7 Tips On Reading Balance Sheet of Companies

Approved Chartered Accountants in Dubai UAE

There is no doubt that any business, big or small has to find out where exactly they stay as their finances are concerned. All of us start businesses with the main objective of making decent profit and would be keen to show a bottom line which is healthy. Towards this objective having the right accounting principles and practices in place is of paramount importance. This will help to come out with a reliable profit and loss account and balance sheet. This is also referred to as final accounts. They could be considered as the bible when it comes to knowing more about the company and its overall financial performance and strength. If you are a person who would like to invest in stocks and shares, you must know how to read the final account properly. This will help you to find out the strengths and weaknesses of the company because the final accounts well and truly present a birds’ eye view of the company and its operations from various parameters. Over the next few lines we will try and have a look at a few tips which could help in deciphering the information that is contained in balance sheets.

They Are The Cornerstone Of A Company’s Progress Or Otherwise

There is no doubt that a company’s progress or regression cannot be understood property without the right balance sheet being in place. It is also known as a Statement of Financial Position. It is a report which shows information about the company’s assets and liabilities and also more about the net worth or equity of the company. This should be read in conjunction with income statement and cash flow statement to get a thorough picture at any given point of time.

1. Understanding More About Balance Sheet Equation

Understanding the balance sheet equation is vital because it will give you a birds’ eye view of the total assets, which is nothing but liabilities and equity of shareholders. In other words the assets which are required for running the company must be adequately balanced by its obligations and liabilities. Understanding this equation is vital to give the right kind of picture about the company.

2. Understanding Current Assets

Current accounts are those which usually have a life span of around one year. In other words they can easily be converted into cash within short period of time. A few examples of current assets are accounts receivable, inventory, cash balance and bank balances. When we talk about current receivables, we are referring to short term obligations which are receivable from customers. There also should be

3. Know More About Non-Current Assets

When reading a balance sheet one cannot afford to gather the right information that is emanating from non-current assets. These are assets which cannot be converted into cash easily. They could include fixed assets such as plant and machinery, properties and buildings, computers, land and buildings and quite a few other things. There could also be some other form of noncurrent assets in the form of patents, goodwill and copyright. Hence when reading a balance sheet, you must be sure that the company has a reasonably health percentage of non-current assets, vis-à-vis its total assets.

4.Try To Have A Clearer Understanding Of Different Liabilities

When running a business it is quite obvious that you will also be incurring some liabilities. They are nothing but financial obligations which the company owes to its vendors and other stakeholders. As is the case with assets, liabilities can be short term and long term. Overdrafts taken from banks could be a combination of both short and long term liabilities. Money which has to be paid to vendors and suppliers is also a part of short term liabilities. There should be a good mix of current and long term liabilities and the overall ratio between assets and liabilities should also be as per accepted norms.

5. Understanding More About Shareholders’ Equity

The health of a company can be understood quite well if one knows how to study the shareholders’ equity. When a business is started the promoters invest money and run the business. After each year, when profits are made they are distributed amongst various stakeholders including shareholders. If there is surplus left it is transferred to a reserve account. Hence the higher the amount of reserves the better would be the health of the organization.

6. You Should Go Beyond The Cash Balance

While cash and bank balances are good indicators about the cash flow position of the company, this alone should not be the yardstick to know more about the company and its financial strength. This could be found out from various other information sources such as the difference between current assets minus current liabilities and so on.

7. Working Capital Strength

In a highly competitive business environment, only those organizations which have the right working capital available at all points of time would be able to turn in good results. The current assets should always be more than the current liabilities which means there is excess cash flow available at all point of time. The better the working capital ratio the healthier the organization ought to be.

Approved Auditing & Accounting Companies in Dubai

Alya Auditors provides all kinds of Auditing including Forensic Auditing & Accounting,Due Diligence Auditing ,Statutory Auditing & Concurrent Auditing. Alya Auditors provide all services for clients in DMCC and all other free zones. Alya also combines the use of advanced software with the guidance of accounting professionals. We provide professional services in the field of Auditing, Accounting, Company Formation & VAT Consultation etc.Our customers benefit from a team of trusted, in-house experts ready to meet your accounting needs.

When you are ready to hand off the chore of accounting and focus on the business you love, Alya is your financial headquarters. We have powerful software that can save you time and money to get started today.

