Intra-company accounting guidelines

Properly written internal company guidelines are very useful for any company. They are the absolute basis for the implementation and compliance with the general principles applied in accounting. In fact, internal company directives help to unify accounting procedures within the organisation and to further manage and adjust company processes.

An entity should adhere to current legislation and the following principles when preparing guidelines:

• the principle of the material and temporal relationship between costs and revenues (accrual principle)
• the principle of consistency of accounting policies within and between periods
• the principle of no offsetting of costs and revenues, receivables and payables
• the precautionary principle of recognising only actual profits and both realised and expected liabilities of the entity
• the principle of balance sheet continuity

Without adherence to these principles, accounting will be neither correct nor complete. The guidelines should be revised annually to reflect not only legislative changes but also the current conditions and needs of the particular company. Compliance with the accounting guidelines also helps to ensure that the tax base is correctly determined. Have you ever heard of an allowance for doubtful accounts? About writing off bad debts? About “work in progress” in services?

Our AICCON team will be happy to assist you with the preparation of your internal company guidelines. We can advise you on what directives you need and prepare these necessary documents for you to comply with all legal requirements.