Accounting Manual Services in Bangladesh
The Accounting Manual provides rules and guidelines for accounting staff within an organization to record internal accounting information. Several directions and guidelines are included, such as accounting methods, bookkeeping procedures, recording time frames, requirements and methods for keeping supporting documents, maintaining chart of accounts, resolving unusual items, reporting methods, and authorizing accounting records. It comprises all the guidelines and responsibilities for maintaining accounting records and adhering to rules by accounting staff and related departments of the organization. The internal senior personnel of the organization or experienced consultants are tasked with establishing it by adhering to accounting standards and tools. The accounting manual’s size and content may differ based on the business’s size and nature.An Accounting manual aids a company in adhering to accepted accounting standards and ensuring compliance in recording transactions and reporting them to the appropriate authorities in the most efficient manner for the organization’s benefit.
An accounting guide outlines the chart of accounts which accounting staff must adhere to for recording accounting transactions and generating reports. Maintaining consistent chart of accounts and accounting methods across different companies is crucial when preparing group accounts for those same companies within a group. This allows for an accurate comparison of performance and financial situation of the various companies within the group. Having an accounting manual is crucial for multinational companies in order to align and synchronize accounting procedures between the parent company and its subsidiaries, in accordance with both the company’s accounting standards and the country-specific regulations where they operate. In comparison, while GAAP is followed by an American company for accounting practices, a Bangladeshi company adheres to IAS and IFRS for statutory accounting practices. If an American multinational company has a branch in Bangladesh that follows different accounting practices, it is important to coordinate and collaborate both methods for better understanding and analysis of each company’s performance and the group as a whole. In that scenario, an accounting manual provides detailed instructions and regulations for the cooperation and synchronization of two accounting procedures.
Creating Account Manual for Businesses | RIGHT SOLUTION
Certain accounting regulations allow for flexibility in choosing methods for keeping accounting records, like how to track inventory – a business may opt for FIFO, LIFO, or Average cost method. The process of recording property, plant, and equipment allows the company to choose between calculating depreciation from the start of usage or fully depreciating in the first year, rather than depreciating in the last year. Different depreciation methods include straight line, reducing balance, and double declining. Accounting standards allow for various methods to present investments, like fair value or initial cost, based on the investment’s nature. Similarly, while some standards allow for different methods to be used, it is necessary for entities to adhere to a specific method for the sake of continuity and compliance. Companies within the groups must adhere to a particular set of methods to ensure consistency in group accounts. If a company’s groups use varied methods for no specific reason, it can lead to disparate results, making it difficult to assess performance. An accounting guide provides detailed instructions on the accounting approach that must be adhered to by each company for consistency and uniformity within the group. At times, a change in approach is necessary for certain reasons, such as compliance, and the procedures for these changes are also outlined in the accounting manual.
An accounting manual also provides guidelines for when to record a transaction, which could be at the time of receiving informal information or supporting documents, or after going through the authorization transaction procedure.
An accounting manual also offers instructions on how to maintain and store supporting documents, including specifying the necessary documents and the authorization process for each transaction. This manual also provides instructions for the approval and authorization process, as well as determining the personnel required based on the transaction’s amount and type.
The accounting manual offers guidance on how to address unique transactions that may occur occasionally and also includes advice on how to communicate with external consultants.
The Accounting Manual outlines the guidelines and deadlines for statutory reporting to ensure compliance with regulatory bodies. Different regulatory bodies have varying requirements for accounting reports for both individual companies and groups, including quarterly unaudited reports, half-yearly reports, statutory audit reports, FDI returns, quarterly returns, etc., all with specific deadlines. An accounting manual aids accounting personnel in adhering to deadlines and compliance criteria.
Accounting Manual Services Provided By RIGHT SOLUTION
RIGHT SOLUTION is a reputable and experienced organization specializing in accounting and financial service consultancy. We are able to create a contemporary accounting manual for both local and multinational businesses in accordance with local and international accounting standards to ensure compliance with local and international regulatory bodies. We also offer guidance and training to accounting staff on how to adhere to the accounting manual and ensure compliance.