What is bookkeeping?

In the tumultuous age of a market economy, more and more peopleis engaged in entrepreneurial activity or would like to start a business. Having entered the economic land of financial relations, the future businessman should understand that all actions that he professionally carries out must be reflected and fixed in a certain documentation: in the accounting documentation. Otherwise, he runs the risk of getting confused and getting off in the elementary movement of his income and expenses, and even more so in calculating taxes, the results of economic activity. Therefore, in any organization, accounting should be based. For what it is needed, what are its main tasks, consider in the article.

Definition of accounting

In order for accounting to take place, inThe staff of the organization should be an accountant or even a whole unit called accounting. What does accounting do? And the accounting department collects and stores data on the property and liabilities of the organization or IP, charges salaries and other payments, maintains tax records. And this is one of the understandings of accounting. There is also another, which relates just to the process of reflecting the economic operations of an economic entity by a division of the company or in the person of a manager. The basis for accounting is the correct accounting set by the enterprise.

Definition of accounting

Under accounting understand the organizeda system for collecting, recording and summarizing information in monetary terms about the situation of property, liabilities and the capital of the organization. Also, accounting records all kinds of changes that the company's resources may be exposed to. The reflection of economic operations is continuous, with respect to all operations, without exception, and is documented by special documents. Correctly conducting accounting, an entrepreneur can solve a whole range of important economic tasks, regardless of the result of his activity. Whether it's helping people or making profit.

Tasks of accounting

The very word "accounting" implies accuracy,control and verification of data. And so many accounting tasks serve to control compliance with and fulfillment of contractual obligations, rules of conducting transactions and accounting for them. Also, accounting provides a large amount of information about the economic state of the organization. Here are some problems:

  • monitoring compliance with rules, norms, standards and estimates established by law or internal acts in relation to conducting economic activities;
  • control of the expediency of economic operations;
  • control of the availability and movement of property and liabilities;
  • determination of the organization's reserves to ensure stability and sustainability of development;
  • prevention of negative results of economic activity.

As a result, following the tasks leads us toformation of the main accounting document - financial statements. And this allows us to answer our main question, why does accounting all the same?

Also you can turn to the questions and answers section of the Home Accounting Department and ask your question on this topic.

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