Have you realized that you did not maintain proper books of accounts for your business from the day of inception? Due to limited resources and expertise, maintaining proper books of accounts are a real challenge for small to medium enterprises. If your business is registered under the commercial company law in UAE, it is compulsory for you to maintain all your financial transactions records in the prescribed format.
We at SNR ASSOCIATES is a helpful hand for our clients to prepare books of account from the date of incorporation of business till the current date. You just need to provide all the supporting documents that are necessary for making books of accounts. The supporting documents will be consisting of all the original purchase and sales invoices, payment and receipt vouchers, bank statements from the start of business and record of all the checkbooks used during the period. Once you hire our services, our expert team will visit your company’s registered office or brings the necessary documents to our office and update all the records in your company’s accounting software. You will be provided with the following financial reports:
- Balance sheet or statement of financial position
- Income statement or statement of profit & loss
- Statement of cash flow
- Details of the company’s accounts receivable
- Details of the company’s accounts payable
- Efficiency reports
- Calculation of variances and analyses their output
- Calculation of financial ratios and their analysis
- Calculation of the break-even point for the company
Why did every business need to keep books of accounts?
It is mandatory for every organization registered under the company’s laws of UAE and UAE VAT to keep records of their financial transactions. The article 26-federal law no. (2) of 2015 on commercial companies states that
- Every company is bound to maintain accounting records containing all the real information about the company’s financial transactions. The record should be able to provide the current financial position of the company to the shareholders and should be easily verified under the law.
- Each company is bound to maintain its accounting records for the last five financial years.
- Companies are allowed to keep the electronic copy of the original documents and records in accordance with orders issued by government departments.
Importance of keeping Proper Books of Accounts
Maintaining proper books of accounts with all the supporting documents are very essential to get proper control on the business activities. This will reduce the chances of errors and fraud. The following are the important points of keeping proper books of accounts.
- Provides basic information to the management for decision making
- It provides useful information for a comparison of business revenues and costs with competitors.
- Gives information for controlling the cost of the company products by decreasing overhead costs.
- Provides information about the current position of business to the shareholders
- It helps in the smooth running of business according to the laws and regulations.