Raamatupidamisteenus is considered to be both art and science that involves the monitoring of financial transactions with the use of organized accounting methods. Accounting started thousands of years ago when our ancestors started practicing barter or the exchange of goods between two or more parties.
The concept of raamatupidamisteenus is extremely straightforward and simple. It simply involves the recording of financial contracts and business transactions in an orderly and honest manner. It was in the 15th century when a mathematician, Luca Pacioli introduced double-entry bookkeeping system that involves some form of simple accountancy. Times have changed and more sophisticated methods of accounting are being utilized by professionals in keeping track of business transactions of a company.
The Importance of Accounting
Simply put, accounting or raamatupidamisteenus is close monitoring and recording of all business transactions. The most basic purpose of keeping records of all activity is to use date in the analysis and evaluation of the overall performance of a business organization. Accountants are able to come up with figures that prove transactions take place. Additional information from accounting reports are also being used to identify areas where revenues can be increased while reducing expenditures or cost as well.
Data acquired from keeping track of all transactions also provide proof of sale or payment for goods and services. These important pieces of data are then being utilized for inventory purposes.
Accounting or raamatupidamisteenus services are subdivided into two basic types namely cash-based accounting for small businesses and accrual based accounting for larger companies. It is relatively easy to maintain accounts for small businesses, but for medium to large-scale business the double-entry system is being used to monitor cash flow.
If you need the services of a raamatupidamisteenus personnel in Estonia, you may want to check out third-party agencies that specialize in accounting. If you are managing a bigger and more business, it may be required that you develop an in-house accounting department instead. The analysis of financial transactions usually fall on the hands of the accounts and financing department.
At an office setting, this department is responsible in implementing basic accounting tasks such as analysis of planned transactions. They also give their feedback as to whether such proposed transactions will play a positive role in increasing the revenue of the company. In addition, the raamatupidamisteenus department and personnel are responsible for generating financial statements to the management. The date are then presented to upper management for much needed implementation of crucial business strategies.
Accounting personnel need to follow a certain set of accounting rules and standards as prescribed by law. A set of standards gives professionals with a solid framework that needs to be followed at all times. Accounting is all about keeping an honest record of all financial transactions made by key personnel of a business. Deviating from the standards of accounting or raamatupidamisteenus is not uncommon, but companies are warned to strictly follow them in order to avoid sanctions and penalties normally imposed by the government.