Do you know how accurate your accounting and financial statements are?
Are you sure your accounting practices are adhering to the UAE legalities?
Before knowing about the best practices, you should be aware of the consequences improper accounting. Poor accounting can cause hefty penalties and, in worse cases, even suspension of your business license.
How do you avoid that? Simple answer is to hire a professional accounting firm in UAE. Continue reading to learn all about accounting services in the UAE.
Method of Accounting in UAE
Accounting in the UAE has various methods to understand profit and loss. There are two accounting methods:
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Accrual Accounting
This is the method mostly accepted and used in accounting. Under this method income is accounted when it is earned and expenses are accounted when it is incurred ( without looking at the date of receipt/payment).This is the accepted method of accounting under various accounting standards.
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Cash Accounting
Under this method of accounting , all income and expenditures are recorded when actually received and paid. This type of accounting service in Dubai is for start-ups or new businesses with less revenue. However this method is not in line with various accepted accounting standards like IFRS.
Types of Accounting Services in the UAE
In general, the term accounting is always related to business transactions, but the reality is it goes beyond that. Accounting firms in the UAE deal with the various types of accounting;
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Forensic Accounting
Handles fraud, litigation, dispute and legal cases
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Auditing
Auditing is classified into two: internal auditing, issues regarding business practices and risks. The other one is external auditing, which deals with financial records by independent auditors.
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Financial Accounting
Includes classification and footage of business transactions and preparation and presentation of financial statements.
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Cost Accounting
This includes footage, presentation, and analysis of manufacturing costs.
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Fiduciary Accounting
The handling of accounts is administered by an empowered person with the supervision and management of the property.
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Accounting Information Systems
Accounting information systems occupy the fitting, expansion, supervision, and execution of accounting procedures and systems used in the accounting process.
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Tax Accounting
It involves the planning of tax and preparation of tax returns to reduce taxes lawfully and other tax-related issues.
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Management Accounting
It includes budget, forecasting, financial analysis, evaluation and cost analysis of business decisions, and other similar areas.
How can Accounting Firms in the UAE can help you?
The Accounting firms in the UAE can help your business to move forward towards success;
The best option for maintaining proper accounting is to hire the right accounting firm in the UAE. Below are a few reasons for hiring an accounting firm, which can also be said to be outsourcing the services.
- Cost-Effective
- Bookkeeping Advice
- Business Advice
- Tax Advice
- Cash-Flow Advice
- Usage of advanced modern technologies
- Maintaining confidentiality
- Highly experienced experts
- Focused on core activity
- Adhering to the regulations
End Note
Hunting for the best auditing firm in the UAE is a hassle. To make your work easier, here we are JAXA Chartered Accountants. We can assist you in accounting and bookkeeping services in UAE. Contact us right now!
