The accounting banking: the process, risks to note

In fact, many businesses, especially those new business or have multiple transactions, and often have trouble standardized services, the account of the revenues/expenditures, management, loan interest, bank charges, or for projector balance. If recorded wrong or missing vouchers, businesses can risk loss and misleading financial statements or difficulty when audit, tax inspectors.

So master the profession, from the fall/spend money, accounting interest – interest on deposits, reconcile bank to manage advance and guarantee is the key factor to help the business operate efficiently, control costs well to financial planning correctly. Article Lac Viet will provide detailed guidance to business can perform the service correctly, transparent and professional.

1. Accounting bank what is? Why the need for standardized business?

1.1. Accounting bank what is? The role of professional accountants in business

Accounting bank is business record, control and report all financial transactions related to deposit, loan payment, the financial activities arise through the bank. In business this is not the only record data, but also ensure financial information is accurate, timely, helping leaders take effective decisions.

Role:

• Ensure transparency cash flow: When all banking transactions are accurately recorded, businesses can track the financial situation in real time, minimizing the risk of loss or misleading data.
• Support management – planning: Data from business, provide the basis for establishment of the draft budget, liquidity management, as well as forecast cash flow.
• Optimize relationships with banks – partners: accurate information helps to control the loan, interest rate, collateral, thereby improving the credibility with the financial institution.

1.2. Why business need standardized business?

Standardized accounting bank means the set up process, the form control sync for all transactions related to banking. This is important because:

• Minimize the risks of errors – fraud: the transaction has not standardized, easily lead to confusion in the account, omissions vouchers or payment in the wrong.
• Increase efficiency management: Standardization helps employees understand the steps to take, from tracking daily transactions, to control the advance payment to the internal.
• Easy audit – compliance: When consistent processes, easy business offers stock from transparency for the tax or audit, reducing the duration of the test cost.
• Automation support: Standardized premise is to deploy accounting software to help automate accounting, reporting as well as data connection with other parts of the business.

2. Job duties of the accountant banking

• Track – update bank transactions daily: Business need for screening fluctuations in accounts with a bank statement, accurately record the income and expenditure account. This ensures account balances actual joints with windows internal policy, help timely detection of unusual transactions. For example, if the business receiving payments from clients, accountants must record the date to update the public debt, to avoid confusion.
• Establishment – control, proof of payment: Each transaction must be accompanied by valid documents (invoice, voucher, contract). In addition to responsible to check the validity and sufficiency of evidence from before accounting to ensure the account accounting banking standards.
• Control advance, internal payment through bank: The account of advance payment or expenditure the internal need to be managed closely to avoid inflation costs and ensure all costs are accounted reasonable. For example, staff costs, go to work, have to pay the full bill, accounting test accounting before the settlement with the bank.
• Track loan amount – interest loans – collateral: Business track all loans, accrued interest status of collateral to ensure business compliance with financial obligations and optimal cost of borrowing. This helps business, cash flow projections, avoid fines or lose credibility with the bank.
• Links with other parts of the business: Business must coordinate closely with the sales department, purchasing, project management with hr to synthetic transactions, ensure information consistency. For example, payment provider must match the orders, contracts, help, financial management, transparency and accuracy.

3. The accounting profession the bank in business

All accounting bank below are follow Circular no. 200/2014/TT-BTC of the Ministry of Finance, ensure compliance with accounting standards in Vietnam (VAS) and the current legislation. The recognition, the account – control vouchers herewith help businesses ensure accurate, transparent, and easily collate when audit or tax inspection.

3.1. Business collecting money via bank

Business collecting money through the bank is the recognition and management of all account business money received through the bank account. These can be payments from customers for the product/service, a refund from the previous transaction, or the revenues internally from other departments.

The account accounting basic banking:

• Debt TK 112 – bank deposits
• Có TK 131 – Phải thu khách hàng

Actual value:

• Ensure cash flow transparency – accuracy, help businesses always know the correct balances in bank account.
• Support tracking of customer debt, reducing the risk of confusion, loss, or recorded in duplicate.
• Create database accuracy for financial statements – cash flow analysis, support leaders make decisions about investing, spending or raising capital.

Illustrative examples:
When customer payment directly into bank account of the business, the accountant should record right into the books, updates public debt, as well as collated with the bill already. If not recognized promptly, figures public debt will be false, leading to the risk of dispute with customers.

3.2. Business spend money via bank

Business spend money through the bank includes all the expenses, business done through the bank account: payment provider, operating costs, production costs, and expenses internal. Accounting bank to check the validity and sufficiency of evidence from before accounting.