6 Ways To Increase Your Business Cash flow in Dubai

Chartered Accountants in Dubai

Create a Proper Billing Schedule

With One of the easiest ways to make money for your company in Dubai, or to increase cash flow, is to create a billing cycle that is quick and efficient. The person in charge of your accounts receivables needs to have a set schedule of when to bill a company for their services. You should also have this timed so that each week you are receiving a lump sum of money into your business bank account. This will instantly ensure that your cash flow, is in fact, flowing.

Quick books pro is a very popular brand of accounting software that can be used to keep track of money coming in and out of the business. Sage 50 (used to be Peach Tree) is also a very popular, if not the best accounting software to help you keep track and even mark when payments are due, or past due.There are also companies that may provide free software for business, or a reduced rate. This alone will help you save money.

Generate Long Term Clients

Your goal should always be to generate long term client relationships, as this increases cash flow. In Dubai we are lucky to have relationships with our clients that keep us close. But there is more we can do. With the long term clients the money is guaranteed to come in and it gives you something to expect and look forward to. If you notice that you have clients that have come in 3 or more times for your services, you should talk to them and make a deal. You can offer them services at a decreased amount of money, with a contract that keeps them with your company for at least 12 months. This type of business behavior will make your clients happy, as well as your bank account.
If you do not have the type of business that can offer a long term contract, you should try working with smaller contracts.

Purchase Office Supplies in Bulk

Another easy way to increase your cash flow and decrease overall expenses; buy in bulk! You should look to purchase supplies for your company on a monthly basis, or longer. If you set a schedule for when purchases will be made, you can save a lot of money. Any supplies that are needed on a daily basis should be bought in a grouped order. You can do this by having a recurring monthly list for paper, pens, printer ink and cartridges, light bulbs, and any other basic need that your company might have. If you need to purchase office furniture, or computers, it should be checked yearly. You should also keep your eye out for sales. If you know something is going bad, make sure to start searching for a good deal in advance! That is sure to keep your cash flow going.

Review Service Providers

As with any business, you must have regular phone service, cell phone service, internet services, repair services, computer maintenance services, and many other services to keep your day to day business going. You should evaluate these services on an annual basis. This is a major cash flow saver! Once a year, you need to sit down and look at all the services you pay for. Are they expensive? Do they meet your needs? Are you being overcharged? Do they offer any cheaper programs? Are there any services you pay for that you do not need? Looking over these things can have a small affect on your monthly expenditures and a profound affect on an annual basis. You could easily save over a thousand dirhams per year by switching from regular office phone services, to voice over IP services. This type of program would allow your internet to be your phone provider and save a ton of money. You’re already using the internet, so why not make the most of it?

Stop Spending on Things You Don’t Need

We just went over how to save on service providers, but are there other ways to cut costs? Yes! You can quickly generate more cash flow by spending less money on things that are not necessary. If you buy everyone lunch at your company more than once per month, you are wasting monthly.

While feeding your team can boost morale, it lowers your cash flow. Save the money from the weekly expense and only do it monthly; or have everyone pitch in for group meals. Earlier, we also talked about buying in bulk. This should be done carefully and concisely. Do not order more than what you will need. Keep track of how much you are using and spending. Make sure that everything adds up. If you have 10 extra packs of printer paper for the month, then you should purchase less the next month. Do not buy your bulk supplies without first checking your inventory. Every purchase you make should adhere to what your company’s actual needs are.

Invest Your Money

The final step to increasing your cash flow, is to invest your money. You can do this by having accounts with rewards programs. If you have a company credit card, treat it as an investment. The card should offer you cash back and regular bonuses for spending. The card should also only be used for business purposes. Your company bank account should also offer rewards and you should be earning interest off the money you keep in the account. These little steps can add up annually and account for a few hundred to over a thousand dollars of earned income, rather than costing you money. If your bank is charging you, then you need to look around for another bank. There may be a local bank that has better interest rates. I would also recommend that you lease vehicles at your company. Do not buy a new vehicle. It will automatically depreciate and you can’t write it off yearly.

Also, you should try only purchasing your building that your company works through if it is a great deal, or somewhere you will always be. You should rent the property or lease it and write it off annually. These are small investments can drastically help.

Utilize this List

This list can prove to save you thousands of dollars per year and keep a hefty cash flow in your business account. Take time to go over your company needs and check back to the list to make sure you are spending properly and getting proper rate of return on all of your investments.

