Bankruptcy Prevention with the Unified Accounting System

Abstract

Nowadays, the development of the economy is unthinkable without ensuring a proper competitive environment for many of its participants, placed in relatively equal economic circumstances. However, the involvement of subjects in business circulation is faced with problems of financial literacy, honesty, responsibility, accessibility of information, and other resources. Many of these difficulties lead to the rapid bankruptcy of an economic entity and damage to its partners in the form of unfulfilled obligations. A system of recording the facts of economic life and economical communication of its participants are called upon to help to solve such problems. Based on the study of theoretical principles, generalization, and analysis of accounting practices, the purpose of the study is to propose the organization of the accounting system in order to ensure the effective administration of a single economic space, allowing to obtain effective tools for making managerial decisions and the implementation of other administrative powers. In accordance with the goal, the prerequisites and possibilities for introducing trends in the development of the accounting system in the conditions of a single economic space were identified and studied. The issues of administering economic relations using the tools of the accounting system of a single economic space are considered in order to prevent the bankruptcy of economic entities in the digital economy; The results of the study are summarized, and a procedure for organizing accounting activities in support of stated tasks are proposed. The novelty of the study lies in the developed procedure for organizing the accounting system for ensuring the effective administration of a single economic space, which will help prevent the bankruptcy of economic entities. The contribution of the authors lies in the study of prerequisites and opportunities for implementing trends in the development of the accounting system in a single economic space, as well as in the review of the administration of economic relations using the tools of the accounting system in a digital economy for preventing the bankruptcy of economic entities.