Double-entry accounting and new municipal financial management
Following the introduction of the new municipal financial management, the obligation arises for all municipal facilities to create commercially oriented financial statements.
Opening balance sheet
The first step is to establish the opening balance sheet. Due to uniqueness, there can be very little routine in the opening balance sheet. Experience with new issues relating to the balancing and assessment is still very recent. Many local authorities have mastered the routine, but quite a few are still striving to do so.
Annual financial statement
BDO supports you with a pragmatic approach to all outstanding issues of balancing, assessment and documentation based on years of experience. For example, in the preparation of accounting principles, the development of tamper-proof documentation, creating a realistic schedule for the annual financial statements or documenting complex matters.
Consolidated financial statement
When it comes to creating consolidated municipal financial statements, the objectives have been redefined and go beyond legacy annual financial statements.
To establish a closed controlling system, it is essential to integrate controlling, risk, process and cost management into a single system in order to enable strategic urban investment management. This is based on the consolidated municipal financial statement, to which BDO contributes results-oriented qualified advice based on its extensive experience both in local authority accounting and in group accounting. Everything from in-house training through to complete drafting of the consolidated financial statement.
Auditing of financial statements
Accounting control and auditing offices now also face new tasks. The risk-based audit approach that is now applicable differs significantly from the previous auditing system.
BDO has extensive practical experience in cooperation with accounting control and auditing offices. Taking individual needs into account, the local accounting control and auditing offices are involved in the audit process in a bespoke way.
Development of double-entry accounting application
In many places, the high expectations of technical, organisational or even technical matters concerning the application of double-entry accounting in municipalities have not been fully met. In particular, the integration of the various elements of reform in the context of a comprehensive planning and control system for administration and politics has not been successfully completed everywhere.
Based on our comprehensive experience, we specialise in the introduction and targeted development of budgetary, accounting and controlling systems in municipalities. The focus of our services is on improving and connecting the (technical) instruments and procedures of external and internal accounting.