Accounting is the main function of every company no matter what the size, type, or nature is. Accounting is a crucial part of business corporations, and it is like having a look at yourself in a mirror to make sure you are looking perfect. In a similar manner, accounting also helps the business to ensure whether it is ready for future events or not.
Accounting helps you to ensure that your business is experiencing any loss and the whole current position. However, accounting is such a crucial function in a business, some companies still do not pay adequate attention and face losses and penalties. Sometimes many companies and entrepreneurs or management get confused about the different types of accounting services in the UAE. in this article, we will share some important information regarding different types of accounting practices in the UAE.
Financial Accounting
Financial accounting is a type of accounting process in which accountants track all the financial transactions of a business. it is considered a traditional practice yet crucial for business in UAE. the task of accountants is to provide a financial report by following local or globally accepted accounting standards. The financial report contains a summary of all the company’s financial transactions of a business.
The accountants track the financial position based on outflow and cash flow. Financial accountants try to provide reports about the circulation of funds in the corporation. The financial statements prepared include a loss and profit account, cash flow statement, balance sheet, etc. Every business firm maintains its own software and accounting procedures.
Cost Accounting
Cost accounting is the analysis of all the costs incurred in producing finished goods by a firm. It mainly involves variable costs, and fixed costs and the analysis of these costs will help a firm to make decisions about spending, inventory, supply, pricing, etc.
This accounting process in a company involves figuring out the variations between the evaluated costs and the actual costs incurred to analyze the difference. If there are variations, then the information can be used by the firms to take corrective actions.
Forensic Accounting
Forensic accounting is like a financial detective as it is conducted to detect any malpractice or fraud performed in the business and to find evidence for such harmful activities. The main purpose of conducting such accounting is to provide evidence in the court regarding some embezzlement. The court requires an accounting report from the accountants who detect whether the firm is involved in such activity or not.
Management Accounting
Management accounting is similar to financial accounting as it deals with the analysis of the financial transactions of the firm, but this report is intended for internal use. The prepared report is provided to the business managers and is used by them to make perspective business decisions.
Management accounting involves the use of statistical techniques and tools to present data. The main focus of management accounting is on the interpretation of trends making assumptions and all the qualitative elements of the business.
Tax Accounting
Tax accounting is concerned with the process of determining the tax liabilities of a firm. In the UAE, VAT is only applicable for now, but corporate tax will also be implemented in the future. The accountants make sure that the company is complying with all the tax liabilities or not without any delay. They protect the firms from fines and penalties due to the delay in tax returns or non-payment of liable tax.
The Best Accounting Service Providers In UAE
Outsourcing the accounting needs to the best accounting firms in Dubai is the best practice to reduce costs and get professional services. These best accounting service providers can assist you to know the different accounting practices in UAE and will help entrepreneurs choose the appropriate accounting practice for their business. ebs with professionalized team and years of experience is always ready to assist you and provide top-notch accounting services in UAE.
ebs also provide custom-tailored services to clients which have made ebs a well-known accounting service provider in Dubai, UAE. It is better to seek professional help instead of messing with the accounts in your company. Due to the excellent commitment and coordination, we offer to our clients, they always experience confidence and trust in our financial service. We are one of the best accounting and bookkeeping firms in Dubai, UAE that can help you to get exceptional expertise, economy, and experience. Feel free to discuss any accounting or audit-related ambiguities with the ebs expert team.