Let us try to explain briefly how to organize the accounts of a company or business that despite years of existence, it has never hired accounting services.

When this happens, it becomes more complicated for someone to come to understand the financial situation of the business. In this case, the person hired for accounting services may have uncertainty on the reasons that lead to some expenses.

The accounting service provider will generally start by gathering information regarding the possessions, duties, and debts of the business. This data will be later used to make a balance sheet.

Usually such businesses operate as natural persons, it is appropriate to separate the personal property of the employer engaged in the business, as well as expenses and income.

The accounting services provider will know that if the employer has been working for several years, it will be nearly impossible to assemble an initial balance of five or more years, so this should be done on the date on which to clearly identify all assets, rights and obligations of the employer.

Once your accounting services provider starts the initial assessment, there should be identification and classification of all activities undertaken by the employer, as purchases of raw materials, materials, payment for services, sales, so that each can be incorporated into accounting.

This point should be especially careful, since the rupture and the culture of your business is not easy to identify with precision the activities of the employer. It is common that many of them try to hide information, provides incomplete, etc..

Failing to identify all the assets, liabilities and activities of the employer, the accounting will be incomplete resulting in little use.

It is the employer’s responsibility to give proper continuation to the accounting procedures designed by the accountant.

Control procedures are perhaps the most important and most difficult to implement. Employers are reluctant to be controlled, they have the belief that the more they earn the more taxes they pay.

Organizational change is necessary in order to give proper continuation to accounting. There is no point in hiring accounting services to bring order to the house, if they owner lets it go back to the mess it originally had.

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