Limmike A. - Professor of Tallinn University, It is engaged in research activities in the field of accounting, IFRS, financial analysis
Cash transactions are the most common in nature. Therefore, cash transactions are site activities, which is most exposed to various kinds of violations and abuses. Despite the simplicity of the theoretical material accounting of funds, in practice, quite often make mistakes and violations. Consequently, the accounting of cash and cash on hand control is necessary to pay special attention on the part of the firm's management and accounting services.
Accounting of funds must ensure monitoring of compliance with the cash and payment discipline, correct and effective use of funds to ensure the safety of cash and documents in hand. For this reason it is necessary to carry out continuous monitoring of the problem of money:
- Validation documentation and the legality of transactions with cash, timely and fully reflected in their accounting;
- Timeliness, completeness and accuracy of the calculations for all types of payments and receipts, to identify accounts receivable and payable;
- Timely detection results of the inventory of cash, documents and accounts, to ensure collection of receivables and settlement of payables in a timely manner;
- To ensure the safety of funds, documents in hand, and other places of issue, uninterrupted satisfaction of urgent cash needs, which under the terms of settlement, or on the basis of the nature of the activities it is needed;
- Explore the possibility of the most efficient investment of available funds as a source of financial investment income.
In turn, it should be noted that the monitoring of paying bills, getting debts from borrowers and debtors, observance of cash discipline and proper filling of the primary documentation will enable efficient use of cash. After all, money is easy to hide and transport, they do not exhibit signs of accessories and they are convertible. The risk of theft is directly related to the fact that individuals have access to the accounting system and may be allowed to protect cash. In this regard needs permanent internal control of cash flow. He, in turn, must clearly carry out its functions:
- carry out storage and a separate accounting of funds;
- The records of all transactions made in cash;
- storing only the required balance in hand;
- recurrent checking calculations in the cash balance;
- The control of the receipt and expenditure of funds;
- The constant verification of cash balances and cash inventory.
For the purpose of the cash settlement organization should be equipped with the cashier, which will ensure a safe storage of cash. Responsibility for ensuring the safety of funds during storage and transport rests with the head of the firm. Keep on hand cash and other valuables that do not belong to the firm, is prohibited. And unfortunately now farms do not fulfill these requirements. Do not set a limit on cash balances on hand. The whole sum of money in excess of the approved limit, should give the bank in which the company has its own account. The newly established firm must at the conclusion of the agreement to maintain a bank account, apply for settlement in two copies for the establishment of a common fund limit, the order and timing of delivery of cash proceeds. The responsibility for the accuracy of the information in the application according to the calculation of cash book and accounting organization bears. The organization has the right to keep on hand cash flow to payments related to the remuneration carried by revenue, over the set his limit cash within three working days of the occurrence of these payments in the amount specified in the transferred in cash payments (cash-payment) statements. Acceptance and delivery of cash on hand provides the cashier or authorized for that person. The cashier should be guided by the job description. However, often perform the duties of secretary of the head cashier, who had not signed the agreement on liability. Operations on turnover of cash at the box office of the company are recorded and documented.
Reception of cash on hand have made credit cash order. Cash withdrawal from cash desk carried out on the account cash warrant. Receiving and issuing cash on cash orders must be carried out only on the day of their preparation. Corrections in the credit cash order and account cash warrant is prohibited. Upon receipt of credit cash and account cash warrants cashier shall check: the existence and validity of the signature of the chief accountant, and expense receipts - permit the inscription head of the company or persons authorized by it; - accuracy of documents, the availability of all the details; - availability of documents listed in the application. In the case of non-compliance with at least one of these requirements cashier returns the documents to the accounting department for the appropriate clearance.
Credit cash order is issued in one copy. Acceptance of cash by using it should be submitted on the day of its publication. After registration and payment before the order registered in the register of incoming and outgoing cash orders signed by the chief accountant or the person authorized by the head of the firm. For the payer a document confirming payment of the goods is a receipt to the warrant. He gets her up after make in cash to the recipient of cash.
The main methods that are used to conduct the audit of cash operations are comparing, monitoring and analysis. For the implementation of the actual techniques used and the documentary control. By the methods of inventory is the actual control, that is, check the actual availability of funds and documents on hand, as well as the examination of the cash economy. However, many companies, especially small farms are not always carried out at the time of the audit, improper execution of documents by the audit, and the case and those cases where audit and inventory of practically not carried out. With regard to the methods of documentary control, then here include formal verification (for example, check the filling cash orders with filling all the mandatory requisites); logical and economic check (whether it was appropriate to give the director of management on business needs to be accounted for a large sum of cash); legal and regulatory inspection (for example, the cashier does not have the right to issue a new accountable person amount, if the previous has not been paid); Counter check (matched records in the accounting records relating to this business transaction) and the verification of documents according to correspondent accounts.