Tips for running your business

A company must have and be able to produce numerous administrative and accounting documents. It is therefore imperative to have a clear and efficient filing system. This is the sine qua non of good management of your business!

1. Classification of supporting documents

During its existence, a company accumulates numerous supporting documents, starting with the invoices received or issued by it. It is imperative that these supporting documents are easily and quickly accessible. For this, an optimized and rigorous filing system is necessary. It will prevent certain errors or omissions, like an invoice that has not been paid when it has been previously recorded. It also helps to avoid potential duplication, such as an invoice that has been posted twice by mistake. In addition, a good classification guarantees that all services or sales have been invoiced and then paid by the customer. For the company’s accountant, it is also the assurance that he can access all the necessary supporting documents quickly and without difficulty. This saves considerable time which allows him to devote all his energy to providing effective advice on the management of the company concerned.

2. The requirements to be fulfilled for optimal accounting

The compatibility of a company must be in accordance with certain laws in force. It must also have probative value. To achieve these two objectives, essential for efficient management, this accounting must meet several criteria. First of all, it must be completely exhaustive. All the operations carried out by the company must be duly recorded. It is equally imperative that the accounting be accurate. It is absolutely necessary to banish all types of serious errors and inaccuracies concerning an inventory defect, a credit union, posting errors or even the recording of receipts, whether at the end of the month or of the week. Finally, all records must consist of supporting documents. These documents come just as well from the company (delivery slips, sales invoices, copies of mail, etc.) or from third parties (letters, purchase invoices, receipts, etc.). Ancillary documents, such as cash register tapes, tip book, handrail, etc., should not be neglected either.

3. Mandatory documents as part of good business management

The administration can, at any time, ask a company to present its accounts and supporting documents. The Commercial Code also requires the keeping of three essential registers. First of all, the book-journal which chronologically lists the operations affecting the company’s heritage. This registration, which can be initialed and quoted, must be made on a transaction-by-transaction basis and on a day-to-day basis. The operations recorded in the ledger include all the operations carried out during the financial year and appear in the ledger. The latter is divided into different sections which can also be called “accounts”. Finally, the inventory book aggregates the value and quantity of all the liabilities and assets of the business at the financial year end date.

4. Some tips for good accounting organization

In the event of an inspection, access to all the documents mentioned above is essential. Correctly filed supporting documents and accounting documents ensure that we can cope at any time and with the necessary speed. Company archives, in addition to being easily accessible, must also be protected from possible damage and protected from theft. In addition, it is strongly recommended to keep all of these documents for a minimum of ten years to protect against the risk of litigation.

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