economy

what is basic accounting »definition and concept

Basic or general accounting is a discipline that deals with studying and analyzing economic and financial transactions that concern a company, with the aim of registering them in the company's accounting books according to the parameters established by regulation. in that sense.

Discipline that registers commercial and financial movements of a person or company, following the current norm, and that allows knowing the solvency or not that it has

The accounting is a discipline that deals especially with studying and making measurements on the finances and assets available to individuals or companies in order to know for sure the status of the accounts and thus they can better dispose of money, plan investments, purchases, among other operations, and on the other hand, that they comply in a timely manner with the taxes and regulations in force in the tax sense.

Then, basic accounting is the science that deals primarily with the analysis and measurement of the assets of individuals or companies.

Registration in specialized documents

Through accounting, accountants, as professionals who are exclusively dedicated to the performance of this activity are called, will be in charge of record, in documents intended for this purpose, all economic activities carried out by a company or a person.

In these, both the expenses incurred and the income that resulted from commercial activities will be established.

Now, these financial statements that allow us to know the accounting from its activities give us will give an account of the financial situation in which a person or company is found and they will also be fundamental for making economic decisions, that is, if I know that I have so much money and I have such a flow of expenses, I will know how much I can spend on vacations, among other issues.

The accounts or assets of an individual or company are reflected in the so-called Accounting books, which are special documents to release such information.

How is the registration process

In the accounting book, two columns will be presented, on the one hand, the debit or debit, that is, the money that comes out, and in the other column credit or credit , that is obtained product of sales, income by wages, among other alternatives.

Once the accounts of a period, of the day, or of the time that is required are established, it will be possible to calculate balance, which is the difference that results from credit and debit, and it is from it that balances can be prepared each semester of each year.

How to achieve solid accounting

To ensure compliant accounting, it is essential that professionals in the area make a precise and clear record of all operations, following and respecting the chronological order of those carried out, and the obligations to be fulfilled.

This will guarantee the knowledge and absolute control regarding the resources and the economic commitments assumed.

On the other hand, it will also provide a precise idea about the financial situation of a company or person, which allows decision-making, and of course compliance with current regulations in these aspects.

Mostly and as we have seen, accounting is linked to the commercial activity carried out by a company or a person, but also, we must say that this science works actively and develops a key role in the economic life of countries, transferring its influence in the world.

The decisions that a government makes in the various areas are intimately linked to the accounting situation, that is, it is especially responsible for the performance or not of infrastructure works, among other actions, since if the accounting statement is not Well, they will not be able to be executed, while if it is the correct one they will be able to be developed without problems.

A country that has stable accounting may aspire to have a higher development future than one that does not have it, that is, that has deficiencies in financial matters.

As we have mentioned, accountants are the professionals specially trained to carry out this task.

The accounting career is studied at the university and usually involves a course of around five years, after which, and having passed the full study program, you will be able to obtain the academic title of public accountant.

Although there are people who are dedicated to accounting who are not professionals, it is essential to have an accountant's registration to be able to sign the balance sheets of the companies.