Recently, companies have demonstrated the ability to keep simple accounting records. This explains the lack of a clear understanding of the process by the person running a particular company. Including an accountant, if any.
Without proper training, it is difficult for humans to understand the intricacies of this invention. Also, understand the full meaning of the financial and legal aspects of the case. We can point out several advantages and disadvantages in trying to keep it as short as possible. Simple preparation of financial statements
The Negative sides
The first and biggest drawback to trying to keep accounting records simple is the clear identification of companies that have the legal authority to do so. This is something that financiers don’t know much about. But the lawyers clearly understood: a clause in the law. This change can be seen in federal law. See Section 6 of Law 402 No. 4 for this.
If you need bookkeeping services, click on our site. Bookkeeping services in Melbourne.
According to the information provided by law, the right to store accounting records has been given to only three types of companies in a simple form:
- Items in the “Small Business” category
- Companies that fail to achieve their business goals.
- Sculkov Project
If everything is very clear in the second and third paragraphs, it is because there is a clear difference between trade and non-trade organizations. You can also see who is participating in the project mentioned in the previous paragraph. Show that the problem is to understand First, which companies and entities are included in the definition of “small”?
Read more: Technology Behind Crypto Trading
These details are also discussed in the relevant article – failure to meet the standards established by Article 4209-FZ. (“Small Business”):
- Small projects
The first or second type of company is determined by the following characteristics:
- Amount of annual income
- Number of workers
According to these characteristics, the data will be recognize. Most do not include these two types of “small business” companies or firms.
The amount for small businesses should not exceed 800 million rubles and the number of workers should not exceed 100 people. The figure is 12,000,000 rubles and 15 people.
The positive side
The possibility of easy account management allows companies to freely choose to simplify their activities. This is the main advantage. The positive side.
The only limitation required by law is that accounting reports must provide completely reliable information about the financial condition of the company.
For the rest, there are more than twenty points that a company can make to make accounting easier.
The complexity of managing financial matters in business and accounting is closely linked to the nuances of legal issues. So this is a risky business. The most rational solution, in this case, is to engage with experts.
Switching to Stolichnaya Tax Consulting LLC ensures accounting support for each client and an individual approach to solving common emergencies and “everyday” problems. The company’s employees have been providing professional advice and support for years. 2002 has brought us full experience and customer satisfaction.
If you like our article, you can definitely tell us by commenting in the comment box and you can share this article with others so that they too can benefit from reading it. And if you feel that this article has been mispronounced, please let us know in the comment box so that we can fix it immediately and provide you with better content. For us, our users are at the forefront. We want to provide them with the best content and information. Thank You
Read Other: FEATURES OF SMALL BUSINESS ACCOUNTING