Accounting ... what is it?

A true management device, accountancy documents all the procedures connected to the task of a business over a given duration. It thus makes it feasible to keep an eye on as well as assess all the components of the life of the firm as well as to evaluate its monetary wellness. It is therefore necessary to maintain all of these accounting records as much as day.

BASIC ACCOUNTING BRIEFLY

General accounting consists of recording the procedures performed by the company ( as an example purchase, sale of items, settlement of financial institutions, car loans, etc.) in accounting books, signs up as well as/ or computer media, on the basis of papers connecting to the activities industrial. Purpose: to know the assets and the outcomes of the business.

General ledger documents all the inputs as well as results of a company. The major elements dealt with by general accounting: profession receivables, trade payables, personnel costs, financial debts as well as tax obligation fees.

Compulsory for all companies, the purpose of general audit is to inform events outside the business of its economic state. It presents using 3 major documents (income statement, annual report, appendix), the business’s scenario at the end of an accounting year, typically equal to one year.

Equipped with all this info, the manager of a business is able to:

know rapidly, at any time, the economic or audit situation of his company,

periodically figure out the result of his organization: loss of profit,

establish a diagnosis. On the basis of the information collected, the firm supervisor will have the ability to compare his performance with that said of similar firms, determine the strengths and weak points of his business, make a decision to expand, modify the array provided, adjust its opening hrs, …

NOT AN AUDIT, BUT SEVERAL VERSIONS

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There are several types of accountancy, depending on the wanted goals.

Cost accounting or management accounting

Unlike basic bookkeeping, it is elective for firms however strongly recommended. Its main goal: to evaluate all the prices connected to the task of the firm and to identify the numerous points of profitability. Intended generally for firm supervisors to allow them to make the right decisions, it is an accounting system based on the analysis of fees and costs, it intends to analyze and figure out prices as well as the logical outcomes of products and services that the company markets.

It informs the supervisors as well as staff members of a firm in the numerous monitoring, preparation, organization, as well as control choices.

National accounts

An crucial tool for comprehending the country’s economic situation, the objective of national accounts is to map the financial task of a nation throughout a specific period, typically equal to one year. Just like a organization, national accounts permit a state to know its scenario at a given minute and also to sustain future decisions. It is among other things on the basis of the accounts issued and published by each business that the nationwide accounts are edited. The primary indicator published by the nationwide accounts is the GDP, amount of the included worths of each business.

Public audit

Public audit is a collection of macroeconomic procedures that determine the earnings and expenditure of the state as well as public neighborhoods.

KEEPING ACCOUNTS: AN COMMITMENT FOR ALL COMPANIES?

All commercial and commercial enterprises are required to keep accounts. According to post L123-12 et seq. Of the French Commercial Code, ” any type of all-natural or legal individual having the condition of the investor must sign up the activities impacting the properties of his company. These movements are tape-recorded chronologically “.

Nevertheless, some of them may benefit from decreases, or perhaps exceptions: the case particularly of firms falling under the micro-BIC and micro-BNC regimens.

THE DIFFERENT ACTORS IN AUDIT

Therefore, almost all firms, whatever their dimension and also sector of activity, can not do without accountants! This self-control combines a selection of careers: accounting aide, accounting secretary, accountant, chartered accounting professional, administrative and economic supervisor, auditor, etc. The accounting field offers many possibilities in terms of career advancement and employment, even if it is not successful, specifically among young people.

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