Company accounts, important tools in business management

Company accounts, important tools in business management

Company accounting is the process of recording, collecting, analyzing, and preparing financial information of a business in the form of financial statements. To use as information for making business decisions corporate governance and carry out business activities efficiently

Benefits of a company account

Company accounts are beneficial to businesses in many ways as follows:

  • It helps to know the financial position of the business. Financial statements show the financial position of the business at a particular time such as assets, liabilities, capital, and profit and loss.
  • It helps to know the operating results of the business. Financial statements show the operating results of the business during a particular period such as income, expenses, and profit and loss.
  • Helps to know the ability to pay debts of the business. Financial statements show the ability to pay debts of the business in a certain period of time, such as current assets. Current liabilities and cash flow
  • It helps to know the investment opportunities of the business. Financial statements show the investment opportunities of the business such as assets and growth potential of the business.
  • Helps to know the risks of the business. Financial statements show the risks of the business such as debts and financial obligations of the business.

Type of company account

Company accounts can be divided into 2 main types as follows:

  • General Ledger is an account used to record financial transactions that occur on a daily basis. Financial transactions are recorded in a ledger according to the type of account, such as asset account, liability account, capital account, income account, expense account. and other accounts
  • Financial statements (Financial Statements) are documents that show a summary of financial transactions recorded in a ledger. The financial statement consists of Statement of financial position, income statement, cash flow statement and statement of changes in shareholders' equity

Company accounting process

The general process of preparing company accounts involves the following steps:

  • Gathering documents is the initial step in accounting. By collecting various documents and evidence related to financial items of the business such as receipts, tax invoices, billing notes, etc.
  • Accounting records are an important step in accounting. By recording the financial transactions of the business in the ledger according to the nature of the transactions.
  • Make adjustments It is a procedure created to improve the financial transactions of the business to be accurate and complete, such as recording depreciation expenses. Recording allowance for doubtful accounts, etc.
  • Prepare financial statements It is the last step in accounting. It summarizes the financial information of a business over a specific period of time. into the financial statement
  • Auditing is a process performed by a certified public accountant. To check the accuracy and completeness of the business's financial information.

Company accountant

Company bookkeepers are responsible for recording financial transactions. Prepare financial statements and provide other accounting services to businesses. Company accountants can be divided into 2 main types as follows:

  • An internal accountant is an employee of a business who records financial transactions. Prepare financial statements and provide other accounting services to businesses
  • An external accountant is an individual or company that provides accounting services to a business. The external accountant is usually a Certified Public Accountant (CPA).

Company accounting in Thailand

Company accounting in Thailand must be in accordance with the Accounting Act B.E. 2000. Businesses with registered capital not exceeding 5 million baht can use ledger accounts to prepare financial statements. But if the business has a registered capital of more than 5 million baht, it must prepare financial statements in accordance with accounting standards.

Company accounting requirements

in preparing company accounts Businesses must comply with the following requirements:

  • Financial transactions must be recorded accurately, completely, and in a timely manner.
  • Financial statements must be prepared according to accounting standards.
  • Accounting documents must be kept complete and in good condition.
  • Financial information must be disclosed in accordance with the law.

Company accounting is an important process for all types of businesses. The company's accounts help the business know its financial status. Performance and the ability to repay debts of the business These benefits will help the business to operate its business efficiently.

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