What is accounting? - Meaning and Important Concepts

Accounting means “language of business”. There are many quotations like “A pen is mightier than the sword but no match for the accountant” by Jonathan Glancey which tell us about the power and importance of accounting.

Text book says accounting states that it includes recording, summarizing, reporting and analyzing financial Data.

What is Accounting Recording?

The primary function of accounting is to make records of all the transactions that the firm enters into. Recognizing what qualifies as a transaction and making a record of the same is called bookkeeping.

Accounting - Summarizing

Recording for transactions creates raw data. Pages and pages of raw data are of little use to an organization for decision making. For this reason, accountants classify data into categories.

These categories are defined in the chart of accounts. As and when transactions occur, two things happen, firstly an individual record is made and secondly the summary record is updated.

Accounting-Reporting

Management is answerable to the investors about the company’s state of affairs. The owners need to be periodically updated about the operations that are being financed with their money.

For this reason, there are periodic reports which are sent to them. Usually the frequency of these reports is quarterly and there is one annual report which summarizes the performance of all four quarters.

Reporting is usually done in the form of financial statements. These financial statements are regulated by government bodies to ensure that there is no misleading financial reporting.

Accounting -Analyzing

Lastly, accounting entails conducting an analysis of the results. After results have been summarized and reported, meaningful conclusions need to be drawn. Management must find out its positive and negative points. Accounting helps in doing so by means of comparison. It is common practice to compare profits, cash, sales, assets, etc with each other to analyze the performance of the business.

Most commonly using accounting software in UAE (Dubai and Abu Dhabi)
1. Zoho Books

Zoho Books is an online accounting software that allows you to easily manage the money flowing in and out of your business. Manage your customers and invoices, while keeping expenses in check. Record, monitor and reconcile your bank accounts and transactions, and collaborate with your accountant in real-time

Zohe Books is a cloud based solution using by small company in UAE (Dubai and Abu Dhabi) to generate invoice, Manage payable and receivable. It is simple to use, without the help of an accountant, a business owner can manage his day to day business activity

2. FreshBooks

FreshBooks is an online invoicing and time tracking service that saves you time and makes you look professional. It is the second most populous cloud based accounting solution in UAE (Dubai and Abu Dhabi)

3. QuickBooks

Manage small business finances. Instant access to customer, vendor and employee information. Available in an online version

The most popular accounting package in UAE used by small and medium enterprise across UAE , Some of the Govt. orvanization in UAE also using QuickBooks as the core accounting package.

4. MS Dynamics

Integrated business management solution that automates financial, customer relationship and supply chain processes.
Microsoft dynamic is one of the most famous accounting package using by Govt as well as SME sector across UAE(Dubai and Abu Dhabi). MS Dynamics online is becoming more populous in UAE market.

5. QuickBooks Online

Automated Online Banking downloads transactions from your bank or credit card right into your QuickBooks Online Company.

QuickBooks Online is using by small business user in UAE (Dubai and Abu Dhabi), since business people are familiar with QuickBooks, Small companies are easily start to adopt QuickBooks Online , popularity of QuickBooks online is getting increased last few years

6. Sage 50

From accounting to payroll to credit card processing, Sage 50 helps small and midsize companies get more done every day.

Sage 50 have it’s own market in UAE, SME level companies are using sage 50 as there bases account package. As a solution provider, Next It and System used to integrate SAG with many other solutions

7. Count-down

One of the popular accounting package which provide 17 language interphase, completely developed on UAE accounts requirement. Available in SAS and on Promised Model. More than 100+ implementation across UAE (Dubai, Abu Dhabi and Sharjah)

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