What are the functions and tasks of the accounting department of a company?
Companies are required to keep records and produce a number of documents annually, including the balance sheet and income statement. Accounting can be outsourced by a chartered accountant or be directly managed by the accounting department of the company. When the volume of business justifies it, the companies have an accounting department whose functions and missions are as follows.
Composition of an accounting department
The composition of an accounting department depends on the size of the company and the volumes of flows to be processed. So according to the companies, accounting services in Singapore will be composed of:
– A financial director,
– A chief accountant,
– Service managers: suppliers, customers, general accounting,
– A treasurer,
– Collaborators. In small structures, a chief accountant assisted by a few collaborators will take care of all the missions.
Keeping the accounts
The main mission of an accounting department is to ensure the accounting of financial flows and produce the mandatory accounting documents: balance sheet, income statement, and appendix. The input of the operations is ensured by the collaborators and the chief accountant where the managers of service must control and validate the works. The accounting of flows concerns: – incoming flows: purchase and overhead invoices, – outgoing flows: customer invoicing, – treasury operations. The accounting department often also manages customers and suppliers by tracking payments, reminders and litigation. Relations with banks and tax departments are also the responsibility of the accounting department.
Payroll and Tax Management
With the exception of very large companies that have a dedicated service, it is often the accounting department that calculates and accounts for payroll. The same is true for the follow-up of the tax regulations and the timely preparation and filing of the various declarations.
Internal audit and management control
The development of IT has reduced the share of repetitive and low value-added tasks to develop richer missions. Indeed, when the company does not have a management controller, it is the chief accountant who performs the missions of costing or internal audit. As you can see, the accounting department has become multidisciplinary.
Accounting services in Singapore deals with the maintenance and the follow-up of the budgetary accounts, and of the General Accounting and Analytical. He draws up the statutory accounting documents.
For the sake of organization, this service was organized in 02 cells:
A budget operations cell whose tasks are as follows:
Control and verification of the commitments of budget operations;
Seizure and accounting treatment;
Establishment of summary reports (Balance sheet, CPCs, management balance statements, financing table, etc.);
Preparation of the annual financial report.
A cell of urban operations whose tasks the following ones:
Audit and Control of Contracts, Contracts, Purchase Orders and their imputation;
Accounting treatment and entry of entries relating to Urban Operations (Revenue Orders, imputation orders, etc.);
Costing of Urban Operations;
Preparation of tax declarations (VAT, IS, P.SN/T.NB etc ..);
Establishment of the tax balance of Urban Operations;