Work Smarter – Not Harder

Accounting Year

The most important terms in time management

Back to Home page

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

Cost

What is the cost? Cost is a value of money that a company had to spend to produce its goods or services. It is calculated as the amount that company spends in order to produce a certain unit of a product.

C

Gross Income

What is Gross Income? As a concept, gross income is exactly what it sounds like: the total of all sources of “gain” or revenue, before any considerations of deductions like expenses or taxes.

G

Invoice Software

What is invoicing software? When a client buys goods or services, their detailed list of purchases is called an invoice. Invoice software works by calculating these various bills, sending them to respective customers, and organizing their receipts online for a simpler bookkeeping process.

I

Accounting System

What is an Accounting System? An accounting system is a system that is employed in a company to organize financial information. It can be either manual or computerized. The main reason why you should be using an accounting system is to keep track of expenses, income, and other activities.

A Accounting system Accounting year Balance sheet

zistemo: the productivity booster for your business

No credit card required. Cancel anytime.