ACCOUNTING
Accounting and bookkeeping play a crucial role in determining the overall impact of recorded transactions on a company’s final financial statements. Through bookkeeping, the final accounts, namely the Profit and Loss Account and the Balance Sheet, are prepared. It is essential to maintain records of business resources, liabilities, and profits.
For business owners and SMEs, engaging professional and highly experienced accounting firms in Dubai can yield cost savings and bring a wealth of expertise to the business. Outsourcing accounting and bookkeeping services to firms in Dubai, UAE proves to be valuable in ensuring accurate financial records and accessing specialized knowledge for business success.
What is the Accounting Cycle?
Steps of Accounting
Accounting begins as soon as you enter a business transaction-any operation or event involving money from your firm-in the business directory of your organization.
This is part of bookkeeping where the documents of business transactions are recorded. And bookkeeping is the first stage of what accountants term the “accounting cycle,” an accurate and consistent financial reporting process.
The six major steps of accounting are:-
- Transactions (for invoices, bank statements, etc) are analyzed and registered.
- Posting transactions in the report (under double-entry accounting rules)
- Prepare an unadjusted check balance (this includes naming all the records in the company and describing their balance sheets)
- Plan for adjustment in entries at the end of the cycle
- Prepare an improved trial balance
- Preparing the financial records
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