Recording of Transactions and Entries
Recording daily transactions and preparing the accounting entries based on the documents and information provided.
Advisory
Bookkeeping Services
HHAB maintains the entity's books through a specialized team, from the recording of transactions and accounting entries to bank reconciliations and periodic reports. The scope of the service is designed to the entity's needs, and the work is performed on Zoho Books or on the entity's accounting system, with transactions and documents followed up as they occur.
Regulatory Framework
Accounting Records Obligations Under Saudi Laws
Article 17 of the Companies Law requires the company to maintain accounting records and their supporting documents in a manner that shows its business, its contracts, and its financial statements. It also requires financial statements to be prepared at the end of each financial year in accordance with the accounting standards endorsed in Saudi Arabia, and to be filed, as prescribed by the regulations, within six months of the financial year end.
For merchants subject to the provisions of the Commercial Books Law, Article 1 requires the keeping of regular commercial books in Arabic sufficient to show the financial position, rights, and obligations. These comprise, at a minimum, the original journal, the inventory book, and the general ledger, subject to the exemption provided for in the Law. Article 8 also requires the books, correspondence, and related documents to be retained for no less than ten years.
Article 3 of the E-Invoicing Regulation requires the persons subject to it to issue electronic invoices and electronic notes for the transactions that require them. These requirements relate to bookkeeping through the completeness, organization, and retention of the documents supporting the entries.
What the Service Covers
From Transaction Recording to Periodic Reports
The service components are designed to the entity's needs, and no service is considered included unless it is clearly listed in the engagement letter.
Bank Reconciliations
Matching the movements and balances of the bank accounts to the accounting records and identifying the differences that require resolution.
Organization of Records
Arranging the accounting records and supporting documents in accordance with the accounting standards endorsed in Saudi Arabia.
Document Flow Management
Requesting and receiving documents from the entity through an automated, documented mechanism, with follow-up of incomplete documents or information.
Tailored Supporting Services
Defining the supporting accounting work required by the nature of the entity's activity and its needs, such as monitoring customer and supplier accounts, asset and inventory records, and period closings, where included in the engagement scope.
Periodic Reports
Preparing monthly, quarterly, and annual accounting reports according to the agreed report content and frequency.
Independence and Scope Boundaries
A Scope Designed for Each Entity, With Clear Professional Boundaries
HHAB does not offer a single bookkeeping template assumed to suit every entity. The level and details of the service are determined by the entity's activity, its transaction volume, its accounting system, management's needs, and the required deliverables.
The Engagement Letter Defines the Service Scope
The scope may be limited to transaction recording, reconciliations, and reports, or extend to other supporting accounting work. No service is considered included unless it is clearly listed in the engagement letter.
E-Invoicing Is an Optional Service
The issuance of electronic invoices may be agreed as an optional service with a separate scope within the bookkeeping engagement. The responsibilities of each party, the system used, the data provided by management, and the invoice approval procedures are defined within the service scope. This does not mean that all bookkeeping services automatically include invoice issuance or tax services.
Financial Statements Preparation and Filing Is a Separate, Complementary Service
As a separate service complementary to bookkeeping, HHAB provides the preparation of financial statements and their filing on the Qawaem platform under International Standard on Related Services 4410, Compilation Engagements, for clients whose financial statements HHAB does not itself audit or review.
The Independence Rule
To preserve independence, HHAB does not provide bookkeeping or financial statements preparation services to a client whose financial statements it audits or reviews.
Management Responsibility
The entity's management remains responsible for the records and the financial statements, for the accuracy and completeness of the information and documents provided, and for approving the entries, reports, and statements issued on their basis.
Zakat and Tax Services Are Outside the Scope
Zakat and tax services are provided under the scope set out on the Zakat and Tax page of this website, and do not automatically fall within the bookkeeping service.
Who This Service Is For
Designed for Entities That Need Disciplined Books and a Specialized Accounting Team
From full outsourcing of the books to support for specific components of the accounting work, the scope is designed to each entity's needs.
01
Entities that outsource their books to an external team
Companies that wish to assign accounting recording, reconciliations, and reports to a specialized team.
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Entities with recurring transactions
Companies that need continuous follow-up of transactions and documents, recorded as they occur.
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Finance departments that need defined support
Finance teams that wish to assign specific components of the accounting work to a professional firm.
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Entities using existing accounting systems
Companies that prefer the service performed within their own accounting system or the ERP system they use.
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Entities that need a scope designed to their requirements
Companies for which a uniform accounting scope is not suitable and that need the work and deliverables defined by the nature of their activity.
How It Works
How the Service Is Performed
The work begins with an understanding of the nature of the entity's activity, its transaction volume, the current accounting system, the bank accounts, and the deliverables management needs. The required service components, the responsibilities of the parties, and the frequency of the work and reports are then defined, and the scope may cover core bookkeeping work or supporting accounting services agreed separately.
Zoho Books is HHAB's preferred application for bookkeeping work, with no claim of any partnership or official accreditation from Zoho. The service can also be performed on the accounting system or ERP system in use at the entity, whatever the system.
An automated, documented mechanism is put in place for requesting and receiving documents and following up on those not provided, with the responsible persons at the entity and the frequency of information supply defined. The team follows the transactions as they occur, performs the recording, the reconciliations, and the agreed work, and then issues the reports monthly, quarterly, or annually according to the frequency and content defined in the engagement letter.
Methodology
From Understanding the Need to the Deliverables
A clear working path that documents the scope and responsibilities before any recording begins.
