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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

Billing Software

What is billing software? You may be used to creating paper invoices to request payment or paying invoices by cheques in the mail. Online billing software does the receiving and payment work for you.

B Billing software Double Entry Bookkeeping

Retainer

What is a retainer? Described simply, a retainer is an open-ended contract with a service provider. For this you pay an agreed fee and in return have access to their services when required.

R

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

Capital

What is capital? Capital is normally referred to as the assets owned or needed by a company to provide their goods or services. When trying to define capital we refer to money, debts or the financial value of physical assets.

C

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