accounting 2023

accounting 2023 Given the importance of accounting in economic work, the study of this science is necessary for anyone who wants to run his business successfully,

or for anyone who seeks to work in the field of accounting as a future job.

In this article, cfoonline, the accredited financial office in Saudi Arabia,

will provide you with the most important information about accounting, because we always strive to provide what is beneficial to our customers.

What is accounting 2023?

Accounting: It is a science related to collecting, recording, summarizing,

analyzing and reporting financial and economic information for individuals, companies and institutions.

The evolution of accounting throughout history

Accounting is one of the basic branches of business, and it is historical in nature, as the roots of accounting go back thousands of years, and over time it has witnessed a great development.

The following is an overview of the history of accounting development:

1. The old period: In this period, accounting was limited to writing numbers and amounts, and it was mainly used to determine the quantities of materials and products stored in stores and warehouses. Ancient civilizations, such as the Romans and the Greeks, used methods of recording income and expenses and analyzing financial statements.
2. Middle Ages: This period witnessed a great development in accounting, especially with regard to recording transactions and calculating profits and losses. Accounting in this period was limited to trade and industry, and was limited to the local scale.
3. The modern era: Accounting witnessed a great development during this period, thanks to the technological and economic development that the world witnessed, including the development of companies and international trade. This development has led to an increase in the demand for professional accountants, and the emergence of a large number of companies specialized in the field of accounting.
4. The modern and digital era: The current era is witnessing a great development in accounting thanks to technology and cloud computing, which make it easier for accountants to manage data, generate reports, and analyze data more quickly and accurately.

This is a detailed explanation that we presented to you in our article Accounting on the development of accounting throughout history.

What is meant by the Court of Accounts?

The Audit Bureau is an official body in the government that undertakes the task of monitoring and financial oversight of government agencies.

The objectives of the Court of Accounts

The Audit Bureau aims to achieve the following:

• Transparency and accountability in managing the state’s financial resources.
• Determine the extent to which government agencies achieve their objectives and financial policies.
• Provide recommendations to improve the financial and accounting performance of government agencies.

Types of accounting

There are several types of accounting, which we will present to you in this article – accounting,

which varies according to its purposes and the areas in which it is used, and among these types:

1.  (Financial Accounting)
2.  (Management Accounting)
3.  (Tax Accounting)
4.  (Islamic Accounting)
5.  (Public Accounting)
6.  (government accounting)
7.  (Forensic accounting)

General Accounting Principles and International Accounting Standards

General Accounting Principles are the principles that accountants must follow in recording,

analyzing, and reporting on companies’ financial operations.

These principles build on the basic principles of accounting and include the following:

• Fulfillment Principle: According to this principle, all expenses related to an operation must be recorded in the same period in which the related revenues are earned.
• The Swap Principle: According to this principle, every financial transaction must be recorded as an exchange between two parties, and each transaction must be recorded in terms of its real financial value.
• Revenue Principle: According to this principle, revenue should be recorded in the period in which it is earned.
• Disclosure Principle: According to this principle, all financial transactions must be detailed in a clear and transparent manner in the financial reports.
• Expenditure Principle: According to this principle, all expenditure related to an operation must be recorded in a correct and detailed manner.

As for the International Accounting Standards (IAS),

they are a set of standards that have been identified by the International Accounting Standards Board (IASB) to unify global accounting standards.

These standards aim to:

1. Standardization of accounting language
2. Provide transparent and detailed financial reports to different users

They cover a variety of topics such as basic accounting standards, and the essential elements of financial reporting.

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–Accounting major in Saudi Arabia 2023.

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_  Learn about applied accounting.

Accounting major

Accounting major is a specialty related to auditing and analyzing the financial and accounting records of companies, institutions and individuals.

Specialization includes:

1. Study basic accounting concepts
2. preparing financial reports
3. Internal and external audit, and taxes.
4. Financial risk management and financial planning.
5. Corporate financial management.

An accounting major is available in most universities and colleges around the world, and students who study this major can work in areas such as:

• Tax accounting.
• Internal and external audit.
• Financial planning and financial business management in various companies and institutions.

