Maintaining the book of accounts from the date of incorporation plays a very crucial part for any business. However, start-ups and SME’s set up at a small scale and might even miss certain transactional recordings due to lack of finances, but within a year or two of the business establishment, they do realize the importance of accounting records and track down of the finances. The UAE serves as a base for start-ups and SME’s and helps the business entities to get an international exposure. When it comes to business establishment in the UAE, the commercial law of the country makes it a mandate to maintain proper records. Be it at the later stage, but it becomes a mandate for a business entity to update its backlog accounts so as to keep a proper check on the company’s financial flow. If you have recently initiated your business, then you should know that the accounting services play a crucial role and the backlog accounts are to be updated. This article will give you the insights of maintaining the backlog accounts.
What Is a Backlog Account?
At the initial stage of business setup, many companies forget to update their income or expenses. The basic maintenance that happens takes place in an excel sheet or any rough file. Be it an investor, or an entrepreneur, start-up or established business, one thing is to be kept in mind that maintaining these accounts today will lead your business to the success ladder. If you fail to do so, then your business future is uncertain.
Report Generation for Backlog Accounts
Reports are to be generated to measure a company’s performance. Reports are to be generated accordingly to foresee the future of the business. These reports are a mandate for any business organization. Some of the most important accounts and reports that need to be updated are:
- Balance sheet to reflect the financial position
- Profit and loss account
- Cash flow statements
- Receivables and payables list
- Report on sales performance
- Report on expenses
- Financial ratio analysis
- Working capital analysis
- Break-even analysis
Now, let’s understand the benefits that can be derived by maintaining the backlog accounts.
Benefits of Updating Backlog Accounts
- Better cash flow management
- Easy audit process
- Time saver
- Ease in making real-time decisions
- Plan for the future
- Ease in data retrieving
- Avoiding duplication of data
- Transparency of funds available
Proper tracking of the company records helps in building its future. If you haven’t maintained it from the initial date, then it is advisable to do so. It will not only help you to build the future but also gives you an idea wherein you can cut-down your expense as well as maintain a better financial health for your company. Apart from this, it will help you to attract investors to leverage your business potential to its heights. We at JAXA, provide a wide variety of accounting services and help you to maintain your books of accounts from the date of incorporation. To discuss further, feel free to contact us. We’d be happy to assist.