1
Understanding the Need
Identification of the nature of the activity, the transaction volume, the current system, and management's needs for records and reports.
2
Designing the Service Scope
Selection of the service components, support level, and deliverables suited to the entity, and documentation of the parties' responsibilities.
3
Setting Up the Working Environment
Agreement on the use of Zoho Books or the entity's system, and definition of permissions and the mechanism for requesting and receiving documents.
4
Recording and Follow-Up
Recording transactions, preparing entries and reconciliations, organizing the records, and following up on incomplete information.
5
Preparing the Deliverables
Producing the agreed accounting records and reports and discussing the items that require completion or approval by management.
Deliverables
Records and Reports Ready for Use
Defined deliverables whose content and frequency are agreed within the engagement scope.
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The journal and the general ledger: a record of the transactions, accounting entries, and account movements recorded during the period
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The trial balance: the balances of the accounts as at the agreed date or for the agreed period
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Bank reconciliations: reconciliations of the bank accounts within the scope, showing the differences that require resolution
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Supporting balance listings: customer and supplier balances or other analytical records agreed to be included in the service
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Periodic reports: monthly, quarterly, and annual reports, according to the frequency and content defined with the entity
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The document follow-up log: documentation of the request and receipt of documents, and follow-up of information or documents not provided, under the agreed mechanism
Why HHAB
A Specialized Team and Regular Follow-Up
Professional Licensing
HHAB is a Saudi professional firm licensed by the Saudi Organization for Chartered and Professional Accountants.
Specialization and Follow-Up
A team specialized in bookkeeping services, with an approach built on close follow-up of transactions and accurate reports.
Professional Experience
The managing partner has prior professional experience serving listed companies at the Big Four global audit firms.
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HHAB is a Saudi professional firm licensed by the Saudi Organization for Chartered and Professional Accountants.
A team specialized in bookkeeping works with close follow-up and accurate reports, on Zoho Books or on the entity's system, led by prior professional experience serving listed companies at the Big Four global audit firms.
FAQ
Frequently Asked Questions on Bookkeeping
What is the difference between bookkeeping and full accounting?
There is no uniform professional scope for the term "full accounting", and it may describe a different set of tasks from one entity to another. HHAB therefore designs the service to each client's needs, with the work, deliverables, and responsibilities precisely defined in the engagement letter.
Is the use of Zoho Books required?
No. Zoho Books is HHAB's preferred application for bookkeeping work, but the service can be performed on the entity's existing accounting system or ERP system. HHAB claims no partnership or official accreditation from Zoho.
Can HHAB work on the ERP system the entity uses?
Yes. The service can be performed within the client's environment and the ERP system the client uses, whatever the system. The scope of access, the permissions, and the working method are defined after the system and the entity's needs are reviewed.
How does HHAB request and receive documents?
An automated, documented mechanism is put in place for requesting and receiving documents and following up on those not provided. At the start of the engagement, the request frequency, the persons responsible for supplying documents, and the information needed for each type of transaction are defined.
What information is required to start the service?
Starting the service requires the nature of the activity, the approximate monthly transaction volume, the current accounting system, the number of bank accounts, and the required reporting frequency, together with a discussion of the supporting accounting work and the deliverables management needs.
What is the appropriate reporting frequency?
The frequency is determined by the transaction volume, management's needs, and how the reports are used. Monthly, quarterly, or annual reports, or a combination of them, may be agreed, with the content of each report defined within the engagement scope.
What reports and records can be obtained?
Deliverables may include the journal, the general ledger, the trial balance, bank reconciliations, customer and supplier balance listings, and the periodic reports. The final content is determined by the entity's needs and the agreed service scope.
Does the service include preparing financial statements and filing them on Qawaem?
This work does not automatically fall within bookkeeping. HHAB provides the preparation of financial statements and their filing on the Qawaem platform as a separate service under International Standard on Related Services 4410, for clients whose financial statements HHAB does not itself audit or review.
Can the service include the issuance of electronic invoices?
Yes. The issuance of electronic invoices may be agreed as an optional service with a separate scope within the bookkeeping engagement. The agreement defines the system used, management's responsibilities, the mechanism for approving invoice data, and the limits of HHAB's role.
Does the bookkeeping service include zakat and tax services?
Zakat and tax services do not automatically fall within bookkeeping. These services are provided under a separate scope, and their details are set out on the Zakat and Tax page of this website.
Why does HHAB not provide bookkeeping to audit or review clients?
To preserve independence, HHAB does not prepare the records or the financial statements of a client whose financial statements it itself audits or reviews.
How are data confidentiality and permissions managed?
The engagement terms define the authorized persons, the scope of permissions, and the method of system access and document exchange. The entity grants the permissions appropriate to the nature of the work and the responsibilities of each party, without assuming a single technical method or permission level for all clients.
Note: This content is general information and does not constitute an accounting, legal, or tax opinion on any specific case. Accounting obligations and the requirements for record keeping and e-invoicing vary with the entity's legal form, its activity, its zakat and tax position, and the laws applicable to it. The bookkeeping service is designed to each client's needs, and the scope of work, the level of service, the responsibilities of the parties, and the frequency and content of the reports are defined in the engagement letter. The periodic reports do not constitute financial statements, audit reports, or review reports, and financial statements preparation services and zakat and tax services are provided under separate professional scopes. Acceptance of the service is subject to an independence assessment, and HHAB does not accept a bookkeeping or financial statements preparation engagement for an entity whose financial statements it audits or reviews.
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