Accounting and audit are tasks for which companies often require the help of an outside expert. According to law, all companies are subject to an accounting obligation. With the exception of small companies, all enterprises are obliged to elect an external auditor. It is useful even for small companies to engage the services of an external auditor, even though they are not obliged to do so.
In simple terms, accounting means recording the sums of money involved in business transactions resulting from business operations. Accounting collects complete financial documentation and registers information on business transactions, following a specific method. The result is financial statements on the company’s finances. As a whole, accounting comprises the company’s revenue, expenses, property, assets and debts. Financial statements prepared on the basis of accounting reveal the operating result. Company management is responsible for arranging accounting.
The Association of Finnish Accounting Firms has compiled an accounting guide (Kirjanpidon ABC in Finnish) on its website. This Accounting ABC explains what accounting is. Knowledge of various terms and practices helps you in transactions with your accounting firm.
According to the Accounting Act, all enterprises and private persons engaged in business or professional activity are subject to an accounting obligation. The obligation commences from setting up a business. Accounting arrangements are therefore among the primary duties of a start-up company.