Development of document circulation procedures
Objectives of the development:
In accordance with the Federal Law «On Accounting», the organizations shall create their accounting policies themselves based on the national accounting laws and federal/ industrial standards.
Organization’s accounting policy is the main legal instrument used for accounting record keeping and taxation optimization. Document circulation procedures form a mandatory and integral part of the policy.
Prompt handling of accounting documents may have significant effect not only on smooth performance of a company but also on its financial soundness. Therefore, the document circulation procedures shall provide for the optimum number of divisions and performers whom each primary document to be addressed and set forth the minimum document residence time in corresponding company’s divisions.
Development of the document circulation procedures by a company’s accounting or financial department or general lack of such procedures normally cause the following problems:
- documents from departments, shops and divisions are delivered untimely, not in full, not in due form;
- organization’s employees do not know when and which documents pertaining to their activities they should prepare;
- documents of different organization’s departments may conflict between each other that is not acceptable;
- organization’s accounting staff may have no motivation to develop document circulation procedures and schedules due to impossibility of performance of additional work, reluctance to have conflicts with employees, etc.
Scope of work:
- Quick analysis of organization’s business, typical operations and existing document management system.
- Cooperation with all organization’s divisions to select the optimum document flow chart.
- Determination of primary accounting documents to be used as documentary evidence of organization’s business operations— upon customer’s request.
- Determination of form, handling procedure and processing techniques for organization’s accounting registers based on systematization of information required for accounting — upon customer’s request.
- Development of organization’s document flow schedule in accordance with Provision on Accounting Documents and Document Circulation. The schedule is prepared in the form of list of works connected with creation, review and processing of documents made by each organization’s divisions with indication of their interrelations and deadlines and approved by director of organization.
- Identification of any need for taking additional measures (development of accounting information processing technique, internal control system, etc.).
Custom-made organization’s document circulation procedures (schedule) as an attachment to existing accounting policy for the accounting purposes complying will all the applicable laws and customer’s expectations.