The account service basic accounting:

• Debt TK 331 – pay supplier or TK 642 – Cost manufacturing business
• Have TK 112 – bank deposits

Value which business to bring:

• Control cost-effective: Make sure all payments for the right purpose and avoid costly unplanned or abuse chi.
• Compliance with legal regulation – bank: Prevent legal risks from the payment teen vouchers or false information.
• Support financial management: cost Updates quickly to calculate the actual profit, the draft budget exactly.

For example: Business buying raw materials from suppliers, accounting will check the contract, payment receipt, VAT invoice before you make the transfer. This helps to avoid confusion between the supplier also at the same time control the flow of money out of reality.

3.3. Business accounting bank charges

Each banking transactions, often arises the service fee, such as transfer fees, account management fees, fee guarantee, free credit card business. Accounting should be noted that these fees immediately after the bank informed to ensure expense reports accurately.

The account accounting basic banking:

• Debt TK 642 – financial Costs (bank charges)
• Have TK 112 – bank deposits

Actual value:

• Expense tracking, bank details: Business can analyse banking costs according to each type of service, from which reviews to choose the bank match, optimize costs.
• Ensure financial statements honest: 't miss free bank help report the actual cost with the real money.
• Support effective analysis activities: accounting can compare the cost of the bank according to each project or branch to financial decisions.

3.4. Business accounting for interest on deposits – interest loans

Accounting bank must track – recorded accrued interest from the deposit/ loan amount:

• Interest on deposits: Corporate deposits at the bank will receive periodic interest. Recorded interest to help businesses determine the exact financial income from capital idle.
• Interest on loans: Business loans banks have to pay interest under the contract. Recorded interest expense helps accurately reflect the financial costs as well as the draft budget.

The account:

• Interest on deposits: Debt TK 112 – Yes TK 515 – financial income
• Interest on loans: Debt TK 635 – financial Expenses – Have TK 112

Actual value:

• Provide accurate information about income and expenses, financial decision support about sending money for re-investment or loan.
• Support, cash flow projections, management of financial risks.

For example: Business, deposit money into a term of 3 months, accountants accounting interest received even when the bank notified to replenish the source of business capital.

3.5. Business collated bank

Reconcile bank is the comparison of the balance on the ledger, internal with bank statement to detect errors, the transaction has not recorded or difference between books and reality.

Actual value:

• Ensure transparency – accurate financial data.
• Early detection of the payment is not finished or recorded wrong.
• Increase effective internal control audit support.

For example: If the business transfer money to the supplier but not yet recorded on the books, reconcile bank will detect to promptly adjust, avoid misleading financial statements.

3.6. Professional money management loans – bank guarantee

Includes track all loans, interest on the loan and the bank guarantees that the business received or granted. Accounting bank to ensure the account is recorded in full compliance with the contract, as well as track expenses incurred.

The account:

• Debt TK 112 – Yes TK 341 – short-term Loans/long term
• Guarantee: track detailed in the corporate governance report, not accounted for directly in window

Actual value:

• Control of financial risks: Avoid exceeding the limit on loans, pay interest on late, or violation of the conditions of guarantee.
• Reviews effective use of loans: Business know the exact cost of borrowing – interest payable, from which optimize capital.
• Support finance management master: Coordination with other parts to make statements, estimates, track cash flow, as well as property management guaranteed.

For example: accounting, bank track loan balance short – term- long-term, the interest accrued and the collateral to accurate reporting for leadership. This helps business decision making loans in accordance with the financial possibilities.

4. Implementation process of accounting bank in business

Step 1: receipt voucher – request for payment

Accounting, bank, start the process by getting the original documents from the relevant departments (for example, receipts, voucher, invoice, contract payments). At the same time, the department requires payment will suggest payment to the accounting test. To ensure that all transactions are legitimate grounds, to avoid errors in payment or recorded. In addition to accounting have enough information to properly account for the account business basic.

Step 2: Check – approval

Accounting bank to check the validity of the voucher, collate data, contracts, orders, plans, costs, as well as the internal regulations. After the test, the transaction is approved by the competent authority (head of department, chief accountant or chief financial officer). The process of test – approved, this help minimize the risk of limb wrong purpose or exceed budget. At the same time increase transparency and compliance to help businesses easily audit.

Step 3: perform banking transactions

After approval, accounting proceed to perform transactions with the bank, including transfers, collect money from customers or advance payment. Each transaction needs to be confirmed by the bank (statement, receipts, money transfer) to keep stock from electronic/paper. This ensures cash flow to be managed correctly, to avoid confusion between the revenues/expenses. At the same time, track expenses bank charges incurred to predict future cash flows.

