Double-entry bookkeeping system

Accounting refers to the distinction made in numerical values ​​, seamless, chronological and factual orderly record of all business transactions in an enterprise from evidence. It is the numerical mirror image of a company and important source of information for entrepreneurs and also serves to comply with the legally fixed information requirements of authorities.

Records of economic activities among the oldest documents ever. The currently prevailing system of double-entry bookkeeping was developed in the Middle Ages in Italy and has since been largely unchanged in use.

• 6.1 Document Required
• 6.2 Organizational principles
• 6.3 Booking principles

• 7.1 balance Sheet
• 7.2 Relationship between balance sheet and inventory
• 7.3 Relationship between balance sheet and accounts
• 7.4 Profit and loss account

• 8.1 accounts system
• 8.2 accounting record
• 8.3 Booking system
• 8.4 Dragging balances

• 9.1 Journal ( land register)
• 9.2 General Ledger
• 9.3 In addition to books

Definition of the term

Advantageously, is a subdivision of the preamble " accounting " in the

• Accounting records from which accounts (balance sheet, profit and loss account) is developed and
• The accounts of the holding, which is used for internal cost accounting and cost accounting ( pricing).

Bookkeeping is an integral part of business accounting. This contains not only the financial and operational accounting the economic statistics and comparative statement and the business plan ( estimates of future revenue and expenditure ).

As a synonym for " accounting " also accounting is often used. This seems to be inappropriate because

• Is used in most laws, the term " accounting "
• In practice often under "accounting" only the organizational unit of an enterprise is understood in the accounting records is performed.

This article explains the general accounts and in particular the methodology of double-entry bookkeeping. This is the most in the private sector generally customary for merchants statutory method to properly maintain books. Small businesses and freelancers can settle their business in the simpler net income method.

In public administration since the end of the 20th century there will be a supplement to the Kameralistik elements referred to in this section entry bookkeeping method of double entry bookkeeping.

Bookkeeping is to be understood as a reporting required by law. The accounting principle that is used in this paper follows the HGB. There are in Germany with the records but also quite different accounting requirements are met (for example, IFRS and U.S. GAAP). This then requires a parallel accounting, from multiple accounts can be created ( according to the different accounting rules ).

Goals and areas of financial accounting

• Any time overview of the financial situation and the level of debt of the company. At least once a year Assets and debt are to be documented in the balance sheet and demonstrate with an inventory.
• Identify and systematically arranged record of all transactions that change assets and liabilities.
• Success determination by comparison of revenues and expenses. This is done at least once a year in the profit and loss account.
• Providing the information required by law, on the basis of the tax authorities to make the taxation of the company, and other information for government agencies, courts, banks or other external users in the prescribed form.

Addressees of results from the financial accounting

Company- internal audiences:

• The entrepreneur himself: he can not keep track of all transactions in the head. For its commercial decisions it needs constant overview.
• On business investors involved: Many companies are organized in the form of a society. Participating shareholders demand - permanently or at least periodically - meaningful, verifiable information on the situation of the company.
• Employees and their representatives

External users:

• External investors, especially banks
• Creditor
• Tax Office
• Public

Will of by various different standards for the reporting of the financial accounting requires (balance sheet, profit and loss statement, cash flow statement, among others ), this may necessitate a parallel accounting.

Obligation to keep records

In addition to the self-interest of the entrepreneur, there are legal provisions in which the duty is laid down to accounting. For merchants and voluntarily balancing the end of the accounting provisions of the Commercial Code (HGB):

Under commercial law

" Every trader [ i The meaning of § 1-7 HGB ] is obliged to keep records and make these its trading business and the position of its assets in accordance with the generally accepted accounting principles can be seen. "

Professionals whose businesses require the type and scope a commercially organized business undertaking or which are listed in the Register, are merchants and thus obliged to keep records.

§ 241a HGB (inserted by the Accounting Law Modernization Act (BilMoG ) ) specifies the exemption for small sole proprietors of the accounting obligations.

