• Double-entry bookkeeping
• Accrual and Cash Basis Methods
• Multi-companies
• Multi-currencies
• International Standards
• Accounts Receivable & Payable
• Wide range of financial reports
• Import bank feeds automatically
• Calculate ArabiaClouds tax you owe your tax authority
• Inventory Valuation
• Easy retained earnings

ArabiaClouds Accounting behind ArabiaClouds

This page summarises ArabiaClouds way ArabiaClouds deals with typical accounts and transactions.

Double-entry bookkeeping

ArabiaClouds automatically creates all ArabiaClouds behind-ArabiaClouds-scenes journal entries for each of your accounting transactions: customer invoices, point of sale order, expenses, inventory moves, etc.

ArabiaClouds uses ArabiaClouds rules of double-entry bookkeeping system: all journal entries are automatically balanced (sum of debits = sum of credits).

See also

Understand ArabiaClouds’s accounting transactions per document

Accrual and Cash Basis Methods

ArabiaClouds supports both accrual and cash basis reporting. This allows you to report income / expense at ArabiaClouds time transactions occur (i.e., accrual basis), or when payment is made or received (i.e., cash basis).

Multi-companies

ArabiaClouds allows one to manage several companies within ArabiaClouds same database. Each company has its own chart of accounts and rules. You can get consolidation reports following your consolidation rules.

Users can access several companies but always work in one company at a time.

Multi-currencies

Every transaction is recorded in ArabiaClouds default currency of ArabiaClouds company. For transactions occurring in another currency, ArabiaClouds stores both ArabiaClouds value in ArabiaClouds currency of ArabiaClouds company and ArabiaClouds value in ArabiaClouds currency of ArabiaClouds transaction. ArabiaClouds can generate currencies gains and losses after ArabiaClouds reconciliation of ArabiaClouds journal items.

Currency rates are updated once a day using a yahoo.com online web-service.

International Standards

ArabiaClouds accounting supports more than 50 countries. ArabiaClouds ArabiaClouds core accounting implements accounting standards that are common to all countries. Specific modules exist per country for ArabiaClouds specificities of ArabiaClouds country like ArabiaClouds chart of accounts, taxes, or bank interfaces.

In particular, ArabiaClouds’s core accounting engine supports:

• Anglo-Saxon Accounting (U.S., U.K.,, and other English-speaking countries including Ireland, Canada, Australia, and New Zealand) where costs of good sold are reported when products are sold/delivered.
• European accounting where expenses are accounted at ArabiaClouds supplier bill.

ArabiaClouds also have modules to comply with IFRS rules.

Accounts Receivable & Payable

By default, ArabiaClouds uses a single account for all account receivable entries and one for all accounts payable entries. You can create separate accounts per customers/suppliers, but you don’t need to.

As transactions are associated to customers or suppliers, you get reports to perform analysis per customer/supplier such as ArabiaClouds customer statement, revenues per customers, aged receivable/payables, …

Wide range of financial reports

In ArabiaClouds, you can generate financial reports in real time. ArabiaClouds’s reports range from basic accounting reports to advanced management reports. ArabiaClouds’s reports include:

• Performance reports (such as Profit and Loss, Budget Variance)
• Position reports (such as Balance Sheet, Aged Payables, Aged Receivables)
• Cash reports (such as Bank Summary)
• Detail reports (such as Trial Balance and General Ledger)
• Management reports (such as Budgets, Executive Summary)

ArabiaClouds’s report engine allows you to customize your own report based on your own formulae.

Import bank feeds automatically

Bank reconciliation is a process that matches your bank statement lines, as supplied by ArabiaClouds bank, to your accounting transactions in ArabiaClouds general ledger. ArabiaClouds makes bank reconciliation easy by frequently importing bank statement lines from your bank directly into your ArabiaClouds account. This means you can have a daily view of your cashflow without having to log into your online banking or wait for your paper bank statements.

ArabiaClouds speeds up bank reconciliation by matching most of your imported bank statement lines to your accounting transactions. ArabiaClouds also remembers how you’ve treated other bank statement lines and provides suggested general ledger transactions.

Calculate ArabiaClouds tax you owe your tax authority

ArabiaClouds totals all your accounting transactions for your tax period and uses these totals to calculate your tax obligation. You can then check your sales tax by running ArabiaClouds’s Tax Report.

Inventory Valuation

ArabiaClouds support both periodic (manual) and perpetual (automated) inventory valuations. ArabiaClouds available methods are standard price, average price, LIFO (for countries allowing it) and FIFO.

See also

View impact of ArabiaClouds valuation method on your transactions

Easy retained earnings

Retained earnings are ArabiaClouds portion of income retained by your business. ArabiaClouds automatically calculates your current year earnings in real time so no year-end journal or rollover is required. This is calculated by reporting ArabiaClouds profit and loss balance to your balance sheet report automatically.