Since 1997, economic improvement has had its greatest emphasis in our country. For massive training in this indicator, an organizational system was designed that encompassed not only the cadres of organizations with branch schools but the entire universe existing in the territory with the aim of complying with the aspects contemplated in the National Program approved by the central commission. of pictures from our country.
The organizational design to which we refer had the territorial peculiarity of selecting a teaching staff that, after training led by university professors based on the approved contents, reproduced in seven locations scattered throughout the province the massive training on approved aspects indicated for the cadres and reserves of the highest business level, the budgeted sector and government bodies.
In the approved program, Theme Nr 1 Introduction to Accounting appears, which includes basic contents for the general understanding of the principles, rules and procedures that regulate accounting work, starting from the definition of science itself, the equation with the identification of its elements, the account as an operating instrument, its classification in Real and Nominal. The Debit, the Credit, the Balance, the Trial Balance and the basic books of the Accounting: Daily and Major.
The teaching experience in the teaching of all these aspects has led us on each occasion to refer generally to the documentary support of the record of economic events and was precisely the motive for the writing of this work aimed at cadres and reservations that in a way or another have received these courses or without having done so they wish to gain clarity about the importance of primary documentation in our field.
Development:
As we expressed in the Introduction of this work in the Accounting and Finance courses for the economic training of the cadres, there is something that is briefly discussed and that constitutes the basis for the collection of the event that occurred in addition to serving as a test instrument, the primary documents.
One of the most accurate definitions that we have read on the subject is offered by the author José Mieres Cuartas in his book Contabilidad I where he exposes: “The primary document is the one where the economic phenomena that occur with the expression of their qualitative and quantitative characteristics are recorded in the place where they occur and on the date they originate ”(1).
The variety of operations between companies that carry out business acts gives rise to the use of a large number of these documents where any step that is taken or an economic event that occurs, that is, these economic events that occur daily in The operations of economic entities must be recorded in writing, since this leaves clear and precise evidence of the operation carried out.
This primary document can include a single fact or a homogeneous group of them. The use of a document, whatever its format, is essential for the collection of data and its registration; they also constitute the basis on which all the entity's information is prepared. If the document expresses the objective reality of the phenomenon, the information on it will be correct, on the contrary, if its "qualitative or quantitative" elements, the place where it occurs or the opportunity in which they are manifested, some distortion of the information derived from them. It will be incorrect and therefore the decisions made on its basis will be distorted due to the mistake made, thus failing to fulfill the fundamental purpose of accounting to provide useful economic and financial information about an economic entity.
On the other hand, those who make administrative decisions need this information from the company to help them in planning and controlling activities. The information is also required by external persons (suppliers, banking institutions, ministries, government entities) who in one way or another participate with their sources in financing the entity's assets or show a certain interest in it. The role of the accounting system is to develop and communicate this information, in addition, the accounting system must provide decision makers with projected information so that they can fully fulfill their mission and their decision is timely and consistent with the objectives of the organization.
(1) Editorial Pueblo y Educación. Accounting I. José Mieres Chapter 2 p.19.
As the reader will be able to see, the accounting information is of utmost importance in the decision-making process that we have alluded to and its basis, as we have already stated, is in the primary documentation which must be prepared without erasures, amendments, smears or any brand that questions its veracity and accuracy.
Most of the authors consulted coincide in classifying the documents in: Common (Vouchers, Invoices, Signature Cards, Inventory Cards, Purchase Orders) and Negotiable of which the Bill of Exchange and the Promissory Note are the most representative.
Documents such as checks, vouchers for minor payments, invoices and others must be serially numbered, allowing attention to be drawn in the event of a sequence interruption.
Thinking of any economic entity, we could put a variety of examples that can confirm the importance of documentation as the basis of accounting information that is then used in the decision-making process referred to above.
Let's start by analyzing a very common fact among all: when a manufacturer or wholesaler dispatches the goods or products to the customer, he executes it by issuing the Invoice, which contains the description of the same, the quantity, prices and other elements that complement its Format.
If we analyze it from the seller's point of view, it is a bill of sale; From the buyer's point of view it is a purchase invoice. The invoice in this case constitutes the basis for registering the sale or purchase operation, as the case may be, since it represents documentary evidence of the transfer of ownership of the products or merchandise.
When the buyer receives the shipment, he executes the reception, determining the quantities received by count, measure or weight, while the invoice goes to the accounting department. This process of execution of reception without counting the document that protects your purchase in the area is known as blind reception. Once the Receipt report has been received, the Accounting area proceeds to its comparison which allows establishing the corresponding claims if necessary, on this basis the check for the payment of the debt is drawn up, later and through accounting entries, the When this has happened, the balances of the corresponding accounts in the ledger are updated and the financial statements are prepared on the basis of which finally analyzes and decisions are made.
We have further explained this example known from our tables and reservations so that the potential importance of true and accurate base documentation is clearly understood.
Giving continuity to questions that emphasize our assertion, we could ask ourselves: How to know the existence of any product in store if the Stowage card does not exist? What level of confidence can we have in it if they are not updated in each movement? How to know the location, custody and permanence of tangible Fixed Assets if they are not supported by the corresponding documents? How to discount or rather adequately pay workers if the signature registry is not properly completed, the absences are not located or Other basic aspects of this process? How to know how much money a worker must justify by way of advance if the document that covers it is not properly completed?