By the taxation law

Derivative ( derived ) accounting obligations

"Who has under other laws to guide as to the tax laws books and records that are relevant to the taxation of importance, has the obligations imposed upon it by other laws to fulfill even for taxation. "

Primary accounting obligations

" Commercial entrepreneurs and farmers and foresters who according to the findings of the financial authority for the individual operating

Have had are also required to allow for this operation to keep records and make annual stock inventories statements when a book -keeping requirement of § 140 is not [see o ] results. "

However, this applies not just for the so-called liberal professions, such as lawyer, accountant or doctor, for which there is generally no obligation to keep accounts. An exception is made only when the corresponding operation is operated in the legal form of a corporation or a company, such as a run as a limited company tax consulting firm - here would be to § 6 para 1 HGB (Form merchants ) engage and undertake to keep records.

The original book -keeping requirement applies, however, only from the marketing year, which follows the release of the tax office on exceeding the limits. It does not end until the end of the year following the determination of the shortfall marketing year.

Nature of the accounting

The § 238 German Commercial Code states:

" The accounts must be such that it within a reasonable time to provide an overview about the transactions and the position of the company to an expert third party. The transactions have to be traced in their origin and settlement. "

A " third party experts " can be a financial official who controlled the accounts as part of an external audit. Expert third party can also be a family member or donors, who will be in reference to the books of the fact that their money is well spent.

These provisions are supplemented from a tax perspective in the tax code. If the accounting system does not meet the requirements, for example if documents are missing, the tax authority may in accordance with § 162 AO estimate the tax bases.

Generally accepted accounting principles ( GOB )

These principles are available in various statutory provisions include, but such result from the established commercial practice. They fall into the two basic principles of "truth" and summarized "clarity".

• Truth in accounting means that everything has to be booked, as it really happened. Note book about events that have not actually occurred, are prohibited fakes.
• Clarity means that everything has to be against counterfeiting clearly, clearly legible, comprehensible and protected.

Proof obligation

One from the demand for truth and clarity absolutely dissipative rule is that no reservation may be made without evidence exists. If the document does not arise directly from the business transaction (eg purchase invoice, receipt ), is to make a proper document ( copy of outgoing invoice, contract document, material requisition slip, depreciation proof, ...). In the fabrication of self- evidence is to be considered from the outset that they have to withstand every revision, especially in front of the tax office. Exist for accounting records retention requirements (usually 6 years at trade letters or 10 years with receipts).

Organizational principles

• Each business transaction is to be recorded in a document.
• The documents are continuously to comprehensive and timely manner.
• The transaction has to be systematized.

Booking principles

• Principle of verifiability.
• Principle of clarity and transparency.
• Records must be kept in a living language
• Abbreviations must be comprehensible
• Financial statements in German language
• Principle of completeness
• Complete recording of all business transactions
• Principle of accuracy and truth
• Not obliterate
• Devalue gap
• No reservation without evidence
• No reservation without offsetting entry ( contra account )

Electronic documents can be handled and stored in accordance with the principles of proper DV - based accounting systems. Of particular importance are the GOB in accounting. The Commercial Code contains a number of special provisions that are to be taken into consideration.

Double-entry bookkeeping - Basics

The double-entry bookkeeping and double-entry accounting - also called business accounts - is the predominant in the private sector nature of financial accounting. In the meantime, go to Germany, more and more municipalities of the cameral to double-entry bookkeeping (see new municipal financial management).

Europe since 1494 knows the double-entry bookkeeping at the latest by a book of the Italian Franciscan friar Luca Pacioli. One speaks of " double " accounting because each transaction is recorded in two ways. In a posting record set is generally recognized to have and thus captures every transaction twice, but on different accounts. It is at the same time each exactly the same value is posted to the debit and in credit.

A different interpretation of the term " Double-entry bookkeeping " sees the duplicity is that the success of a company can be demonstrated in two ways:

• By comparing the equity of the current year with the previous year in the relevant balance sheet,
• By comparing the income and expenses of the current year in the profit and loss account.

According to a third interpretation of the term is derived from the two books in which every transaction is recorded. The Land Registry (Journal, social security: Time Book) captures the book in chronological order, in the general ledger ( account forms, social security: non-fiction ), a factual assignment by the Book in accounts.

