Accounting is the back-bone of the company because if the accounts are not maintained properly then any wrong information may create a problem for the business organization. That is why before starting of maintenance of accounts records the following point must be kept in mind:-
- The accountant must be a qualified person having the requisite qualification and must have sufficient experience of maintenance of accounting records.
- Before the accounts of a company are begun, the accountant must study the nature of business.
- The accountant must prepare the list of various information required by the concerned persons. The information may be related to management, customers, suppliers, societies and legal authorities.
- Keeping in view the requirement of information, the accountant must prepare the list of account heads under which the business transactions will be recorded.
- The accountant must select the proper team for accounts department to handle the different type of accounting functions and should distribute the work among the accounting staff as per their qualification and experience.
- When the above formalities are done then the accounts department should start to record the financial transactions.
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