What are the accounting majors?

Among the subjects included in the accounting major:

1. Financial Accounting: Learn how to record and analyze corporate financial statements and prepare financial statements such as the income statement, balance sheet, and cash flows.
2. Managerial Accounting: Focuses on the use of financial data for planning and making financial managerial decisions related to the company.
3. Income Tax: Learn how to apply tax laws and prepare tax returns.
4. Reviewing and Auditing: Learn how to audit financial accounts to verify that they are correct and are properly represented.
5. Tax and Commercial Law: Learn how to deal with tax and commercial laws and apply them to financial activities
6. International Finance: Learn how to manage international finance, foreign exchange and hedge against financial risks.
7. Accounting Information Systems: Learn how to use software and technology to record and analyze financial data.
8. Cost Management: Learn how to determine the cost of production and improve the company’s financial performance.

There are many other subjects that may be taught in accounting major programs and depend on the study program and the requirements of the university or institute.

What are the functions of accounting major?

The accounting major includes many functions, the most important of which are:

1. Accountant: A person responsible for preparing financial and tax accounts and providing financial guidance to companies and individuals.
2. Auditor: A person who examines the financial accounts of companies and institutions to verify their validity and accuracy.
3. Financial Analyst: A person responsible for analyzing financial and economic data and making recommendations to companies and institutions regarding money management.
4. Financial manager: A person responsible for managing funds, budget planning, and analyzing financial and economic data for companies and institutions.
5. Tax Analyst: A person responsible for analyzing taxes and applying tax laws to companies and individuals
6. Cost Accountant: A person responsible for analyzing production and manufacturing costs and estimating future costs.
7. Chartered Accountant: A person responsible for analyzing financial and tax laws and providing guidance to companies and organizations on compliance with the laws.
8. Accounting Office Manager: A person responsible for managing the accounting team and planning and coordinating accounting and financial tasks
9. Independent Accountant: A person who works as a freelance accountant and provides accounting services to companies and individuals.
10. Financial Business Analyst: A person responsible for analyzing the financial business of the company.

Newly used accounting tools and software

There are many newly used accounting tools and programs, including:

• QuickBooks: It is a popular accounting software used by many small and medium businesses. The program allows managing accounts, bills, expenses, salaries and taxes in an integrated manner.
• Xero: Allows users to easily create invoices and manage accounts, payroll, taxes, and expenses. The program features an easy-to-use user interface and is compatible with many other applications.
• Wave: It is a free accounting software that allows users to easily track expenses and income and manage accounts. The program features the ability to generate various reports to help businesses make the right decisions.
• FreshBooks: Allows users to easily create invoices and manage accounts, payroll, taxes, and expenses. The program features the ability to generate various reports to help businesses make the right decisions
• Zoho Books: an all-in-one accounting software that allows users to create invoices, manage accounts, payroll, taxes, and expenses with ease. The program can also customize different reports to meet different business needs.
• Sage: It is a popular accounting software that allows users to manage accounts, invoices, expenses, and payroll in an integrated manner. The program also features the ability to generate various reports to help the business.

Accounting technician

Accounting technician refers to a person with technical skills and experience in accounting and finance.

Accounting Technician Jobs

The accounting technician performs many functions, including:

1. The accounting technician performs daily accounting work that includes preparing accounts.
2. Ensure the numbers are accurate.
3. Migrate financial data to accounting software.
4. Create basic financial reports.
5. The accounting technician supports accountants and financial managers in financial analysis, financial planning and auditing.
6. Assists in preparing tax and administrative budgets and reports.

An accounting technician usually needs strong computer skills, accounting and analytical software, and good knowledge of applicable accounting and financial laws.

The role of the accountant in companies and institutions and types of accounting documents

The accountant is considered one of the most important administrative tools that officials depend on in making administrative decisions in companies and institutions.

