Abid Hussain Malik CPA CA MBA’s Post

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|Fractional CFO|| Accountant||US/UK Tax Practitioner ||QuickBooks Trainer||Xero|| Wave

𝗠𝗲𝗮𝗻𝗶𝗻𝗴 𝗼𝗳 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴: It is the systematic process of recording, summarizing, analyzing, and interpreting financial transactions of a business. It involves the preparation of financial statements, such as the income statement, balance sheet, and cash flow statement. ▶️ 𝗦𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝗰𝗲 𝗼𝗳 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴: ➡ 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻-𝗠𝗮𝗸𝗶𝗻𝗴: → Guides informed decisions. → Reveals financial health. ➡ 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻: → Assesses company performance. → Compares to industry benchmarks. ➡ 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲: → Ensures adherence to rules. → Mitigates legal risks. ▶️ 𝟱 𝗕𝗮𝘀𝗶𝗰 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲𝘀 1️⃣ 𝗚𝗼𝗶𝗻𝗴 𝗖𝗼𝗻𝗰𝗲𝗿𝗻 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲: → Assumes ongoing business operations. → Continuity unless evidence suggests otherwise. 2️⃣ Accrual Basis Principle: → Records revenues/expenses when earned/incurred. → Not dependent on cash receipt/payment. 3️⃣ Consistency Principle: → Maintains uniform accounting methods. → Ensures comparability between financial periods. 4️⃣ Materiality Principle: → Includes significant items in statements. → Relevant impact on financial decisions. 5️⃣ Conservatism Principle: → Recognizes expenses, and delays revenues/assets. → Prefers a cautious approach to uncertainty. ▶️ 𝟱 𝘀𝗶𝗺𝗽𝗹𝗲 𝘁𝗼 𝗺𝗮𝗻𝗮𝗴𝗲 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗶𝗻 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀: ➡ 𝗨𝘁𝗶𝗹𝗶𝘇𝗲 𝗔𝗱𝘃𝗮𝗻𝗰𝗲𝗱 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲: → Implement efficient accounting software. → Automate tasks for accuracy and time savings. ➡ 𝗠𝗮𝗶𝗻𝘁𝗮𝗶𝗻 𝗨𝗽-𝘁𝗼-𝗗𝗮𝘁𝗲 𝗥𝗲𝗰𝗼𝗿𝗱𝘀: → Keep current financial records. → Gives reports for performance tracking. ➡ 𝗛𝗶𝗿𝗲 𝗦𝗸𝗶𝗹𝗹𝗲𝗱 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹𝘀: → Employ qualified accountants. → Ensure compliance with accounting standards. ➡ 𝗕𝘂𝗱𝗴𝗲𝘁 𝗮𝗻𝗱 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁: → Develop and follow a robust budget. → Use forecasting for proactive financial planning. ➡ 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗖𝗼𝗻𝘁𝗿𝗼𝗹𝘀 𝗮𝗻𝗱 𝗔𝘂𝗱𝗶𝘁𝘀: → Establish controls for accuracy. → Conduct periodic internal audits. I hope this helps! For more information, contact my profile https://lnkd.in/dg_EuDpJ email abidhussain713@gmail.com or www.abidfinancials.com post credit: amit Kimar #accounting #accountingcycle #accounting concept

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