Accounting & Financial Reporting Services

Accounting and financial analysis reporting are designed to provide an accurate and fair view of a company’s financial situation. AL MERAK takes the following steps to assist a firm in completing its Accounting and Financial Analysis Reporting process.

1. Double-Entry System
AL MERAK assists the firm in preparing its double-entry system. The double-entry accounting or bookkeeping method requires that the sums from each company transaction be entered in at least two accounts. In this method, the amounts recorded as debits must be equivalent to those recorded as credits. Proper data input is the primary duty for correct reporting.
The debit and credit rule indicates that as an asset increases, the account is debited, and when a liability increases, it is rewarded.

2. Ledger Entry

A ledger entry is a record of a company’s commercial transactions.

It should contain: –

• Enter the proper date.

• Totals to debit and credit.

• Account for the transaction

• Unique reference number (URN).

AL MERAK creates the Ledger Entry based on the debit and credit of the accounts and guarantees the correct and accurate closing of ledgers as required for management reporting.
3. Trial Balance
Following the preparation of the Ledger, AL MERAK creates the company’s trial balance. A trial balance is a list of all the general ledger accounts for both income and capital that have been entered in a company’ ledger. This list includes both the name of each nominal ledger account and the value of its nominal ledger balance. Each nominal ledger account has either a debit or credit balance.
4. Financial statements

Finally, after gathering all required data, AL MERAK prepares the company’s financial statements. AL MERAK also provides Finalization of Financial Statement Services, which assists clients in verifying their accounting records for improved financial planning.

Every firm must prepare four financial statements, which investors should review:

• The Income Statement.

• The Balance Sheet.

• Shareholders’ Equity Statement

• Cash Flow Statement.

In addition to the Financial Statement, the following MIS reports assist management in making decisions.

• Comparative income statement.

· Report on aged customers and suppliers.

• Profitability Analysis Report.

• Prepared auditing schedule.
a) Income Statement

The income statement aims to calculate a company’s net income for the fiscal year. AL MERAK reviews all financial transactions, including non-cash items, and assess the company’s revenues and expenses to identify its annual profit.

b) Balance Sheet

The balance sheet is generated using the equation ‘Assets = Liabilities + Shareholders’ Equity’. It shows the company’s financial situation.

c) Shareholders’ Equity Statement

The shareholders’ equity statement is a financial document issued by a firm as part of its balance sheet. It is highly recommended for limited liability businesses with more than two partners to display transaction-specific data of parties.

d) Cash Flow Statement

The cash flow statement tracks company’s money inflows and outflows. It consists of three statements: –

• Cash flow from operating operations.

• Cash flow from financial operations.

• Cash flow from investment activity.

AL MERAK analyzes all of the company’s losses and earnings. Then, all losses are added and earnings are deducted to determine the net cash inflow for the fiscal year. It enables management to understand where the company is in terms of collection, develop credit policies, and expand business investment and diversification.
Accounting reports are always prepared using the accrual foundation of accounting. The reporting is based on the IFRS Auditing Standards.