Accountants & Bookkeepers in Dubai, UAE

Bookkeeping (and accounting) involves the recording of a company’s financial transactions. The transactions will have to be identified, approved, sorted and stored in a manner so they can be retrieved and presented in the company’s financial statements and other reports.

Here are a few examples of some of a company’s financial transactions:

• The purchase of supplies with cash.
• The purchase of merchandise on credit.
• The sale of merchandise on credit.
• Rent for the business office.
• Salaries and wages earned by employees.
• Buying equipment for the office.
• Borrowing money from a bank.

The transactions will be sorted into perhaps hundreds of accounts including Cash, Accounts Receivable, Loans Payable, Accounts Payable, Sales, Rent Expense, Salaries Expense, Wages Expense Dept 1, Wages Expense Dept 2, etc. The amounts in each of the accounts will be reported on the company’s financial statements in detail or in summary form.

With hundreds of accounts and perhaps thousands of transactions, it is clear that once a person learns the accounting software there will be efficiencies and better information available for managing a business.

Bookkeeping is part and parcel of every running business. It helps the companies to track their expenses to ensure effective financial management. Not only this, step-by-step deployment of the accounting cycle enables the companies to provide better insights to the stakeholders, potential investors, and quantitative information of monetary assets to the state institutions for audits. For this purpose, the business people in Dubai and across the UAE have to ensure compliance with universal accounting standards for higher transparency and accuracy of financial records.

All businesses follow accounting standards quite well. If you are new to the business and don’t know any detail about this – The article is aimed to help you understand different types of standards used internationally and the one recommended for managing business accounts for regulations compliance in UAE.

The companies adopt different formats and rules to manage their accounting record. In this regard, Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) are two of the most frequently used bookkeeping principles.