Learn About Accounting And Its Major Terms

Accounting is a technique that deals with recording, classifying and summarizing the business operations of a business to interpret its results. Next, the managers through the accounting process and documents can orient themselves on the course that their business follows through the accounting and statistical data. These data allow us to know the stability and solvency of the company, the flow of collections and payments, trends in sales, costs and general expenses, so that you can know the financial capacity of the company.

All this has a process, in which the information is first entered through the documents validated or authorized by SRI, then the information is processed in an accounting system of the company and finally the results are obtained.

Data Entry

Accounting is part of the data, which is obtained from a legal document such as invoices, sale notes, settlement of purchase, credit notes, debit notes and other documents authorized by Internal Revenue Services. These data are entered daily into an accounting system of all the movements that the company has.

Information Process

This process for learning purposes can be done manually, but in the practical life inside the companies, it is very complicated or almost impossible to do in a month all this process by the amount of information that exists and that is why companies have designed accounting systems to streamline the process more info of external auditor visit this site.

Results of the Year

After having entered the information, and at the end of the accounting process, you obtain the economic results or the exercise of a period and an accounting period can be a month or a year.

Authorized and Valid Documents for Accounting

All documents that are authorized by SRI are valid for accounting purposes; they are recognized by the authorization number that comes with each document. These documents are entered into an accounting system available to the company and after an accounting process the financial information is obtained called balance sheets.

Retention Vouchers

They are proofs or documents that prove the withholding tax are made by the individuals or companies that act as retention agents, that is, when they are required to keep the accounts.

Credit Notes

They are issued to cancel the operations, accept returns of goods and grant discounts or bonuses.

Debit Notes

They are issued to collect the interest for late payment and to recover costs and expenses incurred by the seller after the of the receipt.

Reference Guides

They support the transfer of goods within the national territory.

About

Rethink-HQ is a premium quality service for accounting and other financial services and has become one of the best CA firms in Dubai for sure.

Leave a Reply

Your email address will not be published. Required fields are marked *