Introduction: In continuation of my first part we will discuss the Specific job factors in this part 2
II. Specific Job factors
1. Understanding the Accounting Structure:
In any organisation, accounts team having their own type of structure which is the business transactions where it is starting and how it will be captured as accounting terms, who is responsibility for what. Where the revenue is arising and the expenses related to revenue how it can be linked all these need to be understood by every accounts person. In the simple word Accounts person had broad thinking about the company activities. This is help to make the accounting in proper way.
2. Understanding the Accounting Policies:
Every company having their own accounting policies. It may be similar to the other organisation or the different from the others also. Based on the company business practices accounting policies also will vary. Accounting policies is the basic guide for an account person. Accounting policy only describe way of accounting each and every transaction in the company such as revenue recognition, capitalization of expenses or not, fixed asset accounting, deprecation and all other activities in the business. So before starting work in any organisation just go through the accounting policies of the company.
3. Understanding the Accounting Standards:
As we discussed in the point no.2, accounting policies are describe how to account the business transactions. But where the specific policies are not available for some transactions that time we need to refer the accounting standards applicable to the particular company for the treatment of the transactions. Also on finalization of accounts the role of accounting standards are important. So study and understand the accounting standard related to the company.
4. Understanding the taxation structure:
Each industry and every organisation having different tax structure based on applicability of the direct and indirect tax. As an accounts person we should aware the taxation. We should have knowledge of income tax rules and other indirect tax like excise and service tax rules, because while doing day to day transactions and accounting for that we need to take care the compliances according to the tax acts. Also like taxation like VAT we should aware the rates and application of TDS and TDS rates for business transactions. So try to understand the taxation structure for the industry and business organisation.
5. Analysis of Financial implications:
As an accounts person we always dealing with money matters and financial transactions, also whatever the business transactions we are scaling the financial implications for the particular transactions. We always have the analyzing capacity of each and every transaction financial implications. It will help us to plan our finance and control the same.
6. Analysis of Cost implications:
In present business scenario cost control is the very important tool for maximize the profit of the business, in cost control role of accounts person is very important. We need to analysis the cost effect and implication of each business transactions. This will include the control of revenue leakages and correct approach of cost of the transactions.
In this first part just I enlisted the general factors further parts we start discussing the development factors to be considered for becoming good Accounts person.
Thanks & Good Luck
CMA.Ramesh Krishnan
CAclubindia
