What is accounting exactly?

Accountancy

What is accounting exactly?
When entrepreneurs talk about bookkeeping, it is usually about creating or processing invoices or arranging tax returns. These two issues form the core of the financial administration of companies. The tax authorities oblige entrepreneurs to arrange this properly so if you are a beginner in this area, you can start with this. The total accounting consists of many more things than just these two activities. A list of a few tasks that fall under accounting.

Accounting starts with invoicing
To begin with, you are required to keep a clear record of your income and expenses. If your customers are private individuals, you must keep an overview of all accounts. Do you also work for or with companies? Then these are called invoices. These are also just bills, but the tax authorities set some extra conditions here.

Manage debtors and creditors
In an ideal world, every invoice sent is paid, and there is always a balance when you receive an invoice. In practice, it usually works differently. Sometimes people leave bills for a very long time. So you have to remember that, and that too is part of accounting(regnskapsfører kristiansand). A customer who has received an invoice but has not yet paid is a debtor. A company that still owes you money is your creditor.

Accountancy is enormously business dependent
It is difficult to say exactly what accounting(Inkasso) means because this can differ per company. For example, a starter will spend a lot of time on making the first quotes during bookkeeping, and a freelancer will process the mileage administration. A fast start-up that invests heavily in growth will mainly focus on optimizing its working capital during accounting.

Large companies with employees see the entire payroll administration, but also the management of employment contracts, sickness absence and other employee-related administration as part of accounting (xledger). While companies that sell a lot of products during bookkeeping often also spend a lot of time keeping inventory records. Think, for example, of tasks such as purchasing products or checking inventory.