REALITIES AND ACCOUNTING PERSPECTIVES IN ROMANIA REGARDING THE PRODUCTION OF FURNITURE

Abstract

This paper treats aspects concerning the evolution of turnover, costs and profitability in the furniture production sector. The purpose of the paper is to establish a certain link between the indicators presented in the financial statements prepared to the entities in the field of wood processing. In order to achieve such correlations, we will study the indicators of the Romanian entities whose object of activity is the production of furniture, with certain restrictions. The profitability of these types of entities has a sinuous aspect during the financial year, and expenditures on raw materials (timber, plywood) and consumables represent about 50% of sales in a given accounting period. The share of costs in sales made in a given period must not exceed 30% in this sector in order to ensure minimum profitability. We will use the case study method, the graphic method and other tools to highlight the evolution of turnover and costs in the field of wood processing. The study will be conducted on a number of approximately 2000 entities, regardless of whether they record a loss or profit for a given financial year. A specific aspect is the reverse charge operation that is used for the purchase of timber, as there are high tax risks in terms of value added tax. In this sense, we will provide excerpts from the VAT return and from the informative declaration regarding the deliveries / services and purchases made on the national territory. In this way we will present the correlations that must exist between the tax forms, as well as the existing correlations with the purchase journal and the sales journal. In the case of the furniture production sector, the stocks of finished products, raw materials and consumables are of particular importance, as their efficient management must be ensured.