Invoicing period of company income and expenses

invoicing income expenses

A situation is possible in which the activities of a Bulgarian company have been actually carried out in a previous month or accounting period, but due to the established reporting organization, invoicing has been carried out in the following month. In this case, the question arises to which period the invoiced company income and expenses refer.

From an accounting point of view, companies are enterprises within the meaning of the Accounting Act. Their current accounting reporting is organized according to the order of this law and is carried out by the method of bilateral accounting recording.

The correct reporting of income and expenses is of fundamental importance for the formation of a true accounting and tax financial result. The true and correct presentation of the financial statement requires a reliable display of the effects of operations, other events and conditions in accordance with the definitions and criteria for the recognition of assets, liabilities, income and expenses laid down in the applicable accounting standards.

In this regard, it is important that the reporting of each enterprise is organized according to the contracts that are signed between the enterprise and its counterparties, taking into account the performance under them. The issued primary accounting documents should reflect the activities performed and confirmed by the counterparties.

However, a situation is possible where invoices are issued with missing information on the dates of the activities that are the subject of invoicing. Then all the compiled documents in their totality serve as evidence for the period and volume of incurred expenses and subsequent revenues.

In the general hypothesis, subject to the accrual principle, the effects of transactions and other events are recognized at the time of their occurrence, regardless of the time of receipt or payment of cash or their equivalents and are included in the financial statements for the period for which relate.

For consultation regarding the invoicing of company income and expenses, you can contact our experts.

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