Business people are obliged to keep books. Both commercial law and tax law regulations apply here. In addition, however, the accounting system should be structured in such a way that a significant part of the information supply to management can be ensured.
This makes it clear that the organization of accounting and the required evaluations must not depend solely on the establishment of standards for the systems used. The organization of accounting is based on the circumstances in the company and the need for information – in terms of both time and content.
The organizational structure of the accounting system is therefore not based purely on advance sales tax returns and tax balance sheets. Instead, the focus is on two areas of requirements:
The requirement for an accounting system under commercial law: According to commercial law, there are extensive provisions for the preparation of annual financial statements. These provisions on approaches to assets and liabilities, their valuation and accrual accounting are, by their very nature, also applied in large part to the requirements for financial statements prepared during the year, whether on a monthly or quarterly basis. Your accounting processes should include an internal control system (ICS) and meet accounting compliance requirements. A well-structured accounting system leads to a fast preparation of your annual financial statements (fast close) and to permanently complete information about the economic situation of the company.
The requirement for management reporting: The control of the company needs detailed information. Thus, cost and performance accounting or management accounting can be built up from financial accounting. In many cases, detailed multilevel contribution margin accounting is required or, classically, expenses and costs are transferred to the respective areas of your company through the use of allocations.
Whether it’s an individual company or a group of companies – accounting is at the heart of everything. The processes can be set up digitally to a large extent. Here, everything is based on the requirements of your company. Ensure the fast, complete and correct mapping of your asset, financial and earnings situation with THE MAK’ED TEAM and secure yourself a head-start!