What is Accounting Books?
Accounting books are the formal records a business keeps to register financial transactions. They include the general journal, general ledger, subsidiary ledgers, cash book, and supporting registers.
How It Works
- Capture transactions in the journal in chronological order.
- Post journal entries to ledger accounts.
- Reconcile subsidiary ledgers (AR, AP, inventory) with the GL each period.
Saudi Context
Saudi Commercial Books Law and ZATCA regulations require businesses to keep books in Arabic (or bilingual), retain them for at least 6 years, and link e-invoicing systems to the books for Phase 2 compliance.
Example
A Saudi retailer keeps a sales journal, purchases journal, cash book, AR ledger, and GL on cloud accounting software with full ZATCA Phase 2 integration.