software such as 1C:Company Management software that can support professional accounting operations have been born. Possessing a powerful financial management module, 1C:Company Management is an effective tool to help businesses solve management problems effectively, simply and quickly. Contact 1C Vietnam now to receive support and advice on solutions suitable to your business characteristics