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What is accounting?

Accounting is a way of recording and monitoring financial transactions within an economic entity. It is used for recording individual income and expenses, respectively income and costs. Currently, the most common method of accounting is the so-called double-entry bookkeeping. The accounting system consists in recording all transactions and their evaluation in the form of creating reports and overviews.
What is accounting?

Accounting organizes, processes and records financial information about an economic entity. It is a tool for managing financial resources and recording income and expenses.

Accounting is as old as humanity itself and has become the foundation of the economic world. Since time immemorial, people have had a need to record their income and expenses and record their assets and liabilities. In this spirit, accounting continued to develop until today's principle of duality. Today's accounting is a rather complex field that consists of a collection of principles, procedures and techniques that are used to perform accounting operations. The most important standard governing accounting is the Accounting Act 563/1991 Coll.

The Accounting Act regulates the scope and method of accounting, the requirements for its proof, the scope and method of publishing information from accounting and the conditions for the transfer of accounting records for the needs of the state. The Accounting Act applies to the following accounting entities:

  • legal entities
  • foreign units that do business in the territory of the Czech Republic
  • entrepreneurs (self-employed)
  • trusts, pension and investment funds

The history of accounting began to develop in ancient times. At that time, the first accounting books that record financial transactions are already appearing. The first recorded accounting record comes from ancient Egypt. This ledger contains records of production costs and taxes.

Other accounting records date back to the Mesopotamia period. Later, ledgers began to be divided into individual accounts to better track and record specific accounting transactions. With the invention of the mechanical accounting machine in the 19th century, it enabled significant automation of accounting. Thanks to this, it was suddenly possible to efficiently record all transactions and save a lot of time in accounting processing. Accounting has become much more accurate, simpler and efficient thanks to technology.

The biggest turning point for the field of accounting was of course the introduction of computers. The software made it possible to easily carry out accounting transactions, quickly analyze and evaluate data. The use of modern technologies and the principle of duality resulted in a robust accounting system, which minimizes the possibility of errors and maintains a perfect correspondence between individual financial transactions, warehouse movements and assets, if correct accounting procedures are followed.

Why us

Founded in 2016, NANO – AUDIT consults various multinational clients in several countries with financial expertise to assist financial professionals improve their processes, recover liquidities, analyzing and mitigating risk. We are able to do this because we assembled a team of dedicated professionals with decades of experience in various financial fields that impact your organization by offering tailor made advise.


We deliver our work within the highest possible standards. We take pride in expertise.

GDPR Compliance

We strictly follow all requirements of the General Data Protection Regulation.

Data security

We guarantee the highest data security standards. All data is stored on our own servers and we also have our own IT department. We backup essential data a on daily basis and non-essential data on a weekly basis. We also do external backups on encrypted drives to make sure that none of your data is ever lost.

We look forward to working with you

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