Five Principles For Formulating Accounting System For Small And Medium-Sized Enterprises

First, the main body of the accounting system should be clear. Actually, this principle requires that the SMEs should have a relatively clear definition standard so as to ensure that the accounting system has an appropriate scope of application. Due to the rapid development of small and medium-sized enterprises, the scale of operation, the number of employees and the number of assets and so on are constantly changing. In addition, because investors do not carry out the daily management of enterprises and the size of enterprises do not necessarily exist, so it is not suitable as a standard of division. The author thinks that the standard of correctly dividing small and medium enterprises should be two: one is to see whether it raises capital from the capital market, the second is to see the size of its registered capital. Those who do not raise capital from the capital market and whose registered capital is lower than the prescribed standard should be defined as small and medium-sized enterprises. Accounting calculation And supervision. I will accompany you in the exam.

Second, accounting system The content should be simple, easy to understand and easy to operate. This principle requires that when formulating the accounting system for small and medium-sized enterprises, we should aim at the characteristics of the accounting business of small and medium-sized enterprises. From the setting of accounting subjects to the compilation of accounting reports, we should embody the guiding principles of simple and practical application. Compared with large enterprises, the accounting business of small and medium-sized enterprises is relatively simple. accounting information Users are also limited to business management departments, government tax departments and creditors. Therefore, in the process of making accounting system for SMEs, we should emphasize the simplicity, comprehensible and easy operation of the accounting system, give full consideration to the ability and level of accounting personnel in small and medium-sized enterprises, and give consideration to the principle of cost-effectiveness in the implementation of accounting system. This is more conducive to the establishment of a simple, flexible and practical accounting system for SMEs, providing timely and complete accounting information to users.

Third, accounting system should apply the principle of caution. The accounting system for enterprises implemented in Limited by Share Ltd since 2001 has fully applied the principle of prudence, mainly showing the preparation of eight asset impairment provisions. From the actual situation of the development of small and medium-sized enterprises in China, many enterprises are faced with problems such as outdated equipment, backward technology, insufficient investment in research and development, lack of competitiveness, and loan difficulties. From the perspective of accounting, small and medium-sized enterprises need to provide credible accounting information to the society in order to achieve sound operation and healthy development. To achieve this, we should apply the principle of caution in the formulation of accounting system for small and medium-sized enterprises.

Fourth, the accounting system should be consistent with the tax law as far as possible. Small and medium-sized enterprises are not only the cradle of big enterprises, but also the important force to promote the economic development of a country and realize the prosperity of the market. Statistics show that China's small and medium-sized enterprises account for 99% of the total number of enterprises, and the tax paid to the state accounts for 45% of the total enterprises. This requires that the accounting system of small and medium-sized enterprises should take into account the needs of enterprises to pay taxes. The enterprise accounting system implemented by Limited by Share Ltd in our country adopts the practice of separating accounting from taxation, mainly considering the emphasis of investors and creditors in the accounting service of large enterprises. Since the object of accounting service for small and medium-sized enterprises is mainly in the tax department of enterprise managers and the government, small and medium-sized enterprises can not provide financial accounting reports even after they have fulfilled their duty of paying taxes. Therefore, the accounting system of small and medium-sized enterprises can not adopt the practice of "enterprise accounting system", but should keep consistent with the tax law as far as possible, so as to reduce the tax adjustment work at the end of the accounting period and improve the efficiency of accounting work.

Fifth, the accounting system should coordinate with international standards as far as possible. After China's entry into WTO, the trend of accounting internationalization will be more obvious. Whether it is the enterprise accounting system, the financial insurance enterprise accounting system, or the accounting system of small and medium-sized enterprises, they should coordinate with international standards as far as possible. This is also the inevitable result of China's opening of the accounting market. The coordination of accounting system between SMEs and international accounting standards will help SMEs absorb more capital from venture capitalists at home and abroad and enhance their financial strength in the process of development, so as to win more room for development.