Understanding of the Accounting System and Its Functions
Understanding Accounting Systems - Functions, Components, Objectives, Relationships, Examples, Experts: An accounting system is composed of forms, records, procedures and tools used to process data about an attempt about an economic error in order to produce feedback in the form of reports.
Accounting System Functions
Understanding of the Accounting System
An accounting system is composed of forms, records, procedures and tools used to process data about an economic error effort in order to produce feedback in the form of reports needed by management to oversee its efforts and for other interested parties such as shareholders, creditors, and government institutions to assess the results of operations.
The existence of an adequate accounting system, makes the company's accountants can provide financial information for each level of management, owners or shareholders, creditors and other users of financial statements that are used as the basis for economic decision making. The system can be used by management to plan and control company operations.
One system that can be used by company management is the salary accounting system. To overcome the mistakes and irregularities in the calculation and payment of salaries, it is necessary to make a payroll and wage accounting system. Salary accounting systems are also designed by companies to provide a clear picture of employee salaries so that they are easy to understand and easy to use.
Understanding Payroll Accounting Systems According to Experts
Some definitions or definitions of the payroll accounting system put forward by experts such as:
According to Neunar (1997: 210)
The salary accounting system for most companies is a system of procedures and records that gives the possibility to quickly and precisely determine how much gross income each employee has, how much to deduct and income for various taxes and other deductions and how much balance to give to employees.
According to Zaki Baridwan (1999: 102)
A framework of the most relevant procedures in accordance with the overall scheme to carry out the main activities and functions of the company.
According to Mulyadi (2003: 17)
Salary accounting system is designed to handle employee salary calculation transactions and payments, the design of payroll and wage accounting systems must be able to guarantee validity, authorization of completeness, classification of valuations, timeliness and accuracy of posts as well as an overview of each payroll and wage transactions.
Payroll Accounting System Functions
In the company salary accounting system there are several functions involved in recording and providing employee salaries. These functions work together and are interconnected with one another for certain purposes. According to Mulyadi (2003: 382) the function of the payroll accounting system is as follows:
Staffing Function
Employment function, this function is responsible for finding new employees, selecting prospective employees, deciding on the placement of new employees, making decisions on employee salary rates, promotions and salary classes, employee mutations and termination of employees.
Timekeeping Function
Timing function This function is responsible for maintaining attendance records for all company employees. The employee's time attendance function may not be carried out by the operating function or by the payroll register function.
Salary List Builder Function
The function of the list maker is responsible for making a payroll that contains the gross income that is due and various deductions that are borne by each employee during the period of salary payment. The payroll is submitted by the payroll maker to the accounting function to produce proof of cash out which is used as the basis for salary payment.
Accounting Function
The accounting function is responsible for recording obligations incurred in relation to payment of employee salaries (eg employee salary debt, pension fund debt). The accounting function that handles the payroll and wage accounting systems is in the hands of the debt department, the expense card section and the journal section.
Financial Function
The financial function is responsible for filling out checks to pay salaries and cashing the checks to the bank. The cash is then put into an employee salary envelope and then distributed to eligible employees. These functions work together and are related to one another to form a good payroll and wage accounting system.