Keeping accounting records

It is accounting records that clearly show the financial condition of the company, how things are going and what prospects it has. A legal entity maintains financial accounting records for several reasons. First of all, any company must do it by the law. Secondly, this information can be requested by representatives of fiscal authorities, statistical bodies, banks, investors, etc. Besides, the data from these records will help managers to monitor the situation and track all changes in it. So, as we have already noted, according to Russian legislation, primary accounting records must be maintained by all enterprises (except for branches of foreign companies). All this is stated by the Federal Law “On Accounting”.

Types of accounting records

Besides, an accounting policy and accounting registers must be developed and approved by the director of each company. This Accounting Policy contains:

  • information on the accounting methods adopted at the company (fixed assets, intangible assets, inventories, transportation and procurement costs, etc.);
    • applied accounting registers;
    • chart of accounts adopted in the organization (full or abbreviated if the company belongs to the category of small and used the right to maintain simplified accounting);
    • applied forms of primary documents.

Why do you need to keep accounting records?

  1. To pay dividends. According to the law, to pay dividends, the owners must first approve the financial statements, which reflect the availability of net profit. If founders want to withdraw profits every six months or every quarter, then with this frequency it is necessary to make reports.
  2. For creditors. Banks simply do not give a lot of money, they ask for regular reports on the financial condition of the company.
  3. For investors.

The composition of the interim financial statements depends on the requirements of the users. If the organization has generated interim financial statements, it is not necessary to submit them to the tax office.

If your company does not have specialists capable of keeping accounting records, you can contact Valen for this service. Our employees are professionals who are well versed in local legislation and have extensive experience working with companies of various profiles. So if you have any questions related to financial accounting records, feel free to ask them by phone, via e-mail, through the form on the website.

FAQ

When do I need to keep primary accounting records?

Regardless of the type of taxation and form of ownership, accounting is handed over once a year, before March 31 after the end of the reporting year. If March 31 falls on a day off, then the next working day will be considered the last day for submitting the report.

Where to submit financial statements?

All information in financial accounting records must be submitted to the local tax office and the local government statistics office.

What are the penalties for failing to comply with laws regarding accounting records?

According to the laws of the Russian Federation, a fine is provided for late filing of reports, and a fine is also imposed for not sending a report at all. In addition, this will attract the attention of tax officials, and they will initiate additional checks, which can also lead to fines for all identified violations.

Who should be entrusted with the accounting and reporting of a small company?

Companies with low turnover not always can afford a full-time accountant and hire someone who comes to prepare reports. Therefore, they often order the maintenance of accounts and records as an outsourcing service. According to the Law, the company itself decides how to organize this process.

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