Accounting and Bookkeeping services are one of the vital elements of an organization that is necessary for keeping track of your income, expenses, and other financial transactions. The right accountant or bookkeeper helps you in the running your business smoothly, by making your financial reports and statements accurately, which helps in taking right decisions for the conduct of business. As Bookkepping is an essential activity which is one of the pillars of a successful business, it is necessary to give proper care to it. If you plan do bookkeeping and accounting service in-house, it might adversely affect your organization, as you may not be able to give the time and care it demands. One might have to cater to other functions of business which may result in improper attention to bookkeeping which will defeat entire purpose of it. It will be beneficial for business to outsource this function to the professionals who can understand your business and reporting requirements and provide proper and accurate financial reports and will also help in saving cost and time in creating and managing an entire department for bookkeeping.
Saves you from wasting your valuable time, money and energy and allow you to focus more on other tasks such as improving profitability, increasing sales and expanding business.
Helps you in saving cost of managing an entire department for bookkeeping. In addition to saving employee cost, it helps you in saving floor space, desks, resources like computer etc.
Helps in completing accounting and related tasks like financial reports, Payroll processing, Tax returns accurately in timely manner.
Helps in preparation of budgets and projections of business and better tracking of business vis-à-vis budget which leads to better control and decision making in business.
Bookkepping/Accounting and Financial Reporting
Yearend accounting service
Virtual CFO
Every business have to undertake numerous financial transactions in form of purchase, sale, receipt, payment etc. Accounting means a system of recording these financial transactions in books of account of company with proper documents within the applicable legal framework.
Proper recording of financial transactions is necessary in order to complete next tasks of financial reporting which involves summarising transactions, analysing and reporting these transactions in form of reports. These reports are typically needed by top management, Owners, Tax authorities, Regulatory and Oversight authorities.
Financial reporting refers to the function of reporting the financial transactions performed over a specific period (generally a financial year) are presented in the form of financial statements that shows the overall performance of the organisation. It is the way of communicating the financial information or results of an organization to the stakeholders specifically Management, Shareholders/Owners, Investors and Bankers. The UAE Commercial Companies Law, mandates all companies to apply international accounting standards and practices when preparing their accounts. So, companies in UAE are required to present financial statements in line with IFRS (Internrational Financial Reporting standard).
Typically, financial reporting has 2 types : Internal and external. Internal reporting is necessary for management and external reporting is generally important for Shareholders, Bankers/Investors/Other creditors, Government and Regulatory agencies.
Internal Reporting
Internal reporting is organisation specific reports that are needed by management team of organisation to understand the performance of the organisation, Making budgets and forecasts and monitoring achievement of it and to take decisions and actions. This includes departmental reports, Branch reports, Cashflow reports, budgets and variance analysis, Board reports.
External Reporting
External reporting refers to reporting the financial performance to external parties in line with applicable legal framework. IT helps other stakeholders in understanding the performance of the organisation, its operations and Financial position and make decisions based on it for example decision to make investment, decision to lend money. IT generally includes The income statement, balance sheet, cashflow, and other information necessary based on applicable Accounting and Financial Reporting standards.
Importance of financial reporting extends to many purposes beyond just satisfying compliance and legal requirements. Usability of financial reporting differs based on each stakeholders perspective.
Financial reporting provides a basis for creating business projections, forecasts and budgeting, both short term and long term purposes.
Financial reporting helps management in tracking the performance of the organisation, identifying problems and solving them.
Management can create internal financial reporting systems to track performance of the departments, branches, subsidiaries, geographic locations, product-service lines etc.
It helps company in tracking the cashflow in the business to help it in understanding liquidity position and manage future cash inflows and outflows effectively.
Helps investors in understanding performance of the business and potential investors in making investment decisions,
Helps banks and Financial institutions in making decision regarding business credit.
Government entities, use financial reports to monitor if organisation complies with all rules and regulations and its tax liabilities are properly calculated and discharged or not.
Help you in accurate and timely recording of your financial transactions which results in significant savings of your time, money and other resources as an added advantage.
Help you in setting up internal financial reporting structure to help you track organisation’s performance effectively.
Help you in filing tax and other regulatory forms in timely manner to save potential penalty and other consequences of non-compliance.
Help you in preparing Financial statements in line with Legal requirements of UAE commercial company law i.e. reporting as per IFRS
End of year is one of the busiest time for any business irrespective of the nature or location of business. There are so many tasks relating to business that needs to be taken care before closure of the year. End of year accounting is also one such task. There are a lot of end of year transactions/calculations and adjustment to be done which can be easily forgotten or other task may take precedence over this which will lead to errors in accounting. It may even result into heavy fine or penalties. Hence, it is advisable for any business to make proper checklist of such necessary tasks to ensure that nothing is missed out. It can also be outsourced to ensure that it is handled by experts and with utmost care and accuracy.
Year end is generally defined in the laws applicable to the business in the country of establishment. In UAE, Financial year closed on 31 December. So, business needs to prepare financial reports for the year ending on 31st December of every year. These reports include but not limited to
Income statement or Profit/loss statement
Balance sheet
Cashflow statement
Schedules and other information
Director’s Report
Auditor’s Report
Accounting is a continuous process but In yearend accounting, all ledgers relating to income statement are closed to determine the profit/loss earned by business during the year. This involves calculation of Depreciation and amortization expenses, tax expense if applicable. Rest of the ledgers are reflected in the balance sheet under appropriate head. They need to be scrutinized to ensure that they are reflecting true and correct figures. Proper presentation of balance sheet and income statement is necessary to present true and fair picture of company’s profitability and financial position.
The year-end accounting procedures provides necessary inputs for the preparation of financial reports for the fiscal year.
End-of-the-year accounting procedures ensures that all the income and expenses are properly recorded and presented.
The year-end accounting helps in ascertaining the tax liability of the company for the financial year.
The year-end accounting procedures involves the reconciliation of the bank statements, intercompany-interbranch ledgers, vendor or customer ledgers . The process helps businesses spot any mistakes and rectify them before that mistake results in erroneous financial reports.
The financial reports prepared at the end of the financial year provides crucial insights about company’s revenue, expenses and financial position and helps in making decisions for future.
Assist you in ensuring that all incomes and expenses are properly recorded through thorough review of accounting records.
Assist you in reconciling necessary accounts like bank statements, intercompany-interbranch ledgers, vendor - customer ledgers.
Ensure that the financial reports prepared represents true and fair financial position of the company in line with the applicable legal framework.
Assist you in ascertaining appropriate tax liabilities due to the tax departments