Accounts
Bookkeeping Services in Oman
A well-organized accounting system and a thorough understanding of your books are essential for your business’s success. As a business owner, you must be aware of your company’s risks, profits, and market scope to remain competitive.
To prepare final financial statements, accounting provides important information about a company’s financial health, profit or loss, cash position, etc. The cash book keeps track of all financial transactions under the individual headings of earnings and expenses. The profit or loss of a firm is determined by adding the company’s income and expenses.
Our bookkeeping and accounting services in Oman have been highly successful as the best provider of auditing and accounting services in the Middle East. We adhere to the highest level of professional standards as defined by international financial reporting standards (IFRS). We are serving a broad range of services.
We provide distinctive and cutting-edge solutions to help customers to achieve their objectives. Many of our clients have a strong track record of recommending us to others.
What are bookkeeping and accounting?
Bookkeeping is an administrative role that helps to handle daily tasks of maintaining financial records, such as receipts, pay details, purchases, etc., Business owners obtain financial insights from their bookkeeping data through accounting, which is more subjective.
One advantage of hiring professional accounting services in Dubai for your company is that you’ll be able to keep track of all of your financial activities. A professional accountant assists with bookkeeping and oversees the financial portion of the company’s operations. Bookkeeping is an important part of any business because it keeps track of your day-to-day expenditures. The assistance of Professional Accounting Services In Dubai not only helps to keep the company on track, but it also helps to avoid any doubts in business dealings.
A bookkeeper is primarily responsible to record and track a company’s financial transactions which include, purchases, sales and expenses. These transactions are first recorded as general ledger, which are later used while preparing a balance sheet.
Accounting is a broad subject. It calls for a greater understanding of records obtained from bookkeeping and an ability to analyze and interpret the information provided by bookkeeping records.
Bookkeeping is the recording phase while accounting is concerned with the summarizing phase of an accounting system. Bookkeeping provides necessary data for accounting and accounting starts where bookkeeping ends.
No. Bookkeeping is a rather simple and straight forward process which can be easily learnt while you’re on-the-job.
The single-entry and double-entry bookkeeping systems are the two methods commonly used. While each has its own advantage and disadvantage, the business has to choose the one which is most suitable for their business.
Principles of Bookkeeping
Revenue principle
The revenue principle states at what time the bookkeeper can record a transaction as revenue in the books of account. As per the principle, a transaction is recorded as revenue earned for the business at the time of point of sale.
Expense principle
The expense principle states the point of time at which the bookkeeper can record a transaction as an expense in the books of account. The expense of a business occurs at the time when it accepts the goods or services from another entity/seller.
Matching principle
The matching principle states that when the bookkeeper records the revenues, all the related expenses must also be recorded at the same time. Thus, the inventory is charged to the cost of the goods sold at the same time that the revenue from the sale of the inventory items is recorded.
Cost principle
The cost principle states the historical cost of an item should be used in the books of accounts and not the resell cost. For example – If a business owns property or vehicle, these assets should be recorded at their historical costs and not the current fair market value of the property.
Objectivity principle
The objective principle states that the bookkeeper should use only factual and verifiable data in the books of accounts and not the subjective measurement of values. Even when the subjective data appears better than the verifiable data, only the verifiable data must always be used.
Basic
The basic principle of bookkeeping is to record the financial transactions of business on a day-to-day basis. The bookkeeping principles ensure that all financial transactions are comprehensive, up to date and provide the information required for preparing the accounts.