The Purpose of Accounting
In Switzerland, there are 600'000 companies. 500'000 of them are small and medium-sized enterprises (SMEs), and more than 80% of the population works there.
I believe that if we were to survey the owners and management of SME companies and ask them a simple question: "What is the purpose of accounting?", at least over 90% of them would answer: "For tax calculation!"
There is no exact statistic, but rough estimates suggest that there are around 10'000 fiduciaries in Switzerland—companies that provide accounting services to Swiss SMEs. I suppose that over 90% of managers and accountants working there would also answer the above question in the same way: "For tax calculation!"
However, the chief accountants of large companies, as well as those involved in budgeting for municipalities, cantons, and the country, would say that the primary goals of accounting are entirely different. Tax calculation is one of the necessary but far from primary functions.
And this is the main problem. For the entire state. For all SMEs. For the entire economy of the country.
Properly prepared accounting provides the necessary picture of the structure of expenses, revenues, the nature of debts and credits, and the state of assets. And only accounting is capable of providing an accurate picture. Specifically—thanks to double-entry bookkeeping.
If it is not used in calculations, it is absolutely impossible to guarantee the accuracy of the final results. All other tools provide their assessments with a certain degree of probability.
As a result, we can conclude that:
A. Accounting is the only tool that can guarantee the accuracy of the financial picture of an economic entity.
B. Accounting works adequately only in large structures.
C. Accounting does not work at all in small and medium-sized enterprises, where, again, over 80% of the population is employed.
Therefore, the situation can only be described as catastrophic.
We offer you 3-in-1:
I believe that if we were to survey the owners and management of SME companies and ask them a simple question: "What is the purpose of accounting?", at least over 90% of them would answer: "For tax calculation!"
There is no exact statistic, but rough estimates suggest that there are around 10'000 fiduciaries in Switzerland—companies that provide accounting services to Swiss SMEs. I suppose that over 90% of managers and accountants working there would also answer the above question in the same way: "For tax calculation!"
However, the chief accountants of large companies, as well as those involved in budgeting for municipalities, cantons, and the country, would say that the primary goals of accounting are entirely different. Tax calculation is one of the necessary but far from primary functions.
And this is the main problem. For the entire state. For all SMEs. For the entire economy of the country.
Properly prepared accounting provides the necessary picture of the structure of expenses, revenues, the nature of debts and credits, and the state of assets. And only accounting is capable of providing an accurate picture. Specifically—thanks to double-entry bookkeeping.
If it is not used in calculations, it is absolutely impossible to guarantee the accuracy of the final results. All other tools provide their assessments with a certain degree of probability.
As a result, we can conclude that:
A. Accounting is the only tool that can guarantee the accuracy of the financial picture of an economic entity.
B. Accounting works adequately only in large structures.
C. Accounting does not work at all in small and medium-sized enterprises, where, again, over 80% of the population is employed.
Therefore, the situation can only be described as catastrophic.
We offer you 3-in-1:
- Traditional tax accounting, ready for optimization by tax experts.
- Accurate real-time business accounting, providing you with a clear and up-to-date view of your business's financial state.
- Training, after which you will understand accounting at a level necessary for competent management of your business.
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