Methodological Foundations of Organizing Accounting in Business Entities

Abstract

This paper examines the significance and methodological foundations of organizing accounting in business entities. Properly organized accounting provides the necessary data for the accurate and effective management of a business’s financial condition. The paper analyzes the fundamental principles of accounting, relevant legislation and regulatory documents, as well as the problems encountered in establishing an accounting system and ways to address them. Efficient organization of accounting plays a vital role not only in fulfilling tax obligations but also in improving a company’s financial status, aiding decision-making, and preparing financial reports.

International Journal Of Management And Economics Fundamental
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Xashimov Baxadir, Mahkamboyev Abdulhaq, & Tashbaev Bobir. (2025). Methodological Foundations of Organizing Accounting in Business Entities. International Journal Of Management And Economics Fundamental, 5(05), 35–37. https://doi.org/10.37547/ijmef/Volume05Issue05-07
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Abstract

This paper examines the significance and methodological foundations of organizing accounting in business entities. Properly organized accounting provides the necessary data for the accurate and effective management of a business’s financial condition. The paper analyzes the fundamental principles of accounting, relevant legislation and regulatory documents, as well as the problems encountered in establishing an accounting system and ways to address them. Efficient organization of accounting plays a vital role not only in fulfilling tax obligations but also in improving a company’s financial status, aiding decision-making, and preparing financial reports.


background image

International Journal of Management and Economics Fundamental

35

https://theusajournals.com/index.php/ijmef

VOLUME

Vol.05 Issue 05 2025

PAGE NO.

35-37

DOI

10.37547/ijmef/Volume05Issue05-07



Methodological Foundations of Organizing Accounting
in Business Entities

Xashimov Baxadir

Tashkent State University of Economics, Department of Accounting, PhD associate professor, Uzbekistan

Mahkamboyev Abdulhaq

Tashkent State University of Economics, Department of Accounting, PhD associate professor, Uzbekistan

Tashbaev Bobir

Tashkent State University of Economics, Department of Financial Analysis, PhD associate Professor, Uzbekistan

Received:

24 March 2025;

Accepted:

20 April 2025;

Published:

22 May 2025

Abstract:

This paper examines the significance and methodological foundations of organizing accounting in

business entities. Properly organized accounting provides the necessary data for the accurate and effective

management of a business’s financial condition. The paper analyzes the fundamental principles of accounti

ng,

relevant legislation and regulatory documents, as well as the problems encountered in establishing an accounting
system and ways to address them. Efficient organization of accounting plays a vital role not only in fulfilling tax
obligations but also in

improving a company’s financial status, aiding decision

-making, and preparing financial

reports.

Keywords:

Accounting, business entities, financial management, report preparation, tax obligations.

Introduction:

Organizing accounting is crucial for the

successful operation of any business entity. The
primary function of accounting is to accurately reflect
the financial condition of a company and to manage its
economic activities efficiently. Today, in order to
analyze and manage business performance, accurate
and reliable financial data is essential, and proper
accounting organization is the primary tool for
providing this data.

METHOD

Accounting plays a significant role not only in tax
reporting but also in internal management, decision-
making, financial analysis, and planning. Moreover, the
development of modern information technologies and
automated systems provides opportunities for more
effective and faster organization of accounting. This
paper discusses the core principles, methodology, legal
and regulatory issues, and modern methods for
effectively organizing accounting systems in business

entities.

Significance Today, a well-structured financial
management system is essential for the successful
operation and growth of business entities. Accounting
serves as the main tool for accurately reflecting and
managing the financial condition of an enterprise,
playing a crucial role in the proper organization of
business activities. Through accounting, companies can
analyze their financial status, fulfill tax obligations
accurately, control expenses, and maximize profits.

At the same time, global economic changes, new
legislation, and the development of digital technologies
and automated systems demand new approaches to
organizing accounting. Specifically, for small and
medium-sized enterprises, establishing an effective
accounting system is important for increasing
competitiveness and ensuring financial stability.
Therefore, accounting is particularly relevant for
businesses in developing economies that are striving to


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International Journal of Management and Economics Fundamental

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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)

organize their activities successfully.

RESULTS

Modernization accounting systems requires the use of
advanced information technologies. Implementing
automated systems helps make accounting more
efficient and accurate, improving the quality of
financial reporting and simplifying decision-making
processes.

