Financial Accounting Process for Partnership Business

Running head: FINANCIAL ACCOUNTING PROCESS
Financial accounting process
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1FINANCIAL ACCOUNTING PROCESS
Table of Contents
Introduction................................................................................................................................2
Benefits of partnership...............................................................................................................2
Requirements of partnership......................................................................................................2
Limitation of partnership............................................................................................................2
Comparison with other company structure................................................................................3
Accounting reporting and regulation requirement of companies...............................................3
Better among sole trader, partnership and company..................................................................3
Conclusion..................................................................................................................................4
Reference....................................................................................................................................5

2FINANCIAL ACCOUNTING PROCESS
Introduction
Partnership business is the specific type of relationship that is legally formed through
agreement among 2 or more individual for carrying out the business as co-owners. It is a
form of business with various owners those have made investment for the business
(Galbraith, 2014).
Benefits of partnership
Various advantages associated with the partnership businesses are –
 The owner receives the entire profits
 Start-up procedure is easy and start up cost is low as filling fees are not required.
 Documents required for the partnership businesses are very few
 Owners are liable to pay the income tax only on his individual income (Becker,
Kugeler & Rosemann, 2013).
 Owners are free to take their decisions regarding the operation of business
Requirements of partnership
If Xiaojing starts partnership business he shall have 2 or more owners who will be
known as partners. The partners will share the losses and profits as per the agreement deed.
All the partners shall have written agreement for partnership that includes the regulation and
rules of business.
Limitation of partnership
Various limitations associated with the partnership businesses Xiaojing may be are as follows
–