Steps to establishing a professional accounting system to manage the affairs of companies, whether they are start-ups or medium-sized. A successful accounting system helps guide and manage the company's financial affairs, given that all projects are susceptible to errors and poor organization. Therefore, it is necessary to work to reduce this confusion and errors by relying on carefully considered accounting systems. Therefore, we have dedicated this article from Meta Plus to you For business solutions, let's learn together how to design an accounting system step by step, including its importance and benefits, as well as the best company to rely on in the UAE to create a professional accounting system.
What is an accounting system?
An accounting system is a system dedicated to organizing and controlling financial transactions, including sales, expenses, and purchases.
These systems contribute to the creation of flexible and effective financial plans using accounting tools that aid in the preparation and analysis of financial reports. The accounting system includes a wide range of rules and principles that assist in preparing documents and generating accounting and statistical statements.
An accounting system is usually built around a framework and basic components, such as assets, liabilities, expenses, revenues, etc.
Why do you need an accounting system for your business?
The importance of using an accounting system can be explained as follows:
Auditing accounts easily and quickly.
Monitoring and ensuring business progress helps employers make sound decisions.
Introducing accounting rules and principles to contribute to the preparation of financial statements.
Helps improve the workflow of companies and institutions in a simple, hassle-free manner.
A method that ensures compliance with and application of international accounting standards to add transparency to accounting. Paving the way for companies and small businesses to implement simplified financial accounting.
Managing loans disbursed by banks Steps to Establish an Accounting System The following are the steps for establishing a professional accounting system: Define the company's internal structure, the activity to be pursued, and the most important information related to the facility's operations.
Create an accounting manual, drafting it based on an in-depth study of the company's activities and financial position.
Preparing a ledger set, which can be done using Excel, is the most common way to include the rules that will govern your business's accounting system. Physical inventory is a stage that requires significant expertise, as it is one of the most important steps in establishing a successful accounting system.
It involves inventorying the company's financial obligations and establishing a reconciliation between the actual balance and the balance on the papers.
The audit and review phase is an important stage that requires verifying the accuracy of the figures and their consistency with the company's actual figures. The balance sheet, which represents the financial budget, is created at the end of each year.
This is conducted within a specific time period, during which current and fixed assets and all liabilities, whether long- or short-term, are identified.
Control is a necessary stage in which files are examined and their accuracy verified, files are restructured, and any errors, if any, are corrected.
What are the objectives of the accounting system?
We review the objectives of the accounting system:
The accounting system aims to provide you with all the information and data related to the activity of any institution or facility.
Storing information easily and providing the information necessary for preparing the national accounts. Accounting oversight and developing internal control.
Linking all accounts to the national accounts and the economic unit.
Providing the necessary data for oversight and providing analytical tools to assist in implementation, planning, and coordination.
Reducing burdens by using information technology methods to record accounting data.
What are the components of the accounting system?
The accounting system consists of a set of elements, including the following:
Financial and management reports, which consist of financial statements such as cash flows and income.
Accounting equations for implementing financial transactions, which serve as inputs to the accounting system.
Documentation set, which is the collection of documents and memoranda in which financial events are recorded.
A chart of accounts, which takes the form of a table or list containing symbols, names, and account numbers.
The ledger is a set of records in which financial transactions are recorded electronically.
What are the benefits of designing an accounting system?
We present the following benefits of an accounting system for any company or organization: Reducing the effort, time, and cost of managing the organization's financial affairs.
Enter data and perform tasks accurately and quickly.
Record financial transactions daily with high accuracy.
Prepare documents and extract financial statements, documents, and purchase orders.
What is the best company to establish a successful accounting system in the UAE?
The best company to establish a successful accounting system in the UAE is Meta Plus Business Solutions and Information Technology.
It is a leading provider of the best digital and technical services to help small businesses and organizations manage their affairs with ease, by performing tasks and entering all financial data electronically for easy review.
What is the cost of designing an accounting system?
The cost of establishing an accounting system varies from one company to another, and it's impossible to determine a fixed cost. Relying on a specialized company is more expensive than relying on an independent designer.
This is especially true since the features required in an accounting system significantly impact the cost.
Several factors determine the cost of establishing an accounting system, including:
The size of the company or organization.
The features of the accounting system required.
The tasks the system performs.
The experience of the designing company.
The time required to design the accounting system.
With this sufficient amount of information and details, we conclude our article on the steps for establishing an accounting system. We'll discuss the importance of designing an accounting system for companies or institutions, the benefits of adopting this type of system, and the best company to establish a professional accounting system in the UAE.
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April 19, 2025 at 12:23 pmمقالة مفيدة