The complexity of managing the financial condition of enterprises in an unstable environment in which they operate and integration processes requires the creation of an effective system of information support for managing operating expenses and, consequently, the search for new approaches to solving existing problems. One of the main conditions for the success of any company is the correct organization of management, accounting and tax accounting.
The main condition for effective enterprise management is to obtain complete, reliable and timely information about the costs that form the cost of products (works/services). This information is provided by accounting for the expenses of the company’s operating activities, which is the central subsystem in the accounting information system. The level of economic management of the enterprise, the degree of influence of the results of individual divisions on improving the efficiency of the entire enterprise, the validity of the dominance of qualitative and quantitative indicators and optimal pricing depend on the proper organization of cost accounting and cost calculation of products (works/services) [1].
Operating expenses are one of the most important accounting items. The accuracy and reliability of the financial result determined by the company directly depends on how accurately and on time expenses are reflected in accounting.
The organizational aspect is an important direction of creating accounting for expenses in modern conditions. Today, accounting as an information system is divided into two organizational independent parts — the open part, that is, one that can be published (financial accounting), and the closed part, which is a commercial secret of the enterprise (intra-economic accounting).
The operation of any enterprise takes place using certain labor, material and financial resources, and the process of activity may be operational or non-operational.
Careful systematic and timely accounting of material, labor and financial elements of costs and costs, sales and organization costs will certainly help to reduce the total amount of expenses of enterprises. At the same time, it should be carried out not only in the article-by-article, but also in the group section.
In the context of using national accounting standards, calculating the cost of production of enterprises is a complex process that involves taking into account the volume and variety of expenses. In market relations, when cost becomes an internal indicator, it is necessary to systematize expenses in such a way that it is possible to optimize the number of items, simplify the method of calculating costs, divide them into separate types of products and simultaneously obtain the necessary information for managing the cost.
Both in domestic and foreign economic literature, there is no consensus on the terminology, number, and composition of the characteristics of the classification of production costs. Cost accounting in the financial direction is carried out by economic elements.
The accounting policy of an organization is understood as a set of accounting methods adopted by it — primary observation, cost measurement, current grouping and final generalization of the facts of economic activity.
Methods of accounting include methods of grouping and evaluating the facts of economic activity, repayment of the value of assets, organization of document flow, inventory, methods of applying accounting accounts, accounting register systems, information processing, and other appropriate methods and techniques [2].
The accounting policy is formed by the chief accountant (accountant) of the organization on the basis of Regulations on conducting accounting and accounting reporting in the Republic of Kazakhstan, approved by order of the Ministry of Finance and approved by the head of the organization.
The structure of the accounting policy is formed by 3 sections:
1) a working plan of accounting accounts containing synthetic and analytical accounts necessary for conducting accounting in accordance with the requirements of timeliness and completeness of accounting and reporting;
* forms of primary accounting documents used for registration of facts of economic activity for which standard forms of primary accounting documents are not provided, as well as forms of documents for internal accounting reporting;
* procedure for conducting an inventory of the organization’s assets and liabilities;
* order of control over economic operations;
* rules of document circulation and technology of processing of accounting information.
2) accounting policy for accounting purposes: methods of depreciation of fixed assets, the order of accounting and write-off in the production of materials, etc.
3) accounting policy for tax purposes (tax accounting at the enterprise): the procedure for determining revenue, the method of calculating depreciation, accounting for income and expenses for the purpose of calculating income tax.
For convenience, the company can combine 1 and 2 sections of the policy.
The organization’s accounting policy should ensure that:
- the complete reflection in accounting of all factors of economic activity (the requirement of completeness);
- timely reflection of the facts of economic activity in accounting and financial statements (timeliness requirement);
- greater willingness to recognize expenses and liabilities in accounting than possible income and assets, avoiding the creation of hidden reserves (prudence requirement);
- reflection of factors of economic activity in accounting, based not so much on their legal form as on the economic content of facts and business conditions (the requirement of priority of content over form);
- identity of analytical accounting data to turnover and balances on synthetic accounting accounts on the last calendar day of each month (consistency requirement) [3];
- rational accounting, based on the conditions of economic activity and the size of the organization (the requirement of rationality).
When forming an organization’s accounting policy for a specific area of accounting management and organization, one method is selected from several that are allowed by the legislation and regulations on accounting. If the accounting methods are not set out in the regulatory documents for a specific issue, the organization shall develop the appropriate method based on this and other accounting regulations when forming the accounting policy.
The accounting policy adopted by the organization is subject to registration by the appropriate organizational and administrative documentation (orders, orders, etc.) of the organization.
The accounting methods chosen by the organization when forming the accounting policy are applied from the first of January of the year following the year of approval of the corresponding organizational and administrative document.
The methods of accounting adopted when forming the accounting policy of the organization and subject to disclosure in the financial statements include methods of depreciation of fixed assets, intangible and other assets, evaluation of inventories, goods, work in progress and finished products, recognition of profit from the sale of products, goods, works, services, and other methods [4].
Changes to an organization’s accounting policy can be made in the following cases:
— changes in the legislation of the Republic of Kazakhstan or regulations on accounting;
— development of new accounting methods by the organization.
The use of a new method of accounting involves a more reliable representation of the facts of economic activity in the accounting and reporting of the organization or less labor-intensive accounting process without reducing the degree of reliability of information; a significant change in the conditions of activity. A significant change in the organization’s operating conditions may be related to reorganization, change of owners, change of activities, etc. [5].
Changes in accounting policies that have or are likely to have a material impact on the financial position, cash flows or financial results of the organization are subject to separate disclosure in the financial statements. Information about them should, at a minimum, include:
* the reason for the change in accounting policy; assessment of the consequences of changes in monetary terms (for the reporting year and each other period, data for which are included in the financial statements for the reporting year);
* an indication that the corresponding data of the periods preceding the reporting year included in the financial statements for the reporting year has been adjusted.
It is not considered a change in accounting policy to approve the method of accounting for facts of economic activity that differ, in essence, from the facts that took place earlier, or occurred for the first time in the organization’s activities. Changes in accounting policies must be justified [6].
In order to improve the accounting process at the enterprise, special attention should be focused on operating expenses, the correct research and study of which can ensure the profitability of business entities. Therefore, in order to ensure the effectiveness of their activities, it is advisable to focus special attention on the origin and types of expenses, the formation of analytical information about the relationship between income and expenses. After all, at different stages of economic development, the requirements for the reliability and completeness of information that characterize the costs of production, the efficiency of its receipt to the main users, were and remain one of the most relevant.
Sources used
- Astakhov V. P. Accounting and financial accounting: A textbook. — Moscow: ICC «March», 2005.- 356 p.
- Babayev Yu. A. Accounting: textbook for universities. /Under the editorship of Professor Yu. A. Babayev. — M.: UNITY-DANA. — 2002 – 476p.
- Stone D., Hitching K. Accounting and financial analysis: TRANS..– SPb.: JSC «Litera plus», 2005.- 354 p.
- Sheremet A.D., Saifulin R. S. Enterprise Finance. — Moscow: INFRA-M, 2002.- 400 p.
- Guidelines for inventory of property and financial liabilities (Order of the Ministry of the Republic of Kazakhstan No. 49 of June 13, 2015).
- Features of accounting for export-import operations / / Creativity of young people – innovative development of the Republic of Kazakhstan: Materials of the Republican student STC, (April 22, 2011 – Ust-Kamenogorsk: EKSTU, 2011. — Pages 309-311.
