Financial control
Everything that belongs to the financial area of the company is organized and directed so that the right balance between the assets and liabilities of assets, liabilities and net may remain without renouncing at the same time the objectives managers have set in the overall planning regarding the profit.
The tasks of those responsible for the financial control will be unreliable if the information on which they rest is not true.
The main documents of the Financial Control
Accounting reflects the changes in equity and cash income and expenses as they occur as a result of the daily activities of the company
Seat opening.
The opening entry is the first entry of the accounting period, and you get the seat end of the previous period.
This seat is a detailed and comprehensive account of the elements of the assets of the company.
Daybook
In the general ledger reflected the accounts for the different assets of the company.
Major book
The recording of transactions in the year in General Ledger
It is known as regularization, which concludes with the preparation of two documents phase synthesis: the income statement and balance sheet.
Regularization
Before starting the process of regularization must draw up a document in which business assets properly valued, because of a physical count, herein referred to as non-accounting inventory is discovered.
Once the inventory-balance sheet obtained the regularization process, which consists of the following stages begins:
- Correct classification of accounts
- Accrual
- Correction of account balances to their true values
- Amortization
- Determination of profit or loss.
- Closure of accounting.
The overall income statement
Ending the seat determining the profit or loss contains the information for the income statement.
This document will appear duly ordained by nature different expenses and income.
The structure of the income statement is as follows:
- Result derived exclusively from exploitation
- Income and expenses of a financial nature
- Ordinary profit for the year
- Extraordinary income for the year
- Profit before tax
- Profit for the year net of taxes
- The balance sheet
The closing entry contains the information necessary to prepare a balance that defines the financial position of the company at year end, or what is the same, at the beginning of the following year.
Analisy and methods
The analysis of the financial statements of a company will facilitate obtaining a diagnosis of the real situation of the company and its possibilities in the immediate future.
The balance analysis is aimed at determining the actual financial position of the entity at the time the time the balance referred analyzed.
The analysis of the income, also called profit and loss, is focused to obtain adequate information about the progress of the business and its foreseeable evolution over time.
Reliability
The audit is a general objective that is the test done by finding the different elements that justify the financial condition resulting from accounting.