Budget accounting: concept, organization and maintenance

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

Budgetary accounting is used in all institutions and organizations without exception, which belong 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, document templates and other elements that may be needed for the activities of the organization are approved by higher authorities and are not advisory, but mandatory. There are also specific examples, samples and similar supporting documents that make the work of employees easier.

What is budget accounting

The named accounting option is a clearly regulated system in which all elements of the institution's management are brought together and processed by specialists. It is characterized by the presence of a large number of instructions and similar documents that indicate how certain actions must be performed in various conditions. This greatly facilitates the process of work, because the information provided by the budget accounting instruction allows you to immediately get to work and clearly fulfill all the requirements, without being distracted by all sorts of individual elements inherent in its classicoption.

Accounting tasks

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 reduce and briefly consider this problem, we can highlight some of them.

So, this type of accounting is necessary to find non-obvious, hidden reserves that would allow the state to function more efficiently. In addition, budget accounting allows for total control over the actual state and availability of any amount of cash, as well as various assets. With proper management, it also makes it possible to identify and prevent in a timely manner any inappropriate spending and generally give an understanding of exactly where, in what amount and how the money was used. Accounting of this type, among other things, shows the results of a particular organization. That is, how profitable or unprofitable it is.

Not the last role is played by statistical and reporting data, which are also collected using this accounting. They are needed for the accumulation of certain information, its analysis, provision to interested parties and, as a result, for the formation of new instructions, documents, as well as for subsequent changes in budget accounting to best correspond to the current situation and be most effective in a specific period of time.

Regulatory documents

All the basics are specified in the special Instruction No. 148n, which includes not only cleardetermining how exactly to act in certain conditions, but also what pen alties may follow if you refuse to use these requirements. It should be noted that this document contains only the basics and base, which, of course, cover all areas of activity and elements of the work of the organization, but may not be complete.

Besides it, there is still a huge number of all kinds of changes, additions and similar factors that also affect the operation of the enterprise and in some cases can very significantly change the previously approved standards. In theory, the head of the organization and other persons vested with certain authority in a single institution are required to communicate all these documents to employees in an appropriate manner and within the required time frame.

In practice, the employee is advised to independently monitor the situation and, as new information is received, clarify it with the management in order to avoid possible problems in the future. But that's not all, in addition to all this documentation, you should also understand standard accounting with all its regulations. Although the budget accounting accounts differ from the classic ones, they are still processed in approximately the same way, which makes trying to figure it all out quite difficult.

Requirements

Instructions on budget accounting, as well as some other similar regulatory documents, set certain requirements for its maintenance. They are rigidly fixed in the legislation, and for violation of these requirementsharsh sanctions may follow.

1. So, any action must be done right on time.
2. Reporting information must correspond to the actual state, and the accounting itself must be carried out starting from the very first day of the organization's existence.
3. The most simple and understandable requirement is the condition of its maintenance exclusively in the state currency.

Of course, in certain situations, other features of the work can be added, but here a lot depends 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 presence of conditions and requirements that can at least partially relate to the work of the institution.

Responsibilities

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 performed, their fixation in documents and accounting for budgetary funds. Only they are responsible for everything in accordance with the law, and only then, if necessary, they can punish their employees using accessible and adequate methods.

This is a reasonable approach, since only they know (or are required to know) all the features that an ordinary person engaged in work simply does 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 beappropriate and correct accounting in budgetary institutions. This item includes requirements for organizing workplaces, their technical equipment, hiring qualified employees, and so on.

In turn, management may require the allocation of appropriate amounts to fulfill the conditions of employees, if they are considered really worthy of attention and hinder the full-fledged work of the organization. For example, a water cooler is unlikely to be mandatory equipment, but without at least the worst computer, it becomes almost impossible to keep records or perform other similar functions. As a result, you will need the right infrastructure, communication over a network connection, and even a separate person to keep it all safe.

Structuring

In order for the organization to be as efficient as possible, all actions were performed accurately and on time, and the reporting really met the requirements set for it, a sufficiently large staff is needed, each of which will perform clearly defined functions. This helps to break down the workflow into parts and makes it possible to work comfortably and efficiently in your field even with minimal knowledge, because a really experienced person will require high pay, which the organization may not agree to.

Accounting in budgetary institutions implies the presence of cashiers, leading accountants (or employees who will combine bothfunctions). In addition, deputies may be present (usually one, but sometimes more) and, of course, the chief accountant. With this scheme, the boss controls the main areas of activity and features. In more detail, they are controlled and directed by deputies, and ordinary employees do all the work directly.

Documentation

There are more than 40 basic forms of primary documentation that must be used in a public institution in order for management accounting to be as close as possible to the requirements of the law. In fact, all of them are divided into two groups, approximately the same in terms of the number of specified documents, one of which refers 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 the high-quality work of the enterprise and allow covering absolutely all areas of activity.

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

Automation

As in conventional accounting, all kinds ofautomated systems that greatly facilitate the work of employees, as well as provide the most accurate and reliable data based on the entered numbers.

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

Accounting and reporting

All areas of the enterprise are closely related to reporting. This is one of the basics, which is mandatory for everyone and allows you to accumulate sufficient data for analysis, control and verification. There are several basic options for reports in budgetary organizations, which must be compiled in a timely manner and submitted to higher authorities:

• budget execution report;
• about performance;
• about the movement of funds.

As you can see, all of them allow the regulatory authorities to conduct a detailed analysis of the state of the organization, its characteristics, current problems, development directions, and so on. Usually, all these documents are accompanied by an explanatory note, which clarifies this or that information that is not immediately clear.

Additionally submitted balance sheetsand any other documents that will be required by the relevant authorities, if there is a need to clarify certain points, figures or other features of the enterprise.

Differences from standard accounting

Budget accounting is in many ways similar to the usual one, which is used in private enterprises, firms and organizations. The main differences lie in seemingly small details like a 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 specific about this issue can only be said by comparing two different enterprises of a similar type, one of which will be private and the other public. Management accounting, like any other, in a private company will, on the one hand, be simpler and more understandable, and on the other hand, in the presence of a large number of internal regulatory documents, much more complex and confusing. Yes, and in some cases, intersecting with the current legislation.

Results

In general, to summarize all of the above, the budget type of accounting is, although 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 the analysis of the entire legislative framework, which at least somehow can relate to this problem. After that it will work a lot.simpler and clearer, even with constant edits and changes. In turn, the standard type of work of almost any more or less large company implies the fact that employees will take into account not only the requirements of the law, but also the wishes of the employer, correlating them with laws and regulations.