Financial documents are List of documents by importance, order of registration

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Any business now cannot be imagined without document flow. Accounting and financial accounting, as well as all reporting to the state is provided in the form of financial documents. Therefore, it is very important to competently and correctly fill out the entire list of financial documents.

Definition

Financial documents are all forms of reporting to users and the state, which are formed on the basis of all indicators of the enterprise, with reliability, timeliness and openness. These documents allow you to determine the state of affairs in the company and make it possible to adjust the direction of affairs in the right direction. It is on the basis of these documents that the main decisions are made on the reorganization of production, the reduction of certain cost items and changes in planning for the next period. Financial lists of applicants allow government services to conduct audits in a timely manner and in full, without spending a lot of time and additionalfinance.

Balance sheet

This is the main and most important financial document of the organization, which allows you to find out the financial situation at the enterprise for the reporting period. This report allows you to find out the profitability of this enterprise, its efficiency, all items of expenses and income. It consists of:

• Assets. It takes into account the resources in any form that are owned by the company. This includes funds that are in various accounts, property, part of the production, etc.
• Liabilities. These are debt obligations of the company.
• Equity. This is the capital of the owners, accumulated in the process of activity.

It is worth considering that in this document, the asset must always converge with the sum of liabilities and equity. The balance sheet is always made on a certain date and for a certain period. It is a very common practice that a balance sheet in a joint-stock company is used to report to shareholders.

Income Statement

The second most important is considered to be this document of financial activity. It also shows the effectiveness of this enterprise and is also very important for owners and shareholders. This report allows you to determine the direction of the development trend of the enterprise, as well as indicators such as net profit, gross profit, third-party income and the structure of income in general. The income statement structure is divided into 3 parts:

1. Income. This item includes any kind of increase in the capital of the company, excluding the investments of the owners.
2. Expenses. Includes items that reduce the company's efficiency - various losses, as well as natural costs of the company.
3. Gross profit. This is an indicator that is calculated as the difference in revenue from the cost of production. After this calculation, indicators of expenses that are not included in the cost price are also subtracted.

You can also select a multi-stage report and a single-stage one. The first includes expanded data, even before calculations. The second one is the final data without calculation.

Cash flow statement

This report shows all the ways in which cash flows into and out of the company. This is a financial document that allows you to regulate the plan of activities of all participants in the enterprise. Typically, such a report consists of financial, operating and investment activities.

The calculation of this document is usually carried out using two methods:

• Direct calculation method. This method is also called the cash method. It is based on direct calculations of net gross receipts and expenditures.
• Method of indirect calculation. It is based on all transactions that are carried out in the specified period, and on the basis of these transactions, a cash flow statement is collected.

Other reporting

1. Invoice. This document is issued to the buyer by the seller,in order to record the fact of the transaction, as well as to determine the VAT. You can distinguish between standard and advance. The peculiarity of the standard invoice is that it is sent either together with the goods or after the shipment or the provision of services. The advance is sent with the first prepayment to account for future deliveries.
2. Pro forma invoice. This is a financial document that is needed to determine the value of goods when transported across the border. Of the features, we can highlight the dispatch before the transaction, as well as the possible difference in price, quantity and total cost compared to the invoice. Not a basis for payment.
3. Invoice. This is the financial document that is most often used in international trade practices. This document is mandatory in international trade. The invoice indicates all the quantitative and qualitative characteristics of the goods, is transferred simultaneously with the goods and indicates the full final cost of the goods and the owner.
4. Certificate of origin. This document is a secure form that certifies the customs control of the Russian Federation or another country. This certificate is needed when importing or exporting goods, to determine the competitiveness of this product relative to domestic producers, as well as to provide possible benefits for import.

Signature of financial documents

All of the above documents are not valid without the signature of the responsible person. Commonly used in financial lawthe concept of "the right of the first signature" and "the right of the second signature". The first signature is usually held by the head of the enterprise, the second chief accountant of this firm or vice president, if such a position exists in the company. The right of the first signature cannot be transferred to the owner of the right of the second signature, one person cannot be the owner of the first and second signature at the same time. Also, a notarized power of attorney can be issued for the right to sign, but this is done extremely rarely.

Execution of a power of attorney for the right to sign

If there is no accountant or manager, then in such cases the right to sign documents is transferred to other employees according to two documents:

• The order of the leader. This is a necessary formality, if the manager wishes to leave a trustee in his place. Such an order usually indicates the first or second right to sign is transferred to this person, the surname, name, patronymic of the employee, as well as a list of documents that he can sign under this order. This order usually also contains a sample signature of an employee.
• Power of attorney. In some cases, when negotiating with partners or suppliers, the right to sign is transferred according to a power of attorney. The power of attorney also indicates which signatory right is transferred to this employee and what contracts he can conclude on behalf of the company.

The transfer of rights can be temporary or permanent. Temporary transfer of the signature is carried out at the time of vacation, business trip or hospital responsible person. Permanent transfer is carried out with the full transfer of authority to another person, for example, when a new position is introduced.

Documentary revision

Documentary revision is one of the most common form of document control in financial law. The main purpose of the audit is to control the completeness of the implementation of the legislation of the Russian Federation in its financial, operating, investment and other activities. It is monitored in terms of availability, movement of all resources, including financial, material, human, scientific and technical. A documentary audit is carried out by both state bodies and the company's management on a permanent and mandatory basis. Main Tasks:

• Discipline and detection of irregularities in the preparation of all forms of financial documents.
• Carrying out prevention in terms of violations of financial discipline.
• Checking the completeness of all financial lists that submitted documents.
• Checking compliance with documents, internal regulations, and financial laws of the country.
• Monitoring the conservation of company resources, as well as control over their consumption.

Conclusion

The question of the importance of financial documents is faced by any enterprise, regardless of the size and direction of activity. If an entrepreneur wants his business to flourish and there are no problems with the law or suppliers, then you need to carefully consider the issue of your financial statements. Otherwise, the owner maynot only fail to achieve certain goals in your business, but also lose your enterprise.