Record and Control
The Sewer Contractor in Saudi Arabia as well as in the rest of the world requires an accounting department, whether it consists of one qualified accountant or several accountants, to handle the accounting functions such as ( general ledger, customers (accounts receivables), suppliers & subcontractors (accounts payables), fixed assets, cost centers, profit centers, employee's accounts and payroll).
This department has a multi role depending on its expected functions:
A) If we consider it as a tool, which is specialized in completing the company activities, then accounting department task is defined as follows: 1) Recording the assets held by the company. 2) Recording the financial transactions carried out by the company during a specific period, and reporting to the owners of the company, to display the business achieved results, and the causes for those results.
B) If we look at it as a system, then it is defined as: 1) A system that collects financial data and performs operations on it, such as measure, record, analyze, summarize. 2) Report for providing information to interested parties inside and outside the company.
C) If we look at it as a science, then it is known as: The group of assumptions and accepted principles that govern the registration, tabulation and analysis of financial operations related to a specific unit. 2) Determine the outcome of an activity from the achieved profit or loss, and present a financial status at the end of the period as well.
Objectives from setting up this Dept:
1) To set up a system applicable to the company.
2) To ensure an accurate and proper documentary cycle.
3) To prepare the final and periodic financial reports.
4) Manage, coordinate and monitor implementing of the financial plans.
5) To regulate the financial procedures.
6) Monitoring and controlling resources and expenses of the company, to ensure the correct use according to the budgets and fruitful financial plans.
7) To develop and present the recommendations to the General Director, about any financial matters that have an impact on the company position.
The accounts dept plays an important role in any company, and in the contracting and construction companies, it represents the information center. The management relies on it for taking various decisions regarding its current and future projects.
For example, we refer to this dept to know the following:
1) Detailed cost for any project.
2) Cost of labors, materials and equipment for any project.
3) Financial obligations on the company and for each project.
4) Income for each individual project.
5) Profit or loss arising out from each project.
As we can see from the previous example, the accounts dept can answer all the questions accurately because of its regime in recording the transactions of assets, liabilities, expenses and revenues "it is the information center for the company."
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