What do we provide?
Bin Hamad- Mathew Joseph (BHMJ) & Associates offers a wide spectrum of accounting services that answers the financial needs of any business in the global market. We ensure that the financial statements are complying with International Financial Reporting Standards (IFRSs) and are committed to keeping the highest level of professional standards and quality.
This segment is engaged in providing the following services
- Design of Accounting systems and setting up accounting departments, reviews, and recommendations.
- Designing, follow-up, and review of internal control procedures and systems.
- Identification and recommendation of suitable Accounting Software.
- Preparation of periodic management accounts and reports.
What is accounting?
Accounting or accountancy is the measurement, processing, and communication of financial and non-financial information about economic entities. Economic entities are businesses and corporations. Accounting has been called the “language of business”. It measures the results of an organization’s economic activities and conveys this information to a variety of users. The variety of users are from A-Z explained in the next sub-heading for including investors, creditors, management, and regulators.
Variety of users
A – Authorized Dealer/ Agent
B – Banks
C – Customers/ Clients/ Creditors
D – Debtors
E – Employees
F – Financial Institutions
G – Government
and so on…
Practitioners of accounting are known as accountants. The terms “accounting” and “financial reporting” are often used as synonyms.
Accounting can be divided into several fields including financial accounting, management accounting, external auditing, tax accounting, and cost accounting. Accounting information systems are designed to support accounting functions and related activities. Financial accounting focuses on the reporting of an organization’s financial information, including the preparation of financial statements, to the external users of the information. Management accounting focuses on the measurement, analysis, and reporting of information for internal use by management. The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.
Accounting has existed in various forms and levels of sophistication throughout human history. The double-entry accounting system in use today was developed in medieval Europe, particularly in Venice, and is usually attributed to the Italian mathematician and Franciscan friar Luca Pacioli. Today, accounting is facilitated by accounting organizations such as standard-setters, accounting firms, and professional bodies. Financial statements are usually audited by accounting firms and are prepared in accordance with generally accepted accounting principles (GAAP). GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board (FASB) in the United States and the Financial Reporting Council in the United Kingdom. As of 2012, “all major economies” have plans to converge towards or adopt the International Financial Reporting Standards (IFRS).
Sub-fields of Accounting
Accounting has several subfields or subject areas, including financial accounting, management accounting, auditing, taxation, and accounting information systems.
Financial accounting focuses on the reporting of an organization’s financial information to external users of the information, such as investors, potential investors, and creditors. It calculates and records business transactions and prepares financial statements for external users in accordance with generally accepted accounting principles (GAAP). GAAP, in turn, arises from the wide agreement between accounting theory and practice, and changes over time to meet the needs of decision-makers. Financial accounting produces past-oriented reports—for example, financial statements are often published six to ten months after the end of the accounting period—on an annual or quarterly basis, generally about the organization as a whole.
Management accounting focuses on the measurement, analysis, and reporting of information that can help managers in making decisions to fulfill the goals of an organization. In management accounting, internal measures and reports are based on cost-benefit analysis and are not required to follow the generally accepted accounting principle (GAAP). In 2014 CIMA created the Global Management Accounting Principles (GMAPs). The result of research from across 20 countries in five continents, the principles aim to guide best practices in the discipline. Management accounting produces past-oriented reports with time spans that vary widely, but it also encompasses future-oriented reports such as budgets. Management accounting reports often include financial and non-financial information, and may, for example, focus on specific products and departments.
Auditing is the verification of assertions made by others regarding a payoff, and in the context of accounting it is the “unbiased examination and evaluation of the financial statements of an organization”. The audit is a professional service that is systematic and conventional. An audit of financial statements aims to express or disclaim an independent opinion on the financial statements. The auditor expresses an independent opinion on the fairness with which the financial statements present the financial position, results of operations, and cash flows of an entity, in accordance with the generally acceptable accounting principle (GAAP) and “in all material respects”. An auditor is also required to identify circumstances in which the generally accepted accounting principles (GAAP) have not been consistently observed.
An accounting information system is a part of an organization’s information system used for processing accounting data. Many corporations use artificial intelligence-based information systems. The banking and finance industry uses AI in fraud detection. The retail industry uses AI for customer services. AI is also used in the cybersecurity industry. It involves computer hardware and software systems using statistics and modeling. Many accounting practices have been simplified with the help of accounting computer-based software. An enterprise resource planning (ERP) system is commonly used for a large organization and it provides a comprehensive, centralized, integrated source of information that companies can use to manage all major business processes, from purchasing to manufacturing to human resources. These systems can be cloud-based and available on-demand via application or browser, or available as software installed on specific computers or local servers, often referred to as on-premise.
Tax accounting in the United States concentrates on the preparation, analysis, and presentation of tax payments and tax returns. The U.S. tax system requires the use of specialized accounting principles for tax purposes which can differ from the generally accepted accounting principles (GAAP) for financial reporting. U.S. tax law covers four basic forms of business ownership: sole proprietorship, partnership, corporation, and limited liability company. Corporate and personal income are taxed at different rates, both varying according to income levels and including varying marginal rates (taxed on each additional dollar of income) and average rates (set as a percentage of overall income).
“Forensic accounting” is a specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation. Meaning of Forensic is “suitable for use in a court of law”, and it is to that standard and potential outcome that forensic accountants generally have to work.
Political Campaign Accounting
Political campaign accounting deals with the development and implementation of financial systems and the accounting of financial transactions in compliance with laws governing political campaign operations. This branch of accounting was first formally introduced in the March 1976 issue of The Journal of Accountancy.