Continuous training of managers and employees of the company while increasing specialized knowledge and skills can help to improve the people of the organization. On the other hand, considering that today in all fields, new content is added daily and new rules and regulations are set, all people, especially company managers, must be up to date in order to have a good performance. In some business units, due to lack of adequate knowledge of specialized content and laws and lack of up-to-date direct accounting company, irregular accounting is established that this system will not be responsible for managers of organizations and organizations and third parties. Existing can be a good solution to have a good accounting system
Account training and correction
In this regard, it can be said that the purpose of providing financial information in accounting is to make financial decisions in order to achieve the goals of the organization. That is why the preparation of financial information in accounting is very important and should include correct information and training and correction of the account should be done well
Thus all income and expense information in a financial period should be recorded and reported; All assets, liabilities and equity must be properly recorded on the balance sheet. In order for financial statements to provide managers with the right results for decision making, they must have all the information about assets, liabilities and expenses
And the problem most accountants face is that some financial events affect the results of operations more than the financial period; Therefore, the effect of financial events on different financial periods should be carefully identified and measured, and accounts should be adjusted at the end of the financial period
Well, we start with the unrecorded expenses and income at the end of the fiscal year before closing the accounts and after closing the accounts. In relation to the unrecorded expenses before closing the accounts, we can start with 2 examples. Payments that must be made at the end of the accountants’ financial period
According to the studies performed, it is clear that some of the necessities (automatic paperwork, etc.) have been lost and now, due to the breakdown of the end of life and other reasons, the accountants should take into account these necessities consumed during the period. To take out the necessities. For this purpose, the creditor’s necessities account and the debtor’s necessities cost should be calculated
Financial and accounting services
Correction of accounts in the financial / training and correction period
In order to apply the principle of “matching the expenses of each financial period with the revenues of the same period”, the company’s accountants must ensure that not all income and expenses in the financial period are recorded in the accounts at the time of preparing the profit and loss statement
If the accountants do not record some of the income and expenses in the accounts, they first identify them and then, through proper registrations in the newspaper office and transferring them to the general office, train and correct the account. These records are called correction records
Correction of accounts and correction records is usually done after the end of the financial period and before the preparation of the financial statements, and sometimes it may be done during the financial period
Correction of accounts at the end of the financial period
Training and correction of general ledger accounts is done at the end of the financial period. This is done to modify, modify and update accounting records. After recording all transactions and financial events in the institution’s offices, some general ledger accounts do not provide the correct balances for preparing the financial statements
Also, even if all transactions and financial transactions are properly recorded in the books, accrual accounting requires that, in order to reconcile balance sheet accounts and profit and loss statements, assuming the financial period and the principle of conformity, some of the general ledger balance remains at the end of the correction period. To be
Preparation of modified experimental balance
After the correction records are made and transferred from the newspaper office to the general office, the balance sheets of the general office are determined and another trial balance is prepared. The test balance, which is prepared after training and correcting the account and performing corrective records, is called the modified test balance. The revised trial balance is the basis for preparing the profit and loss statement and balance sheet
Need to register corrections
Most of the items recorded in the accounts are easily and openly noticed by the accountants. “For example, when a check is written to one of the bank accountant’s bank accounts, it is clear that the bank account, the creditor and one of the other accounts will be debited.” Or when the bill is sent to customers, sales revenue Creditors and accounts receivable will be debited. Such records are called original or immediate records
As a result, some of the events affecting the accounts are not based on such documentary evidence, and their effects are reflected in the accounts at the end of the financial period by corrective entries. Corrective entries mean reviewing account balances in a way that reflects the end-of-period situation satisfactorily
Account training and correction
Finally, in this article, we discussed the concept of account training and correction. Some financial events affect the results of operations more than the financial period; Therefore, the effect of financial events on different financial periods must be carefully identified and measured, which is called correction of accounts. Accounts are usually revised at the end of the financial period; Sometimes it can be done during the financial period
