In 2018, almost 70,000 new companies started in Sweden, and many of the entrepreneurs have never operated or, even to a limited extent a previous company. Of these new entrepreneurs, many have newly started companies that choose to part of their own time with the goal of trying to manage the accounting in their company themselves. As with everything else, there are advantages and disadvantages of managing your company’s accounts yourself. The advantage is that you may be able to save some money, provided that you cannot spend that time working with something more beneficial in your own company another benefit may be that you are able to get a better understanding of your company’s financial events. The disadvantage is that you may miss a deadline and receive a delay fee from the Swedish Bolagsverket or the Swedish Tax Agency, or perhaps miss some important deduction or depreciation rules that can put your company in a worse economic state.
In addition to practical problems that may arise with the actual accounting or difficulties in choosing the “right” accounting program, the entrepreneur can also have difficulties with the understanding of the economic language. If you have not previously worked in or with finance/economics in any form, much of the terms used may seem as foreign as another language. Terms such as cash flow statement, management report or simply what the difference between income and revenue is? The economic terms are very important to know in order to understand and interpret current accounting principles and laws. Economic terms are also of vital value when communicating with the Swedish Tax Agency and the Swedish Bolagsverket. Whether you hire an accountant or do it yourself, it is important to always understand the difficult financial terms in order to make the right decision for your company.
Are you new to finance or accounting and have a bit of difficulty with all new terms or simply want to refresh the memory a bit? Then Din Bokföring Stockholm offers a totally free directory on the website!