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Accounting Year

The most important terms in time management

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What is an Accounting Year?

An accounting year is annual financial reporting period in which company organizes its financial data. It is useful when you are running a business. Potential shareholders analyze the company’s performance through its financial statements. That’s why it is important to keep your financial records clear and prepare them regularly. Typically once a year each company is preparing balance sheet, profit and loss account and cash flow. This year is cold accounting year.

All financial data is gathered and used for the compiling of external and internal reports published in financial statement.

An end year report entails:

  • An income statement: It shows all the transactions that the organization conducted over a period. The records include gains, expenses, sales, and losses by the company
  • A cash flow statement: It shows how cash flows both in and out of the company and what is the profitability of the company
  • A retained earnings statement: It usually presents the total profit that the company made over a year

How an Accounting Year Works?

A company has to define the period when the accounting year begins and ends. The accounting period is different in different countries but usually it lasts 12 months. In some cases 18 months.

How can Zistemo Help You?

Compiling financial reports can be quite complex. Zistemo helps you compile all the financial data you need in one place. Streamline the financial reporting at your organization to avoid accounting issues and taxes problems.

A Accounting system Accounting year


Related words

Commercial Invoice

What is a commercial invoice? If you run a small international business you’ve probably either received or had to issue a commercial invoice. Commercial invoices allow foreign trade and shipment to occur more seamlessly and easily.

C Commercial Invoice e-invoicing

Expense

What is an Expense? In the simplest terms, an expense is an outflow of money to another company or individual as payment for services rendered or an item acquired. In other terms, it is anything that leads to the reduced value of the owner.

E

Double Entry Bookkeeping

What is double entry bookkeeping? Double entry bookkeeping is a system of accounting where every transaction is reflected in two accounts: credit and debit. There are always two columns for transactions - one for debit entries and one for credit entries.

Billing software Bookkeeping D Double Entry Bookkeeping

Employee Time Tracking

What is employee time tracking? Employee time tracking is a function that is used to track the amount of time an employee spends on particular assigned tasks. Tasks usually fall under specific projects.

E

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