Accounting Services in UAE

Introduction

Accounting is a process of recording, measuring, and communicating information about financial transactions. Normally, the word “accounting and bookkeeping” is used for accounting of financial transactions. Accounting refers to keeping record of financial transactions of a business and giving true and fair view of financial information. Financial information is the final output of accounting. Financial information in accounting includes balance sheet, profit and loss account and cash flow statements.

Accounting means recording of series of transactions in terms of accounting language i.e. debits and credits. Some authors described accounting as a science, and some described as art of accomplishment of financial information. Normally, financial transactions are expenses, income, assets, and liabilities. Accounting helps user to understand the financial information of a business. While recording of transactions, financial transactions are booked as double entry system i.e. debits and credits.

A debit is an accounting entry that either increase an asset or expense account or decrease a liability or equity account. It is positioned to the left in an accounting entry. A credit is an accounting entry that either increases a liability or equity account or decreases an asset or expense account.

Golden rules of accounting

Accounting principles are essential rules and concepts that govern the field of accounting, and guides the accounting process in recording, analyzing, verifying and reporting of the financial position of the business. There are three basic principles of accounting. The basic principles of accounting are also called as the golden rules of accounting. These are:

1. Personal account – debit the receiver and credit the giver
2. Real account – debit what comes in and credit what goes out
3. Nominal account – debit all the expenses and losses & credit all the income and gains

Accounting Principles

Accounting principles are the rules and guidelines that companies must follow when reporting financial data. Accounting principles may be defined as “those rules of conduct or procedure which are adopted by accountants universally, while recording the accounting transactions.”

The accounting principles can be classified into two categories

1. Accounting Concepts
2. Accounting Convention

1. Accounting Concepts

Accounting concepts mean and include necessary assumptions or postulates or ideas which are used to accounting practice and preparation of financial statements. The following are the important accounting concepts:

• Entity Concept
• Dual Aspect Concept
• Accounting Period Concept
• Going Concern Concept
• Cost Concept
• Money Measurement Concept
• Matching Concept
• Realization Concept
• Accrual Concept
• Value Concept

2. Accounting Conventions

Accounting Conventions implies that those customs, methods and practices to be followed as a guideline for preparation of accounting statements. The accounting conventions can be classified as follows:

• Convention of Disclosure.
• Convention of Conservatism.
• Convention of Consistency.
• Convention of Materiality.

Accounting firm near me

Here in Dubai, you can find so many accounting firms near you and your locations. Accounting firms are assisting clients in two ways. One is they are handling accounts on behalf of client and another is assisting and advising clients to maintain accounting.

Accounting firm in Dubai are not doing only accounting services; they are doing auditing and taxation advisory services. For auditing accounting firms shall get listing by the respective controlling bodies. For tax advisory services, accounting firms shall get listing as tax agent with Federal Tax Authority.

Accounting firms are normally consulting firms which provide business enterprise consultancy services in the field of accounting, auditing, taxation.

Accounting firms are also known for bookkeeping as the firms are doing accounting services on behalf of their clients. Doing accounting works for others are called as outsourcing of accounting.

Bookkeeping

Bookkeeping is defined as “the art of recording business transactions in the books of accounts in a systematic manner.” A person who is responsible for and who maintains and keeps a record of the business transactions is known as an Accountant. According to AICPA (American Institute of Certified Public Accountants) it is defined as “the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of a financial character and interpreting the result thereof.”

Steps of accounting

The following are the important steps to be adopted in the accounting services:

1. Recording: recording all the transactions in subsidiary books for the purpose of future record or reference. It is referred to as Journal.
2. Classifying: all the recorded transactions in subsidiary books are classified and posted to the main books of accounts. It is known as “ledger.”
3. Summarizing: all recorded transactions in the main books will be summarized for the preparation of Trial Balance, Profit & Loss Account and Balance Sheet.
4. Interpreting: interpreting refers to the explanation of the meaning and significance of the result of the final accounts and balance sheet so that parties concerned with business can determine the future earnings, ability to pay interest, liquidity and profitability of a sound dividend policy.

Indeed, accounting is the language of business. The main objective of accounting is to safeguard the interests of the business, its proprietors and other stakeholders with the business transactions. This is done by providing suitable information to the owners, government, financial institutions and other related agencies.

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