Why is Dual Bookkeeping Better than the Standard One

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Dual bookkeeping also has three different types of books: the diary, the general ledger, and the help book (analytical account of customers, suppliers and others).

Overall, the dual accounting system is significantly more comprehensive, and significantly more accurate than the system of simple bookkeeping. Although the transition from a simple to dual bookkeeping to some bookkeepers and entrepreneurs will present the pain in the head in the initial period, in the long run it will bring them a lot of good when it comes to an overview of the situation and the financial result.

How to switch from free to double bookkeeping?

When it comes to switching from a simple to double account is to start on time. So, start already, you will be forced to do it, so it would be best to get some practice in this new system. The second tip is to do a detailed inventory of goods, accounts and receivables, and cash. You will have to do this for sure when crossing, so our advice is essentially to keep that in mind and start on time to collect all the necessary data.

The inventory of goods should be done at purchase and selling prices. Also, if you want to lead the goods not only financially but also in quantity, you need to enter the goods as a starting position into the system. So, you have to have a very accurate insight into how much exactly you have goods on the day you are entering the system.

Also, it is necessary to determine the balance of funds in accounts and foreign currency accounts. 

When switching to dual accounting, you will also need to complete a list of obligations. This implies determining the debt to each supplier individually (at the time of the census), as well as determining unpaid taxes, contributions, net wages of workers, and other obligations. In short, all financial debts of the company on the day of the inventory must be accurately recorded.

This, of course, means that all debts to the company must also be recorded. This includes: individual customer debts, paid and not repaid loans, receivables from the Tax Administration for subsidies, claims for non-funded sickness, and the like.

Finally, it is necessary to make a list of all the basic assets and equipment. Not only that, it is already necessary to obtain data on the purchase, write-off and present value of the same. These data can be found in the calculation of amortization, and they are very important.

Great deal now, big profit later

We know that all of this at the moment works as a Sisyphus's work, but it really is not. It requires you to be quick and organized in communication with your bookkeeper, or client, and be ready to invest work and effort in organizing your own books. However, once the job is completed, not only will you be ready for 2019 and new rules, but you will have a much better insight into the financial condition of your own company.

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