Do your own accounting, what are the steps to follow?

When a business decides to do their own accounting , there are a number of steps they must take to make sure they are kept properly. Compta-Facile presents them in this publication, the objective of which is to provide an exhaustive answer to the question: how to do your own accounting ? Here is the list of steps to follow :

Summary hide

Find out about the scope of your accounting obligations

Training in the field of accounting

Choose your accounting software

Configure your accounting software

Keeping accounts daily and at the end of the year

  • Find out about the scope of your accounting obligations
  • Learn about accounting management
  • Choose your accounting software
  • Configure your accounting software
  • Keep your accounts

Find out about the scope of your accounting obligations

When you want to do your own accounting, the first thing to do is to become aware of the extent of your accounting obligations . Indeed, not all companies have the same obligations and their legal status and their tax system will play a decisive role in this regard.

Thus, micro-enterprises in the fiscal sense, i.e. sole proprietorships or sole proprietorships with limited liability (EIRL) having opted for the micro-BNC or micro-BIC regime, benefit from accounting obligations extremely limited: exemption from keeping accounts and drawing up a balance sheet, drawing up a recipe book and possibly a purchasing register (if the activity relates to sales of goods or similar). A micro-entrepreneur will therefore have no trouble fulfilling his obligations himself, he will be able to equip himself with a management solution (estimate-invoicing) allowing, if necessary, to edit his compulsory books.

For all other structures, the accounting obligations are more extensive. Here they are, in ascending order of obligations:

  • Sole proprietorships carrying out a non-commercial activity and falling under non-commercial profits (BNC): application of the rules of cash accounting, subscription to an annual profit statement, exemption from filing annual accounts with the registry.
  • Individual companies carrying out a commercial or craft activity and falling under industrial and commercial profits (BIC): application of commitment accounting rules (option possible under conditions for super-simplified accounting), subscription of an annual profit and loss statement, exemption from filing annual accounts with the registry.
  • Commercial companies (SAS, SARL, SCA, SA, SCS, SNC…) and liberal practice companies (SEL): application of accrual accounting rules (option possible under conditions for super-simplified accounting ), subscription to ” an annual result declaration, deposit of the annual accounts at the registry.

Training in the field of accounting

As soon as the accounting obligations are clearly identified, it is necessary to ensure that the person responsible for accounting is competent at all levels with regard to the work they will have to perform. This essentially concerns two aspects: the use of the software and the application of the accounting rules in force.

In these areas, different possibilities are possible. It could be:

  • Register for trainingon the subject of accounting (based on knowledge already mastered by the person);
  • Subscribe to subscriptions to specialized accounting journals;
  • Take training courses offered by the editor of the accounting software (generally online).

Choose your accounting software

This is the most delicate step. To do your own accounting, it is essential (but, for information, not compulsory), to use accounting software . So take the time to choose one. On this point, a complete file reveals a certain number of advices guiding with efficiency in the procedure of choice: choose an accounting software . Various parameters must be taken into account, such as the size of the company or the nature of its activity.

There is no ideal accounting software. The software is adapted to certain companies and certain situations. It is important to make a complete preliminary point on the extent of the needs of the company and to establish a questionnaire (a checklist ). Indeed, it is possible that they are not limited to the management of accounting. Additional functionalities can be expected such as management of quotes and invoicing, debt collection, generation of dashboards, etc. In this case, it may be interesting to move towards “all in one” solutions which will offer many advantages:

  • Uniqueness of information (all data will be gathered in a single management solution),
  • Save time and limit the risk of error ( automatic integration of sales invoices in accounting and  recovery of bank statements and immediate accounting).

It is generally advisable to test your accounting software before purchasing it . This allows you to get an idea of ​​its daily use (ergonomics, functionality, navigation, personalization …).

Configure your accounting software

Once chosen, the accounting software must be configured. This step is also very important because the configuration represents the information base of the management solution. Properly setting up your accounting software means making sure you use it properly and in particular benefiting from all of its functionalities.

The setting includes two series of tasks. Firstly, it is a question of filling in all the general data relating to the company (corporate name, registered office, SIRET number, legal form, tax regime in terms of profit taxation or VAT, opening date and of the accounting year …) and configure the different user profiles . In the second step, it is a question of choosing the chart of accounts applicable to the company, of personalizing it (i.e. creating sub-accounts and modifying labels), of opening the newspapers adequate accountants and configure all the functionalities which the company would like to benefit from (creation of input guides, implementation of automatic lettering, configuration of automatic backups, configuration of the format of export files, etc.).

Keeping accounts daily and at the end of the year

This step constitutes the final outcome of the accounting management process.

Throughout the accounting year, you should enter the current operationsdepending on the type of accounting to be kept (cash or commitment). With regard to cash accounting, it will suffice to manually enter or automatically integrate all the bank statements for the accounting year. Regarding commitment accounting, all sales and purchase invoices must be entered on one side and their payment recorded on the other, in different journals (except option for super-simplified accounting). It is recommended to perform these tasks as frequently as possible, in particular in order not to fall behind, to better monitor one’s activity and to prepare tax declarations based on reliable information. Most of the accounting treatments are presented in the “Accounting entries” section of Compta-Facile .

At the end of the financial year, only for companies that have to apply accrual accounting rules, a lot of work must be carried out and generate inventory entries (carrying out inventories and evaluation, inventory of provisions, adjustment of certain balance sheet and income statement items, etc.). Companies authorized to keep treasury accounts will only have to record certain adjustment entries (depreciation charges for example). Finally, for certain structures, the annual accounts will have to be established, approved and filed with the clerk of the commercial court.

 

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