American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 21, | February, 2024 P a g e | 66 www.americanjournal.org IMPORTANCE OF REGULATION AND LEGAL REGULATION OF ACCOUNTING IN ENTERPRISES SMALL BUSINESS Pirakhunova F.N. STARS International University Dean of the Faculty of Global Business Technology and Finance Faridapirohunova@gmail.com Fayzaliyeva D. F. STARS International University 3rd Year Student Majoring in Accounting and Audit A B S T R A C T K E Y W O R D S The authors of the article describe the main accounting methods that are used by enterprises, indicating their main regulatory and legal aspects. It is indicated how to correctly build an accounting system at an enterprise in modern conditions. The authors revealed that accounting must be maintained in order to monitor the financial position of the company and in order to be able to evaluate the results of its activities. Also, apply a simplified taxation system and maintain accounting records in accordance with the law. Accounting, plan of accounts, registers, financial condition, management decision, small business, enterprise. Introduction Currently, favorable conditions are emerging for the further development of accounting and financial reporting in the Republic of Uzbekistan. Regulatory and legal acts have been put into effect covering most of the objects of accounting and financial reporting. The professional community accumulates certain skills and experience in accounting and financial reporting that meet the needs of a market economy. In the country's accounting community, there is a growing understanding of the need to transition to using IFRS [1]. Depending on the specifics of the enterprise and the type of taxation, entrepreneurs build an accounting system, taking into account its features. The Federal Law on Accounting regulates the correctness of work according to the chosen taxation system. By its principle, accounting generates final information on the economic condition of a small business enterprise. It reflects any changes in the financial and economic activities of the enterprise; after reviewing the statements, we will be able to see in what periods certain transactions were carried out, what is the economic condition of the small enterprise [2]. American Journal of Business Management, Economics and Banking Volume 21 February, 2024 P a g e | 67 www.americanjournal.org All data is systematized and summarized. Any management decisions are made based specifically on data from accounting registers. Undoubtedly, it is very important, as it allows us to provide information to the management system, and to everyone at all its levels. In general, accounting information affects about 80% of the economic information of small businesses, since this information forms the basis of the information support of the system, which allows the use of mechanisms for managing small businesses [2,3,4]. Target Based on accounting at enterprises of various types of small businesses, it is an integral and main part of the system that allows you to manage production. The purpose of the research was to examine the implementation of economic methods that affect all aspects of the quality of a small business enterprise. Methods The very concept of accounting in a management system does not imply only the use of information support functions. Accounting allows you to perform an information role, namely the ability to provide control that will allow you to preserve the property of the organization. The control function of accounting shows the highest indicators in certain conditions, namely when the widespread introduction of economic methods occurs, which affect all aspects of the quality of work of a small business enterprise [4,5]. Based on certain facts described above, accounting allows you to understand and show where exactly there are shortcomings in the work of a small enterprise, where there is irrational use of resources, etc., but it is also important that it helps, through the appropriate organization of the accounting service, it can put a barrier all phenomena that negatively affect work. In an enterprise, accounting is never stable; it always adapts flexibly to the economic situation of the country and specifically the enterprise itself. Each enterprise must take an individual approach to accounting. In conjunction with internal company policy, as well as the narrow specifics of the organization, the founders, or persons performing official tasks, select the correct reporting forms, chart of accounts, to reflect the results of the financial and economic activities of the enterprise. Main Part The adopted regulatory documents include, among other things, modern principles of international reporting standards. Ensuring control over property, including its movement, the use of resources, both labor, material and financial - all of the above are the main tasks performed by accounting in an enterprise. In particular, with the help of accounting, it is possible to identify negative elements at an early stage and, with the help of correctly adopted management ones, to prevent them even at the stage of their inception, if it is necessary to mobilize unused resources. Reporting also reflects complete and reliable information about the state of the enterprise. It can be used not only by employees of the organization, but also by investors, creditors, buyers, suppliers, and various bodies in order to obtain reliable information about the company in which investments or development investments will be made. American Journal of Business Management, Economics and Banking Volume 21 February, 2024 P a g e | 68 www.americanjournal.org When organizing accounting and tax accounting, entrepreneurs are required to follow the adopted and current legislation. This will not only avoid difficulties when submitting documentation to inspection authorities, but will also additionally protect the entrepreneur from unintentional mistakes. At the