Benefits of Opting for an Accounting Firm in Dubai, UAE
Accounting is a broad concept and has many aspects to look into. An organization usually takes care of its accounting procedures with the help of an in-house accountant, but now, to make things easier and professional, entities seek the assistance of a reputed accounting company. There are numerous accounting firms in Dubai, to which you can outsource your accounting procedures.
Every business entity irrespective of its size requires accounting. There may be several questions that arise when you enter into a business and the most common one is about the importance of accounting. Accounting helps in tracking your incomes and expenses and every other financial transaction while running a business. It can be done either by an in-house accountant or through outsourcing.
Why choose an accounting firm in UAE?
An experienced accounting firm in UAE will know the ins and outs of accounting in the country and can help your business to maintain proper books of accounts and track all the transactions. There are certain financial statements that help you to assess your records; any information on the profit and loss can be identified through the “income statements”. A “balance sheet” will allow you to look at the financial position of the company on a specific date and the “cash flow statement” acts as a mediator between the income statement and the balance sheet and lets you know the cash raised and spent during a particular period of time. Apart from the financial statements one should also know the importance of accounting and they are:
- It helps you to evaluate the overall performance of your business. The financial record helps to determine the financial position of a business. It also helps you to keep track on all the transactions taking place in the organization and allows you to stay within the budget.
- Accounting helps in keeping the statutory compliances intact. Every government taxes and liabilities will be prompt when proper accounting is maintained.
- It is crucial for businesses to follow a budget and accounting makes it easier to create a budget and plan things accordingly. Accounting helps in sticking on to those plans and to make new ones as required. It also aids businesses to file all the necessary financial statements as well.
In UAE, most of the businesses, whether small or large, are required to audit their accounts every year. The books of accounts will allow the auditor to make proper audit reports; only then the management will get an exact idea about the overall position of the organization.
Maintaining proper accounting determines the future of any business. Accounting can be done within the organization, but outsourcing your company’s accounting will ensure you with accurate results. Accounting firms in Dubai will provide you with professional assistance and contribute their experience to support your business. By choosing an accounting firm in Dubai for outsourcing your accounts, the organization can focus more on the other functions taking place within the entity which will boost your business.
Accounting principles one must be aware of
In order to run a company one must know about the basic things about accounting too. What is accounting? What are the principles in accounting and so? There are mainly five principles in accounting and to name them, they are:
- Revenue recognition principle:
The revenue recognition principle allows you to recognize the revenues through your organization’s income statements. The principle states that “the revenue of a business is earned and recorded during the time of sales”, i.e., the revenue is generated at the point where a consumer possess the product or service and not during the time of money transaction.
- Expense principle:
According to the expense principle, “an expense occurs at the time when the business accepts goods and services from another entity.” That is when an accountant records a transaction as an expense in the books.
- Matching principle:
The matching principle states that every item of revenue should match one from the expense list. This is an important principle in accounting and every organization should follow this while entering their accounts.
- Cost principle:
The cost principle lays down the rule that while computing the cost of an item, one must consider the historical cost of it and not the current market value of the item when entering in the book of accounts.
- Objectivity principle:
According to the objectivity principle, one must provide the evidence to support the data, like vouchers, receipts or invoices and there is no scope for personal opinion in accounting.
These are the major accounting principles used. It is not necessary for everyone to know these, but it will surely help you to keep yourself educated. Accounting can be done by any professionally qualified accountant, but nowadays people opt for outsourcing accounting procedures as it will help the records to be free from personal interests and will result inaccurate outcomes. One should also be extra cautious while outsourcing matters like accounting as the date must be kept confidential. It is an internal activity, which is why it is important to choose a reputed accounting company in Dubai to look into your needs.
HLB HAMT: A Renowned accounting firm in Dubai
HLB HAMT is a leading accounting firm in Dubai and we offer diverse accounting services that range from online or cloud-based accounting and onsite accounting to accounting system setup training, accounting secondment and many more. Our highly qualified and well-experienced team will handle your data with utmost care and security and ensure to provide you with the best quality services available.
HLB HAMT promises to keep your data safe and we deal our client’s records with high security.
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