Financial management, accounting

General knowledge of Taxation in Cyprus - Physical and Legal Persons
Taxation of citizens and businesses is the main source of revenue for any state. Through taxes, the state collects the money needed to finance the services it provides to its citizens, such as education, health, defence, energy and infrastructure such as roads, schools, hospitals, water and sewage, etc. Surely, without taxes governments would not have the money for all this. This indicates the importance of the tax system. This article intends to provide a general overview of income tax for individuals and legal entities for the year 2021, including recent adjustments due to the COVID-19 pandemic. Concepts such as tax resident of Cyprus, taxable income and income that is exempt from tax, expenses that are tax deductible and expenses that are taxed are explained. In addition, issues related to the indirect taxation of VAT are explained.
Understanding Key Concepts in Cost Accounting: Cost Behaviour, Schedule of Cost of Goods Manufactured and Job-Order Costing Method
The history of accounting can be traced back thousands of years, to the exchange of goods and services between individuals, even before the invention of currency. People needed to record their assets, liabilities, income, expenses, etc. Two of the main branches of accounting are cost accounting or managerial accounting and financial accounting. Financial accounting is all about presenting financial information to third parties that are interested in it. On the other hand, managerial accounting has to do with providing information to the company's executives in order to make decisions. For example, products must be assigned a price. But how do we decide on this price? In this regard, one important factor is the estimation of the cost of goods manufactured. The large-scale enterprises brought about by the Industrial revolution, and the complexity of their operations, led to the development of cost recording and monitoring systems. It is around this time that we see cost accounting formally developed. In practice we have various costing methods, such as job-order costing and process costing. Each of these methods is applied in different production and decision-making environments. For example, process costing is applied when we have mass production (on a large scale) of identical products. In this case, the cost per unit is identical for all products. On the other hand, job-order costing applies to a small scale of orders where the products produced are not the same across different orders. Therefore, in this case, the cost per unit is different for each order. This article explains basic cost behaviour and focuses on job-order costing, which applies to small manufacturing companies or cooperatives.
Understanding of Internal Controls and Risk Management in the Modern Dynamic and Extremely Unstable Business Environment
In today's dynamic and highly unstable environment, businesses are faced with a large number of risks that affect not only the successful outcome of their goals but also their growth and long-term survival. Internal controls are a key element of the operations of businesses, whether they are small or large organizations. Internal audit has a preventive character and plays an important role in strengthening corporate governance. A key reason for corporate scandals is weak and inadequate internal controls. This article clarifies the concepts of internal controls and risk management. To this end, it explains the key elements and weaknesses of an internal control system and discusses the reasons it is considered necessary in small and medium-sized enterprises and cooperatives. Finally, some practical examples of internal controls are given.
The Financial System and Basic Banking Activities in Cyprus
When we hear the term “financial system”, we may think that we are not involved in it as ordinary citizens or small businessmen. We might consider that the financial system has to do only with large organisations and international businesses. This, however, is a common misconception. In fact, each one of us is a part of the financial system; whether a worker, a student, a pensioner, a businessman or a stay-at-home-parent. This article provides an explanation of the financial system and how we participate in it. Moreover, it is focused on financial institutions and specifically on banks and their activities in Cyprus. In addition, it makes a brief reference to the challenges faced by banks in Cyprus today. Furthermore, with respect to the new law regarding the acceptance of cards as a means of payment, it explains the types and use of POS systems.
Basic knowledge in taxation of SSE companies in Greece
In Greece Social and Solidarity Economy entities are regulated in accordance with the conditions described in Law 4430/2016. The Law involves specific restrictions for the sharing of SSE entities’ profit and favorable arrangements for the members-employees and the SSE entities’ taxation as an incentive towards social entrepreneurship. According to article 45 par. d of the new income tax code (Law 4172 / 2013), SSE entities are subject to income tax similar to that of cooperatives and cooperatives’ associations. With ΠΟΛ.1044 / 2015, it was clarified that the cooperatives also include SSE entities (as defined by Law 4430/2016). SSE entities in Greece are taxed like all other Legal Entities with a tax rate of 24% on profits, from the first (1st) euro. The text presents the details of SSE entities’ income tax in Greece.
The Financial System and Basic Banking Activities in Greece
The term “financial system” is understood by many as referring to large companies and international organisations; they do not believe that ordinary citizens are part of this system. However, this understanding is completely inaccurate: everyone is involved in the financial system, regardless of lifestyle, employment status, their field or the size of their business. This article presents significant information about the financial system and essential banking activities in Greece, which are important factors for the overall functioning of the economy. Furthermore, we are going to learn about various forms of lending and the advantages and disadvantages of bank lending. It also explains the use of POS systems which facilitate financial transactions. The financial system is intended to provide a safe environment for all transactors and ensure trust between financial units. In addition, it provides funding to those who do not have the necessary financial resources to cope with an investment. Evidently, banks in Greece have evolved significantly and offer contemporary products, such as insurances, portfolio investments, factoring and leasing. Consequently, electronic transactions in Greece have increased and evolved in recent years, due to e-banking, POS systems and electronic bank transfers.