moment, accounting and tax accounting at an enterprise is regulated by the Federal Law on Accounting in the latest edition [5]. The next level document regulating accounting is standard recommendations for introducing accounting for small businesses. When choosing and building an accounting system for an enterprise, it is necessary to be guided by a rational approach to choice, adjusting the system to the organization, and not vice versa. In particular, accounting policies must be in accordance with internal policies, as well as the construction of the tax system. A small business entity can regulate the document flow of the enterprise. By adjusting it at various stages of development, as well as increasing the amount of information taken into account. Separation of information on individual assets and liabilities can be done at the discretion of the entity itself. If they are not fundamental, they may not be separated into separate documents. Each enterprise has the right not to publish an accounting policy, as well as a financial statement, if, in its opinion, these documents do not reflect the essence of financial activities, but only complement them in certain areas of regulation and inspection. One of the internal documents is the accounting policy of the organization; this document is mandatory both in the organization of a small and large enterprise. This document summarizes all the fundamental principles that are enshrined in the enterprise, which should not be used by employees who have access to reporting. This document is approved by the head of the organization. The accounting policy sets out the basic principles of accounting and tax accounting, among other things. It would be incorrect to include only accounting in the documents, since tax accounting is also the main stage. The accounting policy within the enterprise must regulate the completeness of reporting, as well as the completeness of reflection in the documentation. We touch upon not only the main elements in the legislation, but also those elements that are important in a particular enterprise. Information must be available in a timely manner, this is also a basic accounting principle in order to avoid omissions, including missed opportunities. The information in documents must also contain hidden information, so it will be complete. Data must be consistent and rational. The documents that are published together with the accounting policies also include a working chart of accounts - this document is based on the adopted Chart of Accounts, but is regulated for a specific organization. The accounting policy also reflects the forms of documents accepted for mandatory execution and completion on the basis of the organization. They represent internal accounting documents. The package of documents must also contain an inventory plan, which is mandatory in the organization. Methods for assessing types of property and liabilities. Rules and technology for processing documents for provision and further storage. To summarize, we can say that the accounting policy in an organization is the so-called instructions for proper accounting, provision of information, and its documentation. Each enterprise, on the basis of its organization, draws up and publishes an accounting policy within the company. When it is published, any employee of the company can read it, but for work it is usually accepted by the economic department and management for making management decisions. American Journal of Business Management, Economics and Banking Volume 21 February, 2024 P a g e | 69 www.americanjournal.org The working chart of accounts for accounting in a small enterprise must contain synthetic and analytical accounts necessary for maintaining accounting records in accordance with the requirements of timeliness and completeness of accounting and financial reporting [3,4,5]. Conclusions Thus, the accounting policy for accounting reflects the methods of reflecting certain transactions in accounting, and subsequently, accounting profit is formed based on accounting data. Organizations that have switched to a simplified taxation system are not required to maintain accounting records, with the exception of accounting for fixed assets and intangible assets. But in reality, this exemption from accounting is essentially formal. For example: 1. Accounting must be kept in order to monitor the financial position of the company and in order to be able to evaluate the results of its activities. 2. In most cases, organizations using a simplified taxation system need to keep accounting records by virtue of legislation. References 1. Chart of accounts for accounting of financial and economic activities of business entities and instructions for its use. Order of the Ministry of Finance of the Republic of Uzbekistan dated December 27, 2001 No. 128 (registration No. 930-2 dated December 29, 2001) - Bulletin of normative acts, 2002, No. 20 2. Barngolts S.B., Melnik M.V. Methodology of economic analysis of the activities of an economic entity. – M.: Finance and Statistics, 2015. - P. 140-149. 3. Vakhrushina M. A. Management accounting. - M.: Omega-L, 2014. P. 278-280. 4. Dontsova L. V., Nikiforova N. A. Comprehensive analysis of financial statements. - M.: DiS, 2015. P. 254-259. 5. Ashurov Z.A. Issues of implementing the principles of CSR, ESG, SDG in the activities of enterprises with state participation. // State, municipal and corporate management: theory and best practices. Proceedings of the Eighth International Scientific and Practical Conference (November 10- 11, 2023). – Rostov-on-Don: Federal State Budgetary Educational Institution of Higher Education RGUPS, 2023. P. 11-15. 6. Valizhonov A.R. Development of small business and private entrepreneurship in financial markets. // Iqtisodiyotning raqamlashuvi sharoitide bank-moliya tizimini rivozhlantirish istiqbollari. Republic of Ilmiy-Amalii conferencesi tesislar tўplami (April 12, 2023). – Tashkent: “Molia”, 2023. P. 447- 449.