The role of the accountant in companies and institutions is as follows:

1. Compilation of accounting and financial data: The accountant collects financial and accounting data related to the company or institution from various departments and departments and from various sources.
2. Analysis of accounting data: The accountant analyzes the accounting and financial data and compares it with previous data to identify the success of the company or organization and predict the future.
3. Financial Planning: The accountant assists in preparing the general budget and annual financial plans, which aim to determine the company’s financial resources and the way they are used.
4. Preparing financial reports: The accountant prepares periodic and annual financial reports that reflect the company’s financial status.
5. Monitoring financial operations: The accountant assists in monitoring financial operations and ensuring that the company’s financial policies are applied correctly.

Types of accounting documents:

There are many accounting documents that are used in companies and institutions, including:

• Invoices: It is a document showing amounts owed by the company from customers.
• receipts: It is a document proving that a certain amount of money has been paid to the company
• account statement: It is a document showing the status of a company’s financial account with customers or suppliers.
• Ledger record: It is a record that contains all the accounting accounts related to the company, and it is used to record all accounting operations related to the accounts mentioned in it.
• Accounting entries: It is the document that is used to record the operations of the company’s accounting entries, including daily transactions such as payments, financial transfers, purchases, and sales.
• Purchases Record: It is a record that contains details of the purchases made by the company, and contains information such as the name of the supplier, the date of purchase, the quantity purchased, and the amount paid.
• Sales record: It is a record that contains details of sales made by the company, and contains information such as the customer’s name, date of sale, quantity sold, and amount due.
• Financial data: The financial data includes the trial balance, the income statement, and the capital list, and it clarifies the company’s financial condition and the source of revenues and expenses.

How does the accountant determine the appropriate method for the operations of a project?

In determining the appropriate method for dealing with the operations of a project, the accountant depends on several factors, including:

1. Project type: Where the methods of dealing with construction projects differ from the methods of dealing with commercial or industrial projects.
2. Project size: If the project is large, it may require the use of a specialized accounting system that can handle complex and multiple operations, while if the project is small, it may be better to use a simple accounting system.
3. Available resources: The accountant must take into account the resources available to the company or financial institution in which he works, such as the infrastructure and accounting software available.
4. Accounting laws and regulations: The accountant must deal with the accounting laws and regulations applicable in the country or region in which he works, and ensure that they are applied in all project operations.
5. Financial objectives: The accountant must determine the financial objectives of the project, such as achieving profitability or reducing costs, and the chosen accounting method must be in line with these objectives.
6. Cost Analysis: The accountant must analyze the costs associated with the project, and determine the best way to allocate these costs over the project timescale.

In short, the accountant must comprehensively analyze and evaluate all factors related to the project to determine the appropriate accounting method for those operations.

How to be a successful cost accountant?

A cost accountant can be successful through his understanding of production and administrative processes, and familiarity with accounting software.

Saudi Accountants Association

The Saudi Accountants Organization is a professional body established in

the Kingdom of Saudi Arabia with the aim of organizing and developing the accounting profession in accordance

with the highest professional standards, in order to achieve more transparency and integrity in accounting and financial practices in the Kingdom.

Chartered accountants

Certified Public Accountants are certified accountants with special skills and in-depth legal knowledge in the field of accounting.

They are trained to understand and apply the accounting, tax and financial laws and regulations that relate to businesses and corporations.

Taxes and government fees and their impact on accounting and financial reports

Government taxes and fees are one of the major issues that accountants, businesses, and financial institutions deal with.

They affect corporate financial reporting and require accountants and financial auditors to adhere to a set of specific rules and procedures.

How to become a tax accountant?

To become a tax accountant, you must follow these steps:

1. Obtain a Bachelor’s Degree in Accounting or a related field: Having a degree in accounting, finance, or a related field is very important for a career as a tax accountant. You must make sure that you choose a good program that adequately covers tax topics.
2. Obtaining the Certified Public Accountant (CPA): This certification is very important for practicing the profession of chartered accountants and requires obtaining approval from the Association of Certified Public Accountants.
3. Obtaining practical experience: You should work as an accountant in the field of taxation to improve your skills and learn methods of working in this field. You can work in large accounting firms or small offices.
4. Continuous learning: You must stay up to date with changes in taxes and amendments to laws related to them. You can join ACCAs to get educational resources and benefit from training courses.
5. Passing specialized exams: To become a tax professional, you must pass specialized exams, such as the CTP exam and the Certified Tax Accountant (ATA).
6. Develop Communication and Communication Skills: Effective communication with clients and colleagues is very important in the field of taxation. You must develop your communication skills.

