Summa Accounting & Consultancy

From all of us at Summa, Eid Mubarak 🌙

May this Eid bring peace, prosperity, and renewed energy to you, your team, and your families. Thank you for being part of our journey — we’re grateful for the trust you place in us.

Here’s to growth, clarity, and shared success in the year ahead.

THE BEDROCK: TWO ACCOUNTING PRINCIPLES EVERY STATEMENT RESTS ON – Going Concern assumes the business will keep running, so assets aren’t valued as if you’re shutting down tomorrow. Accruals means you record revenue and expenses when they’re earned or incurred, not when cash hits the bank. These two ideas shape how we see real performance

THE FIVE REPORTS: YOUR BUSINESS STORY IN NUMBERS –
Think of financial statements like a film. Balance sheet is the snapshot. Income statement and cash flow statement are short films showing performance and movement. Notes give explanations, and changes in equity show the cast. Read them together to see the full picture

FOUNDATIONS 104: PROFIT IS NOT CASH – A common misconception that trips up new business owners. Profit is on paper, cash is in hand. Credit sales, unpaid purchases, unsold stock, and borrowing all create gaps. Cash flow keeps the lights on

FOUNDATIONS 103: INCOME VS EXPENSE – Two sides of every transaction under accruals. Income brings economic benefits in and increases equity. Expenses send benefits out and reduce equity. Track both to see real profit, not just cash movement

FOUNDATIONS 102: WORKING CAPITAL
The lifeblood of operations. Working capital is current assets minus current liabilities. It measures operational efficiency and short-term financial health. Positive means you can cover obligations and keep running

FOUNDATIONS 101: THE ACCOUNTING EQUATION Every business balances on Assets equals Liabilities plus Equity. Assets are what the company owns with future value. Liabilities plus equity show how they’re financed: through debt or owners’ investment. Master this and the rest clicks

EQUITY EXPLAINED: THE OWNER’S STAKE – Equity is the owners’ investment in the business. It includes capital contributed directly by owners and retained profits kept in the business instead of being distributed. It shows what’s left after liabilities