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Voitto Knowledge Base

Business event

Last updated: 2021-06-21

A business event is a financial transaction that affects a company’s finances.

Only things that have an immediate impact on the economy count as business events. Immediate impact means things that change the company’s fortune or that change the composition of assets, equity and liabilities.

Business events fall into the following categories:

  • Deposits and withdrawals
  • Receivables and liabilities
  • Own additions or withdrawals in the business

Things that do not immediately affect a company’s finances are not counted as business events. Examples of events that are not classified as business events are orders, orders or quotations.

According to the Accounting Act, all business events must be recorded on an ongoing basis. When the business events are posted, they become accounting entries. The accounting entries, in turn, must be able to be presented in systematic order in the general ledger and in order of registration in the basic ledger.