Balance

The term balance comes from the Italian " bilancia " translated it means balance. The balance sheet is the presentation of assets - the assets - on the one hand and the presentation of the financing - the liabilities - other. Assets are those assets forms that can use a company "active", regardless of whether they are self-funded or not. Put simply: the asset side expresses what assets exist. The liabilities side shows how these assets was financed, ie the sources of capital; either by their own money (equity ) or debt ( liabilities). The investor can support the direction of the business, but compared to the Managing Director, he still embodies the passive side.

Previously, the detail of the balance was left to the merchant - it had formed a sort of general social agreement. In Germany the exact procedure is regulated today in § 266 para 2 and 3 of the German Commercial Code law. The balance sheet classification contained therein is indeed required only for large and medium-sized corporations and certain partnerships ( § 264a HGB). In practice, this structure has prevailed but for all partnerships and sole proprietorships, often the positions being further compressed.

Under the heading of balance sheets, the structure is read. Both sides of the balance sheet are sorted, namely:

• The assets side ascending by " liquid " ( Liquidity ): assets that can be converted into cash hardest (eg land), Stand up, the money the closest to assets (cash on hand, bank balances ) below.
• The liabilities side in ascending order by " maturity ": Above, the sources of funding available to the company in the longer term available below the current liabilities.

Relationship between balance and inventory

A balance sheet is the entrepreneur eventual donors and the tax authorities only provide the necessary information if the values ​​contained therein are true. This is secured by the inventory.

Also in the inventory drop the information needs of the entrepreneur along with those of external stakeholders. The creditor protection commands the working with foreign funds buying man that he puts his fortune and his debts accurate. He can not simply enter any estimated values ​​in the balance sheet items. Each value must be verifiable through the inventory. Therefore, the obligation to prepare an inventory is imposed on him:

" Every trader has to start of his business recorded its land, its claims and liabilities, the amount of his ready money as well as his other assets accurately, stating the value of the individual assets and liabilities. "

Relationship between balance sheet and accounts

The account in the financial accounting is used to develop the balance sheet as a snapshot of a dynamic representation of transactions. This feature results from the fact that each business case changed at least two balance sheet items - but usually not more than two or three positions, while the many other items in the balance sheet remain unchanged. It is therefore advisable to change only the items that are affected by the transactions, rather than re-create the total balance after each transaction. This knowledge is developed to resolve the balance in accounts and enter only the changes in accounts. Without the resolution of the balance sheet asset and liability accounts to handle the booking of business cases in which compliance with the generally accepted accounting principles would not be possible.

In the accounts opening balances are carried forward. The recitation of opening stocks according to the principle: If the values ​​are in the balance on the left side ( the asset side ), they will come ( called target ) into the left side of the account. In contrast, the values ​​from the right side ( the liability side ) of the balance on the right side of the account (credit).

The principle of "no reservation without offsetting entry ", be touched by at least two accounts at a booking is supported already in the dissolution of the opening balance sheet accounts statement. Since there is actually no offsetting account for the acquisition of opening stocks in the accounts has been introduced as an auxiliary construction, the opening balance sheet account ( SFBC). This therefore includes all initial stocks, but - logically - mirror, and also serves to check the accuracy and completeness of the amounts to be transferred.

Operating statement

Processes that affect the business success of a company could be posted directly to the equity account of the Company. This corresponds to the posting logic and content is also entirely correct. In this case also the clarity would be safeguarded in a few business cases. In practice, however, there are, even in small companies countless business cases that represent the income and expenses and thus affect the equity. Would always be booked directly in the equity account, the result would be chaotic and confusing. To maintain clarity, income and expenses are booked directly, but only offset to the equity account. For this, a special profit and loss account is set up and connected upstream of the equity account. The structure (outline ) of this bill is derived from § 275 HGB. Most common is the profit and loss account using the cost method.

Accounts and bookings

Accounts system

Before values ​​included in the balance sheet or profit and loss account, the finances of a company are recorded on accounts in current business. An account is a table with two columns: One of desired ( S) and a credit side (H).

