Introduction: why business accounting

Accounting is not just a calculation of income and expenses. This is the basis of the transparency, stability and legality of any business. It is through accounting data that you can get a complete picture of the financial condition of the company, understand where the leaks of funds take place, determine the prospects of growth and make strategically important decisions. Without competently established accounting, it is impossible to imagine any successful company-whether it be a small online store, a cafe on the corner or a large production holding.

Many entrepreneurs, especially beginners, perceive the accounting department as a burdensome duty that must be carried out for the sake of tax. However, in fact, it is an instrument of control, analysis and development. In this article, we will analyze in detail why business accounting, where to start its maintenance, what approaches exist and what to pay special attention to.

Why accounting is so important

1. Control over finances

Without taking into account it is impossible to determine whether your business really makes a profit. Even if money regularly appears at the checkout, without a systematic approach, you will not find out how much you earn, what are your permanent and variable costs and at what point you risk being in the red.

2. Legality and reporting

Any company is obliged to submit reports to the tax inspectorate and other regulatory authorities. Properly built accounting allows you to do this on time and without violations, avoiding fines and proceedings.

3. Attracting investors and partners

Investors, banks and potential partners always pay attention to the financial transparency of the company. The presence of accurate accounting reporting is a plus to your reputation and the ability to get additional resources for development.

4. Evaluation of effectiveness

With the help of accounting, you can analyze which areas of business work more efficiently, which goods or services bring more profits where losses occur. This is a powerful analytical tool.

Where to start accounting

1. Choosing a form of ownership

The first step when starting a business is the choice of its legal form: IP, LLC, AO and others. It depends on this choice which taxation system you can apply, what reporting will you pass and how to conduct accounting.

For an individual entrepreneur (individual entrepreneur) on a simplified taxation system (simplified tax system), accounting can be much easier than for a limited liability company (LLC), where the requirements are stronger.

2. Choosing a tax system

The tax system determines how you will calculate and pay taxes:

• General taxation system (MAH) - Suitable for large companies and requires mandatory conducting full -fledged accounting.
• Simplified system (simplified tax system) - For small and medium -sized businesses. There are two types: “income” and “income minus expenses”.
• Patent system (PSN) - Only an individual entrepreneur, a fixed tax.
• UNVD - A single tax on imputed income is now almost not applied.

The choice depends on the nature of your business, alleged revenue and expenses.

3. Organization of accounting

At this stage, the entrepreneur decides how the accounting department will be conducted:

• On one's own - using specialized programs.
• Through the full -time accountant - Actual for medium and large business.
• With outsourcing - Transfer of accounting of a specialized accounting company.

The choice depends on your financial capabilities and confidence in your knowledge. For beginning businesses, outsourcing is one of the most popular solutions: it is cheaper than hiring an employee and provides a professional approach.

Necessary documents and accounting registers

Accounting is impossible without documentary confirmation of all operations. Here are the main categories of documents:

• Primary documents: accounts, acts, invoices, checks.
• Contracts and contracts With clients, suppliers and partners.
• Cash documents: cash book, revenue reports.
• Banking extracts in accounts.
• Salary Vedomosti and tabletings of working time.

All these documents must be systematized and stored for at least 5 years (and some - up to 10 years). To do this, special accounting registers are used: the journal-order, the main book, the turnover and sanctuary statements.

Programs and services for accounting

Modern technologies have greatly simplified accounting. There are programs and online services that automate most of the processes. Here are the most popular:

• 1C: Accounting - Classics of Russian accounting. Suitable for all forms of business, has wide functionality.
• My business , Contour. Elba , Business.ru - Cloud services are especially convenient for individual entrepreneurs and small businesses.
• Quickbooks , ZOHO BOOKS - Popular among international companies and freelancers.

The choice of the program depends on the scale of the business, the experience of the user and the budget.

Frequent mistakes of novice entrepreneurs

1. Lack of systematicity

Many businessmen begin to keep records “by mood” - recording some expenses, ignoring others. This leads to financial chaos and the inability to make reporting.

2. Ignoring tax obligations

Even if you have no profit, you are required to give reports. The missed deadlines threaten fines and blocking accounts.

3. Storage of documents in chaos

Is it difficult to quickly find the right overhead or act? This is a signal that you need to organize an archive.

4. Savings on professionals

It is sometimes cheaper to pay an accountant for a consultation than then to make the consequences of an error.

What is important to consider when business growth

When the business is developing, accounting becomes more complicated. That's what to prepare for:

• An increase in the number of operations Requires the expansion of accounting processes.
• Hire employees The calculation of salaries, taxes and reporting to funds entails.
• New partners - More contracts, more complicated calculations.
• Scaling - Often requires a transition to another taxation system.

It is important to adapt the accounting system for current tasks in time. Often it is at the growth stage that the company decides to hire a professional accountant or process automation.

Accounting outsourcing: pros and cons of

Pros:

• Reducing personnel costs.
• Professional approach.
• Minimization of error risks.
• The release of time for business development.

Cons:

• Dependence on a third -party company.
• It is important to carefully choose a reliable partner.
• The need to transmit confidential information.

Outsourcing is especially useful for a business that is not yet ready for the content of the accounting department, but already needs systemic accounting.

Recommendations for beginners

• Start keeping into account from the first day of business.
• Even with small speeds, write down all the operations.
• Do not ignore taxes - they are required for everyone.
• Study the basics of accounting or consult with a professional.
• Store the documents in order and do not lose the checks.
• Use programs that simplify work and help not to forget about the terms of reporting.

Conclusion

Accounting is not just a technical process, but a key element of stability and transparency of the business. It helps the entrepreneur to control financial flows, make strategic decisions, avoid conflicts with regulatory authorities and move forward confidently.

If you are just starting your way in business, do not postpone the organization of accounting for later. A well -built system of accounting from the very beginning will help to avoid many problems in the future, save money and nerves, and will become a strong basis for the growth of your company. After all, business is not only ideas, but also numbers, and accurate numbers are the strongest tool in the hands of a skilled entrepreneur.