Accounting from A – z.
The accounts shall show the correct picture of the virksomhetsaktiviteter and to interpret all of these activities to some numbers. It should be as easy as possible, so that it is well understood by the shareholders, the board of directors and all the others that are interested in knowing how it goes financially with a business.
The definition of bookkeeping is the registration of accounting information in an accounting system. All documents shall be recorded in a manner so that it later can't be edited. The reason for this is that it should not be able to be done with the changes on the accounting figures after the report is delivered furthermore to such as the authorities or the board of directors. Accounting shall be carried out under the provisions of the Norwegian accounting act and bokføringsforskriften.
Good basis for a better decision
For that business to get an overview of how much they have to good, what they owe, as well as the company's value, they must post the verdibevegelsene. This also leads to better decision making when they have the correct picture of the financial position of the business listed above. Accounting also provides the true picture of the business, so that, for example, banks can lend money to the company.
The income statement and the Balance sheet.
That the board of directors shall set up an efficient development plan for to improve gain in the future, it must have detailed information of the current situation. An income statement to show revenue against costs, and both should be detailed at the account level.
For there to be balance in the accounts, all activities are recorded in the debit and credit. Debit contains assets, while credit summarize debt and equity. All records have a matching entry where the sum should go to zero, a principle that is called the two-sided bookkeeping.
The strict requirements.
The strict requirements for accounting for a business by the Irs – no matter the size of the business. The financial statements and the accounting basis which shows the financial status of the company. As this may hang over your head any business, there are many who choose to engage a licensed accountant. We in MGT Accounting AS have a good and updated expertise in this area.
Would you like to have better basis for decision making in the future and be sure that your accounts meet the stringent requirements, Contact us today for an informal chat.