Financial analysis and its importance in making strategic decisions

The objective of financial analysis is to evaluate the company’s performance by examining its financial data,

such as financial reports, cash flows, budgets and other financial statements,

in order to understand the numbers and transformations that occur in the company’s work.

The importance of financial analysis in making strategic decisions can be as follows:

• Evaluating financial performance: Financial analysis allows a better understanding of the company’s financial performance by analyzing numbers and financial data, and identifying any weaknesses or strengths that must be improved or invested.
• Determining financial needs: By analyzing financial statements, the company can determine the financial needs and plan the financial resources required to achieve the company’s goals.
• Directing investments: Financial analysis can help the company direct investments better by evaluating financial numbers related to various projects and investments.
• Improving debt management: Financial analysis helps evaluate the company’s debt management, control associated costs, maintain company liquidity and avoid future financial problems.
• Determine potential for growth: A financial analysis can help a company determine if it has the potential to expand and grow.

Internal audit and external audit and the importance of each in ensuring the accuracy of financial and accounting information

To understand the internal audit and the external audit and the importance of each in ensuring the accuracy of financial and accounting information,

it is necessary to know the difference between them:

External audit	internal audit
It is carried out by an independent team of external auditors and aims to verify the validity and accuracy of the financial and accounting information provided by the institution.	Internal audit and external audit and the importance of each in ensuring the accuracy of financial and accounting information
Emphasis is placed on the institution’s commitment to accounting and regulatory standards and its ability to meet financial obligations.	Emphasis is placed on internal monitoring, internal control, risk management, and compliance with accounting and regulatory standards.
Evaluates the financial performance of the organization and provides a report on potential financial risks.	Recommendations are directed to management and managers of the organization to improve their operations and reduce potential risks.
It is used by shareholders, investors, and regulatory and tax authorities to evaluate the validity and accuracy of financial and accounting information within an organization.	It works to increase efficiency, reduce costs, and improve financial and accounting operations within the organization

accounting firm

An accounting firm is a company that provides accounting and financial services to clients.

These services include preparing accounts and financial statements, conducting audits and financial and tax management.

Accounting companies provide these services to small and large companies and individuals,

and this is done through direct financial advice or by using modern accounting programs.

Accounting companies are very important in facilitating the process of business and financial management, and help in analyzing and understanding financial numbers and making the right strategic decisions.

What is the difference between a debtor and a creditor in accounting?

The debtor and the creditor are two terms used to describe the accounts of individuals or companies, and in our

accounting-accounting article, we will learn about the most important differences between them:

creditor	debtor
It indicates the side on which a decrease is recorded in the account	It indicates the side on which an increase is recorded in the account
This represents the account that is credited with the amount of money in the transaction	This represents the account that is loaded with the amount of money in the transaction

Debit and credit are used in accounting to record all financial transactions and to maintain balance between balances in accounts.

In every financial transaction, the amount of the debtor must be equal to the amount of the creditor,

and this is known as the principle of double accounting.

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What is posting in accounting?

Posting in accounting is the transfer of an amount from one account to another so that this transfer is recorded in the company’s book of accounts.

Posting is used in accounting to transfer information from one account to another and to adjust account balances.

Examples of migrations include:

1. Transfer the reserved revenue to the main revenue account.
2. Transfer overhead costs to the main costing account.
3. Transfer of accrued interest on loans to accrued interest account.
4. Transfer of unpaid debts to the financial receivables account.

We conclude our article accounting-accounting that accountants must adhere to professional accounting standards and careful analysis of financial statements,

to provide transparent and accurate financial reports, enhance confidence among all parties involved,

and enhance the success and sustainability of institutions and companies.

The most important sources:

en.wikipedia

quickmba

journalofaccountancy

American Institute of Certified Accountants

accountingtoday