At the moment, every company owner needs to register any financial event and information that his company is going through, especially if he has investors or contributing partners with him. Therefore, he has to work on developing a system that accurately shows the company’s property and business itinerary and processing it to obtain accounting information or building an integrated accounting system.
Accounting work depends on accounting documents and documents. Hence, the documentary cycle plays a vital role in the accounting cycle. Still, when building an integrated accounting system, you should pay attention that the accounting cycle is different from the documentary cycle. For example, the accounting cycle relates to the duties of an accountant within the company, while the cycle The documentary relates to the papers and records used by the accountant.
We can learn about the difference by reading the following article
The accounting cycle relates to the work and functions of the accountant within the company and includes
Journal restrictions are posted daily to the American Journal, which has the task of collecting all annual balances of different customers, accounts, banks, and others.
Daily posting of the assistant ledger is a detailed statement for each account.
We are preparing the trial balance with the totals and balances of the Assistant Ledger and American Journal accounts.
Preparing financial statements, closing restrictions, and opening restrictions. This task shall be attributed to the financial director or head of accounts.
Automation of the documentary cycle helps to make the right decision at the right time
Building an integrated accounting system
In a previous article, we said that building an integrated accounting system is based on three main processes
Registration of all property and assets owned by the company and all liabilities of the company
It is creating an accounting guide means accounting for all company accounts and recording all transactions. A comprehensive inventory is made, and all that has been reached is recorded.
The final step is to create the documentary cycle, which means collecting all the company’s financial information, recording it in documents, and archiving and storing the previous information
Chart of accounts
One of the most critical stages when building an integrated accounting system is the chart of accounts or account directory. It means recording all accounts related to the company’s business, such as accounts of assets, liabilities, equity, and income expenses. Then, each account is divided into sub-accounts, and each sub-account includes sub-accounts and so on
The design of the chart of account varies depending on the nature of the tree’s work and the size of its business. For example, the asset account includes non-current and current assets accounts. The liability account is divided into long-term and current liabilities, and the current assets account is divided into the customer account. Cash account Inventory is divided into other accounts, such as the customer account, which is divided into external customer accounts, wholesale and retail customers. Each customer has a unique account and so on
?What is a documentary cycle
The path of documents within the company, from the beginning of writing accounting information and making restrictions, means accounting, financial statements, and various accounts such as the professor’s account, the audit balance, and the list of cash flows. The documentary cycle also includes ensuring accuracy when writing any statement and the validity of the posting and error-free
?Are there goals for the documentary cycle when building an integrated accounting system
The documentary cycle aims to control all the company’s funds and property. It also monitors all administrative matters in it
Its main task is to collect, record and summarize all data in reports submitted to management
According to current data, records, documents, and reports help management make appropriate financial and administrative decisions
It is considered a means of communication between different departments within the company
A key partner in setting the company’s annual goals
The main objective of the documentary cycle is to grow the company and raise its market value
Detect errors and immediately correct them
Is there a difference between the traditional documentary cycle and the current documentary cycle in an integrated accounting system
: There are several differences between them, such as
Designing an integrated accounting system
The design of the accounting system differs from one company to another. Small companies and projects do not need this integrated accounting system in the literal sense based on creating an income statement, financial statements, budget, etc... Still, they will often need only one chartered accountant to prepare invoices, inventory the store, account for cash, tax, and other simple operations.
As for large companies that need real work, accounts and lists have complete financial management and a team of accountants for each specialty. Therefore, creating and designing an accounting system for them is somewhat complicated. In general, any accounting program depends on four main axes from which an opening balance can be drawn To review and then establish an integrated accounting system, namely
In all cases, depending on the nature of your work, you will need a specialized chartered accountant or one of the accounting offices. Of cycle, I recommend to you with confidence the “ECA” office, one of the most prominent accounting offices in Egypt and the Arab world, which has an integrated team of consultants and certified accounting specialists. They pledge By working 24 years to reach your company to the best profitability and the highest possible economic security
:We offer many services such as
We are designing an integrated accounting system compatible with the nature and size of your business
Carefully study the nature of your activity, financial market, and company's internal structure
We are preparing the chart of accounts based on the analysis of an integrated accounting system and drawing the chart of the accounting tree.
Formation of the documentary cycle by the laws and rules and taking into account the separation of tasks of each department
We are designing the best accounting program for your company
taking an actual inventory of the company's assets and property
Review all registered accounts and balances and ensure the integrity of registration
They establish the trial balance, cash flow list, financial statements, and financial position list and make the necessary adjustments
Our team will establish an integrated and comprehensive accounting system if your company follows a prior accounting system or has not followed it before
Ensure the daily registration of transactions and ensure the validity of the documentary cycle
Follow up on the internal audit and control work
Calculate different types of taxes and exploit tax opportunities to the maximum extent
ask for your consultation session now and get a free consultation