12 types of accounting practices in UAE

Accounting is the part and parcel of any business. Ensure financial management by tracking the income and expense of your company. Accountants in Dubai use this step by step accounting cycle to provide better insights to the stakeholders. Entrepreneurs across UAE ensure compliance with universal accounting standards for accurate financial records with higher transparency. 

Accounting consultant Dubai, follow unique set of principles for financial reporting. The rules basically determine how transactions are made and provide some financial information to lenders, investors, and creditors. Accounting firms or accountants use different set of principles according to the business nature. They engage in recording and analyzing the business transactions with bookkeeping and relevant services. Accounting practices assess the financial capabilities of an organization according to the environment, management status and experience. 

What are the different types of accounting practices?

Accounting standards are used internationally; most of the companies adopt different rules to manage their accounting records. 

Some of the accounting principles include, 

• Public

In public accounting, the accounts, records, and related services are outsourced to independent firms. Since, some financial documents and other information are required to be disclosed to the public. All control over accounting records are performed by qualified accountants in UAE who are CPA’s or certified public accountants. 

• Private

In private accounting, individual accountants in Dubai are appointed by the business entity to record their accounting and other information in a systematic way. Since an expert accountant is appointed, all the controls are applied by that expert within the organization. 

• Government

In this accounting principle, government usually employs state auditors who are eligible to record, plan, and create budget. They forecast the financial, accounting, and other additional information. All controls over these accounting records are imposed by people employed by the government agencies. 

• Auditing Practice

Professional accountant in Dubai or auditors are usually called as external accountants. The auditors check for the accounting practices followed, and determine the degree of reliance on accounting records. After which, they issue the final audit report. 

• Financial 

Financial accountants usually keep track of the company’s financial transactions. They are accounting experts like company secretaries, stock intermediaries, chartered accountants or anybody with a finance background. The accountants produce various financial reports for tax authorities, shareholders, company law board, SEBI, public, and government. All the controls related to financial accounts are imposed by the financial accountants. 

• Management

Management accounting provides the timely financial and statistical information to the business managers. They work on all the records related to management like decisions, review, presence, appraisal policies, and implementation of plans by top management. Management accountants use professional accounting services for reviewing, imposing controls and monitoring. The accounting reports are used internally for internal decisions and decision making. 

• Forensic 

Forensic accountants usually examine data to determine the missing amount and find out options to recover it. They detect fraud and misstatements in accounts and verify controls in accounting records. Companies appoint forensic accountants to find out any fraud in or by the management. 

• Managerial accounting

Managerial accounting is concerned with the identification, measurement, and interpretation of accounting information to help managers in making operational decisions. Managerial accountants in Dubai communicate confidential information within their limitations. They work with managers to analyze and create a budget that meets with your short-term and long-term goals. 

• Cost accounting

Cost accounting is another form of managerial accounting with the aim to capture company’s total cost of production. The total cost is estimated by assessing the variable costs and fixed costs as well. Cost accounting for small business allows management to take better financial decisions and calculate the budget accurately. 

• Tax accounting

Tax accounting deals with the preparations of tax returns and tax payments. This type of accounting can be used by individuals, businesses, corporations, and other similar entities. Tax accountants ensure that companies comply with the tax laws and avoid certain tax burdens in the future. In most of the cases, large organizations hire tax accountants to work on the complexities of financial records. 

• Accounting information systems

AIS or accounting information systems collect and process the transactional data. They communicate the financial information to interested parties as well. Employees decide the best time to implement latest technologies and monitor the progress of existing systems, to identify if there is any increase in productivity over the given timeframe. AIS can take decisions in conjunction with the IT department to ensure continuity in the technological process. 

• Chartered accounting

Chartered accountant is a member of professional accounting body. The professional accountants in Dubai are skilled enough to work in a number of areas including management to auditing. They usually, focus on any particular specialization within the accounting field. 

Other Controls

• Access control – only authorized persons can enter the accounts department and access the physical records like bank statements, bill books, cheque, etc
• Authorization control – only authorized employees should have access to the data and reports. Authorization is limited to certain employees and data entry is done by data entry staff authorized by a senior staff. 
• Process control – each accounting firm is unique with a particular process of recording bills and other information. For eg- initially bill is issued and then, goods are sent to the debtor. After the goods acceptance approval, entry of sales is to be done. This ensures proper process control over accounting records. 

Example of accounting principles with qualified accountants in UAE, 

• Maintain employee record like attendance, in-time, out-time, salary, overtime, etc. 
• Maintain fixed assets register, investment register, canceled cheques, inventory records register, canceled cheques, records of cheques issued and deposited, shareholders register, etc. 
• Have a record of payment to creditors and receipts from debtors. 
• Maintain the record of bills of purchases, expense, sales, other payments, and receipts
• On a test basis, perform the manual calculation of depreciation. 

What is the importance of accounting for small business?

• Transparency in accounting records
• Estimate the result of your business
• Keep the records of receipts, payments, and expenses
• Have a base for internal and external reports
• Keep the trust of shareholders
• Follow the latest accounting practices
• Keep track of old records and compare with current records. 

How A & A associates support your accounting?

Accounting practice exists as per the generally accepted accounting principles and as per the current law practice. With the help of latest technologies, accounting firms impose various controls to make their accounting records more reliable. 

We at A & A associates have a bunch of qualified accountant in UAE providing highly-efficient accounting records. These records serve as the base for many internal and external decisions done by the management of the company. 

We involve in accounting outsourcing and relevant services that benefit your business growth and obviously, take it to the next level. Our auditors create a degree of reliance in the accounting records. For good practice, we ensure that organizations should keep up their evidence of accounting records. A & A associates work on the basic need of every organization by maintaining their accounts and records. 

Whether it’s accounting for small business or large enterprise, we excel in providing proper accounting practices with great transparency. Maintain proper accounts to survive in the long run.