Articles 

What are the advantages of accounting? 

• The advantages of accounting is, it provide all the financial information that any company or institution needs, and one of the most important information is: determining the results of economic activities (profit or loss) during a certain period of time. 

• Choosing the basic financial center in the institution, as the sources from which funds can be obtained and the ways to use these funds until a certain date are determined.  

• Detecting the financial flows entering the institution, through the company account, during a specific period of time. 

• Registering all operations carried out by the organization. Monitoring the financial operations that occur within the institution, especially cash transactions. 

What are the most important accounting branches? 

• There are many accounting principles that any institution relies on to register financial statements and related notes, which has made accounting have many branches, none of which can be neglected. The most important of these branches are: 

• Financial accounting: which is concerned with providing historical economic and accounting information. It also gives an overview of the situation and financial performance, and studies cash flows according to certain accounting standards. 

• Management accounting: It is concerned about the information used by the organization, which is usually confidential, and can only be accessed and viewed by a small number of people, who are decision makers. It aims to secure the necessary financing at the lowest possible costs, whether by offering bonds, or shares, and it also works to balance the organization expenses according to its goals and available financial resources. 

• Cost accounting: It is concerned with everything related to the cost data, recording and classifying it, to provide management with complete information about the cost that it must use for planning, control, and pricing. It greatly helps in issuing financial statements to external parties. 

• Tax accounting: It is important for implementing tax instructions and laws, as it is a set of books and papers that bear a financial nature, and which link the company with external official bodies, through which the organization’s revenues are determined and methods of obtaining income for its members. 

• Government accounting: This branch is concerned with studying all the principles that control the estimation and registration processes, in order to provide an accounting report on all activities carried out by the government. Government accounting is considered the eye of government managers through which they monitor the revenues and expenditures of ministries and expenses related to their various units, and through them the general state budget is achieved. 

• Review: The review aims to verify the validity and integrity of accounting information in order to express an impartial technical opinion regarding the validity of the financial statements and the financial position at the end of the accounting period, in order to give confidence and credibility in the information contained in those lists and the extent to which interested parties and users rely on them. 

What is the importance of accounting in companies? 

• Before we get into the importance of accounting in companies, let us quickly learn what companies accounting is concerned with. In fact, corporate accounting is concerned in recording, classifying, analyzing and issuing financial reports for the company’s activities, providing financial information to management, and calculating shareholder ratios. 

• What makes corporate accounting important in financial management is the following: 

• Helping the company plan future investments. 

• Providing the necessary financial information for decision-making within the company. 

• Providing accurate and transparent financial information to investors and external parties to enable them to evaluate the company. 

• Monitoring operations and cash flows on a regular basis to identify and control potential risks. 

• Identifying efficiencies and weaknesses in the company's systems and processes, which supports continuous improvement. 

• Providing a basis for strict financial control over operations and spending within the company. 

• The company's compliance with the financial and tax laws and regulations applicable to it. 

• Strengthening confidence between the company, investors, the local community and government agencies. 

What are financial statements? 

• Financial statements, also called the financial statement: are five reports prepared to review the company's financial performance during a specific period, containing information about assets, liabilities, revenues, expenses, net profits, etc. 

• These reports are: income statement, financial position statement, cash flows statement, changes in equity statement, and the comprehensive income statement. 

• These reports aim to review the company's financial performance during the financial period and to provide external and internal parties with this information, in addition to assisting senior management in making decisions and forming a clear vision for the company's financial future. To ensure their reliability and accuracy, financial statements are prepared in light of accounting principles, and by a certified accountant who is often independent of the company. 

• All internal and external users can view these lists, but they are usually prepared specifically for external users such as shareholders, investors and oversight bodies, because internal users - which are management and some employees - have other sources of information besides the information contained in the financial statements. 

What is the fundamental difference between financial accounting and managerial accounting? 

• Of course, there are many differences, but the two most important differences are that financial accounting reflects past events and has reliability property. As for administrative accounting, it expresses expected future events and provides the suitability property. The second and most serious difference is that financial accounting is based on a constitution (theoretical framework), the most prominent of which is international accounting standards. As for administrative accounting, it is based on management decisions, which vary from one administration to another and are not governed by any unified standards or concepts. Here I do not mean the methods of preparing budgets, but rather the methods of measurement and estimation used. Recently, administrative accounting has proven its failure and has begun to be replaced by what has been agreed to be called balanced scorecards, as through this system accounting only plays the role of a quarter of the new system’s policies in administrative planning. 

What is the fundamental difference between joint stock companies and joint liability companies? 

• Simply, Joint-stock companies depend on money and joint-stock companies depend on people, meaning that the joint-stock company has a legal personality completely independent of its owners, unlike the joint-stock company, because of this the accounting system is successful in the joint-stock companies because it fulfills the assumption of economic unity, which is the first accounting assumption. 

What is an income certificate? 

• A proof of income certificate is an approved legal certificate proving the value of the monthly income received by the applicant. It is also an officially recognized document proving the person’s ability to fulfill financial obligations and pay installments. It is submitted in the following cases: 

• Bank loans. 

• In order to by a car in installments, electrical or electronic devices. 

• Applying for the car replacement initiative. 

• Applying for the real estate financing initiative. 

• Applying for social housing apartments. 

• To open bank account. 

• Applying in the Federation of Engineering Industries. 

Learn about the cash basis: 

• The cash basis depends on recording revenues and expenses in the books when they are actually collected or paid. 

• A lawyer, for example, cannot prove the proceeds of a case until after it has been judged, even if he spent on it and it took several financial periods. 

• The author cannot prove the income from the sale of his novel until it is completely finished, even if he spends money on it and it takes several financial periods. 

• So, reliance is placed on the cash basis when spending on a product is made over several financial periods and you cannot estimate its revenues until it is completely finished. 

What is the difference between an income statement and an income summary: 

• The income statement is a {report}, any report, statement, or form through which the business results for a specific period are presented, whether profit or loss, and it can be prepared at any time without the need to make closing entries. 

• The income summary or profit and loss account is an {account}, that is, a regular and official ledger account within the accounts cycle, and it appears only when the temporary accounts (such as sales, purchases, and expenses) are closed at the end of the year. 

• Finally, the income statement report is the same as the income summary account or profit and loss account, and it is expressed and gives the same results, which is {net profit}, but in a good and simplified form for numbers readers and decision makers. 

What are the deadlines for submitting tax returns and their fines? 

• The deadline for submitting a tax return is March 31 for individuals and for companies until April 30. 

• Note that the fine for late submission of the return for a period not exceeding 60 days ranges from 3,000 to 50,000 pounds, while the fine for delay in submitting the return for a period of more than 60 days ranges from 50,000 to 2,000,000 pounds according to the Unified Tax Procedures Law. 

When do you need accountant for tax returns? 

• When the turnover exceeds 2 million pounds, in this case you need a public accountant this for private companies. However, in the case of financial companies, you must have licensed accountant to audit joint stock companies must be approved.