An accounting system tracks and controls the income and expenses of a business. Accounting systems can be as simple as a pen and notepad, and can be as complex as an international accounting staff of thousands utilizing the latest technological advancements. For small business owners, following a set of basic accounting principles can be an effective way to gain experience in handling your company's accounts.It is a part and parcel of every business. Bookkeeping helps in providing valuable insight to the stakeholders, investors, and more. To ensure there is a higher transparency and accuracy of financial records it is necessary to comply with the accounting standards. Previously there were no pre-defined standards for businesses in UAE but now the state has advised the businesses to use IFRS for accounting related activities.
Financial records are vital in any accounting system. Small and large businesses alike should put systems in place to ensure that all income and expenses are recorded in some way, physically, electronically or both.
Important financial documents include cash register tapes, invoices, incoming bills, salaries records, tax forms and travel receipts. Financial documents can originate from a diverse range of locations and employees. Put a system in place to ensure that these documents make their way to a central accounting department in a timely manner.
Traditionally, accountants used financial documents to manually enter transactions into the various accounts in the company’s accounting system. While this is still true to a certain extent, a large number of businesses have taken advantage of technological solutions to automatically post transactions.
Proprietary automatic ordering software, for example, can be set up to automatically adjust the accounts in the accounting system via the company network. In this case, accountants use financial documents to verify accounting records and investigate any discrepancies.
Checking your accounts against external records should be a regular activity in an accounting department. Checking internal records of company assets against bank account and investment portfolio statements can alert your accounting team to any differences between the two, as can checking your accounts payable records with your suppliers’ records.
Accounts payable consists of all money owed by your company to its suppliers and lenders. Accounts receivable is the exact opposite, and consists of all money owed to you by customers and other debtors. A thorough accounting system involves systems of tracking the due dates and statuses of accounts payable and receivable, and can even be set up to automatically pay bills on time or send notifications to delinquent account holders.
Creating reports for management, investors and other company stakeholders is a vital function of an accounting system. Internal reports aid managers in decision-making by presenting operational data in a strategically relevant manner, allowing them to spot trends and areas of potential improvement.
Publicly traded corporations are required to submit a range of financial reports to federal authorities throughout the year, including the annual report, Form 10K. Even privately held companies, however, may find themselves required to create reports for external stakeholders, such as lenders and private investors.
Accounting is an essential part of every business anywhere in the world which includes UAE. Businesses in UAE are supposed to adopt IFRS standards. The accounting of your company should be done with integrity, transparency, and following corporate ethics. Therefore, it is necessary for a company to hire top Accounting Firm in Dubai. If you are looking for best accounting bookkeepers near you, then contact us. Whether it’s large enterprise or small businesses, we aim to provide premium services with high transparency and maintaining your records properly.