Earlier, when the accounts were still out in bound books, were used for account illustration, the so-called T- account. The presentation is similar to graphically the letter T. Today, the account has a different look, but still the display with debits and credits. The words "shall" and "having" are due no meaning and historical. It is not to " have something " or " something that will be that." In particular, the term " credit" is often misunderstood: He does not mean " possession"; he is to be explained by the function of the suppliers account. On the right side of this account, the corresponding amount was based on the principle "We HAVE to pay! " Is entered. On the left side of the customer account was added "The client SHOULD pay! " - So therefore "shall" as the left side of an account.

The accountant is different balance sheet accounts and income statement accounts:

The accounts are arranged in a systematic order ( chart of accounts). The modern systems, which are based on one of the recommended chart of accounts, in accordance with the balance sheet. The accounts bear numbers that can immediately recognize how they are classified in the balance system.

Accounting record

A simple reservation concerns two accounts, one booking in the set, a second in credit. On each document is stated, is as booked. This is done in the form of a booking record. First, the account will be called to set the reservation is made. Then follows the word " of " and then the account that receives the credit entry (or short: always " on target to have" ). An example: purchase of raw materials to target receives the booking rate

Composite booking records can appeal to a variety of accounts. However, the sum of all entries in the debit and on the credit side must match. Are the totals differ, the posting record is incomplete ( he " does not trigger" ) and a reservation in most computerized accounting systems is not possible.

Booking system

Each booking changed at least two accounts and therefore has an impact on the values ​​of the balance sheet and the profit and loss account. A distinction is recognized in equity transactions that affect only the balance sheet and income statement transactions that are reflected both in the balance sheet and in the profit and loss account. Assuming there are six basic situations:

Directly in equity:

• Exchange of assets: An asset account is multiplied by an amount reduced to another by the same amount. For example, a customer pays an invoice by bank transfer.
• Posting record: " bank account " to "demands".

• Example: A supplier debt is converted into a long-term loan.
• Posting record: "Trade receivables" ( liabilities a L. L.) to "loan".

• Example: Raw materials are bought "on target ", that is, the bill is not paid immediately.
• Posting record: " raw " and " pilot " to "Liabilities a L. L. ".

• Example: A supplier invoice is paid by bank transfer.
• Posting record: " a L. L. liabilities " to " bank account".

Profit or loss:

• Positive success effectiveness: 1 stock and 1 income account addressed → Profit Example: A customer invoice is billed.
• Posting record: "demands" to " Revenues ".

• Example: A Craftsman invoice is paid in cash.
• Posting record: " maintenance costs " on " Checkout ".

Note: in principle, multiple accounts can be addressed.

The example of exchange of assets: An asset account is reduced by an amount equal to two other multiplied by the same amount in total.

• For example, a customer pays a bill for 1.000, - € per half cash and by bank transfer.
• Posting record: " Bank Account 500, -", " Checkout 500, - " to "Receivables 1,000, - ".

Dragging balances

The stock on the individual accounts is determined by the drawing of balances. This is accomplished by the totals of the debit and the credit side are determined. From the larger side in terms of value, the value of the smaller side will be deducted. Makes the debit side the larger value of, the result is a debit balance. If the credit side prevails, there is a credit balance.

The traditional accounting works can be seen as an absolute value, as in the above table. However, there are computer programs that show debits as positive and credit items as negative numbers. In this case, the balance is the sum of the line items of an account.

In business at least once a month erected during the year, a list of balances, as they the status of his accounts, so practically shows the entrepreneur to take stock. After the addition shows the equality of the sum of all balances in debit and credit, debit and credit that were not mistaken when entering and not a number Dreher have occurred.

It is often represented the difference in the income and expense accounts should not be referred to as "balance ", but only as a "result". This designation is strictly accurate. Substance it is usually with the prohibition to offset, which states that expenses and income may not be offset for clarity to booking the profit and loss account.

Each booking will be held in at least two books. The term " book" comes from the traditional accounting, which took place by means of manual entry of values ​​in bound books. However, it is still used for the electronic records of the accounting data. The two most important books are the journal and the general ledger. They are always out separately. Only the simplest form of double-entry bookkeeping, the American Journal, summarizes both books together in a table.

