Any company, business or organization that has financial movements needs to properly master the accounting aspects and their components, since in this way there is a better order in terms of assets, liabilities and investment capital, as well as a history of each movement that is carried out in this aspect in detail.
Now, let’s get to know a little more about accounting.
What is company accounting?
Accounting is summarized in general lines in the activity that involves making a set of accounting documents. Therefore, if we transfer this system to a company, this task would represent the registration of all economic operations of a business, that is, the classification of all income and expenses in order to have all that information grouped and ordered in time and thematic.
It is a mandatory system for any company. Based on the commercial code, a series of obligations is established for the entrepreneur, who must chronologically record all his operations, as well as periodically carry out balances and inventories of his business. Its purpose, to know where everything that the company has comes from, where its money has gone and what remains in it for the future.
What are the required accounting books?
According to the Commercial Code, a business activity should integrate:
• A journal: a primary record of the company’s economic activity. It is a file that chronologically collects the transactions that are made.
• An inventory book: it should include a descriptive initial balance of the company’s balance, a trial balance of sums and balances and a closing inventory, with all the assets and assets with which the company finally ends the fiscal year.
• Annual accounts: they include the balance sheet, the accounting of gains and losses, the report, the statement of changes in equity and the statement of cash flows, once this is due.
It should be considered that the accounting books as well as the annual accounts have to be presented in the Mercantile Registry from time to time, according to the legally established deadlines.