Accounting is commonly mentioned as ‘Language of Business’. Accountants in Dubai & all around the world provide a range of financial services and deliver a process that can be predicted & measured in order to grow a business.
Four reasons why accounting is important in the UAE
Accounting helps in proper planning for financial stability
Accountants are the analysers and communicators of financial information for various companies & individual clients. For financial decisions, they need to execute a proper plan which connects various aspects like cash flow planning, sales planning, inventory planning, developmental planning and establishing targets for profit goals etc.
Accounting assists in evaluation of Business Performance
Comparing past financial records with current status helps to understand the financial performance and state of affairs as well as cash flows for further analysis of the company’s performance.
Accounting helps in keeping records in order
Accounting helps collect financial information from different sources and then arrange it in a systematic way. It makes use of statistical tools that are upgraded with today’s tech based softwares to help the business owners plan their economic pursuits.
Accounting helps with the discovery and prevention of fraud
Through proper accounting records and the information system that it provides, it’s easy to track any fraudulent occurrences within a company. This is what forensic accountants do, they collate their accounting knowledge with investigative techniques to check for illegal activities.
An Auditor is a professional who examines financial records to evaluate the evidence obtained. They also make sure that tax laws are complied with regularly. The UAE does not levy income or corporate tax on companies, except on oil companies and foreign banks so what makes chartered accountants Dubai important? Five reasons why accounting is important in the UAE
Auditing helps in establishing accountability
As a business progresses there arises a need to establish accountability to help the employees stand by the company values and attain the overall well-being of projects. Company financial managers assure compliance of auditing policies with the necessary reports
Auditing helps in fulfilling legal requirements
As per the Memorandum of Association of most of the companies in the UAE it is compulsory to perform an audit on the books of accounts. Audit reports give you a thorough analysis of financial information for small and large businesses.
A good audit gives a complete understanding of financial information whenever it is required to be inspected. Since the objective of accounting is to represent financial information accurately, auditing steps in to help a business locate its errors.
Better Internal Control
Auditing enables in house planning for future company decisions with reliable financial data. It improves efficient internal control thus boosting the efficiency of a firm.
With accurate recording, investors can look at the progress of an organisation and make wiser investment decisions. A good audit builds value and credit rating for a business.
Accountants and auditors in Dubai help businesses grow to greater heights and achieve efficiency in their operations.