Many units are important for businesses, but accounting must function properly. If income and expense items are not followed up, it will be difficult for the business to make a profit.
It is known that the first inventory transactions in history were carried out in Egypt for the purpose of tracking goods. The first written rules about accounting appeared in ancient Babylon. There were written provisions about accounting in the Code of Hammurabi. In other words, the need for accounting coincided with such ancient dates. As a scientific account of accounting, "Recording the information about the financial movements in a period in the relevant books and checking whether the business is making a profit at the end of the year is the work that provides information for the benefit of the business owner and the relevant people."
Accounting is indispensable for businesses. Many units are important for businesses, but accounting must function properly. If income and expense items are not followed up, it will be difficult for the business to make a profit. The accounting unit, which enables to monitor many situations such as the determination of unnecessary expenses, whether the operation of the business is profitable or not, is very important for businesses.
Accounting is keeping a systematic, accurate and complete record of all financial transactions of a business. These records are the most important step of the accounting system. Business owners should be able to retrieve and review records as needed. Business owners can determine how well a business is performing by examining accounting reports. Financial reports are a reliable source for measuring key performance indicators, so business owners can compare and study their businesses against their competitors as well as their past performance.
Financial statements created during the accounting process reflect the financial position of a business at that time. It shows how much capital is invested, how much funds the business uses, the profit and loss of the business, the number of assets and liabilities of the business. One of the common reasons small businesses fail is cash mismanagement. Accounting helps a business determine and manage its liquidity. Reports created by accounting reduce the risk of bankruptcy by detecting bottlenecks.
Accounting helps prevent losses due to theft, fraud, errors, damages, obsolescence and mismanagement by performing various checks throughout the business.
Accounting is essential for businesses. Required for all small, medium or large businesses. Regardless of the type of business, company owners or managers have to measure and audit the operating results of their business for certain periods. This period is called the accounting period and covers 12 months, that is, a calendar year. An operating period begins on 1 January and ends on 31 December. The accounting process between these two dates is also divided into the beginning of the period, within the period and the end of the period.
Transactions at the Beginning of the Period: In a newly established business, the beginning of the period is the date of establishment. The establishment date may not be 1 January, for a business established in the middle of the year, the period starts from the establishment date and ends on 31 December. The fact that the accounting period is shorter than one calendar year will not change the number and order of the transactions to be made.
Transactions in the Period: After the transactions at the beginning of the period are completed, the daily transactions (financial events) that will occur during the period will be recorded.
Period-End Transactions (Inventory - Valuation): The purpose of period-end transactions is to determine the results of the operations of the enterprise during the period and to prepare various reports in the light of this information obtained.
Accounting is essential for every business. If people want, they can set up an accounting department within their own organization and hire staff to do the accounting work. If he wishes, he can get accounting services from an accounting office. In Turkey, opening an accounting department and hiring accounting staff for small businesses is generally an additional expense. That's why they get this service from accounting offices. It establishes an accounting department within its own structure in the enterprises that want it. Accounting is the backbone of businesses.
Accounting is a system that records, classifies, analyzes and reports the income, expenses and all financial information of the enterprise. There are many freelance accountants in Alanya where you can get accounting services. You can contact us for your questions about accounting service in Alanya. As Alanya1.com team, we are working to help you.0 Comments