If we pay more attention to the accounting inventory then according to the Accounting Act, the company is obliged to make inventories of assets and liabilities at least once a year. Entities may start the inventory no earlier than four months before the balance sheet date and end the inventory no later than two months after the balance sheet date. Moreover, according to Section 29 (3) of Act 563/1991 Coll. about accounting., they are required to prove that the inventory has been done (including record keeping, i.e. inventories) for a period of 5 years after its conduction.
During the inventory, the actual state of assets and liabilities is determined and recorded in the inventories. An inventory can be physical to determine the true state of assets by counting, measuring, and weighing, such as stocks, petty cash, and tangible assets.
The inventory of receivables and payables is carried out exclusively through a documentary inventory. The inventory verifies the existence of receivables and payables on basis of invoices where it is best to contact suppliers and confirm with them the balance of open liabilities. The inventory of equity is carried out by means of various resolutions, decisions, approval of the economic result, etc.
The usual non-compliance with the Accounting Act is considered to be when companies have none or incomplete inventory of unpaid assets, receivables, and liabilities, and therefore they are missing legally required records from the documentary inventory. This is often the reason for imposing the above-mentioned fines for misdemeanors imposed according to the Accounting Act.
In case you suspect any incomplete inventory records or financial statements that do not meet all the requirements, do not hesitate to contact us so that you avoid any possible sanction for violation of the Accounting Act.
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