The relationship between bookkeeping, inventory and balance sheet

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Anyone who deals with companies for the first time or with how they organize their affairs and manage, who cannot avoid dealing with the bookkeeping and the relationship to the inventory and the balance sheet deal.

In the bookkeeping, the connection between inventory and balance sheet is recorded and the result is calculated.
In the bookkeeping, the connection between inventory and balance sheet is recorded and the result is calculated.

This is how you understand the connection between bookkeeping and inventory and balance sheet

  • The aim of bookkeeping is to capture a company's books and keep them up to date.
  • The inventory is recorded at least once a year. For this, the stock result of the inventory carried out is necessary. The inventory results are then related by listing them in the inventory.
  • In every company there is an inventory and balance book that receives an inventory once a year. It is part of accounting that all results are compiled and all incoming and outgoing items are recorded chronologically.
  • There is a cash book for cash transactions, a diary for transfers, the incoming goods book and the invoice book.
  • The success is always calculated by comparing the company's assets at the beginning of an accounting period with the assets at the end of the accounting period.
    • Relationship between inventory, inventory and balance sheet - explanation

    The terms inventory, inventory and balance come from the operational ...

Why every company has to have an accounting system

  • Note that every company in Germany must have its business books kept. It is up to the company whether it has this carried out in its company or by an external service provider.
  • The existing inventory is recorded in the bookkeeping. The balance sheet, which is presented in the form of T-accounts, is also an important part. The connection is that the books must record all values ​​and sales and expenses.
  • According to §§ 238 ff. HGB and §§ 140 ff. AO obliged to keep the business books. However, there is no legal obligation to keep company accounts.
  • In doing so, the companies must adhere to the GoB (set of rules on the principles of proper accounting) and record the entries continuously, completely and truthfully. Only in this way is it possible for a third party, for example a tax auditor, to understand this in a short period of time.

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