Bookkeeping: thoroughness and precision.
The bookkeeping is essential for SMEs and large companies. A company that neglects this activity is liable to sanctions that may come from the tax services, but also from the State. The obligatory nature of this activity must therefore be taken into consideration. On the other hand, it is important that this bookkeeping is done in the most natural way possible. This will not be source of stress and the documents will be error-free.
What documents are required for bookkeeping
There are 3 documents that must be completed daily. This allows us to trace the history of the accounting and finances of a company from its creation to present day, through all its successive years of existence.
Firstly, there is the Compact Journal. This document contains all the information about the management of a given company's assets. The Compact Journal can be the only daybook of a company. It is mainly small businesses that use this process. All accounting entries will then be concentrated on a single document.
A Journal can also be the main document summarizing all the accounting entries previously indicated in auxiliary journals. In this case, it is important to keep all auxiliary books. These books will then become evidence to confirm or disprove everything that is said in the Journal.
A Journal must be filled daily. It is therefore unacceptable that the person responsible for keeping this document does not fill it, even for a single day.
There is also the General Ledger to keep on daily. This document presents the company's accounting plan and the movements related to each account indicated.
There is still the Stock Ledger that deals with the assets and liabilities of the company. This document also includes information on stocks, fixed assets, receivables, debts...
The accounting years opened on January 1, 2016 or after, the Stock Ledger is no longer mandatory.. .
Bookkeeping: what are the benefits?
Even though bookkeeping is a mandatory activity, it represents a great advantage for businesses.
If the enterprise has an efficient bookkeeping, it will be in good standing regarding the law and also the tax services.
The accounting records must be properly maintained and up to date when needed by a consultant or an accountant to allow for an accurate control of accounting activities. It becomes impossible for malicious accountants to falsify accounts because everything is said in these essential documents. If there are contradictions in the accounts, the accountant who has done this must give tangible explanations or it will be applied substantial penalties.
Up-to-date accounting books provide information on the financial health of a company from its inception to the present day. Thanks to these documents, it is even possible to have a graph showing the evolution of the company's finances over the years. Accounting books become documents that greatly assist in the decision for a financial security and the business development.
How to keep the mandatory books?
The accountant has the choice between doing the handwritten follow-up or doing it in an electronic format. For companies that have multiple accountants, accounting can be carried out by a single accountant or taken turns.
However, we must consider which accountant can guarantee no fails keeping the accounting books throughout the career. Of course, a working method can be put in place to make it go smoothly. Nevertheless, an oversight can happen so quickly, and no one could claim to be able to escape it all the time. Steps must be taken to ensure that the accounting books will not be tampered with over the years. That means it will require a talented documentalist and archivist because it is not a clear-cut issue.
An effective software for bookkeeping
For the sake of completeness and avoid problems, it makes sense to use reliable and efficient accounting software for the bookkeeping. This software allows the automatic recording of everything that is done in the ancillary logs for the purpose of compiling the books.
If the required accounting books are forgotten, the software may offer an alarm or a buzzer that will alert the accountant to whom this task has been entrusted. The software is programmable at will so the accountant will be able to program this software for convenience, being a useful tool that lightens and makes effective the performance of the work.
Do you really need to hire an accounting provider?
This can be a great idea. The company's accountant will then be able to handle the day-to-day management of accounts, expenses and financial gains. The provider will be responsible for the bookkeeping.
JKB Services is among the most reliable providers. JKB services is a consulting firm with more than 20 years of experience in providing accounting services. The advantage with our agency is that the imposition of confidentiality is only a formality. Our firm is used to the system.
Our agency will be able to provide all the necessary information on the accounting books if, after a few years, the company wants to resume the follow-up of these documents. It may even provide useful advices for efficient management of this accounting obligation.
Other accounting services are also available in JKB Services.