Obviously. Everyone wants to earn profits when they set up their business. I could ask metaphorically “What’s profit?” but I wont. Instead I’ll tell you a story.  Continue reading →

First off let me state that “may” in the title means that there are always those rare cases and exceptions to almost everything when it comes to accounting. Since we’re not about those rare situations, but more wanting to state the basics, we’re going to skip this. It’s just to let you know that there are exceptions as always.  Continue reading →

Once you’ve chosen an accounting presentation (the way you show your financial results on statements and in notes), you must retain their consistency. It’s not how you please that you can change them, but there are specific conditions they can be changed.  Continue reading →

IFRS (International Financial Reporting Standards), which is probably the Bible when it comes to accounting worldwide states that the presentation and classification of items in the financial statements shall be retained from one period to the next unless it is apparent, following a significant change in the nature of the entity’s operations or a review of its financial statements, that another presentation of classification would be more appropriate having regard to the criteria for selection and application of accounting policies.  Continue reading →

I think I cannot stress the importance of documents in accounting enough.

When it comes to documents in accounting though I don’t just mean source documents like invoices or cheques. What I also mean are contracts, minutes of meetings etc. It’s also your internal accounting rules I’m talking about. Continue reading →

Setting up your business is your first thing obviously – you’ve got your business idea and now you need a company to start putting this idea into reality in. Clients, suppliers, products etc., all of it needs some planning, communication, actions and keeping record of. It’s “keeping record” that amongst other things includes accounting. Continue reading →

Starting with accounting, if you set your mind to it, isn’t all that difficult. There are certain things that need to be done and it’s best to do them properly, at the right time and keep consistency in all things.

Your list of actions is as follows (note that the list is not exhaustive): Continue reading →