Accounting for Beginners: The "To Do" List

Bookkeeping. Sooner or later it will become part of every company, no matter how small it is, but it still tends to belong on the list that people like to put off or postpone, only to pass on half-knowingly to the tax advisor. At the latest, however, when you hold a responsible position in a company, the subject of bookkeeping becomes indispensable. Once you have taken away its horror, a company will definitely benefit from clear bookkeeping. We also write articles on this topic time and again. But if you want to know everything about financial management and annual financial statements, you will find in this article a comprehensive list of everything that is part of bookkeeping.

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Invoice correctly

Landed a contract. Very good! The whole point is to be paid for your work in the end. For this, an invoice is necessary. This is the basis for all accounting. That the invoice also meets the legal requirements, here a contribution to this topic.

A good variant: the invoice by e-mail. In this and also each post gives you all the information you need.

Fiscally recorded

If you start a new business, it must be registered for tax purposes with the tax office. After registering, you will be sent a questionnaire. You need to fill it out.

Accounting: EÜR or double-entry bookkeeping

Financial accounting records all business transactions that are recorded by means of invoices. The requirements for the accounting system vary depending on the size of the company. Common are the EÜR (Income Surplus Account) and double-entry bookkeeping (recording on account and contra account) are the common methods.

Always a good ?alternative?: an accounting system. In addition to the administrative effort, your company benefits from the evaluations and analyses that the software can create on the basis of the bookkeeping. This is the basis for ?controlling? and can thus become an important basis for decisions.

All about the cash book

The cash book is also not an unknown term in the context of accounting. And a relevant one at that. Because cash book is not the same Cash book. There are some differences depending on the industry.

For the little ones

If a company has only a very low turnover, it falls under a certain regulation. This simplifies bookkeeping, especially when it comes to declaring turnover and input tax.

payroll accounting

Payroll accounting is at least as relevant for a company as invoicing. Because the employee also wants his or her salary, which the accounting department in turn wants to see documented. There are some important administrative things to consider here: Registration, payroll accounting, payment of taxes or deregistration.

accounts receivable

In addition to proper invoicing, the accounting department must also keep track of the invoices sent. This process is called accounts receivable. Here, too, a suitable accounting software is suitable, as it immediately displays elapsed invoice deadlines collectively and can send automatic reminders. Another significant advantage: the common formulations for payment reminders or dunning letters are already recorded in templates in the systems. For accountants without software, there are usually also templates on the net.

Accounts Payable

Because you can't always just be a supplier, but also a customer, there is also accounts payable. This is where your liabilities as a company are recorded. As a fixed component of your financial accounting, the amount of debt can always be compared with your own liquidity be coordinated. You guessed it: here, too, a system is of great advantage.

Every year: the tax return

The tax office regularly registers its needs. Depending on the size of the company and its legal form, you will have to pay income tax, corporate income tax, etc. based on the accounting, value added tax or trade tax must be presented. These should be correct in any case, otherwise the tax audit can be expensive. A good system can also largely ensure that all data is correctly recorded and available at the appropriate time.
Caution: even after the tax return, the documents must remain recorded in the bookkeeping ? depending on the retention periods.

VAT and input tax in accounting

value added tax is usually still known from receipts. Input tax is then completely unknown to most accounting novices. However, the tax office regularly requires an advance return and payment of these taxes. The input tax is, so to speak, the value added tax paid on products and services in one's own purchase. Input tax and VAT are then offset in accounting and reported to the tax office.

Advance turnover tax return

Also an important point for your calendar: the Advance turnover tax return. The deadlines are taken very seriously by the tax office.

Company car: logbook or 1% regulation

Company cars are a great thing. However, they also entail additional accounting work. The costs reduce the taxable profit as business expenses. However, the tax office also pays close attention here. Private use must also be declared. In accounting, you have the choice between a logbook or the 1% regulation. Here, 1% of the list price of the company car is added to the employee's salary by the employer.

The crucial question: Who does the bookkeeping?

Of course, in a leading position it is obligatory to understand the basics of accounting (and in other positions it does not hurt either). However, accounting for a company is a task in itself. Apart from the tax advisor, there are also accounting offices that can help you with the task.

Software solutions are also recommended, as accounting remains in-house and important decisions can thus be made quickly on the basis of the company's key figures. Analyses and evaluations created by the system are of great help here.

6 comments

By Chief - 7. February 2017 13:19

This is an informative article! It really offers a lot of information and tips on bookkeeping. I'm sure it's very helpful for beginners. Yes, the tax return is a tiresome topic. Unfortunately, you can't avoid it?
By Florentin Eilers - 23 April 2019 09:42

Thank you for the informative article. Before I did my own accounting, I only knew VAT from receipts. However, I am still not sure about the calculation of 7 and 19 per cent.
By Finnish - 31 May 2019 17:00

The tips on bookkeeping would be very interesting for my brother, who is a beginner. He started a gastro with his friend, in a barn after renovation. It's hard to find time to do the paperwork. With bookkeeping, I see that experience is in demand.
By Cockchafer - 21 August 2019 15:10

Thank you for this informative article on financial accounting. We are currently struggling with our accounting software and are considering switching to an ERP software or an SAP programme. To be honest, I really don't know anything about it, so I made an appointment with an accounting programme expert from Switzerland. Let's see what comes out of it! Best regards,
Maike
By Sven Bucher - 7 October 2019 15:02

Keeping the right accounts can be a difficult matter. Particularly with regard to annual financial statements, the greatest care must be taken here. Thank you for compiling the most relevant aspects.
By Katherine Fischer - 13 April 2020 21:49

My brother has to decide who will do the bookkeeping in the office. But that's true that bookkeeping alone is a big task. Maybe it would be best to hire an accountant to do it.

Invoice correctly

Fiscally recorded

Accounting: EÜR or double-entry bookkeeping

All about the cash book

For the little ones

payroll accounting

accounts receivable

Accounts Payable

Every year: the tax return

VAT and input tax in accounting

Advance turnover tax return

Company car: logbook or 1% regulation

The crucial question: Who does the bookkeeping?

Get more out of your SAP Business One

6 comments

By Chief - 7. February 2017 13:19

By Florentin Eilers - 23 April 2019 09:42

By Finnish - 31 May 2019 17:00

By Cockchafer - 21 August 2019 15:10

By Sven Bucher - 7 October 2019 15:02

By Katherine Fischer - 13 April 2020 21:49

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