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Do³±czy³: 06 Mar 2024
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 What is a chart of accounts and how to define it for your |
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How is the financial situation of your business? Being aware of this, through an accounts plan, is essential so that you can run your company safely and efficiently, making the right decisions. Now if you don't know what this tool is, keep reading and find a practical way to better understand and control your business's financial situation. Come with us! What are charts of accounts? The chart of accounts is a set of accounts or operations that represents the events and economic-financial changes that occur during the activities and operations of a company. The main objective of this tool is to help managers make decisions and facilitate the recording of accounting operations. In other words, still with regard to accounting, the plan is a detailed description of the codes and classifications used to record income and expenses in a company. It is worth noting that the chart of accounts is not, as many people tend to think, a financial report, but rather a means by which one seeks to prepare accurate reports, such as a statement of results for the year or cash flow. What are the main benefits of the chart of accounts? As we have seen, the chart of accounts is an essential part of accounting, as it is a tool that helps in preparing accurate reports on the company's financial situation.
Certainly, if you have an effective account plan, your company will be able to obtain better results with the benefits of this record. Below, discover some of them: • Brings, in general, greater organization to a company's financial records;• Allows your company to standardize accounts;• Helps in the preparation of reports and financial statements;• Ensures that your company has quality information, which can be used to make quick and accurate decisions. How to define a good chart of accounts? To prepare your company's chart of accounts, you first need to know what the ideal structure is. Basically, a chart of accounts British Student Phone Number List four large groups, these being: assets, liabilities, income and expenses. Assets and liabilities refer to the company's equity accounts. The last two, in turn, are included in the income statement accounts for the year. Knowing this can make it easier to create a good and efficient chart of accounts. Once you know the basic structure of your plan, you can make the subdivisions. For example, in the “active” group, you can place applications and investments, current stock, cash, movement at the bank, among others.
Conclusion The chart of accounts is a very important tool for a company to understand its financial reality and, based on this, can make increasingly assertive decisions. But, for it to be done efficiently, it is good to have a financial control system. The Controlle system, for example, has the necessary resources to do this quickly and correctly. Therefore, opportunities arise to take preventive measures to mitigate financial risks and protect the company from adverse scenarios. 13. Operational efficiency assessment In addition to providing financial information, management reports can be used to evaluate the company's operational efficiency. After all, they show productivity metrics, resource use, process performance and other indicators related to business operation. This way, it becomes easier to identify bottlenecks and implement measures to improve efficiency and reduce unnecessary costs. This will help in the decision to continue with a certain product or invest in another; Keep detailed records of expenses and income, so you don't lose control of your finances. Carry out cash flow movements in detail, observing all inflows and outflows of the company's values; Having working capital helps the startup to remain.
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