The chart of accounts is... the instruction on application of chart of accounts


2018-08-26 18:00:34




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The chart of accounts is an integral part of the accountant, with experience, and a freshman. In fact, all the accounts used for recording transactions of an organization, systematized in a shared document. It was called the chart of accounts. This kind of table, which contains all the necessary for the digital signs used in transactions. It is also worth remembering that the company can create a working Plan of accounts. However, you should adhere to the Instructions for use of this document. It allows the accountant to find answers to many questions associated with accounts.

What is chart of accounts?

It's No secret that in accounting every organization uses so-called transaction. They help to reflect both the arrival and decline of the various elements. In the wiring participate actively the account. In fact, they form the basis of operations. chart of accounts is

In fact, the chart of accounts – a table that contains a list of all accounts used by the accounting Department. It is a scheme that helps to correctly record the business and financial transactions of any organization. It should be noted that any company maintains such records. Even the "accounting for dummies" offers to first familiarize yourself with the chart of accounts, as well as its parts.

chart of accounts is

Legislative control

Chart of accounts – it's not just the paper you use separate accountants. It's not modified for all kinds of organizations. Thus, the introduction of current accounts has been enshrined in Federal law in 2000, and later was a new edition from 2010, i.e. ten years later. That is, these normative documents stipulate what accounts and why a company uses.


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If organizations must use additional accounts, here can help the "instruction on application of chart of accounts of accounting." It is possible to find the structure of a particular account. Probably, it is possible to display an action. If this option was not found, you are allowed to use accounts that were not covered in the main chart of accounts. However, these innovations must be fixed in the accounting policy of the organization.

 bookkeeping for dummies

Working chart of accounts of the organization

As mentioned above, the company may structure your own chart of accounts. Thus it is necessary to observe some rules. So, based on the Instructions to the chart of accounts, the company can choose the accounts that are required for work with specific operations.

By the way, in coordination with the Ministry of Finance organization can use an additional system of accounts. This is possible in cases where the specific organization requires. Prepared chart of accounts specific to your organization assigned in accounting policy. It becomes a tool for doing high-quality activities of the organization, and facilitates economic activity.

chart of accounts with explanations

Scheme of work chart of accounts

The existing guides, such as “accounting for dummies”, given not only the approximate content of the work plan for the enterprises of different profiles, but the theoretical basis.

For example, a work plan is a branched structure. In the first place are synthetic accounts. They take into account the capital, its movement, other liabilities and assets, and business processes.

On the analytical accounts to reflect more specific actions. The presence of this kind of accounts allows you to inspect the operations. However, the presence of this type of accounts is optional.

There are more sub-accounts, which help to Refine the operation. Thus, enterprises associated with the production, you can allocate a separate subaccount by product or products. The chart of accounts with explanations helps the accountant to make the action plan “yourself”.

system of accounts

Composition of accounts

Currently, the chart of accounts consists of eight sections. In total, there are sixty-described accounts. An interesting fact is that in the plan there are numbers from one to ninety-nine. This means that the number of digits remains free from specific accounts. This is just in case the specifics of the organization allow the use of additional synthetic accounts, that is, an entity may use the availability. Accounting chart of accounts with sub-accounts also has off-balance-sheet accounts which are reflected, for example, the property lease or material values, which were adopted by the organization for safekeeping.

The Entire chart of accounts has eight major sections, which are distributed all bills, excluding off-balance. There are also instructions about which subaccounts to each of the synthetic accounts you can open what number.

the books of accounts of synthetic and analytical

Brief on off-balance accounts

Off-balance Sheet are those accounts that do not belong to any of the sections of the chart of accounts. They specify the operations related to funds that do not belong to the organization, but, for example, can find it in temporary storage.

Off-balance Sheet accountsalso called auxiliary. It is noteworthy that the operations on them in the end are not recognised in the balance sheet, they are also not in any way affect the financial performance of the organization. In the chart of accounts they are presented as three-digit numbers, starting with zero. That is the first account of such a plan bears the number 001, and so on. Completes this kind of section of the account with the number 007.

the turnover sheet under accounts

What topics are included in the chart of accounts?

As already mentioned, the chart of accounts consists of eight sections with their accounts. They are structured, which allows you to quickly find the necessary information.

  • Non-Current assets of the company. this includes the principal balance of the organization, their depreciation, and intangible assets;
  • Inventories. In this section you can find synthetic and analytical accounting of account for accounting of the movements of reserves of the company, or acquisition of any material assets;
  • Production Costs. As is clear from the name, this includes accounts that are directly associated with all kinds of industries.
  • Products., Respectively, in accounts located in this section, it is possible to consider finished products, to calculate its value.
  • Funds. this includes such accounts as “cash”, “account”, “remittances".
  • Calculations. This vast group includes many variants of calculations, ranging from debt repayment to creditors and ending with the payment or accrual of wages to employees of the company.
  • Capital. This section helps to precise accounts connected with Charter, reserve or additional capital of the organization.
  • Financial account. This final section includes accounts, helps to identify the result of the sale and the final financial result for the company year-end.

Synthetic and analytical accounts: what's the difference?

As is known, it is possible to allocate three groups of accounts, namely, synthetic, analytical and subaccounts. All three groups are interrelated, but there is a possibility that they can be misunderstood, especially by novice accountants.

Thus, synthetic account just are located in the chart of accounts. That is, the score of 10 with the title “materials” see “production costs". This includes all funds that are present in the production activities, with the exception of the key.

In turn, this account has sub-accounts. This is a more fleshed out version. That is, to the synthetic account “materials”, you can open a subaccount under the number one and the name “raw materials". That is, here is not included no animals, no spare parts - only what is described in the name of the specific subaccount.

Analytical account allows to further specify the counting. That is, the oil, for example, it will be a separate analytical account opened by the sub-account. Thus, analytical account helps to structure the account of economic activities, and also allows you to check on what costs you can save.

instructions on application of chart of accounts

Instructions for use ready-made chart of accounts

The Statement called the document, which helps the accountant to correctly use the existing chart of accounts. It contains the following information:

  • Account Number.
  • Full name.
  • The purpose of the account, namely its content and structure.
  • The Methods of application, i.e. the order of its completion.

That is, the user manual helps the accounting Department to correctly use each of the accounts. After reading this document, the organization can begin to prepare a work plan of a particular company.

Practical advice on the preparation of working plan of accounts of the enterprise

After reviewing the application instructions in this document you can start a specific plan of accounts of the company.

Be aware that further changes may occur, involving the introduction of new, additional accounts structure company. So you need to ensure that there were reserve subaccount.

It is Also better to minimize the number of used for the implementation of the accounts. It helps to ease the methods of reflection of economic activity. That is, if it is possible to abandon the use of any account, better to do it.

It is Also worth remembering that the global changes in the existing chart of accounts of the organization to make not so simple. So it's best to consider what is the future of enterprise in a few years. Probably, there is a prospect of the emergence of a new product.

Do Not forget about the fact that now the accounting is automated, but this does not prevent many specialists to carry out checks manually. Thus, the popular account balances for accounts, which allows you to detect errors on a particular account, as well is generated using the 1C program.

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