Could you please research and explain why accountants need t

Could you please research and explain why accountants need to understand documentation? Please provide a couple of examples of specific documents or documentation that accountants use Also, what kind of controls must a company have in the cash receipt, cancelled checks, invoices and employee time cards? Be specific in providing your explanation with examples.

Solution

Documentation is one of the most important aspect of the Accounting. Documentation is the process of documenting the accounts papers in well organised files so, that they can be easily assessible in the need.

Accountants needs to understand due to the variety and large number of documents in the accounting process. Accounting possess of a number of documents like Purchase bills, invoices, credit notes etc. which is very large in number. If accountants understand documentation they can easily put the documents in the respective files and do the needful.

Following controls shoud be implemented:

Cash receipts : It should be properly secured and should be handled by authorised person only since it consist the sensittive information.

Cancelled Check : These checks must be destroyed and there photocopy should be maintained for future purpose.

Invoices : It should be properly numbered and should contain all the information of the seller and buyer. Extra copy should be there for recording purpose.