Specifically, carry-over is divided into two situations: final carry-over and daily carry-over.
Period-end carry-forward means that at the end of an accounting period, all accounting records of that period are summarized and carried forward to the next accounting period. This process usually includes transferring the balance of income, cost, expenses and other accounting subjects to the corresponding assets, liabilities or owners' equity subjects to ensure the continuity and accuracy of accounting records.
Daily carry-forward refers to transferring the balance of one account to another account in real time when dealing with daily economic business. For example, when an enterprise sells goods or provides services, it will transfer the sales income to accounts receivable in real time, thus reflecting the creditor's rights in time.
The purpose of carry-over is to improve the efficiency and accuracy of accounting work, and also help enterprises to better manage their financial situation and operating results. Through carry-over, enterprises can find and solve financial problems in time, ensure clear, complete and accurate accounts, and provide reliable data support for decision-making.
When carrying forward, we should ensure that the corresponding relationship of accounting subjects is correct, follow the provisions of the accounting system, and operate according to the correct accounting methods and standards. At the same time, it is necessary to check the accounts to ensure that the account data are consistent before and after the carry-over to prevent errors and omissions.
Matters needing attention when carrying forward:
1. Check all transaction records carefully to ensure that all transactions have been correctly recorded.
2. Verify financial data, including current income, expenses and corresponding cumulative figures, to ensure its accuracy.
3. Check the credit account related to the previous carry-forward, compare the balance of the previous carry-forward to see if it is consistent, and confirm whether there is a new carry-forward account.
4. Verify various financial statement items, such as whether the balance carried forward at the end of the period is consistent with the budget balance, whether there are errors between similar subjects in the current period and the previous period, and whether the aging balance is accurate.
5. When carrying forward manufacturing expenses, all the balance of manufacturing expenses should be transferred to the production cost account.
6. When the cost of finished products is carried forward, the production cost of finished products will be transferred out and credited to the inventory account.
7. After the products are sold, the inventory cost of the sold products will be transferred to the main business cost account.
8. Carry forward income and expenses at the end of the month to ensure the accuracy of current profits.
9. Finally, transfer the profit balance of this year to the profit distribution-undistributed profit account to complete the profit carry-forward.
10. Carry-forward should be carried out in accordance with the provisions of the accounting system and the correct bookkeeping methods and standards to ensure the correct correspondence of accounting subjects. At the same time, it is necessary to check the accounts to ensure that the account data are consistent before and after the carry-over to prevent errors and omissions.