What makes accountants different

Balance sheet accounting
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This page was last updated on May 19, 2021

Definition: what is balance sheet accounting?

Balance sheet accounting is a sub-area of ​​accounting in a company. Unlike accounts payable or accounts receivable, balance sheet accounting is not concerned with small organizational units, but with the results of all sub-areas.

The balance sheet accounting summarizes the numbers of the different sub-areas of the accounting and calculates them Balance sheet as well as the annual financial statements. The balance sheet and the annual financial statements are the most central results in a company's financial year. That is why balance sheet accounting is also a very important element of bookkeeping. It makes the decisive statement about whether the work of the company is successful or not and how the figures are made up in detail.

What are the tasks of balance sheet accounting?

The balance sheet accounting essentially deals with the following tasks:

1. Preparation of annual financial statements with balance sheet and income statement

At the end of each financial year, the balance sheet accounting department creates the annual financial statements, consisting of the balance sheet and income statement (profit and loss account). These must correspond to the nationally and internationally valid standards. The balance sheet accounting must also have the Business activity of the company Be accountable and publicly present the balance sheet. It takes on external accounting tasks.

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2. Internal company information function

At the same time, the accounting department also takes on internal accounting tasks. It delivers the arithmetic Basis for strategic and operational planning and decisions. Depending on the size or situation of the company, they may also be quarterly or semi-annually Interim balance sheets created. The accountant must be able to inform the management of the following at any time:

  • the current economic situation of the company
  • the liquidity
  • profitability

Nobody in a company is better informed about the figures than the accountant. On the basis of the current company figures, important business decisions are made, for example about investments or the hiring of employees.

3. Calculation of the company's tax obligations

A company's tax obligations are calculated on the basis of the balance sheet. To ensure that all tax advantages and special regulations must be observed, the accountant must have legal and tax knowledge.

The job of accountant

Accountants enjoy a high reputation in companies today. The reason: With their evaluations and annual financial statements, they provide the basis for strategic decisions. Your tasks correspond to the above-mentioned tasks of balance sheet accounting. In daily practice, accountants must always comply with the latest laws, for example in the area of ​​tax law, the commercial code or income tax laws. That's why they need to keep up-to-date with regular training.

What qualifications do you need as an accountant?

The completion of the certified accountant is a degree recognized under public law. It is awarded after successfully completing commercial advancement training. The training to become an accountant is extensive and must be completed with an examination at the IHK.

What is the difference between financial accountant and accountant?

The difference between the two job titles financial accountant and accountant lies in the training. Only those who pass the examination at the Chamber of Industry and Commerce can call themselves a “certified accountant”. Financial accountant on the other hand, anyone who has anything to do with bookkeeping can name themselves.

Balance sheet accounting summarized

  • The balance sheet accounting summarizes the figures of the different sub-areas of the accounting and calculates the Balance sheet and the Annual financial statements.
  • Accounting tasks are the preparation of the annual financial statements and the balance sheet, the delivery of important information about the economic situation of the company and the calculation of tax obligations.
  • At the end of each financial year, companies that are required to keep accounts must have a Prepare annual financial statements.