It is also necessary to organize training programs on
accounting for small and medium-sized enterprises.
These programs support business representatives in
properly

organizing

accounting,

fulfilling

tax

obligations, preparing financial statements, and
effectively managing their businesses.

Legal Framewor Adapting the accounting system to
comply with legislation is also of great importance.
Regular updates to the laws and regulatory documents
in the field of taxation and accounting in the Republic
of Uzbekistan help ensure that business entities meet
legal requirements correctly.

Developing consulting services in the field of
accounting, especially for small and medium-sized
enterprises, is beneficial. These services help
companies assess their financial situation accurately
and engage in effective financial planning.

The proposed approaches aim to make the accounting
system more efficient and accurate. With automated
systems, calculations are performed quickly and
without error, contributing to the improvement of a

business entity’s financial condition.

A profession, as opposed to other types of occupation,
is characterised by the following factors:

• the mastering of specialised skills during a period of

training

• governance by a professional organisation

• compliance with an ethical code

• acting in the p

ublic interest

• a process of certification before being allowed to

practise.

There are many examples of professions, such as
accounting, law, medicine and teaching. A professional
accountant (such as an ACCA member), for example,
fulfils all four of the above criteria. In many countries
(including the UK) it is also possible for unqualified

people to call themselves ‘accountants’ and set

themselves up in business. However, such people are
not professional accountants as they do not belong to
aprofessional accountancy div (such as the ACCA) and
have no obligation to follow an ethical code.

Many businesses choose to utilise specialised software
packages that record and process the individual
transactions within the business, rather than relying on
manual records. These accounting packages are often
designed to automatically produce yearend accounts
and management reports when requested

Advantages

Advantages

Rapid recording of transactions,

when

compared

to

a

manual

system.

Lower likelihood of mistakes.

Rapid production of reports and

financial statements

Usually requires training before

use.

Packages can be expensive to

purchase and install.

May be unnecessary for a small

business with low numbers of
transactions.

Recommendations

Improving financial management in small and medium-
sized businesses through professional development
and consulting services increases their profitability and
competitiveness. In turn, this contributes to the long-
term success of the business.

Proper organization of the accounting system and
ensuring compliance with legal standards reduce tax

errors and problems during tax audits.

Through the use of information technology and
automation, accounting processes can be optimized,
saving time and allowing for more efficient resource
management.

Accurate organization of accounting is a necessary
condition for the successful operation of every business
entity. It plays a key role not only in the correct


background image

International Journal of Management and Economics Fundamental

37

https://theusajournals.com/index.php/ijmef

International Journal of Management and Economics Fundamental (ISSN: 2771-2257)

fulfillment of tax obligations but also in improving the
financial condition of the enterprise, supporting
decision-making, and preparing financial reports. The
implementation of modern information technologies
and automated systems allows for a more efficient and
precise accounting organization.

In addition, improving training and consulting services
for small and medium-sized businesses helps increase
the quality of accounting and improve business
profitability. An efficiently organized accounting
system facilitates financial management, ensures
proper

tax

payment,

and

enhances

the

competitiveness of enterprises.

At the same time, continuously aligning the accounting
system with legislation and regulatory requirements is
vital for ensuring the legal security of business entities.
The proposed approaches and methodologies are
relevant and useful for businesses aiming to organize
their operations efficiently and contribute to their
economic sustainability.

REFERENCES

Accounting in Business (F1). Translated from English /
Edited and introduced by A.A. Karimov, F.B. Kilicheva,
N. Imamova.

Tashkent: “Iqtisod

-

moliya”, 2022. 238

pages. (ACCA series)

Isroilov B.I., Khajimuratov N.Sh., Ibragimov B.B.
Accounting in Business. Textbook.

Tashkent:

“Iqtisodiyot”, 2023. –

288 pages.

References

Accounting in Business (F1). Translated from English / Edited and introduced by A.A. Karimov, F.B. Kilicheva, N. Imamova. – Tashkent: “Iqtisod-moliya”, 2022. 238 pages. (ACCA series)

Isroilov B.I., Khajimuratov N.Sh., Ibragimov B.B. Accounting in Business. Textbook. – Tashkent: “Iqtisodiyot”, 2023. – 288 pages.