Financial accounting is the recording and presentation of information for the benefit of the various stakeholders of an organization. On the other hand, internal accounting is the presentation of financial data and business activities for the internal management of the organization. In this article, we will learn what internal accounting is and its functions.
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1. What is internal accounting?
Internal accounting is also known as management accounting and can be defined as a process of providing financial information and resources to managers in decision making. Internal accounting is used only by the internal team of the organization and this is the only thing that makes it different from financial accounting. During this process, financial information and reports such as invoices and balance sheets are shared by the finance department with the company's management team. The goal of internal accounting is to use this statistical data and make more accurate and better decisions, control the business, its business and its growth.
What is internal accounting?
Internal accounting is one of two types of accounting that exist from the point of view of economic flows. Based on this point of view, we can divide accounting into internal or external. Internal accountants are responsible for analyzing and interpreting economic data about what happens in the company. Its main function is to evaluate the costs and benefits obtained from different production areas.
One of the definitions of Internal Accounting says that it is the application of skills and expertise in the preparation of financial and accounting information to assist the Internal Management in developing policy, planning and control of the company's operations.
The basic function of internal accounting is to help management make decisions. There is no fixed structure or format for it. Financial accounting, costing, business analysis, economics, etc. are some of the tools and techniques of internal accounting. The only need for internal accounting is that the data should serve its purpose, helping management make important business decisions.
2. Job description of internal accountant
Those who have been studying accounting and have a passion for internal accounting need to learn more about what they have to do to best complete their assigned tasks. Below is an internal accountant job description that you need to know to make it easier to apply and work.
Job Description of Internal Accountant
Check the validity and legitimacy of internal accounting vouchers and rotate vouchers in the correct order.
Accounting for invoices and internal accounting documents.
Maintain internal documents scientifically and securely.
Control and coordinate the performance of professional work with other internal accountants.
Prepare weekly, monthly, quarterly or ad hoc reports as required.
In addition, the internal accountant will be able to be assigned to take on tasks such as statistics and data analysis on the specific business and production situation of the enterprise. From there, there is a basis to advise the Director before making the right and timely decisions.
However, for each business with different operating scale, different staff capacity, there will also be different internal accounting jobs.
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3. Job classification of internal accountants
The following positions are also considered internal accountant jobs:
Job classification of internal accountants
Cash fund accounting: Making receipts and payments, collecting and spending, monitoring and managing cash flow according to the business's regulations on revenue and expenditure.
Warehouse accounting: Making vouchers to record in books to monitor and manage the flow of goods through the warehouse on the basis of the export - import regulations of the enterprise. From there, the production management process of the enterprise will always be monitored in the most detail.
Bank accounting: Based on the regulations of the business as well as the bank, the bank accountant shall make payment orders, withdrawal checks, and deposit money into the account.
Payment accounting: Making proposals, advances - refunds, payments, based on the approved advance request, vouchers for opening a book to monitor advances, and compare debts.
Payroll accounting: Drafting labor contracts, managing labor contracts, developing regulations on salary calculation, salary payment, management and monitoring of social insurance, health insurance, unemployment insurance Karma.
Sales accounting: Use accounting software to track and manage sales, revenue, and customer relationships. Prepare documents, invoices and reports.
Debt accounting: Based on sales invoices and sales documents, on receivables and payables, making plans for debt collection, debt extension and debt recovery skills, debt rescheduling.
Chief accountant: The chief accountant performs all tasks within the authority and duties of the chief accountant position. Managing, directing and controlling data to advise the Board of Directors and on the profitability and financial position of the business.
Internal control: The work of internal control and the extent of it. Monitor the entire system, staff, equipment, facilities, management costs, development status of the business, ensuring that all activities take place in accordance with the law.
4. Job requirements and supporting tools for internal accounting
Besides understanding the internal accounting job description, you also need to practice the following skills to become a good accountant:
Job requirements and support tools for internal accounting
Proficient in accounting: After completing an accounting training course, you need to master operations such as archiving, statistics, making records, making reports, etc.
Quick calculation ability: Besides using supporting software, calculation skills help internal accountants to limit errors.
Know how to use computers effectively: Internal accountants need to have good skills in using office computers and supporting software.
Absolute confidentiality of information: Internal accountants may be held responsible before the law if internal information is disclosed to the outside. Therefore, you need to have absolutely strict information security skills.
Communication: Although internal accounting is an independent job, you still need to have good communication skills to be able to cooperate well with other departments.
Accounting software is an effective support tool for internal accountants, helping them to complete all tasks in the internal accounting job description. Here are some useful software used by most internal accountants:
Misa: This is an accounting software suitable for small and medium businesses. Misa provides professional accounting services. You can rest assured with the accuracy and security of this software.
FAST: With a very easy-to-use interface, FAST software well supports internal accounting in companies from small scale to corporations. This internal accounting support tool has extremely fast information processing speed.
3TSoft: This is an effective assistant for internal accounting, with flexible and extremely accurate data processing speed. This software is very easy to use, convenient for all operations.
Ecount ERP: This software manages data and accounting information well for small and medium companies. A strong point of Ecount is that it can be used on mobile devices.
The above article has shared with you the most complete internal accounting job description. Internal accounting is an important position, through Internal Accounting, we can grasp the financial situation of the business, thereby making the best decisions. Hope these knowledge will help you in your career orientation.
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