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The manager is responsible for the organization of accounting
Even when accounting is handled by an external accountant, the company must have a clear process for transferring documents and information.
Set the document transfer procedure
Documents should not be transmitted randomly. Agree on one channel, a clear date and a responsible person.
- where purchase invoices are raised;
- who controls sales accounts;
- when bank and cash register documents are transferred;
- who reports contracts and asset acquisitions;
- until which day the monthly information is transmitted.
Detach the worker process
Admissions, dismissals, compensation changes, vacations, absences, and working hours must be transferred before payroll.
Control banks and debts
For a manager, it is useful to have a regular view of bank balances, accounts payable to customers, payables to suppliers, taxes and upcoming payments.
View Key Indicators
At least once a month it is useful to receive a short report on income, expenses, debts, cash balances and pending issues.
- income and expenditure;
- debts of buyers and suppliers;
- bank balances;
- taxes payable;
- incomplete accounting issues.
Prepare for the closing of the year in advance
During the year, it is necessary to reconcile debts, inventory assets and inventory, check advances and accumulate contracts.
When is it appropriate to seek help?
If there is a lack of data, the tax situation is unclear or the status of previous periods needs to be assessed, it is rational to first conduct a brief review of the situation. It helps to set priorities, realistic scope of work and responsibilities.
- when accounting balances are unclear;
- when declaration or reporting deadlines are approaching;
- when the accountant or accounting system is changed;
- when the manager does not receive sufficient information for decisions.
Conclusion
Proper accounting does not depend on one document or one declaration, but on a consistent process. Clear deadlines, responsibility and control points allow to reduce the probability of errors and make timely business decisions.
Common practical risks
In evaluating this subject, it is important to see not only the final result, but also the process from which that result is produced. Most errors result from unclear responsibilities, delayed information, or insufficient control.
- unclear document transfer procedure;
- unallocated responsibilities;
- periodic reports are not submitted to the manager;
- year-end unreconciled balances;
These risks can go unnoticed for a long time if the manager receives only a final declaration, an amount due or a short answer. Therefore, the accounting service must also include the identification of inconsistencies, submission of questions and a list of unfinished works.
Recommended Workflow
The process should be simple enough to follow each month. Each step must have a responsible person and a deadline.
- Designate responsible persons.
- Set the document transfer deadline.
- Separate the employee and contract change process.
- Review debts and taxes monthly.
- Prepare data in advance for closing the year.
A uniform procedure makes it easier to notice who is late, what documents are missing and where additional work is generated.
What information should the manager obtain?
A manager does not need to see every accounting record, but he must get enough information to make decisions. The report must be short, understandable and submitted at the agreed periodicity.
- income and expenditure summary;
- bank and debt balances;
- taxes payable;
- list of open questions;
- the nearest accounting terms;
If a significant change is visible in the report, an explanation must be provided: what changed, what the possible reason is, and whether additional action is required.
How to prepare for cooperation?
Before handing over work, it is a good idea to collect basic information about the company, the systems used, the flow of documents and the responsible persons. This allows for a more accurate assessment of the scope of work and avoids unclear expectations.
- appoint a responsible contact in the company;
- describe where and how documents are stored;
- specify the systems used;
- list upcoming deadlines and pending issues;
- agree on what reports should be received by the manager.
Frequently asked questions
Can the manager delegate everything to the accountant?
The accountant does the accounting, but the manager must ensure that the correct information is presented.
How often should the supervisor receive reports?
At least a monthly summary is usually useful.
What must be discussed in the contract?
Scope of work, document deadlines, responsibilities, additional work and transfer procedure.
Practical conclusion
UAB accounting organization: what should the manager know? must be seen as a continuous management process and not a one-off technical task. A clearly defined scope of work, deadlines and responsibilities allow to reduce the probability of errors and allow the manager to receive the information needed for decisions in a timely manner.
UAB accounting service and price
If you want to hand over the accounting process to an external accounting partner, check out UAB accounting services.
We explain in more detail the factors that determine the service price, such as documents, employees, VAT, and others, on the page UAB accounting price.