Before we go on explaining the practices of accounting services in Dubai, let first shed some light on what accounting basically is and its types.
What Is Accounting?
Accounting revolves around the finance department where the record of financial transactions is stored, sorted, summarized, retrieved, and presented by analyzing the data in terms of reports.
Accounting is a study domain as well as a profession that is solely dedicated to carrying out all of the above-mentioned tasks.
What Are the Types of Accounting?
There are diverse types of accounting ranging from the penetration of tax returns to auditing. There is a diverse range of career tracks that accountants chose before entering their professional lives.
- Financial Accounting
- Public Accounting
- Government Accounting
- Forensic Accounting
- Management Accounting
- Tax Accounting
What Are the Steps of Accounting Practice?
The accounting cycle or procedure enables business owners to keep track, measure, and have a record for all the financial transactions.
Here is the accounting cycle that is usually followed by most businesses or organizations,
1. Identifying Transactions
The first and foremost thing to do is to gather and bring together all the financial records for the existing accounting period.
No matter how small, every single financial transaction needs to be brought into account and consideration.
All the supporting documents, authenticating that transaction should be gathered along as well including invoices, receipts, bank statements, payroll information, and credit card statements.
2. Preparing Journal Entries
This is the step where business transactions are recorded initially in a journal. It is a continuous list of financial records. It is like a cheque book the difference is that it keeps the record of all financial activities.
However, in recent years, computerized records have majorly replaced physical journals. But physical or computerized, the process is the same.
3. Posting Entries in The General Ledger
Also known as the final entry book, the general ledger is a huge book full of numbered lists showing every little business transaction.
It is shown how that business transaction affects each individual’s account. The journal helps organize the transactions according to different accounts.
Accounting firms in Dubai use accounting software, where the entries are posted automatically.
4. Preparing an Initial Balance
By finally totaling the credits and debits using the general ledger, a trial balance is prepared.
It is made sure that the credits equal the debits otherwise if that’s not the case, there is a glitch of either calculation or a missed out financial entry.
however, for organizations using accounting software, it usually means that there was a mistake made while inputting and entering information into the system.
5. Preparing Entries That Are Adjusted
Once the debit does not equal the credit, bookkeepers and accountants hunt down the entry that is been wrongly put in or recorded. Once done, the entry is then adjusted to proceed further with the process.
Then again a trial balance is prepared considering the adjusting entries. After creating the financial statements, the books are then finally closed in order for the new cycle of accounting to start again.
Why Do You Need Accounting Services?
Accounting is a part of every business and is behind the success of renowned organizations. Here are reasons why businesses need accounting services,
- Accounting does not revolve around only counting money. With a professional accountant in Dubai, your business will be able to have a structure like corporate partnerships, LLC etc.
- Financial analysis is another vital factor in order for the business to thrive. Accounting is essential to have a structured business plan.
- Accounting software is a need of every business one way or another. Avoiding fake accounting software is essential for your business to have an efficient accountant.
- For tracking all businesses expenses efficiently and swiftly, accounting is much needed. Without proper records, while selling or earning, you might end up with clustered data with no way out.
- In order to seamlessly calculate and prepare tax returns, it is important for your firm to have accounting services. You will be requiring an accountant to help you out with the company’s taxes.
Benefits of Accounting Services in Dubai
Accounting services in Dubai benefit you and your business in multiple ways. One being said it lets you find your business structure and helps you focus. Hiring accountants will help your business run smoothly by taking care of all your business’s accounts.
When you hire an accountant or a firm that covers all accounting services needed, will cut down your cost and time spent in recruitment, office space, salaries, and benefits.
It provides you with easier, convenient, and quick access to all the financial information in an instant.
The Cost of Accounting Services In Dubai
The bookkeeping services in the Dubai cost around 50,000 to 60,000 AED per annum. However, the precise amount depends on the nature of the accounting services that you require.
Hiring Accounting Firms in Dubai
There are gazillions of accounting firms that you can hire in Dubai. Among many, Avyanco is one where highly knowledgeable and skilled accountants are very well capable of handling all your company tax information.
How Avyanco accounting services can help your business?
Avyanco has a whole network of accountants and a diverse range of services. All to help cater to your business’s accounting needs. We are exceptional in providing the remarkable services to businesses that are in dire need.
Be it that your business is small or based on a larger scale, Avyanco is all and well capable of delivering their unparalleled services all according to your requirements.