The seven methods of accounting

Seven methods of accounting: setting up accounts, double-entry bookkeeping, filling out and reviewing vouchers, registering books, costing, property inventory, and preparing financial accounting reports.

I. Setting up accounts

Setting up accounts is a way to categorize and reflect and monitor the specific content of accounting objects. Accounts set up, is an important part of the design of the accounting system. Setting up accounts for the correct use of filling out and reviewing vouchers, registering books, preparing financial accounting reports and other accounting methods, are of great significance.

Two, double-entry bookkeeping

Double-entry bookkeeping is a method of recording economic operations. Double-entry bookkeeping is a specialized method of registering each economic operation in equal amounts in two or more accounts linked to each other at the same time. By using this method of bookkeeping, the two or more accounts involved in each economic operation are in correspondence, and the amounts registered in the corresponding accounts are equal.

Three, fill in and audit vouchers

Fill in and audit vouchers, in order to review whether the economic operations are legal and reasonable, to ensure that the registration of the books of accounting records are correct, complete and apply a specialized method. Accounting vouchers are the record of economic operations, clear financial responsibility of the written evidence, is an important basis for registering books. For economic operations that have occurred or completed, are to be handled by the staff or the relevant units to fill out the voucher, and sign and seal.

Four, register books

Books are used to continuously, systematically and completely record the economic operations of the book, is a collection of accounts, is a database for recording and storing accounting information, is an important tool for preserving accounting data. The various data provided by the books of account is the main basis for the preparation of accounting statements.

Fifth, costing

Costing is in accordance with a certain costing object to aggregate the costs incurred, the total cost of the object and the unit cost of a specialized method. All independent accounting enterprises must be costing. Industrial enterprises need to calculate the purchase cost of materials, production costs and cost of goods sold; commodity distribution enterprises need to calculate the cost of goods and cost of goods sold.

Six, property inventory

Property inventory is through the inventory of the physical, reconcile the accounts, to identify the actual number of property, materials and funds to ensure that the books of records are true and reliable a specialized method. In order to strengthen the accuracy of accounting records, to ensure that the books are consistent, must be regularly or irregularly on the property and materials and transactions for inventory, inventory and reconciliation.

Seven, the preparation of financial accounting reports

Financial accounting reports are provided by the enterprise to reflect the financial position of the enterprise on a particular date and an accounting period of operating results, cash flow of the document. Preparation of financial accounting report is a summary of the daily accounting information, that is, the books and records regularly to be classified, organized and summarized, the formation of accounting information users need a variety of indicators, and then sent to the users of accounting information, in order to make decisions accordingly.