Accounting Practices in the UAE
Accounting is the backbone of any business. This is to ensure financial management of the company by tracking the income & expense. Accountants in the UAE use a proper dedicated accounting cycle to provide better insights to shareholders. Business owners across UAE guarantee compliance with universal accounting standards for exact financial records with better transparency.
Accounting practices in the UAE follow an exclusive set of principles for financial reporting. The rules essentially establish how transactions are created & deliver some financial information to creditors, & stakeholders.
Accountants contribute to logging & evaluating the business operations with bookkeeping & applicable services. Accounting practices determine the financial abilities of an organization corresponding to the environment, organizational status & experience.
Types of Accounting Practices in the UAE
- Public Accounting: Here, the accounts, records, & related services are outsourced to individual firms. Since some financial documents & other information are essential to be revealed to the public.
- Private Accounting: Where individual accountants in UAE are hired by the organization to record their accounting & other information in a methodical way. Since an expert accountant is hired, all the controls are applied by that expert within the company.
- Government: Here, the government normally utilizes state auditors who are qualified to record, plan, & produce budget. They anticipate the financials, accounting, & other relevant information. All regulations over these accounting records are enforced by people hired by the government bodies.
- Auditing Practice: The auditors check for the accounting practices followed & establish the degree of dependence on accounting records. After which, they generate the final audit report.
- Financial: Financial accountants typically keep trail of the company’s financial transactions. They are accounting professionals like company secretaries, stock intermediaries, chartered accountants, or anybody with a finance background. All the controls associated to financial accounts are levied by the financial accountants.
- Management Accounting: Management accounting offers timely financial & statistical information to the business managers. They operate on all the records related to management like assessments, analysis, authority, appraisal policies, & execution of plans by top management. Management accountants use specialized accounting services for examining, enforcing controls & supervising. The accounting reports are applied for internal decisions.
- Forensic Accounting: Forensic accountants frequently analyze data to define the missing amount & find out alternatives to recoup it. They identify deception & misstatements in the accounts if any & validate controls in the accounting records. Companies retain forensic accountants to detect any fraud in or by the management.
- Managerial Accounting: This is concerned with the recognition, measurement, & analysis of accounting information to help managers in making operational decisions. Managerial accountants in the UAE also communicate confidential information within their limitations. They work with executives to analyze & create a financial plan that meets with your short-term & long-term goals.
- Cost accounting: This is another kind of managerial accounting with the objective to capture business’s complete manufacturing cost. The total cost is approximated by assessing the variable costs & fixed costs as well. Cost accounting for small business permits management to take better financial decisions & calculate the budget accurately.
- Tax accounting: This deals with the preparations of tax returns & tax payments. This type of accounting can be managed by individuals, businesses, corporations, & other similar entities. Tax accountants guarantee that companies conform with the tax laws & prevent certain tax obligations for the future. In most of the cases, large corporations hire tax accountants to work on the complications of financial records.
- Accounting information systems: AIS or accounting information systems accumulate & handle all transactional data. They convey the financial information to relevant parties as well. Employees decide the best time to execute latest technologies & observe the progress of existing systems, to recognize if there is any growth in productivity over the assumed timeframe.
- Chartered accounting: Chartered accountants are members of a professional accounting body. The professional accountants in UAE are skilled enough to work in several areas including management to auditing.
How can we help?
At Brooks Management Consultancies we expertise in successfully managing, reviewing, & reporting your accounts A-Z. we comprehensively understand day to day operations of your business & assist in recording financial transactions in an effectively & timely manner. If the organization’s accounts are not maintained in an orderly manner, the business may not run effectively as expected.
It is now a legal requirement in the UAE Commercial Company of 2015 that sustaining proper books of accounts for at least five years in required. Moreover, since the implementation of VAT in the UAE, its time for tax returns filing, books of account that must be recorded for.
In an organization, a lot of things require to be taken care of. When a company decides to outsource their accounting services, they can apply more focus on their core business activities or legal requirements if any.
We at Brooks Management Consultancies deal with all well-known software programs like, Xero, Peachtree/Sage 50, QuickBooks, Tally, SAP, Microsoft Dynamics, & other popular accounting applications.
As a business owner, we know you have a lot resting on your shoulders. We want to help alleviate the stress involved with managing your tax and accounting needs. Leave those worries to us, trusted professionals dedicated to your ongoing success. We offer sound, accurate reporting with critical analysis, so you always know where you stand financially. And we’re there for you throughout the year to offer insightful counsel, assisting with all your important financial decisions. With our experts in place, you can do what you enjoy best focus on the day-to-day activities for your business while we handle our area of expertise your financial well-being.