Three Main Threads Of Accounting Systems

This paper is based on the analysis of the<Accounting System of Small-sized Enterprises> and the<Accounting System of Enterprises>, with the aim of finding out the clues hid behind the accounting systems, and concluding the three main threads throughout the accounting systems. It is to reconstruct the active accounting systems on the hypothesis of the three main threads. The analysis and the reconstruction have nothing to do with the improvement of the accounting systems and the methods of financial accountancy.With the help of the three main threads, we will not only see the business activities as the records of the account items, but also know how they develop node by node in the accounting threads from a process-oriented view.The three main threads are:the first, the profits (income and loss) accounting, it is the accounting order in five nodes with the Current year profits as the central node; the second, the project (development and dismantlement) accounting, it is the accounting order in five nodes with the Construction-in-process as the central node; the third, the material (manufacture and release) accounting, it is the accounting order in five nodes with the Raw materials as the central node.In this paper, every main thread is divided by five nodes. Every node means a package of several sorts of related accounting items. As we know the air line between Beijing and Shanghai consists of two-way flights, one is from Beijing to Shanghai and the other is from Shanghai to Beijing. There are two aspects of every main thread, one is positive and the other is negative. Thus, there are six accounting loci by means of permutation of the three threads and the two aspects. For example, the positive locus of the profits accounting means all of the series of the business activities which have contribution to the profits earning, yet the negative locus of the profits accounting means all of the series of business activities which result in profit loss. The three main threads are not independent from each other. The second and the third thread are related to the first main thread, the profits (income and loss) accounting. The forth node of the project (development and dismantlement) accounting is the fixed assets, without an accurate estimate for depreciation of the fixed assets which are constructed by the company its own, the company’s profit and current value cannot be know. The fifth node of the material (manufacture and release) is the finished goods, the book value of the finished goods will affect the debit balance of operation costs.The hypothesis of the three main threads and the reconstruction of the accounting systems may not be the best way of understanding and carrying out the accounting calculation. Yet we see it as a certain salutary exploration of how to perform our financial accounting work correctly.