As soon as someone no longer works exclusively as an employee, but begins to work part-time or full-time (business start-up project), this automatically results in the need to determine the resulting annual result accordingly.
A distinction is made as to whether the annual results for internal or external purposes is determined.
For internal purposes, the entrepreneur himself is interested in determining the annual result in order to gain knowledge about the profitability of the activity to win. However, it is no longer sufficient to find out how "the year went" after the end of a financial year. Rather, it is essential for successful corporate management to receive information about the current cost and earnings development as soon as possible in the form of monthly or quarterly reports during the current year. This is the only way to identify problems that might otherwise even threaten the existence of the company in good time and to take appropriate countermeasures. This area is also called internal accounting or controlling. There is no obligation to do so or statutory provisions regarding the design in this area. Rather, the focus here is on the application of business methods.