In time, you will have enough money to be more than comfortable and stress free. Our goal is to keep the economy of the UAE growing and we can do that by following this list and making wise choices every day.

The Best Accountants & Auditors in Dubai

As one of the leading Chartered Accounting firms in Dubai, Alya Auditors is composed of a team with some of the best CPAs in Dubai. Alya offers its clients a wide array of financial reporting and top accounting services in Dubai, UAE, which aim to meet the diverse requirements of different businesses in various industries.
Our expertise in all areas of financial planning, accountancy, or business development will assist any business in realizing its full potential and financial growth.At Alya Chartered Accountants, there is an efficient team of experts to solve all your business problems. 
Have more questions about outsourcing your accounting department? Wondering how Alya Auditors can work for you? Talk to a member of our team. We are happy to answer any questions.We also provide a range of other services. To know more about all the services, contact us– we’d be happy to help.

How To Detect Accounting Fraud

Chartered Accounting Firms in Dubai UAE

Detecting accounting fraud isn’t easy, especially when all you have are financial statements. Useful as they might be, financial statements provide what you might call a high level of view of the situation; they largely lack the sort of personal detail you might need to locate suspicious activities. When it comes to detecting accounting fraud, you need to pay close attention to the details, this along with keeping an eye out for extraordinary patterns and anomalous transactions, some tips, considerations and approaches that are bound to prove useful to anyone looking for accounting fraud including the following:

-Human beings are the weakest link in any financial scam. If you are looking for accounting fraud, rather than spending your days pouring over financial statements, take a closer look at the people within a given organization, especially those persons with the means to carry out the fraud in question.

Guilty parties are often prone to nurturing unusual behaviours. Not only do they rarely assign work even when they are overloaded (out of fear that others might take note of their fraudulent activities), but the less experienced will take to drinking and smoking, this along with other manifestations of their guilt. Of course, suspicious behaviour from an individual, even one working within the financial wing of an organization, doesn’t always mean that accounting fraud is taking place. However, it is one reason to take a closer look at your books and the financial documents of
your company.

– One of the most obvious signs of accounting fraud is deposits or even checks that have not been included in the bank reconciliations. Keep a close eye out for deposits that are missing. Precluding a financial error, the chances are high that someone either absconded with the funds in question or made bogus payments of one sort or another.

– Missing documents should always set off alarms in any given organization. Admittedly, documents go missing all the time. Most employees are human. As such, they are bound to make mistakes, and it is the job of any administrator in an organization to look for reasonable explanations for any missing documents. However, individuals partaking in fraud have been known to make documents that provide evidence of their fraudulent activities disappear, especially whenever auditors enter into the picture. Whenever you come across cases of missing documents that cannot be explained, it is essential that you take the matter seriously, taking steps to launch an investigation, because the chances are high that someone is trying to hide their financial mischief.

– As an individual in an organization trying to detect accounting fraud, consider looking at your sales records. Keep a close eye out for incessant refunds. It is not uncommon for fraudsters to siphon considerable amounts of money from large companies by issuing bogus refunds to non-existent clients that have returned merchandize. In such cases, look for recurring names of clients that have received repeated refunds for damaged products that they have returned.

– The best fraudsters know how to commit theft and cover their tracks by making fictitious entries. However, this is rarely the case. In fact, most accounting fraudsters do not think beyond simply keeping their theft hidden in the moment that it is happening, rarely taking into account the consequences of their actions in the long term. As such, accounting fraud often manifests ledgers that are out of balance. Just take inventory of your merchandize. If the ledgers are only out of balance as a result of human error, then there should be cash to account for any missing assets. Otherwise, do not be afraid to take ledgers that are out-of-balance as a clear sign of fraud and theft.

– Look for excess purchases. Excess purchases are not always a sign of nefarious activities. However, they can be used to cover fraud. Fraudsters have been known to create fictitious payees to convert funds. In some cases, excess purchases are simply a sign of the purchasing agent in question receiving a payoff for one of various unsavoury reasons.

– One of the most common manifestations of accounting fraud is ghost employees. Individuals use such schemes to take advantage of salary payments made out to employees that do not actually exist. Many a ghost employee scheme has been uncovered by auditors simply using more vigilant methods of distributing pay checks to employees within any given organization. If you suspect the existence of a ghost employee scheme within your company, you are encouraged to immediately contract the services of a fraud examiner.

