As a result of the transactions that are in your company each month, it is necessary to obtain meaningful data by providing the final form of your transactions reflected in the accounting section in the form of numbers. Depending on who will benefit from the data obtained, there can be different preparation methods. What are Accounting Methods and Reporting Standards, let’s examine together.
Accounting Methods
Whoever is going to read the financial data is usually the standards set by them and this data is prepared according to their wishes. Different specializations in finance and accounting are formed in these details. Some areas can be: management accounting, cost accounting, receivables accounting, tax accounting, financial accounting.
Reporting Standards
Standards may vary depending on the country in which they are studied, such as GAAP, TFRS,
There are tax-oriented reporting standards, such as a uniform account plan, as well as CMB reporting standards for capital markets. You will have the opportunity to examine them in detail in other articles.
Boss Accounting
Most importantly, there’s boss accounting. That’s always on your boss’s mind. In the form of a grocery account, we sold this price at this price, so much tax, on the due date, with the money coming from there, it takes this, etc… he keeps turning the fox’s tails around so that they don’t touch each other in the head. If there’s a mistake, he just pastes it, says, “Hoop friend, it’s got to be here,” but there’s something he’s forgotten, and he comes in there, and you say, “There’s something that’s going to happen, but there’s something that he doesn’t tell you, and then the plan changes. The joke aside, it may be the part that fits most of us’ lives, but what’s important is that you have someone consulting or someone with you where expertise isn’t enough.
Financial Literacy
It may not be easy to get out of the numbers, but there’s no need to be afraid. With a little financial literacy, you can get out of the numbers that are growing in your eyes like a mountain. One of the essential requirements when entering a business is financial literacy. Most people can’t keep up the bill, so they have to shut down. It is essential to acquire competencies such as our own personal development and the ability to make sense of the reports that come our way.
If financial literacy is not acquired, you will find that your pockets are most affected. A lot of people don’t give their bills to their accountant properly, but they expect the right results from their accounting, and there’s a lot of people who make the mistake of always focusing on the sale.
A few recommendations
What you need to do;
- Earn Financial Literacy, develop it personally.
- Make feasibility when you start work, don’t get away with it without seeing the stream.
- You can’t know everything, you have financial and legal counsel.
What you shouldn’t do;
- doing things in the head of the grocery account
- Not to consult anyone when you say I know everything.
- Living and saying we’ll see and doing unplanned work
I hope you enjoyed my article on Accounting Methods and Reporting Standards.
