Accounting in agriculture, as in any other field, is a system that provides for the collection, registration and generalization of all information about property, liabilities of an enterprise expressed in monetary terms. It provides a continuous and comprehensive documentary record of all, without exception, operations conducted on the farm.
Accounting in agriculture: objects that are included in it:
- all property of an agricultural enterprise, which includes financial investments, inventories, cash, fixed assets and others;
- the capital of the enterprise, which includes authorized capital, reserve capital, retained earnings, additional paid-in capital, as well as special purpose funds and reserves;
- debt to this company from other organizations, as well as third-party individuals and organizations, it includes loans, payables;
- Also, accounting in agriculture controls all business operations carried out by the enterprise and which cause changes in liabilities and composition of property.
The main goal pursued by accounting in agriculture is the analysis and use of information in order to identify prospects for the development of the enterprise, as well as to make correct and promising management decisions. Received accounting information is applied at various management levels. Accounting in agriculture is applied at the on-farm level, at the general and external levels of management in production processes at an agricultural enterprise.
But accounting in agriculture has not only an information function, it also performs a control function, namely, illustrates the implementation of the organizational plan, shows the profitability of an agricultural enterprise, and also helps to prevent failures and miscalculations at work, does not allow the irrational use of existing resources and these actions Helps save enterprise funds.
Accounting in livestock and agriculture helps the company solve such problems:
- allows you to generate reliable information about the property status of the enterprise, its activities, which is used by internal users, including founders, managers, owners and participants of the enterprise, as well as external users - creditors, investors, banking, financial and tax authorities, suppliers and many others ;
- submit information for the implementation of control over strict compliance with applicable law during operations related to the movement of obligations and property, as well as using all existing resources. All this must be carried out in accordance with the standards, estimates and norms approved at the legislative level;
- to prevent and prevent the occurrence of negative phenomena in the activities of the enterprise;
- identify on-farm reserves that help ensure the financial stability of the enterprise and mobilize them;
- assess the actual use of all identified reserves.
In accordance with applicable law, the head of the enterprise is responsible for the proper organization of accounting when conducting various business transactions. It is he who appoints the chief accountant, and he alone is directly responsible for the formation and maintenance of accounting policies, the timely and accurate presentation of information about the state of the enterprise financially. The chief accountant controls the rational use of all funds and directly carries out management over the entire accounting service.