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Everyone knows that some kind of accounting needs to be kept in business. Someone writes everything in a notebook or stores information in his head, someone makes plates in Excel, and the most advanced keep records in software products.

But what kind of accounting do you need? Let's figure it out.

You are the owner of your small business and at the same time still a director, a sales manager, a secretary, a lawyer, and God knows who a man-orchestra is in one word. How to forget nothing, how to make crucial decisions in a correct and timely manner? Of course, the easiest way to write. But do you have time to study the recordings? Does time remain for yourself? I think that is unlikely.

But this accounting for the owner, in my opinion, the most important, is called management. This accounting fully reflects the business picture; it shows the real state of affairs in the company. (I’m doing his production). It can be kept in tablets and in other software products, as it suits you, the main task of accounting is to obtain complete and timely information in the form of a Cash Flow Statement (DDS), Profit and Loss Statement (OPI) and balance sheet.

And so, management accounting is your financial advisor. He will give answers to the following questions:

- how much to invest in advertising this month?

- If you hire another employee, the profit will increase?

- Can a client be given a deferred payment? and how many days?

- And how many days should I ask for deferment from my suppliers? Is it profitable for me to work on a prepaid basis?

- how much can I take money from a business and put it in my pocket?

- where to invest: open a new store or develop the one that is?

- hire staff or work with an agency?

Accounting helps to make management decisions. Reports help you create a clear plan for action or inaction if the action results in failure. Owners need reports to see the past, look into the future and indicate the right way for money.

If three reports of DDS, OPiU and balance are provided on a schedule, have the same values and figures, and there and there converge to the hundredth, the reports do not lie.

In small and medium-sized businesses, company employees keep records, and the owner is responsible for maintaining them. His task is to make sure that employees collect the numbers on time and accurately draw up reports.

Accounting is conducted by employees who create obligations. The sales manager is responsible for accounting for the signed contracts, the supplier - for the remaining stock, the purchasing department - for our debt to suppliers and customer debt to us.

The CFO or consultant ensures that the accounting is correct. He collects numbers in one place, creates a convenient structure, analyzes. Then it collects into understandable reports and timely provides the owner to the table.

The following types of accounting are accounting and tax. The main difference in them is that all financial and business operations are reflected in accounting in accordance with the Accounting Rules (PBU), and in tax all operations must comply with the requirements of the Tax Code. There are a lot of requirements in the Tax Code of the Russian Federation, which leads to discrepancies in accounting and tax accounting. Keeping these records is best given to the accountant!

Management and accounting are two different things. Management - helps the owner to manage the company, and accounting - to submit timely tax reports.

Think about how it is easier to make a decision in business relying only on intuition or looking at numbers? 🙄

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