Joint stock companies:
A joint-stock company (JSC) is a type of corporation or partnership involving two or more individuals that own shares of stock in the company. Certificates of ownership ("shares") are issued by the company in return for each financial contribution, and the shareholders are free to transfer their ownership interest at any time by selling their shareholding to others.
In modern company law the existence of a joint-stock company is often synonymous with incorporation (i.e. possession of legal personality separate from shareholders) and limited liability (meaning that the shareholders are only liable for the company's debts to the value of the money they invested in ...view middle of the document...
Therefore, it's important to understand the role of the board treasurer.
Getting an Accountant or Bookkeeper, If Needed
If you are inexperienced in financial management, then you should get an accountant initially to help you set up your bookkeeping system, generate financial statements and do some basic financial analysis. But don't count on an accountant to completely take over your responsibility for financial management! The accountant can help you set up a bookkeeping system, generate financial statements and analyse them, but you have to understand financial data to the extent that you can understand the effects of your management decisions, the current condition of your business and how decisions will affect the financial condition of your business in the future.
You should carefully consider whether you should hire an outside accountant, or hire your own employee. The IRS pays increasing attention to the hiring of independent contractors.
Buy Accounting Software to Help You?
Strongly consider getting a software package to manage your books! There are a number of very useful software packages that will help you automate bookkeeping, generation of financial statement and their analysis. Note that an accounting software package can greatly reduce the time to enter and manage accounting transactions, and generate financial statements. However, you still should have at least a basic understanding of the accounting process for your organization, including what journals are used and what general accounts exist. You must have good understanding of financial statements and how to analyse them -- an accounting package cannot do this for you
Getting a Bank and Banker
You'll need to start a business account at a bank. Probably the best way to find a good bank is to ask for advice and references from other small businesses, especially those that are of the size and nature of yours. If you're just starting out, you probably don't have much money. You may be able to get buy with a non-interest-bearing checking out that has no, or minimal, fees. The following links may be useful.
Basic Bookkeeping Activities
Bookkeeping is basically recording various financial transactions. Bookkeeping activities can often be done by someone who's doing basic clerical work in the business.
Fiscal Policies and Procedures Manual (or Accounting Procedures Manual)
As your business grows, it helps to develop a set of procedures for how your business manages its finances, including how the following activities are carried out by your business. You and your employee will be able to work from the manual to carry out financial management activities. You can also hire a finance professional to review the manual to ensure it's up to date.
Type of Accounting System and Recording of Financial Transactions
Accounting starts with basic record keeping (or bookkeeping). When your organization is just getting started, your bookkeeping system will probably be...