These inconceivable hypothetical situations illustrate the reason for the use of primary documents and the extraordinary importance of the veracity and accuracy of the data they express for constant decision-making.
The primary documents form the basis of any control system established in an entity, with the aim of guaranteeing the security and veracity of accounting and financial information.
The models that are included and make up each Control Subsystem are in general use for all state entities in the country, and can also be used by private companies, Basic Units of Cooperative Production, Agricultural Production Cooperatives, Credit and Service Cooperatives, associations and organizations that so decide.
The established models only have data of compulsory use, as regulated by Resolution No. 10-97 dated February 28, 1997, of the Ministry of Finance and Prices, being the responsibility of each organ or body to design its format and guarantee its printing. and distribution to its subordinate entities.
The mandatory data of the modeling established in each subsystem must be completed, whether it be manual, mechanized or automated processing.
Integrating the Control Subsystems include the internal control measures whose mandatory compliance will help to guarantee the custody and correct use of the assets made available by the State to the entities for the development of their activities.
The implementation of internal control measures and the systematic implementation of controls and the application of divisions to eradicate the deficiencies detected, must be prioritized tasks of each manager and of all workers, which will result in increased economic efficiency and in the quality and positive result of the activities carried out by each entity.
In order to establish an effective internal control system, the organization of the entity must first be taken into account on the basis of certain principles, among which the following are essential:
- Adequate division of labor, which guarantees that those responsible for the custody of the media and the preparation of primary documents do not have the authority to approve them and that both do not have the function or possibility of making entries in the accounting records; that is, that in no case does a single person have full control of an operation.
This also makes it possible for the task carried out by one worker to imply the verification of that carried out by another previously.
- Guarantee that the procedures inherent to the control of economic operations, as well as the preparation and approval of the pertinent documents, allow determining in all cases the primary responsibility for all the entries and operations carried out, based on the conception that the rules and procedures structured on the basis of an adequate organization, foresee the functions of each area, that is, what needs to be done, as well as the consequent responsibilities of each one of the members of the same. The timely recording of all accounting operations must guarantee that any resource or service received or delivered is registered and at the same time serves as documentary evidence that specifies who executed, approved, registered and verified it.
For an Accounting System to guarantee efficient internal control, it must be made up of:
- The Accounts Nomenclator, which specifies the accounts, subaccounts and analyzes, both for general and specific use that must be used by the entity, according to the activities it carries out. Definition of the content and use of the accounts, subaccounts and analyzes, especially of those of specific use, established attending to the peculiarities of the entity, as well as of the clarifications that proceed in those of general use. Integration and disclosure of the Generally Accepted Accounting Principles and of the Internal Control Principles to be completed by the entity. Compilation of the Norms and Procedures to be applied, based on the regulations issued by global and branch organizations, as well as those specific to each entity, attending to the particularities of its activity and the requirements of its organization and management.Preparation of a Cost Accounting System consistent with the current regulations on this branch and national matter, conditioned to the particularities of the activities carried out by the entity and consistent with the organization of the production process or the provision of services. Design of the set of models and documents that need to be used in the entity, both for common use that establish relationships with third parties, as well as those that support internal operations, as well as those for specific use, according to the peculiarities of the activities they carry out, including their Corresponding methodologies and providing for the proper filing and preservation thereof, in accordance with the regulations that are prescribed for this purpose.Establishment of the Internal Information System compatible with the General Information System in force for the entire economy, which guarantees the needs for analysis at each level. Define the general aspects to be taken into account in order to adapt each of the subsystems that make up the Subsystems. Internal Control.
RESPONSIBLE FOR INTERNAL CONTROL
All the leaders and workers of a company or budgeted unit linked to the custody, conservation and use of material, human and monetary resources are personally responsible for the infractions they commit in the development of the activities entrusted to them.
The maximum responsibility falls on the director and the other leaders of the entity, since they have the obligation to guarantee control and rationally use the resources provided by the State, extending said responsibility in particular to all the workers who guard and elaborate with these goods..
The accountant has to ensure that all the established control measures are implemented and complied with and alert all members of the labor group about what it means not to comply with what is regulated, but as it has been raised on other occasions, it is not the only one responsible for ensuring control of resources.
Conclusions:
- The primary document is the one where the economic phenomena occurred with the expression of their qualitative and quantitative characteristics are recorded in the place where they occur and on the date on which they originate.The primary documents constitute the basis on which the accounting information is prepared. They must be made without erasures, blots, amendments or any mark that casts doubt on their veracity and accuracy. If the document expresses the objective reality of the phenomenon, the information on it will be correct, if the opposite happens, the information derived from them will be incorrect and therefore the decisions made on its basis will be distorted due to the mistake made.The entity's information prepared on the basis of true and accurate documentation helps decision-making both internal and external.
Bibliography:
- Ministry of Finance and Prices, Finance Manual Updated: Accounting Subsystems. Central Bank of Cuba. Resolution 56/2000 Bank Standards for Collections and Chapter III. Accounting "The basis for managerial decisions" of Meigs and Meigs Chapter I p. 3 and 7.J: Peña and R. Puente. Article: The primary documents and the Accounting program in the economic training of the cadres ”Bulletin year 2000. Information and Development Center for Tourism. FORMATUR, Holguín.