General knowledge of Taxation in Greece - Physical and Legal Persons
A tax is an obligatory fee paid by citizens to the State. It provides the State with income, which allows it to offer services such as Education, Health, Defense, etc. In other words, it is like citizens paying a "mandatory subscription" in order to be able to use the different services of the State. A principle of taxation that is called the “principle of benefits” states that the taxes people pay should be based on the benefits they derive from the services provided by the State. The application of the principle of fiscal capacity, states that taxes should be levied on each individual according to his/her ability to bear the tax burden. In the text below the direct and indirect taxes imposed on the income of individuals and businesses in Greece are presented, e.g. the real estate tax, the income tax, etc. In addition, business expenses that are not recognized for tax purposes when determining the taxable income are presented, as well as the application of VAT in transactions.
Understanding of accounting circuit and display of transactions
Accounting is the theory and system of recording and analyzing the financial transactions of a firm aiming at ascertaining its financial position and operating results regarding sales, purchases, production, overheads, etc. Accounting is distinguished from book-keeping in that the book-keeper only makes the proper entries and makes no analysis; the latter is the task of the accountant. In the text below we present the Regulatory Framework of Financial Accounting that applies in Greece, the Greek accounting standards that determine the manner of presentation of tax transactions and the presentation of financial statements. This new legal framework defines the entities that are subject to all the new provisions and defines their accounting management obligations. The new tax platform “myDATA” (my Digital Accounting and Tax Application) is also presented. It is the new electronic platform, with which AADE (Hellenic Independent Public Revenue Authority) introduces e-books in the daily life of companies, based on which all companies have to transmit their income daily to the tax authorities. Through this new electronic application, the aim is to automate, standardize, modernize and simplify the process for the review, analysis and provision of data of the financial data of each business unit.
End-of-year accounting operations and determination of financial results in Greece
End-of-year accounting operations are one of the cornerstones of Accounting management of every company and organization, providing significant support for their operation and detailing their financial results. End-of-year accounting operations entail a rather heavy workload during the closing period and different parts are assigned to different individuals within the company staff. The various tasks required to perform the end-of-year accounting operations are either implemented by a group of employees or by an accountant and are not done sequentially but in parallel. Very often, the division of labor for the determination of the financial results is based on the different groups of Greek Accounting Standards, e.g. fixed stocks, customers, etc. Τhe text below describes the work plan required at the end of the financial year in order to give a detailed report of a company's accounting and financial results.
Financial management of SSE entities in ITALY
There is an increasing need for SEE to find sources of financing to overcome the challenges and to invest in social innovation. Often this type of organization fails to keep pace with institutional and social changes due to the lack of financial resources. Non-profit organizations are types of organizations that do not earn profits for their members or owners. All the money earned or donated to a non-profit organization is used to pursue the objectives of the organization itself and to keep it running. Typically, nonprofit sector organizations are tax-exempt charities or other types of public benefit organizations. SEE can be funded in a variety of ways, for example through the proceeds of donations from individual donors or foundations, corporate sponsorships, government funding, programs, services or sales of goods and investments. Due to the sudden growth of non-profit organizations in the last decade, public subsidies have decreased and in the same way we cannot rely solely on private donations. For this reason, many non-profit organizations have decided to increase the variety of their funding sources.
Basic knowledge on taxation of SSE entities in Italy
The organizations that make up the varied world of the social and solidarity economy (from cooperatives to associations, from mutuals to foundations, up to social enterprises in whatever legal form they are established) are lately increasingly at the center of attention. In fact, both nationally and internationally, initiatives are multiplying that focus on the contribution that these organizations can make to increasingly pressing and complex global challenges. Within the UN, for example, the International Labor Organization has dedicated a lot of space to the social and solidarity economy (SSE) within the reflection on the future of work promoted on the occasion of its centenary, and at the European level the Commission has now been years keeps the focus on social enterprises with various regulatory and support initiatives, from the Social Business Initiative onwards. This attention is due to various factors, not least the fact that the SSE is an extremely dynamic and growing world on a global level. In this context, the entrepreneurial realities of the social and solidarity economy are particularly promising because they provide a model of organization of economic activity that is substantially different from the state and the market. Different in terms of the company's objectives (not profit but the satisfaction of a need), of proprietary and governance models, of ways of distributing the value produced. A diversity that ultimately results in a strong focus on social needs (and the ability to respond to them) and in a close alignment with the interests of the communities to which these organizations belong. In this text we will see the current regulatory situation of SSE entities in Italy by analyzing the Third Sector Code and the new tax regime of the Social Enterprise.
Financial management of SSE entities in Spain
The aim of this article is to describe the importance of the financing of SSE entities in Spain. SSE entities are a fundamental component of our economy as they generate a positive impact on society and the environment. Since they are not seeking profit maximisation at the expense of social and environmental concerns, SSE entities are often financially vulnerable. This article provides alternative financing mechanisms for SSE projects and entities in Spain.
Banking activities in the Spanish Financial System: Intermediatio
The aim of this article is to describe the most important intermediation activities in the Spanish financial system. Assets and liabilities involved in banking intermediation are described in detail. Liabilities (bank accounts) are explained first, followed by assets (credit cards, loans...)