Closing financial statements is important for doing business. Let the accounting office help you.
You must first understand what closing an accounting statement or closing a financial statement is, which is an accounting report. related to the finances of operations in that business in order to know the financial status of that legal entity and to know the direction of management The financial position of the accounts within that business.
Closing financial statements That is one of the duties that all legal entities must perform. In order to submit financial statements to the Department of Business Development and the Revenue Department, normally legal entities such as limited companies or limited partnerships must close their financial statements at least once a year and should have to hire a bookkeeper or accounting office. and auditors to submit financial statements as scheduled If that juristic person Not submitting financial statements It must be punished with a fine according to law.
By closing the accounting budget, there should be income-expenses made. live regularly This requires monthly accounting to clearly separate income-expenses, including storing various purchasing documents, receipts, and various bills in order to prepare accounts each month. It can help prepare financial statements. Closing financial statements in each accounting period is also easier.
Steps for closing financial statements that you should know
1. Purchase-sales bills and various income-expense receipts
Gather all financial documents related to various accounting transactions, both sales bills and purchase bills, arranged into categories. Sort by company bill In order of document number For convenience in checking and easy to summarize account balances.
2.VAT account
In the case of a company registered for Value Added Tax or VAT, it is required to have a complete input and output tax report. That is, the purchase bill and sales bill must be attached together with the purchase tax-sales tax report. To submit various documents as required.
3. Check account statements
Prepare complete financial reports or statements every month. Arranged in order for convenience, but checking and if any documents of any month are missing You must request a bank statement from the bank. To make it convenient to check
4. Find a quality accounting office.
Bring all financial documents prepared to the accounting office in order to prepare the financial statements. Find an accounting office that is reliable. and have experience or if any business already has an accounting officer You can prepare financial statements right away.
5. Collect and store documents from closing financial statements.
When the financial statements are finished Collect and store documents from closing financial statements. Complete each accounting period. Whether it is a classified journal (G/L), property register general journal to receive journal pay journal It is data to be stored for the next business for not less than 5 years as required by law.
6. Send financial statements to the Department of Business Development and the Revenue Department.
When you’ve done everything, don’t forget the most important step, which is to send the closed financial statements to the Department of Business Development and the Revenue Department within 150 days from the end of the accounting period. To prevent being fined according to law
Closing the annual financial statements How important is it to the organization?
Closing the annual financial statements is very important. Due to the closing of the financial statements In addition to making the company owner aware of the organization’s financial information. You also know many other information, such as knowing the true profits and losses. Able to manage financial liquidity And the data can be used to create reports that are easy to analyze, such as debtor analysis reports. Inventory analysis report, etc.
It can be seen that the closing of the annual accounting budget It is something that business owners and the accounting department of the organization must be aware of. and get ready Especially regarding various documents that must not be missed and financial statements must be calculated in detail. To be able to audit the accounts before submitting the annual financial statements as scheduled. That must be submitted every May of the following year and finding an accounting office has confidence. Having that experience is important to ensure that Your business operations will be convenient and uninterrupted. Accounting office CL Account is an accounting company. Accept accounting audits, set up online accounting systems, have knowledge and expertise. Financial accounting and tax accounting Closing of accounts with the important aim of accounting, auditing and company registration By focusing on the quality of the work Including accuracy Honesty and speed of work is important With a team of accountants professional auditor Including legal advisors and lawyers who have a lot of knowledge and experience in registering companies very well. CL Account has been certified to ISO standards (9001:2015), thus giving confidence to service recipients that The most efficient system has been set up.
