Building financial and accounting system for NEAR

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I think it is necessary to build an integrated financial and accounting system for NEAR

This system should be able to perform the following tasks

Part 1 Financial Accounting

1.Preparing basic financial statements balance sheet, income statement (profit and loss) and cash flow statement

2.Organizing and building a chart of accounts for NEAR

3.General ledger accounts

4.Organizing all accounts of external and internal parties dealing with NEAR

5.Organizing revenue, expense and treasury accounts

6.Organizing accounts of fixed and current assets, short-term and long-term liabilities

7.Trial balance, accounts receivable and accounts payable.

8.Able to provide detailed, clear and simple reports about ox activity for community for discussion, especially expense and revenue reports

9.Ability to build financial statements and the accounting system in accordance with international accounting standards

10.- NEAR should building accounting system capable of dealing with different taxes, laws and financial regulations

11.Building cloud system to store all financial documents related to the transactions of NEAR there is no accounting system without organized and preserved documents
that prove all financial transactions

12.Follow NEAR dues and obligations and set a schedule for collection and payment

13.Developing and preparing financial regulations and laws that regulate and control any expenses or money paid from the NEAR treasury (with the help and supervision of the NEAR community)

Part 2 Forecasts and budgets

Always forecast begin by preparing revenue budget
prepare it based on expectations revenue or on planned goals

for example in current period we want to achieve greater revenues
based on realistic plan so you prepare budget including numbers we want to achieve

Based on this budget we prepares operating budget and rest of the budgets It may be fixed or flexible

Now we have the expected numbers

at the end of each period, we calculate the difference between expected and what actually happened and find the variance and analyze it and find out why it happened

for example

we in budget expected to spend 10000$ on a particular item but we spent virtually 11000$

what is the reason for spending 1000$ more than the mount in budget ??

It may be normal cause like price change and maybe for another reason should check and it’s all written in a report

accounting system periodically prepares a report showing variance between actual numbers and budget explaining reasons for it and discussing it with NEAR community

these discussions improve way to prepare for the budget in following period
and in this way it achieves control from community and effectiveness in the optimal use of financial resources

It also helps in converting NEAR plans into realistic financial plans and helps in proper planning and increasing confidence in the management of NEAR

Capital budget

Developing a new product or adding parts to an existing product may be a complex matter that requires a lot of money, time and effort It is considered as an asset owned by NEAR so it may need to build a capital prepare capital budget for it

Part 3 Financial analysis and financial models

Financial and accounting system should be able to vertical and horizontal financial analysis and extracting

1.Liquidity Ratios 2.Activity Ratios 3.Profitability Ratios 4.Leverage Ratios 5.Market Ratios

Able to build financial models that serve NEAR goals

Analysis of financial ratios and horizontal and vertical comparisons of the statements and financial reports give a better idea of the strengths or weaknesses in NEAR and
give ideas about possibilities of development and give the management better ideas
about the situation of NEAR and how to move to forward

Also doing financial analysis of competitors for NEAR (if possible do that) and comparing ratios of NEAR with others in the same activity gives an idea of whether NEAR performance is optimal or there are things that need correction

Financial analysis is very important and should be done regularly

Part 4 Cost accounting system and Opportunity Cost

NEAR is ambitious company that is always striving to develop existing products and
in future maybe build new products

it also has a desire to expand and include new members of the team
All of this needs a strong costing system that regulates process of calculating
the costs of implementing NEAR ideas

also be able to calculate the opportunity cost

For example we have a great idea it will cost 10000$
and will generate revenue of 15000$ should we implement it or not??

It depends on alternative opportunities perhaps there are other ideas that also cost 10000$ but revenues will enter 20000$ so this will be better than the first

NEAR should have system for calculating opportunity cost helps in make decisions

Part 5 Accounting audit system

always check all numbers whether expenses and revenues with original documents and verifying correctness of all financial operations and integrity and make sure that there is no any manipulation, fraud, error or misuse of funds,either intentionally or unintentionally

and that any financial decision is the best and achieves interests of NEAR and constantly stocking financial documents of NEAR in a way that can be easily viewed at any time and to verify the validity of the declared financial statements

and immediately reveal any financial transaction that is suspected it be against the interest of the NEAR community

Financial and accounting system should monitor the use of funds

Part 6 Managing treasury, financial resources, and token control

Financial and accounting system should develop plan for the optimal use of the NEAR treasury and divide it in a way that achieves the maximum benefit for NEAR and reduces financial risks to minimum

