According to Estonian legislation, the management board is responsible for organizing accounting. Therefore, the management should be able to assess the correctness of the accounting practices, especially if you are using inexpensive accounting services or even if you consider accounting an unnecessary routine! Think about how one day of negligence or mistakes by your accountant could significantly waste your time, nerves, and money. Wouldn't it be better to simply keep a finger on the pulse?
Here are very simple points to check your accounting. If all these statements reflect your company's accounting, then it is IN ORDER. The more "no" answers you have, the more you should think about it.
To verify, you'll need the balance sheet, income statement, emta.ee website, and online banking.
- The assets and liabilities sides of the balance sheet match.
- The profit in the balance sheet equals the profit in the income statement.
- The cash balance in bank accounts and cash registers matches the balance sheet total.
- Cash inventories are conducted.
- You have an overview of customer receivables via accounts receivable, and these amounts are accurate.
- You have an overview of liabilities to suppliers via accounts payable, and these amounts are accurate.
- Inventory is accounted for and inventoried regularly.
- Fixed assets are accounted for, including depreciation calculations.
- Tax debts with the tax authorities match the balance sheet balances.
- Potential holiday obligations are recorded as a holiday reserve.
- Unpaid wages are recorded as wage liabilities.
- Loans received and given are tracked, including interest calculations.
- You have access to your documents within a reasonable time frame—today, this is possible 24/7.
- You do not experience ongoing tax authority audits or checks frequently.
- Your accountant always finds answers to your questions.
- Your tax compliance status is in order.
You can start by checking whether everything is correct with your accounting based on these points. If you need help with verification—feel free to ask!
Proper accounting is an integral part of a successful business and a healthy nervous system for the entrepreneur!
