Improving the accounting of unfinished works for small businesses

Abstract

Purpose: to make recommendations about the accounting for work in progress for small businesses. Discussion: we develop the register-list to the account statement 46.0.0 «Completed stages of unfinished work» that maximized reflects information on the cost and timing of the stages of work in progress. We present a mechanism of reflection the amount of revenue and earnings on uncompleted works information necessary for tax accounting and reporting of small business within the reporting period. This mechanism involves the expansion of the analytical account under accounts 46 and 90 by means of the introduction of additional subaccounts. Results: the proposed approach to the work in progress stages accounting will optimize the information for management decision-making in the accounting and tax accounting.