21/03/2024
Asharqia Chamber Entrepreneurship Incubator organizes a meeting on "The Impact of Accounting on the Success of Your Project"
Asharqia Chamber, represented by the Chamber's Entrepreneurship Incubator, in cooperation with the Authority of Auditors and Accountants, organized a meeting to discuss the impact of accounting on the success of the commercial project. It was hosted by the incubator's headquarters in the Chamber's tower on Wednesday evening, March 20, 2024.
The guest of the meeting, colleague of the Saudi Organization for Auditors and Accountants, Walid bin Youssef Al-Khalidi, explained that accounting plays a crucial role in the success of the project, as it contributes to managing financial resources and providing accurate and useful information for making strategic decisions, pointing to the importance of accounting in the project in terms of effective financial planning and monitoring costs. Performance and evaluation of financial performance and compliance with accounting standards, in addition to reducing financial risks.
Regarding the financial statements, Al-Khalidi said that they are considered a mirror that reflects financial performance, translates it into a digital language, reads the work that it performs daily, periodically measures the establishment's income, divides its life into periodic periods, and also provides the necessary information for the needs of the beneficiaries and helps generate cash flows and predict their continuity and achieve positive results, pointing out that The importance of financial statements lies in their use to make financial decisions for investors in companies, follow up on market challenges and risks to companies, and provide reassurance to entrepreneurs by recording and documenting financial statements correctly in the period or year, and also following up on information that helps estimate the size of the risks affecting cash flows. For the company, and reassuring entrepreneurs that the financial statements are free of material errors.
Regarding the types of financial statements, Al-Khalidi reviewed the statement of financial position, which represents the elements directly related to measuring the financial position in assets, liabilities, and ownership rights, the comprehensive income statement, which uses the income statement to present the company's net income for a specific financial period, and the cash flow statement, which contains a list of Cash flows display the cash flows resulting from the operating, investing, or financing activities of the activity, and finally the list of changes in equity, which contains elements of shareholders' equity such as capital, reserves, and retained earnings.
