Accounting routines is something you’ve probably heard about. The reason we talk about routines in accounting is apparent – it’s something you’ve got to do on daily basis, something you got to do with some form of discipline and routine in itself. I would say that there’s very little creativity in accounting itself, as it’s something that has strict rules and basic fundamental structure that needs to be followed. As such there are routines that you’re strongly advised to take a habit and applying to your everyday business life. Continue reading
Author Archives: Karl
What does compliance mean in accounting?
Something to always keep in mind is having your accounts being prepared in compliance with the regulation your operating in (laws and other regulatory acts governing doing business and taxation) and with the accounting framework you’ve chosen (either your local Generally Accepted Accounting Principles (also called “GAAP”) or something that’s globally used like International Financial Reporting Standards (also called “IFRS”). Continue reading
You’re allowed to deviate from the forms given if it would benefit to better understanding
No doubt there are generally accepted forms for showing your company’s balance sheet, income statement etc. in your country. They may be state enforced or just used by companies and as such they’ve become sort of generally accepted. Continue reading
Internal accounting rules – what are they about?
Your bread and butter, something that tells you which accounting entry you’ve decided to be most appropriate for specific transactions, which documents are obtained and where they are stored etc. Continue reading
What’s accounting?
I recently read an interesting story about a real situation that happened to someone who didn’t have any clue about accounting and the importance of keeping everything compliant, straight and accurate. I don’t even want to recall all that was left undone when it comes to reporting. It’s obvious that he’s right now in a total mess, ruined lots of relationships and his name and is possibly facing huge fines, personal bankruptcy or even some jail time. Continue reading
Comparative narrative information in financial statements
As a general rule, comparative information should always be given within the financial statements and its notes. When it comes to comparative narrative information, the same applies – it’s usually given, unless it’s no longer relevant. Continue reading
Provisions for future expenditure
As you know, an expense arises when the obligation to transfer economic benefits arises, not when the expenditure actually incurred. That’s called accrual based accounting and as such it’s important to understand all conditions of certain agreements and transactions. It’s crucial to see those moments the obligation actually arises. Continue reading