What Is a Book of Accounts?

Accounting books are based on accounting vouchers, which are comprehensive, systematic, continuous, and classified records and calculations of all economic operations. They are composed of specialized forms and linked books in a certain form. ^[1]

Basic Information

Chinese name

Accounting books

Short name

Ledger

Meaning

Books of accounting records

Pass

Record a business, unit

When the accounting books are enabled, the following relevant information should be recorded in relevant places in the books:

(1) Set the cover of the account book. In addition to the book without a cover, all loose-leaf accounts should have a front and back cover, and register the name of the unit, the name of the book and the fiscal year to which it belongs.

(2) A list of the registered book enablers and management personnel. When activating a new accounting book, you should first fill in the activation instructions in the "Enable and Transfer Form of Books" printed on the title page, including the unit name, book name, book number, start and end dates,

According to Article 60 of the "Basic Accounting Standards" (hereinafter referred to as the "Specifications"), the basic requirements for registering accounting books are:

Basis for registering books

In order to ensure the authenticity and correctness of the books and records, it is necessary to log in according to the audited accounting documents. All economic transactions that occur in each unit every day must be recorded, and the basis for accounting is accounting vouchers.

2. Time to register books

How often should the various account books be registered, there is no uniform regulation. However, the general principle is: the general ledger should be posted in a timely manner in accordance with the accounting form adopted by the unit;

1. Provide systematic and complete accounting information.

2. Effectively give play to accounting supervision functions.

3. The main basis for editing accounting statements.

4. Important basis for accounting analysis.

(1) Taxpayers engaged in production and business shall set up general ledger, detailed ledger, diary ledger and other auxiliary ledger within 15 days from the date of obtaining the business license, among which ledger ledger and diary ledger must be in book form .

For individual industrial and commercial households with a small scale of production and operation and no ability to set up accounts, Hengxin Siyuan Finance Beijing Accounting Center considers that it is possible to hire a certified public accountant or a financial and accounting personnel approved by the competent national tax authority to set up accounts and handle transactions on their behalf; Or if the financial and accounting personnel approved by the competent national tax authority have practical difficulties, with the approval of the State Taxation Bureau at or above the county (city) level, they can establish withholding obligations such as pasting books of receipts and expenditure vouchers, registration books of purchases and sales, etc. Persons shall set up withholding and collection and collection and payment tax account books within ten days from the date of the withholding obligation stipulated in the tax laws and administrative regulations, according to the types of taxes withheld and collected.

(2) Where taxpayers and withholding agents use electronic computer for bookkeeping, the accounting records stored and output by the computer can be regarded as accounting for the sound accounting system that can accurately and completely calculate their income and income through the computer. Account books, but should be printed into written records on schedule and kept intact; if the accounting system in Beijing is incomplete, and its income and income cannot be accurately and completely reflected by electronic computers, a general ledger and tax payment or withholding should be established Other account books related to payment and collection and payment of taxes.

(3) Taxpayers engaged in production and business shall report their financial and accounting systems or financial and accounting treatment methods to the competent state taxation authority for the record within 15 days of receiving the tax registration certificate. Taxpayers and withholding agents who use computer for accounting shall submit their accounting software, programs, instruction manuals and related materials to the competent national tax authority for record before use.

The replacement of accounting books is usually carried out when the accounts are established in the new fiscal year. The general ledger, journal, and most sub-ledgers should be replaced annually. The checkbook can be used continuously.

Accounting books are important economic data of all units, and a management system must be established and properly kept. The account book management is divided into two parts: ordinary management and archiving.

(I) Specific requirements for usual management of books

The various books should have a clear division of labor and designated personnel for management. The book management personnel should be responsible for accounting, reconciliation, and settlement, as well as ensuring the safety of the books. Without the approval of the leadership and the person in charge of accounting or related personnel, non-administrators cannot browse and view the accounting books at will. Except for accounting books that need to be checked with external entities, they are generally not allowed to carry out. For carrying out books, generally, the person in charge of management or the person in charge of accounting shall designate a person responsible. Accounting books cannot be handed over to other personnel for management to ensure the safety of the books and prevent problems such as arbitrarily altering the books.

(II) Filing and storage of old accounts

After the end of the year is replaced and the new account is enabled, the old account that has been replaced must be sorted and bound, and archived. The consolidation of old accounts before archiving includes: checking and completing the necessary procedures, such as correcting the wrong seal, canceling blank lines and pages, and carrying forward balances. The loose-leaf account should be withdrawn from the last blank account, then bound into a book, and the number of each account should be indicated. Attention should be paid when binding old accounts: loose-leaf accounts are generally bound into books according to the classification of an account, and one account is bound into one or several volumes; some accounts have fewer pages and can be combined into one volume. When binding, check whether the contents of the title page of the account book are complete. After binding, the handling staff, binding staff, and accounting person in charge should sign or seal at the seal. After the old books are bound, a catalogue and a transfer list should be prepared, and then transferred to the archives department for safekeeping on schedule. Various accounting books, like accounting vouchers and accounting statements, are important economic files. They must be properly kept in accordance with the storage period stipulated by the system, and must not be lost or arbitrarily destroyed. According to the "Administrative Measures for Accounting Archives", the general ledger, detailed ledger, auxiliary account, and journal should be kept for 15 years. Among them, the cash and bank deposit journals should be kept for 25 years, and the foreign-related and private transformation books should be kept permanently. After the storage period expires, it should be reported for approval according to the prescribed approval procedures before it can be destroyed.

Shelf life

Accounting books:

1. 15 years of journal entries Among which: 25 years of cash and bank deposit journals

2. Detailed ledger, general ledger, and auxiliary ledger for 15 years

3. Permanent accounting books involving foreign and private alterations

Accounting statements:

1. Statement of main financial indicators for 3 years

2. Monthly and quarterly report for 15 years

3. Annual accounting statements

others:

1. 25 years of keeping and destroying accounting records

2. Finance cost plan for 3 years

3. Perpetual financial accounting documents, contracts, agreements