In Switzerland, the books of Regulation ( GeBüV ) regulates the registers to be kept in their storage and materials.

Journal ( land register)

In the Journal (translated diary) all transactions in chronological order (in time) with serial number, date, amount, reference to the document, explain and account assignment ( debit account, credit account ) are recorded. The function of the journal is based on the following principle: All business cases must be possible to pursue both chronologically and can also be assigned to the individual balance sheet items. The chronological order is ensured that all accounting records are recorded according to the date in the journal. It is the basic book of accounts. At the same time, the Journal is the booking instructions for the transfer of bookings from the land register to the general ledger.

Ledger

As a general ledger accounts, the work is with its objective the reduction and motion denoted by business events in the individual balance sheet items. In the general ledger (also: account sheets ) are entered all bookings of the land register to the accounts referred to in the accounting records. The stock accounts to be opened at the beginning of each fiscal year with the ending stocks of the previous year (for example, bank balance ) at the end of the financial year they are on the closing balance sheet account ( SBK) completed (success accounts are closed on the profit and loss account, direct sub-accounts previously about their actual " mother accounts ", for example VOSt on VAT, private equity over, etc.). Through the records in the general ledger so the objective order of the individual business transactions is made.

For the book itself, the basic rule is: First, register a property (Journal ), in the following posting to the accounts ( general ledger ).

In addition to books

In addition, there are various sub-ledgers explaining certain general ledger accounts. These include, for example,

• The current account or business associates Book ( includes payables and receivables from suppliers (vendors ) and customers (debtors ) )
• The stock book (contains additions and disposals of inventories )
• Wage and salary administration ( includes the statements of earnings )
• The banking book ( containing the items of fixed assets )
• The bank book and the cash book (included cash and cash equivalents )
• The accounting ledger (which contains the billing)

The annual financial statements

Basic rules to the financial statements contained in § 242 of the German Commercial Code:

• ( 1) The Merchant shall establish the beginning of his business and at the end of each financial year, the ratio of its assets and liabilities constituting accounts (opening balance, balance sheet). On the opening balance sheet for the applicable financial reporting framework to be applied according to the extent they relate to the balance sheet.
• ( 2) He shall draw up a comparison of the income and expenses for the year ( profit and loss account) for the conclusion of each fiscal year.
• ( 3) The balance sheet and profit and loss statement form the financial statements.

Steps in the annual financial statements

• Through inventory ( collection of all stocks ) the inventory is to identify and writing. Thus, the amount of all assets and liabilities is determined. Any differences to the balances on the accounts have to be clarified and bookings ( stocky with own documents) to clean up.
• Then the sub-accounts in the income and balance sheet accounts are completed on their "Mother accounts ", such as " tax on WHT ", "owners equity ", etc.
• Then the profit and loss accounts are to be completed on the profit and loss account. For expense accounts is the accounting record " profit and loss account expense account ." The accounting record for the conclusion of revenue accounts is " revenue account in the profit and loss account".
• The profit and loss account shall be completed on the equity account. If the income was greater than the cost (it has therefore been a profit) is the posting record " profit and loss account on equity ".
• After that, all balance sheet accounts ( assets and liabilities accounts) are to be completed with the closing balance sheet account.
• The closing balance sheet account ( SBK) contains the values ​​for the year-end balance sheet. The information must be brought in the statutory form. The SBK is constructed as the balance sheet, in contrast to the SFBC, which is a reflection of the balance sheet and in which the opening balances of assets in credit, the opening balances of liabilities in the set are: the SBK closing stocks of assets are in the set, closing stocks of liabilities in credit.
• The profit and loss account includes the values ​​of the profit and loss account. Here, too, must be prepared on this basis, the statutory overview.

History of Accounting

Antiquity

First approaches to the recording of economic processes can already be found in the Ubaid period in Mesopotamia. Around 3500 BC have been made statements for bread and beer on clay tablets in the developing cuneiform by the Sumerians. Developments about 3000 BC in Egypt and Babylonia led to the first representations of debits and credits on papyrus scrolls. Dating from around 200 AD, the first loose-leaf book guides are available on the prepared palm leaves in India. Records in Greece of the 5th century BC speak of the Logis Thai who took the final accounts of the cash accountant of the Delian League and determined the " tithe " to the goddess Athena.