NEAR financial resources should be managed only according to the will of the NEAR community

Price of tokens is attempted to be controlled by raising or lowering it according to the financial plan and the goals to be achieved

Part 7 Financial Risks and Financial Opportunities

Financial and accounting system should constantly

write reports about potential financial risks and potential financial opportunities and develop plans to deal with both of them

and present to the community to think about best solutions

Also, if there is a financial shortage, makes plans to how cover this shortage

Part 8 Attracting more funding and investment

Financial system should make plans on how to attract more funding and investments to develop NEAR

Provided that these plans do not affect the independence of NEAR or create dangers or problems for NEAR
The priority is for the independence of NEAR and to be always safe

These are only broad lines and subject open to discussion

I hope that the community will interact to lay the foundation for building accounting and financial system that achieves transparency and integrity

and be able to prevent any financial risks from NEAR and helps the management
in setting a development plan and increases confidence in management of NEAR

so building an integrated accounting and financial system is not difficult.
All of the above can be achieved without much effort

I hope the community will share its opinion in the comments

I hope in the end we can build the broad lines for the establishment of a financial and accounting system for NEAR

2 Likes
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Hello friend sure would make a comment on this

Honestly I like the idea :bulb: and am in support of this
But few questions

  1. Is this going to be like a DAO, guild or a Dapp?
  2. How do you plan on executing the financial accounting system
  3. What infrastructure is required here
  4. Would this be able to detect PNL of communities treasuries
  5. Is this an idea or the project exist and it’s functional, if it those hope I can see links to your socials or site
    Thanks for this great idea
1 Like
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@Psalmy Thank you for your comment and interest

Just to clarify, I’m just a normal member in NEAR community and I’m not work with any company that provides its services , but like any other forum member, I’m just trying to provide ideas that might benefit the NEAR community

I will now try to answer your questions

Is this going to be like a DAO, guild or a Dapp?

I don’t mean that what I mean is that by browsing the forum, I did not find any financial reports published in the forum, like balance sheet, or profits and losses, or cash flows, or any financial analyzes, and even any simple accounting reports

The most of the information is open because it is on the blockchain network .It is open to all, there are no secrets ,Although that there are no financial reports published in the forum , There is no financial or accounting system

What infrastructure is required here??

Nothing we need at first
We can start using Google Sheet and Excel , We can also use Open Office as an alternative to Microsoft Excel so that the programs we will use be open source and completely free , Later we can add other software tools to develop what we have built
It will not cost any money at all at least in the beginning

Would this be able to detect PNL of communities treasuries

If the data of the communities treasuries is available on the blockchain network for everyone and their address known and available to everyone, we can certainly do that

Is this an idea or the project exist and it’s functional, if it those hope I can see links to your socials or site

It’s not like that
In the beginning, I am an accountant with excellent experience and have the experience, knowledge and skill to implement anything in the financial and accounting fields and I also have some other skills, for example, I am also a programmer specializing in accounting and management programs ,I had a business in the past in the field of accounting and management software, but it’s over now , and I have a deep passion and knowledge of the world of crypto, blockchain and cryptocurrency also I have a variety of other experiences and skills

Examples of my work in programming on my youtube channel

To know more information about me from this file on Google Drive

To simplify the matter, I mean by building a financial and accounting system, is to develop a system to extract various financial and accounting reports and publish them on the forum regularly.

we will rely on the information that available to everyone,Because we don’t have any other data or any support

As I mentioned, I am just an normal member what I do is just volunteering and I don’t have any connection with the NEAR Management or even with DAO Management
This is an individual initiative to development Community

like any other initiative that exists here, for example, there are members create a channel on YouTube explaining information about NEAR

What I’m talking about is just doing financial and accounting work like extract financial reports with use what is available to us from the general information to publish on the forum
This will help a lot in creating more transparency and also making the community able to make better decisions If there is a possibility to reach more information that would be great
Having a financial and accounting system and financial reports regularly placed on the forum is very important
An organization like NEAR DAO should have an accounting and financial system This will helps a lot in its development , It will help you a lot in building more success and will help in making better decisions

I hope I was able to answer your questions , If there is anything unclear, feel free to ask
Also, if you have other ideas or suggestions, I’m open to hearing them, maybe you have another, better view