A qualified accountant usually possesses qualifications such as Certified Public Accountant (CPA) or Chartered Accountant (CA). Accounting is usually handled by a qualified accountant at a small accounting firm or larger ones with a number of employees. It involves summarizing, evaluating, and reporting to all necessary agencies. Known as the language of business, accounting is the systematic recording of all financial transactions of a business.
Both accounts are usually the debit and credit account. Two major types of bookkeeping are the single-entry (which relies on one-sided accounting) and double-entry system (where every entry to an account requires a corresponding entry to another account). He ensures that these transactions are accurately recorded. The bookkeeper’s function is to record the daily financial transactions of a business on a notebook, spreadsheet, or software. The person in charge of bookkeeping is a bookkeeper. Most financial institutions and lenders will need and require access to reliable information about the business finances. This will also benefit businesses in the UAE in terms of obtaining loans as well. Accurate bookkeeping enables small businesses to use the information gathered to make operation and investment decisions. These transactions include sales, purchases, receipts, and payments by clients who may be individuals or organisations. It involves the day-to-day recording of all financial transactions of a business. The knowledge will help you decide if you need a Bookkeeper, an Accountant, or both.īookkeeping is a part of the accounting process. Understanding the difference between bookkeeping and accounting is something every small business owner in the UAE should know. Simply put, bookkeeping records financial transactions while accounting interprets, classifies, analyzes, reports and summarizes financial data. Although they have similarities, they are not entirely the same. To a novice, bookkeeping and accounting may seem to be the same due to the fact that both of them deal with financial information and require basic knowledge of accounting. They bring clarity and determine the success or failure of any enterprise. For every business, small or large, bookkeeping and accounting are two roles that are highly important.
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