The importance of accounting lies in the fact that all entrepreneurs must check the economic movements made by their company at any moment. This way, they can ensure better productivity and make the most of their assets. Accounting determines the health of a company both in Spain and elsewhere
Accounting management allows you to record and monitor all financial transactions carried out within a company. The accounting management system begins with a register of financial activity within the company which takes the form of an exhaustive list of commercial activity. All monetary transactions are recorded in the accounting records of the company.
In addition to this, it enables the classification of commercial information. This usually includes a lot of useful data for the contractor, which is why the information should be organised at best. Business directors should quickly access the documentation to reflect the results of accounting when making important decisions for the management of the company, particularly commercially.
Traditionally, accounting enables the identification, measuring and communication of economic information to entrepreneurs allowing them to get an idea of the health of the company and therefore manage it in the best way. The purpose of accounting is to provide financial information about the company to its owners and investors but also to the treasury who are responsible for its taxation. Every country has different laws and payment periods and the accounting expert in charge of the tax returns for the company must comply with these. This is why it is advisable to ask a professional who is approved by the Chamber of Auditors of the country where the business is located
The presentation of company accounts to the tributaries authorities is a must for all companies in Spain. It should adjust the social charges for managers and employees all in good time as well as income tax and corporation tax
The accounting books allow tracking of daily expenses and earnings for the company. This systematic task is key to good financial management in a company and should not be underestimated. Also, note that optimising your fiscal management also requires command of deductible expenses and possible deductions from your investments.
The company balance sheets are presented each year in the commercial register. All Spanish or foreign companies present on Spanish soil have an obligation to submit their balance sheet at the end of each financial year.