Company administration

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Banana Accounting lends itself very well as a tool to keep the accounts for your company, association or your private finances.

Keep the accounts for your company

Managing the accounts of a company or association in which one operates directly, is completely different when compared to keeping accounts for third parties. Managing third party accounting requires much broader knowledge and specific advanced training.

It will prove easier to keep accounts for your company, because you have a direct knowledge of it's realities and also because operations tend to repeat themselves. Once one have learned how to enter a certain accounting entering, one only needs to repeat it at it's next occurrence. The same goes for closing accounts, establishing tax returns or other. Knowing the activity well will make you attentive to changes in situation and to wether adapting  procedures has become necessary .
The following refers to the keeping of accounts for one's own company, non-profit organization or private purposes.

Learn accounting by doing accounting

Accounting is an activity related to practice. Obviously, some theoretical knowledge is needed, but to understand and assimilate the different concepts there is nothing better than trying and practicing. Everyone learned accounting by starting with the simplest operations to then move on to more challenging ones.

The different levels of knowledge

Knowing how to keep accounts is not a monolithic concept. The following is an attempt to give an overview of the knowledge or methods that are required according to the goals that are set.
For those who start a bookkeeping, it is important to understand the different levels that can be reached and which are the most difficult ones.
The levels refer to the keeping of accounts for an entity in which one is directly involved and has a very good knowledge of the legal issues that underlie certain operations.

Not knowing is normal in accounting

Nobody knows all about accounting. It is normal that there are operations that are not known. With Banana this is not a problem, when movements are inserted, they may be marked with a colour to indicate that they remain outstanding, and when the situation is clarified they are then settled as required.

Tax issues

Tax issues can complicate bookkeeping. It obviously depends on the liabilities of each company. Another problem related to tax matters is that of changes. Staying up to date on tax requirements is not easy.
Even when keeping your own accounts, it is useful to rely on professionals, who are familiar with tax matters and can give one indications on how to operate.

Contribution issues related to employees

This area is also very specific and situations can be more or less complicated. In this area as well, it will be useful to be able to refer to someone who can provide assistance to set up the accounting recordings the first time or when there are particular situations. 

Level 1 Keep your accounts in order

Thanks to modern accounting programs, this level is accessible to everyone.
When you reach this level, you will have a sufficiently clear view of your financial situation and you will have all the elements at your disposal to present reports to third parties.
It will prove useful to have a person, who helps one choose the accounting template, adapt it and insert the first accounting records. 

  • Organize documents that are important to the company .
  • Collect and keep accounting records.
  • Use a predefined accounting template and make minor adjustments.
  • Enter the opening balances.
  • Enter the accounting records in order to have the correct accounts for banks, cash, revenues and costs.
  • Present the Balance Sheet and Income statement.
  • Create a new year.

Level 2 Independent for bookkeeping

This level requires more advanced knowledge, which can be gained by inquiring, following theoretical courses or you may want to refer to a qualified person who can explain how to operate and verify the data. With this level, you are practically independent with regards to bookkeeping and financial management.

  • Add new groups in the chart of accounts, whilst keeping the basic accounting structure unchanged.
  • Record transactions with VAT.
  • Prepare the VAT report.
  • Record depreciation, settlement of goods account
  • Define year-end costs and revenues (transitional assets and liabilities)
  • Consider the tax aspects of certain accounting registrations.
  • Check the Balance Sheet and Income statement.

Level 3 Advanced interpretation of results and adaptations to specific situations

This level requires a solid theoretical foundation relative to the construction of the Balance Sheet and Income statement. You may want to refer to a qualified person, who may help you resetting the Chart of Accounts:

  • Setting up a very specific Chart of Accounts.
  • Analyze the Balance Sheet and Income statement with the calculation of indices.

Level 3a Accounting with Segments

The use of segments, through which to keep the accounts separate by department, branch or other, requires that the person has a solid theoretical basis or is willing to investigate specific issues.

  • Setting up segments.
  • Record segments on Balance Sheet and Income statement accounts.
  • Prepare the separate reports by segment.
  • Create a new year with segments.

Level 3b Accounting with foreign currency accounts

Bookkeeping of this kind requires the person to have a solid theoretical basis or to be willing to investigate specific issues.

  • Set up the exchange rate table.
  • Set up foreign currency accounts.
  • Record transactions on foreign currency accounts
  • Update exchange rates and record exchange rate differences
Company management

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