Middle Ages

From the year 795, there is a regulation of Charlemagne on the crown lands and poor farms, after a comprehensive annual financial report was prescribed with a well-ordered statement of net assets, including the royal chancery docked church tested sample forms. The oldest merchant Document north of the Alps comes from the Hanseatic Lübeck Central, where a cloth merchant has held in 1180 on a roll of parchment around 160 transactions in the simplest form. In Europe, the books and records of the Greek and Roman culture through development of Kontokorrentrechnung ( recording the development of assets and liabilities to individual counterparties ) has been extended. In Genoa 1263 two urban " Oberkontierer " detectable, the individual accounts docked with the ancient Roman names ratio. Beginning of the 13th century, the Arab decimal system known in Europe (see Leonardo Fibonacci ). The Roman number system that was considered secure against forgery, but held until the end of the 15th century.

A complete double-entry bookkeeping can be demonstrated for 1340. From this period are preserved ledgers from Genoa before with the revenue and expenditure of the government. This, divided by the debtor and taxes, bonds and penalties, clearly point to the double-entry bookkeeping. Also 1340 in Lübeck - after the pattern of Genoa, Venice and Florence - the double booking rate has been introduced with the erection balance similar overviews.

Since 1426 there is evidence that goods accounts have been performed both as inventory as well as sale of goods accounts. Under the manuals on accounting, resulting in the second half of the 15th century, describes the merchant Benedetto Cotrugli in his Libro dell'arte di mercatura for the first time the method of double-entry bookkeeping. Comprehensive but it is shown only in 1494 by the Venetian monk Luca Pacioli. His work Summa de Arithmetica, Geometria, Proportioni et Proportionality was not a textbook on the double-entry bookkeeping, but it summed up under the term Venetian method principles together, which are essentially remained unchanged.

Modern Times

Already in 1511 created the first time a balance sheet, the Fugger. In the 16th century, the educated in Venice chief accountant of the Augsburg Fugger house, Matthew Black, the Italian one " teutsche " Accounting opposite. The main book has been divided into a persons account or " book-entry " and a ledger book or Capus. Added to this was an " expense booklet" for fees, excise taxes, etc., and a "secret book" the principal, which should include both internal calculations of direct taxation mainly the profit and loss account.

Evolved works on accounting published in the course of the 16th century in Italy, Germany, Holland, France and England. These already include descriptions of the concept of credit items ( operating assets ), liabilities ( liabilities ) and income. Among other things here worth mentioning is the first accounting textbook of the mathematician Sartorius from 1592.

Until the 17th century gradually accrual accounting (fiscal year or calendar year) developed as part of the ever-increasing movement of goods with regular books conclusion. At that time, goods receipt, goods issue and cash books, journals, etc., were performed. Investment accounts and cost accounting were systematically expanded until the beginning of the industrial age. Since the end of the 19th century increased both by the findings of commercial sciences and business administration as well as by the legislation, the requirements of financial and management accounting.

The legislation around the accounting was developed gradually. Thus one finds in the Prussian General Land Law of 1794 for the first time the legal obligation to report for Prussia: "A merchant who either no proper books of leads, or omits the balance of its assets at least annually once to draw, and thereby in uncertainty about the location receives his circumstances, shall be punished as negligent Bankerutirer in an outburst of payment failure. "

After the dizzying early days of the corporation were also in commercial law - set new signals - in Germany the share novella of 1884: The grown principles of the balance sheet were enjoined by law; their violation was punishable; all honorable merchants knew been confirmed and committed to the principles " proper " accounting. The Prussian Income Tax Law of 1891 led then to link the tax return with the trade balance.