Step 4: bookkeeping

Business is recorded transactions into the general ledger, case and detail window. The recording window should adhere to the principles of account, accounting, banking & accounting standards current. Ensure accounting data accurately reflected the financial situation the actual support debt management, control advance, as well as financial reporting in a timely manner.

Step 5: For the projection window

Accounting accomplish for reference book, bank statement provided by the bank, check the joints between the balances on the books and actual balance. Any deviations which are processed immediately to ensure accurate data. For projection window laying ensuring transparency, cash flow, early detection of errors or the transaction has not completed. Support internal audit – tax authorities, reducing legal risks – financial.

Step 6: store vouchers – report

After completing the transaction, all documents/ reports are stored as specified (both electronic – paper). At the same time, accounting and reporting of income/expenses, bank fees, interest on deposits/interest on the loan and the account of advance, send for the leader board.

This is step help for storage vouchers/ reports easy access to your documents when needed for screening or audit. It also provides data management for leaders to assess financial performance, cash flow management as well as budget planning.

6. The risks in the accounting profession banks with how to avoid them

In the implementation process, accounting, banking, business faced with a number of common risk. Receive interface control these risks is the key element to ensure accuracy, transparency, effective cash flow management.

• Risk flaws vouchers: errors vouchers can occur when stock from the lack of information, is wrong about the amount, date, or invalid according to the rules. If not detected in time, these errors can lead to accounting mistaken, financial reporting deviations will influence the decision of management.
• How to avoid:
  • Standardized documents: All transactions must with valid documents such as invoices, expenses, receipts, contracts.
  • Cross-check: accounting, check the information on the voucher contracts, orders, and cost plan.
  • Storage – compare: keep a stock from full implementation for projector periodically with window banks to detect flaws in a timely manner.
• Fraud risks – loss: fraud or loss occurs when an individual or department, taking advantage of the loophole in the process to expropriate property, or falsify accounting data. This risk is particularly serious in the business there are many transactions the bank.
• How to avoid:
  • Close authorization: Separation function between the set transaction – approver – the record window to reduce the risk of fraud.
  • Periodically check: Make check as well as reviewing the transaction, especially with the costs or not often.
  • Apply tools automatic control: Use accounting software to track transaction to detect the abnormal limit the loss due to manipulation craft.
• Risk variances data: a discrepancy in the data occurs when the balance on the ledger does not match the bank statement. Causes are usually due to record slow input wrong or not collated window periodically.
• How to avoid:
  • Collated periodically compare data book with bank statement daily or weekly.
  • Recorded promptly: Record the transactions as soon as they arise to avoid delay.
  • Standardize the account: the correct execution of the payment service basic, ensure data consistency and accuracy.
• Control measures effective: in order To effectively control the risks, businesses should:
  • Set the standard process for all business, from receiving vouchers, approve, execute trades to carrying and storage.
  • Application of control internal tight, avoid a personal've just set transaction record window.
  • Use tools digitization/ automation to reduce errors, collated data as well as ensure accurate reporting.
  • Training personnel often about professional accountants commercial banks, the accounts and accounting standards in Vietnam ensures all transactions are done right process standards.

7. Application LV-DX Accounting to optimal professional accountants in business

Digitized accounting bank brings many practical benefits for business: reduce errors, fraud by manipulating the craft, optimized operation, saving time as well as personnel costs, support management, cash flow, tracking, loan interest, bank charges to collate the data immediately. The report provided accurate – timely – compliance Vietnam, help leadership decisions quickly and more accurately.

With software, LV-DX Accounting, banking transactions are recorded on the cross – automatically eliminates errors fixed account, as well as enter data manually, tracking cash flow, instant updates balances, revenues/expenses, interest-free loan through the bank charges promptly, at the same time improve the efficiency control to detect the difference as soon as that occurs, reduce financial risk and fraud.

LV-DX Accounting help:

• To limit errors due to manual action.
• Optimal operating accounting, banking, reduce the processing time of the procedure.
• Provide data analysis quickly, decision support financial management accurate.

Businesses can try it for free and get solutions consulting at: https://lacviet.vn/lv-dx-accounting/

Accounting bank's key to business transparency, cash flow, cost control, as well as financial administration efficiency. Mastering the business from the income/spending, accounting for interest/interest on deposits, reconcile bank to manage the advance guarantee help minimize the risk of false data and difficulty in auditing. Understand to implement good accounting profession will help businesses control cash flow, financial forecasting, strategic planning, sustainable.