-A surprising number of employees have, at some point in their lives, used their individual expense account reimbursements to benefit financially. While most such cases are minor, it is not uncommon for fraudsters to utilize such opportunities to defraud companies in bigger ways. Where an administrator suspects accounting fraud in such a manner, they are encouraged to take a closer look at their employees’ reimbursements, ensuring that they are not only reasonable but that there are no suspicious trends.

– While excess purchases rarely attract the attention they deserve, excessively large payments, especially to individuals rather than companies, should raise suspicions relatively easily. Large payments are often a sign of fraudulent disbursements and should be investigated whenever they are detected, no matter the situation.

– Have you ever come across more voided sales slips than you can explain? If so, you have all the evidence you need to launch an investigation because voided sales can be used by fraudsters to divert payments and cover the theft. Excessive voided slips are rarely the result of simple human error. If you follow the thread, you are bound to find accounting fraud at the end. Proving even more common these days are excessive credit memos. In cases of fraud, you will find fraudsters writing credit memos to non-existent clients. Not only are such schemes clever but they are somewhat difficult to detect, especially if you are not specifically looking for them.

– When fraudsters misappropriate customer payments, it has become common for them to hide any shortages that arise by making adjustments to receivables. In such cases, look for bogus billing schemes. Detecting accounting fraud isn’t a science. Rather, all you need is proper attention to detail and an appropriate understanding of financial matters. In truth, most fraudsters are rarely as clever as they are expected to be. The majority are prone to leaving clues that reveal their mischief.

CEOs Guide to Choose Accounting Services in UAE

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When making the decision for what type of team or service provider should handle the company accounting services, the CEO or owner needs to keep an eye on many factors—some of which may not always be in agreement. To ensure an efficient, effective and profitable future, everything from service quality and experience to cost and scalability need to be considered. Assessing and choosing the right option requires checking a lot of boxes—but this guide should help keep you track to a successful decision.

Appoint An Internal Review Team

The people within the company need to be brought on board. Start by opening a discussion on how your company is currently handling the accounting and where improvements are necessary. Try to keep personal opinions, finger pointing and accusations out of it to ensure that everyone is given a fair chance to contribute positive support. You may have a weak link or two in your current system that won’t make it to the final stage but this is not the place to addressing those changes. Instead focus on highlighting the “wish list” for the new system and services. You may find that many things cannot be handled by an internal team thus helping narrow your selections to external or outsourced accounting services.

Research Different Accounting Services Options

Now that you have a team in place, create a short list of the “types” of services that will serve your needs. For some, this may be bringing in an outside consultant or CFO. For others, it may mean outsourcing the entire accounting department. Your team should have a good idea of its gaps and requirements.

Define Expectations and Deliverables

You’ll want to define a vision of your future through questions, such as what does your business need to complete their accounting tasks effectively, and how will an accounting services provider help you? Set a time frame for launching and managing a new accounting system. If new software needs to be purchased, set an implementation time frame. Professional accounting services should be able to help you envision your future even before you select one. The best will be able to help steward your vision for the future because they know better than anyone what is an ideal setup and what is a realistic corresponding timeframe.

Put It In The Budget

The cost of a new accounting service provider will need to be fit into your company’s budget. Be sure to obtain detailed quotes from service providers, so you understand the variety of different services they offer. Remember that there is more to a given fee than just the amount. What you receive in exchange for a monthly fee, the caliber of the professionals performing the work, and the reliability and continuity of the team should all factor in to gauging pricing and affordability. If you need to purchase new software or accounting integrations, be sure you can justify the higher costs. If the investment is reasonable and in line with your budget, then the team can move forward in evaluating potential accounting service providers.

Gather Accounting Services Options

Here you’ll start to evaluate options for new accounting services and begin the next steps in creating a list of potential providers. Ask for referrals from companies and peers in your industry. Vendors and resellers can also provide advice on how to narrow down the selection process to find the best provider for your company’s needs.

Reviewing Accounting Services

Prospective service providers should be able to provide you with a clear picture of expectations and deliverables. Ask for demos so you can see how they work, sample financial reports and examples of current or previous client case studies. They should also be able to provide you with testimonials and references from current clients. If you have very specific needs due to a niche industry or regulatory requirements, ask for specific references from clients in those industries to ensure they know how to manage your unique needs.

