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PROS AND CONS OF SIMPLIFIED ACCOUNTING METHODS

The ability to keep financial statements in a simplified manner became available to companies relatively recently, which is the reason for the lack of a final understanding of this process among individuals who head certain companies, as well as their accountants, if any.

It is difficult for a person who does not have the appropriate education to understand the nuances of this innovation, as well as to understand all the subtleties of the financial and legal side of this issue. In an attempt to inform as briefly as possible, there are several positive and negative aspects of simplified accounting.

 

Negative sides

The first and largest negative side in an attempt to keep accounting reports in a simplified way will be for legal entities a clear limitation of the companies that have the right to do so. What financiers rarely know about, but what lawyers clearly understand is the sub-clauses of the laws. This amendment can be observed in the Federal Law. To do this, refer to law 402 paragraph 4 article 6.

According to the data specified in the law, the right to maintain accounting records in a simplified form is granted only to three types of enterprises:

  • Objects suitable for the “small business” category;
  • Non-commercial organizations;
  • Skolkovo project.

If everything is extremely clear with the second and third paragraphs, because there is a clear distinction between commercial and non-commercial enterprises, and you can also find out who is a participant in the project specified in the last paragraph, then with the first one there are difficulties in interpretation. Which business, which legal entities, fall under the definition of “small”?

This detail is also spelled out in the corresponding article – Art. 4209-FZ. The specified criterion (“small business”) includes:

The belonging to the first or second type of enterprise is determined according to the following characteristics:

  • The volume of revenue for the year;
  • Amount of workers.

According to these characteristics, the figures are prescribed, the excess of which excludes the company or enterprise from the two types of “small business”.

For small businesses, the volume should not exceed 800,000,000 rubles, and the number of workers should be no more than 100 people. At that moment, as for micro-enterprises, these figures are equal to 120,000,000 rubles and 15 people.

 

Positive sides

The ability to keep accounting in simplified ways allows the company to independently choose how exactly this activity will be simplified. This is the main advantage – the positive side.

The only limitation spelled out in the law is that the accounting report is obliged to provide completely reliable information about the financial condition of the company.

Otherwise, there are more than two dozen points on which the company can simplify its accounting.

The subtleties of conducting financial issues in enterprises, accounting are closely intertwined with the nuances of a legal case, and therefore leaving it only in your own hands is a risky business. The most rational solution in this case would be the conduct of the business by professionals.

Contacting Numbers Pro guarantees an individual approach to accounting support for each client, solving urgent and “everyday”, common questions. Professional advice and assistance has been provided by the company’s employees since 2002, which allowed us to gain a huge amount of experience and satisfied customers.

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