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Bookkeeping

7 December 2019 - Uncategorized
Bookkeeping

Hello, since you are here, you are looking for information on records and full accounting. You have found the right article and it will explain to you what the obligation to record your company’s business operations is and how it works. First, let’s explain what a record is – it is a company’s turnover list, most often it appears in the form of revenue records, i.e. sales, and is conducted to calculate income tax. To sum up, the register is an assortment, valuable or quantitative list. Here, for the first time we meet with types of accounting, namely taxpayers can use simplified (KPiR) or full accounting. Sometimes we face a situation when as an entrepreneur we are forced to switch from simplified to full accounting. Let’s assume that we want to become an entrepreneur, can we use simplified accounting? Of course, yes, but there is one basic condition, namely our revenue from the previous year did not exceed the amount of two million in Polish currency. Simplified accounting means personal responsibility, no separate legal personality and equity. Full accounting is a more developed and complicated way of keeping records of our company. Such records include revenues and costs of the company, condition and assets of the entire enterprise, including equipment, goods, account balance and cash. As I mentioned above, it is a complicated accounting system, however, it is also accurate and thus reflects the company’s financial situation in the most authentic way. The regulations do not impose the type of accounting and methods of accounting for the tax office. From my own experience, I will add that some forms should be used in your company, although most can only be used. It is important to define our company at the beginning, because to some degree of development some forms of posting are possible while others are not. The basis is the fact that natural persons, civil law partnerships of natural persons, partnerships of natural persons and partner companies are required for this type of settlement, provided that their income for the previous year is a minimum of one and a half million euros. This means that if revenues have not reached such values, full accounting is not required and you can use another form of settlement. For a new entrepreneur, the transition to full entrepreneurship can be a challenge because it is very complicated. For this reason, it is recommended to hire an accountant and go to a professional accounting office. If we make any mistake in the books, its effects can quite strongly affect our company. Full accounting is the most detailed and precise way to settle any monetary value as soon as it appears in our company. Thanks to this, the information collected during the records perfectly shows the financial condition of our company. Full accounting also watches over the inventory, i.e. the inventory of assets and sources of its financing, is also a great source of information for entrepreneurs. This is perfectly illustrated by the example of large companies that have many sources of financing. Due to meticulous records, we can see all changes taking place in the company, as well as observe the trends that are coming. Full accounting also requires reports that mainly show financial movement. For example, what the profits were intended for or where they were obtained from. As far as the staff is concerned, full accounting offers payroll cards, thanks to which we will settle expenses incurred for employing the appropriate staff. Thanks to this, we are able to create a summary of how the quality of work performed by one employee relates to the cost of his maintenance. Well, according to my humble opinion at this point and after reading this article, everyone should see the answer to the hypothesis set out at the beginning. Do you need an accountant or an entire office to run accounting, especially with full accounting. In my opinion, with simplified accounting, we can do it ourselves, of course, it requires self-discipline, reliable memory, etc. however, full accounting is no longer a trick and data to enter and the obligations on which we must focus is so much that we would simply not have a private life. Therefore, if we set up a small business, we can try to record our business and settle accounts with the tax office on our own, but if we intend to open a large business that brings millions of profits, I definitely recommend hiring an accountant or referring the matter to a professional accounting office. For my part, that’s it, thank you very much for the time and attention devoted to this article and I invite you to my other works.

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