Modern

The accounting responded continuously to the progress of information recording and processing. For a long time the books were made ​​by hand with high meticulousness. With the possibilities of using NCR time and effort could be saved by the manual account entries copied to the Journal ( durchgepaust ) were. This, however, had to be resolved into individual leaves the books. For the traditionally-minded accountant that was a kind of revolution. Has been further developed the carbonless method using a typewriter technology and later with accounting machines that could perform simple computing tasks. The first accounting machines were manual- mechanical, later an electro-mechanical drive has been developed. From the 1960s could be stored electronically for the first time with so-called magnetic accounts the accounting data. Special magnetic accounts computer served as an interface between classical accounting and modern electronic data processing. Today the accounting takes place almost entirely electronically. There are a large number of more or less user-friendly accounting software for personal computers. Despite these dramatically different from pen and paper technical resources, the accounting of a company with its core accounting system has changed very little. The Journal is now a table of a relational database, it also stores the access time and the processed user because there is no more handwriting and has access protection according to requirements. The remaining ordinary data, as well as the accounting framework that serves as a template of the account master data, data technology linked to the Journal. Evaluations and reports such as Open items, VAT returns, balance sheet based on pre-programmed queries from the database. These are according to the document entry ( the entry of documents into Journal ) a button available. Behind the account master are again the tax types and rates linked.

Organization of the accounting

Standards and objectives of the accounting organization

Bookkeeping is be designed so that it is for the entrepreneur to the source of information about its economic success and its decisions to be taken. Similarly, the requirements that are provided by the tax legislation of the accounting records to meet. At the same time caused the accounting costs, reduce business success. Just like the whole company including the accounting records with maximum effectiveness needs to be organized.

New possibilities of the accounting organization

Modern information and communication technology opens up new possibilities. They amount to a complete electronic recording of all data and the programmed computer-based processing of such data with accounting programs. The numbers as fixed-point numbers (instead of floating-point numbers ) are coded as in this illustration there are no rounding errors.

In larger companies, the accounting is carried out entirely in-house. The collection of basic data is usually not in the accounting department, but in the functional areas ( purchasing, sales, human resources, production). The data is processed without SlovoEd re- detecting ( typing ) using accounting programs.

In smaller companies accounting tasks in most cases be entrusted to an external service provider. Frequently all the documents are handed over to the service as before. Carry out all work. This turns out to be unnecessary, however, unfavorable solution. Better methods are available with the electronic data processing technology.

A disadvantage of the currently still practicing outdated procedure:

• Evidence is a long time away from home.
• The entrepreneur receives far too late the evaluations, he too quickly lose track of the commercial affairs. Receivables and liabilities out of control.
• The entrepreneur receives high bills from his service provider who does the accounting work. This is caused mainly by the fact that many duplications take place. For example, the information from the company in the manually operated cash book by the service are again detected by the computer and transferred to the accounting program.

Modern possibilities of the division of labor between the accountancy subject (mostly small ) companies (client ) and service providers that were not previously available, have the advantage that the duplication of information is avoided. Modern information technology provides the means to manage data and fast data transfer.

The optimal approach is that the client all the one provided on data for the accounting, which accumulates in the business process anyway or can be easily recycled. These data can be sent to the accounting service provider, for example, by e -mail.

• The basic data collection can be done at the client. For example, should the cash book no longer be done by hand, but it can be detected on the computer with much less time.
• The bank statements that are sent to the client online, provide the necessary data base for input directly to the accounting records.
• From the programs for the creation of invoices, data can be output that are needed in this area for keeping records.
• Incoming invoices can be recorded in the company with the computer in simple lists that are sent to the service provider by electronic means.

The above-mentioned basic data for accounting can be generated at the client with little effort. It sends the data to the service provider. This complements and verifies the data and imports it into a modern electronic record-keeping program.

The client must meet the following analyzes are available from the service provider:

• Trial Balance lists
• Economic evaluation
• Lists of open items in Accounts Receivable and Accounts Payable
• VAT returns - electronic
• Balances
• Tax returns

All data for the client or the authorities can be provided on paper or directly reused electronically traditional.

Meanwhile, there are also cost-effective solutions for small businesses to do the accounting by EDP itself. The data can then be made for the financial statements online the tax consultant.

Recently, service providers offer accounts via the Internet. The client enters the data through a web browser, the entire accounting records, including data backup is handled in the data center of the service provider. Accountants and tax office then get the data via network. This solution does not require high initial investments in hardware, but only a monthly fee and saves costs for updates and their adaptation or support.