

Accounting is one of the oldest yet one of the most important functions which a business should perform. It is so important that no matter the size or the nature of the business is, each and every Business should avail accounting services for the Business.
The accounting function of a business is one of the most crucial functions which should be performed by all businesses irrespective of the size and nature of the Business. It is so important that it is considered as the language of the Business as the management can understand the complete financial picture of the Business.
Accounting can be defined as a process in which all the financial transactions of the Business are recorded, summarized and analyzed. This will allow a lot of benefits to the management of the company, such as understanding the present financial condition of the company, setting up a budget and will also help in setting a path for the future of the Business.
Till now we have seen the necessity of accounting and bookkeeping services in a business organization. Now let’s have a look at the benefits that can be derived from these services:
1. Decision MakingAccountancy and bookkeeping services help an organization to take decisions regarding purchase, expansion, promotion, demotion, budget preparation, etc. It helps to take decisions considering both the internal and external environment.
2. Legal RequirementAccounting books are to be maintained in a transparent and clear way so that it eases out the audit process and suffices the legal requirements. According to the legal requirements of the UAE, proper accounting records are to be maintained, and failure to do so will have legal implications for the company.
3. SustainabilityA clear book of accounting records helps a business to sustain in the competitive market. As mentioned above, it helps in decision making. Proper decision making can help the business to grow and sustain in this competitive market.
4. Tracking MalpracticeIt becomes easier for any firm to track any financial malpractice that takes place in an organization. Moreover, they can be rectified and redirected.
5. Budget PreparationWell maintained book of records helps an organization to keep a continuous check on their budget. It provides a flexibility to increase or decrease the budget as per their company requirement. Old and new budgets can be prepared, maintained and controlled anytime.
6. Averting Financial CrisesSince these recorded statements are recorded and evaluated continuously, they reduce the risk of the financial crisis for the organization.
There are many advantages of accounting to a business. The main objective of Accounting is to record, summarize and analyze all the financial transactions of a business. It helps both the management of the company as well as the investors of the company. Accounting is a necessity for companies of all shapes and sizes. Some of the benefits of availing Accounting Services are:
There are many more advantages which can be availed by a business if the management opts to avail the accounting services. The management should take care that the accounting services are imparted only by professionals who will take care of all the financial aspects of the Business.
When we talk about Accounting, the term bookkeeping is also thrown around. Many people have the notion that Accounting services are equivalent to Bookkeeping service, which is a completely wrong assumption. Some of the differences between them are :
There are various other differences between Accounting and Bookkeeping, and this is why it is required to conduct the necessary research by the management so that there will be no problem for the Business in future.
Availing the services of a professional in the field of Accounting is a very important decision for a business and can change the financial condition of the business for better or for worse. Choosing the accounting department of a business has to be done with the utmost care as this will not only help the workings of the Business but will also allow the company to enhance its goodwill among the present and potential investors.
Here are some important points to keep in mind before evaluating a business.Outsourcing is a business practice in which some of the business activities of the Business are allocated to a third party or a different company. With the help of outsourcing, it will be possible for the companies to focus the maximum energy and resources of the company on where the Business activity is more required. Outsourcing can be conducted by a business as a measure for cost-cutting.
There are a number of advantages of outsourcing the accounting services of a company. Those are:In recent years we have seen a rise in the numbers of Small and Medium Businesses in general. These are businesses which do not have huge funds, and this is why such Business might be inclined to remove the Accounting function altogether. They might feel that it is a repetitive activity and uses up a lot of resources of the company.
But this is a wrong thought, and there are a number of reasons which can help a Small and Medium Business require accounting function.IFRS stands for International Financial Reporting Standards. These set rules have been designed in order to bring transparency and a common rule in the world of business affairs across boundaries. The UAE Commercial Law came into force on 1st July 2015, and mandates the application of IFRS rules to all companies while preparing their accounts.
1. Are the IFRS applicable to SMEs?
Yes, IFRS apply to SMEs
2. What are the records to be kept as per the applicable laws?
Every company is required to keep accounting records showing its transactions to accurately reveal at any time the financial position of the company and enabling the partners or shareholders to confirm that the accounts of the company are properly kept in accordance with the provisions of the Commercial Companies Law or any other applicable Laws. Such records include, but are not limited to, bank statements, sales and purchase invoices, payment and receipt vouchers, LPOs, contracts/agreements, etc.
3. What is the period for which accounting records are to be kept?
Every company is required to keep its accounting books in its head office for a period of at least 5 years from the end of the financial year of the company.
4. Are electronic copies accepted?
A company may keep an electronic copy of the original documents & records kept.
At GSPU, we aim at streamlining our clients’ accounting and administrative system. We provide a wide range of services that include:
Being a financial consultant, we understand the crux of the business establishment process. We assure our clients in providing reputation building, maximizing credibility, and standing out from their competitors. We follow the International Financial Reporting Standards (IFRS) to main professionalism in our deliverables that made us one of the top audit firms.
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