Finally, make sure to introduce the members of your team that will be guiding, interacting with and managing your new accounting services provider. You want to make sure that everyone can play well together—with open lines of communication, ease of access and no egos or attitudes to hamper productivity.

Select The Top Auditors & Accountants in Dubai

Alya Al Marzooqi Auditing( www.alyaauditors.com) is one the Top Chartered Accounting firm in the UAE, with high efficiency in the services we provide. Our Accounting division has well experienced professional executives who are well versed with the rules and regulations and laws in the UAE. For companies, our accountants shall guide to clean your books up thus making your business smooth.

Our Accounting Services Includes :

Payroll Management, Accounts payable and receivable, Credit card Management and Financial Reporting.

Other business bookkeeping services that we provide include business bank and trial balance reconciliations, balance sheets, labor cost management, and debt planning and reduction.

Also interested in Reading: Accounting & Bookkeeping For Startups

When you analyse these ratios, you get an overall idea of a business. You can easily decide whether to invest in a company or not.

4 Reasons Why Not All Outsourced Accounting are the Same

Accounting & VAT in Dubai

Outsourcing your bookkeeping and accounting department is a necessity as you grow your company. As you move from a small business to a medium or large corporation, you might not require additional in-house, but still need help processing the higher number of orders you are likely experiencing. With outsourced accounting services, you can often save time and money by acquiring qualified and reliable accounting department staff.

However, when it comes to outsourced bookkeeping and accounting services, not all services are the same. Here are the differences you should know:

The Number of People You Get Varies

When you use outsourced bookkeeping services, the number of people on your account will vary between providers. Some bookkeeping companies will assign you a single person who will be accountable for your company’s books. Other bookkeeping companies will adopt a team staff approach. You will have an entire group of people who can access your accounts and keep your books organized. In some cases the team will rotate, while in other cases not.

In general, the larger the number of transactions you post, the more likely you will need a few people involved, but is this the best solution? Some people prefer to have a consistent point person, someone who knows the ins and outs of their business. For other people, it doesn’t matter. They just need someone who can enter in all their transactions. Before you contract with an outsourced bookkeeping and accounting services company, make sure that you understand exactly what your needs are and discuss any pertinent concerns.

The Skill Level of the People on Your Account Varies

You will need to consider the skill level of the bookkeeping and accounting service you use as well. Outsourced accounting department solutions can vary greatly in terms of the experience and technical proficiency of the people who will be working on your account. In order to remain competitive, some providers of bookkeeping and accounting services may require their staff to actively work to hone their skills. To this end, the staff may regularly attend seminars, take on additional training, or just perform additional analysis of your accounts. However, not all companies share this characteristic. Some are closer to QuickBooks “factories,” churning out people with only a basic understanding of how to enter income and expenses and not enough business knowledge to apply what the reports generated by the software even mean in practical terms.

Depending on your company’s needs, a trained person may be enough, but for many other companies, particularly the larger you get, bookkeeping becomes an important skill and hiring a company that offers experts in the field can matter. This expertise can weigh in significantly, especially if your company does not have a dedicated finance person on staff or is trying to grow. In either scenario, having someone around with the expertise to see risks before they become problems is important. Such a person may also be able to uncover opportunities that a less financially aware person would miss.

Not All Accounting Systems Are Created Equal

One possible advantage to outsourced bookkeeping services is that you will gain access to better accounting systems. That’s not to say that QuickBooks or some similar accounting software will not be used — they are popular because they work. The difference is that most bookkeeping companies will be trained to use all the capabilities of the software. In addition, and perhaps more importantly, they have better versions of it. For instance, you might buy QuickBooks for small businesses but a bookkeeping company is likely going to use a more robust enterprise version and keep the most up-to-date version around.

In your particular case, you may not need the latest accounting system, or you may prefer to run your own software. Spend some time thinking about whether you have a strong accounting system preference and why. Some bookkeeping and accounting services companies may be able to provide you with a copy of the software they use and training so that you can access the program without their involvement, but it is an important discussion to have before signing a contractual arrangement

Contracts Matter More Than You Think

Finally, keep in mind that one of the biggest reasons that not all outsourced accounting services are the same is that they have different contracts. This varies in a couple of different ways. On the one hand, when you hire a bookkeeping and accounting service, that company generally takes on the responsibility of making sure that your records accurately reflect your business in a way that is legally binding. This tends to make these accounting services more accurate, because they have so much more to lose.

