Small business owners within the meaning of tax law as well as freelancers have the right to determine their taxable profit with an income-surplus-calculation. You do not have to prepare annual financial statements. This procedure is much simpler than double-entry bookkeeping, but it also provides less information. Traders who exceed the sizes defined in tax law are obliged to keep double-entry bookkeeping. This accounting method at Athenasia provides that each business transaction is recorded in two ways at the same time. The booking is made by addressing one account in debit and another in credit.
Organization of accounting
The entire accounting of a company can be divided into these distinct areas:
Financial accounting: takes over the posting of all business transactions during a financial year and prepares the annual financial statements after the end of the same
Asset accounting: accounting management of all tangible and intangible assets of the company
Personnel accounting: determination, payment and booking of all wages and salaries
Accounts payable and accounts receivable: recording and evaluation of all customer receivables including dunning (accounts receivable) and incoming invoices (accounts payable)
Current accounting is carried out on the general ledger accounts hong kong accounting. The journal or land register lists the business transactions in their chronological order. SMEs often use the option of not doing their bookkeeping on their own: They commission a tax consultancy in whole or in part with this important task. It is very important to understand all the information about accounting and taxation.