Accounts

ACCOUNT Section

An accounting section provides accounting services and manages the finances of a department. Its responsibilities include recording accounts, paying bills, billing clients and customers, tracking assets and expenditures, managing payroll, monitors the cash flow, budget of the department and keeping track of critical tax documents.

Duties and responsibilities of Account Department:

There are five basic roles or functions within the department:

1. Payroll: The total wages and salaries earned by every employee every pay period, which are called gross wages or gross earnings, have to be calculated. Based on detailed private information in personnel files and earnings-to-date information, the correct amounts of income tax, social security tax, and other deductions from gross wages have to be determined.

2. Accounts receivable/Cash collections: All cash received from sales and from all other sources has to be carefully identified and recorded, not only in the cash account but also in the appropriate account for the source of the cash received. The accounting department makes sure that the cash is deposited in the appropriate checking accounts of the department and that an adequate amount of coin and currency is kept on hand for making change for customers.
Accountants balance the checkbook of the department and control who has access to incoming cash receipts.

3. Accounts payable/ payments (disbursements): In addition to payroll checks, a department does many other works during the course of a year — to check all the challans and transit bills and initial for credit and payment, to initial the service books, other letter of the section, to manage and control all the staff of the accounts section and adjust their works in the event of leave etc.
The accounting department prepares all these checks for the signatures of the officers who are authorized to sign checks. The accounting department keeps all the supporting documents and files to know when the checks should be paid, makes sure that the amount to be paid is correct, and forwards the checks for signature.

4. Procurement and inventory: Accounting departments usually are responsible for keeping track of all purchase orders that have been placed for inventory (products to be sold by the department) and all other assets and services that the department buys. A department makes many purchases during the course of a year, many of them on credit, which means that the items bought are received today but paid for later. So this area of responsibility includes keeping files on all liabilities that arise from purchases on credit so that cash payments can be processed on time.The accounting department also keeps detailed records on all products held for sale by the department and, when the products are sold, records the cost of the goods sold.