On the other hand, contracts will also vary with regard to how available that service is to you. Some companies have people available to answer your questions 24 hours a day, and others will refer you back to your point person during regular business hours. In either case, you will want to make sure any outsource bookkeeping and accounting services company you hire is willing to take on accountability for the accuracy of your records and is as available to you as you need it to be.

Leading Chartered Accounting Firms in Dubai

As one of the leading Chartered Accounting firms in Dubai, Alya Auditors is composed of a team with some of the best CPAs in Dubai. Alya offers its clients a wide array of financial reporting and top accounting services in Dubai, UAE, which aim to meet the diverse requirements of different businesses in various industries.
Our expertise in all areas of financial planning, accountancy, or business development will assist any business in realizing its full potential and financial growth.At Alya Chartered Accountants, there is an efficient team of experts to solve all your business problems. 

Have more questions about outsourcing your accounting department? Wondering how Alya Auditors can work for you? Talk to a member of our team. We are happy to answer any questions.We also provide a range of other services. To know more about all the services, contact us– we’d be happy to help.

How Much Should Companies Spend On Their Accounting in UAE ?

Accounting-firms in Dubai

Occasionally, we get asked to help companies understand where and why they should allocate budget to improve accounting functions. Typically this stems from a concern that a company is overpaying for its accounting and bookkeeping and highlights a desire to improve efficiencies and decrease costs. While the two are not always intrinsically linked, there are often opportunities to improve across the board—from reducing costs to improving results.

There is no magic formula for determining how much a company should spend on its accounting, bookkeeping and controller functions. Some costs are a product of environment—often staff in metro areas will simply command higher salary rates than in rural areas. Other costs can be a product of history—and can be rectified easier with a combination of modern technology and revised internal and external structures.

A Formula For Accounting Expenses

We can’t tell you that your company should spend “X%” of your revenue on your accounting expenditures. It simply wouldn’t be responsible to not take into account the complexities of your unique business and financial reporting needs. For example, if you require highly technical controller oversight and advanced reporting—perhaps you have considerable job cost reporting needs or inventory management issues—you will need a greater degree of expertise among your staff. This will directly increase your costs because you will have to pay for that level of experience and training. For very basic monthly reconciliations, your personnel costs will be much lower. However, there are other areas you also need to review for cost considerations.

Accounting Technology Costs

Many of our prospective clients come to us asking about accounting technology integrations and automation options. They are rarely using the best available options for their needs—and cost and efficiency considerations are rarely recognized during their internal review processes. On one hand, their internal staff isn’t trained to look for improved technology efficiencies on a regular basis—it simply isn’t a priority or requirement of their positions. Additionally, the fear of replacing human support is always lurking to dissuade staff from investigating automated improvements. So many businesses forget to look at accounting technology options—or simply don’t know where or how to begin.

With respect to how much of your costs should be allocated to technology or personnel, this will be a combination of your automation needs, current technology implementations and expertise requirements. The best way to start reviewing whether your costs and return on investment are appropriate for your business are to examine the output from your staff and systems. Are you getting what you need, when you need it? Does it translate into actionable data—are you missing anything you need or lacking something you require? If you are getting everything you need and everything is working for you—you only need to really review whether there are any cost improvements you can introduce. However, if you are missing something you need, then you need to start from the perspective of improving results first and then review cost allocations.

If you need help reviewing your current systems or determining what level of success your processes are having, our experts can help you get a clear picture.

Best Accounting Firms in Dubai,UAE

Alya Al Marzooqi Auditing( www.alyaauditors.com) is one the leading  Accounting firm in the UAE, with high efficiency in the services we provide. Our Accounting division has well experienced professional executives who are well versed with the rules and regulations and laws in the UAE. For companies, our accountants shall guide to clean your books up thus making your business smooth.

Our Accounting Services Includes :

Payroll Management, Accounts payable and receivable, Credit card Management and Financial Reporting.

Other business bookkeeping services that we provide include business bank and trial balance reconciliations, balance sheets, labor cost management, and debt planning and reduction.

Also interested in Reading: Accounting & Bookkeeping For Startups

When you analyse these ratios, you get an overall idea of a business. You can easily decide whether to invest in a company or not.