What is the accounting of currency transactions

Practically at each enterprise there are various currency transactions. And it's a sin to talk about banking and other financial organizations, because practically all activity is based on this type of activity. Of course, they need to somehow declare. This is always the accountant, as well as the chief accountant. These people must necessarily have a special education in order to know how to properly organize the recording of foreign exchange transactions. Otherwise, an enterprise or a bank may have problems with various services.

Accounting and analysis of foreign exchange operations includes an entire organizational system that has its own rules, methods, and principles. For example, each action must be accounted for in a specific account. So, on the 52nd, under the name "Currency Accounts", an operation such as a written-off / sold foreign currency must be shown .

It should be said that at the legislative level there are absolutely no restrictions on the performance of procedures of this type between residents and non-residents. But, the account of currency transactions is very strictly controlled, and any mistake can be very expensive. Therefore, every accountant must perform his work very carefully.

Accounting for foreign exchange transactions has some features. First of all, this refers to the fact that there is a need to re-calculate assets, as well as liabilities in the national currency. Also it is necessary to take into account exchange rate differences, which are formed as a result of recalculation.

It should be noted that in any enterprise the accounting of foreign exchange transactions should be made in some cases. First of all, it concerns, for example, when an enterprise buys or sells goods and services, the prices for which are indicated in a foreign currency. That is, accounting of import transactions takes place. The accountant creates a separate account, on which he conducts all actions. For example, accounting for currency transactions should be organized when the business entity receives a loan in foreign currency or, conversely, repays it. There is also a huge number of examples of when such accounting should be kept, but, as practice shows, these situations are the most common.

Incidentally, the account of currency transactions should be carried out at the current exchange rate, which is called the "spot". That is, if the transaction was held on the 12th day, and the accountant started work on the 14th, then it should be done at the rate of 12th date, that is, to be guided by the date of the operation.

In the end, I would like to say that if you do not have a special economic education, then you will not be able to keep a record of currency transactions simply because you will not know how to do it correctly. In this case, it's impossible to just learn, then you have to understand what needs to be done and how, for example, money is written off. That is why every enterprise has an accountant, who ensures that all operations are correctly conducted, and there are no errors.