Checking accounting documentation

Content:

• Types of control of primary documentation
• Stages of checking accounting documentation
• How to correct errors in primary documents

Checking accounting documentation is an important procedure aimed at preventing errors. Inaccuracies and errors in the papers arise for various reasons: due to negligence, insufficient qualifications of personnel, overwork of employees, computer malfunctions.

It is possible to identify errors when calculating totals and when distributing documents by registers. Therefore, all primary documents received by the finance department undergo mandatory verification of accounting documentation. Experts evaluate the forms and contents of the papers. In the first case, they check whether the details are filled in correctly, whether there are signatures, whether other formal requirements are met.

Typical formal errors:

• absence of mandatory details;
• erasures and blots, violation of the rules of error correction;
• absence of dashes in free lines;
• corrections in cash papers;
• writing with a simple pencil.

Most often, specialists who check accounting documentation on formal grounds are faced with an attempt to make corrections to the cash order, which is absolutely impossible to do. Also, when filling out cash orders for the issuance of finances, they often forget about the signatures of recipients. In such cases, the amount issued should be considered a shortage and recovered from the cashier. Inspectors also encounter the signing of documents by unauthorized persons, which deprives the documents of legal force.

Verification of accounting documentation by content is a more time–consuming procedure, since it requires analysis of calculations, business operations, logical correlations of indicators.

Types of control of primary documentation

The primary documents contain information about the financial and economic activities of the company. This is an important data set, so it consistently undergoes three types of control:

• Preliminary: this is a check directly at the signing of the papers.
• Current: the control that must be carried out when performing a business operation.
• Follow–up: audits, audits, accounting checks – everything that is performed after the fact.
• Stages of checking accounting documentation

Stages of checking accounting documentation

The control of primary documentation takes place in 3 stages. At the first stage – a substantive check. It implies that specialists will determine the legality of business operations, their expediency, and compare individual indicators of the document with the underlying documents (for example, contracts).

Documents that contradict the legislation and the order of acceptance are not accepted for accounting. They are handed over to the chief accountant for decision-making. He must notify the management of the violation. However, in practice, there are often disagreements between the head and the chief accountant about a particular operation. In such cases, it is possible to accept documents for execution, but only with a written order from the head. He will be responsible for the consequences of disputed transactions and the inclusion of information in the accounting.

The second stage is the formal verification of documents. Specialists evaluate the forms, details, and correctness of filling.

The third and final stage is the most time–consuming, it requires several separate operations:

• Sorting documentation by economic data. This procedure helps to track the movement of property during the reporting period, as well as to determine the company’s obligations.
• Arithmetic check. It consists in the recalculation of indicators, the analysis of the results, the cost and the number of assets.
• Rating. This procedure is understood as the recalculation of labor and resources into a financial equivalent. Calculations are performed in documents, multiplying the number of working hours and resources by the price of one unit.
• Account assignment. So it is customary to call the marks of accounts for business transactions related to the document that is being checked.

In order to avoid confusion, the documents that have been checked are marked. If they were processed manually, they put the date of entry in the accounting register. When documents are processed using a computer, the document is stamped with the stamp of the controller, who is responsible for the correctness of the verification.

How to fix errors in primary documents

Correcting inaccuracies directly in the primary documents is a gross violation. Therefore, if some document is issued incorrectly, it will have to be filled out again. But it is important to do this before it is reflected in accounting. If we are talking about cash (incoming and outgoing cash orders) and bank documents (payment and collection orders, payment requests and payment orders), the law prohibits making changes to them at all. The presence of blots, erasures in the orders is also a gross violation, which can result in serious consequences for the company and responsible persons.

In all other documents, except cash and bank, corrections are made only through correction. What does this mean? You cross out the wrong information with one line, label the correct information on top. After that, mark the paper with the stamp “believe corrected” and certify with a signature, seal. Again, it is important that the document with corrections is signed by an authorized person, otherwise the papers will not pass formal verification.

After the analysis, all accounting transactions are recorded in accordance with the current accounting requirements. In the register, the documentation is grouped according to homogeneous features.

VALEN specialists will conduct a qualified audit of accounting documentation, tell you about the details and accounting options. We cooperate with large and small businesses, Russian enterprises and foreign companies with representative offices in Russia. Our specialists will help to streamline the workflow, they will prevent claims to the business from the regulatory authorities.

To consult or order a service, contact us via the website or by phone: +7 (495) 7-888-096. We will also be glad to meet you at our office in Moscow.