Updating of Backlog Accounts

service detail

Backlog Accounting Services in Dubai, UAE

Update of Backlog Accounts: Businesses that have been in business for a while, particularly SME's in the UAE, likely haven't kept up with their books of accounts and are instead managing their transactions either the traditional way by documenting them in books or in excel sheets. Businesses find it challenging to set aside time for recording the earlier transactions in an organised manner due to various rules requiring the maintaining of books of accounts.

Meaning of Updating of Backlog Accounts?

The practise of recording past period transactions from the beginning of the business and making sure all transactions are captured so as to depict the genuine status of a company is known as updating backlog accounts. It establishes a company's financial standing and makes it possible to predict its future.

Importance of Updating of Backlog Accounts

  • Giving decision-making information to the management.
  • Enables comparisons of business revenue and costs with the market.
  • Give the information to calculate the cost and reduce overheads, increasing the net profit of the company.
  • Provides real-time data on the position of the company.
  • Ensures the business is complying with the laws and regulations.

The benefit of Backlog Accounts Services in the UAE

Businesses who understood the need of accurately recording transactions would have recruited people to handle the bookkeeping. The management might not be able to assess whether the transaction was accurately recorded or whether it was in accordance with local regulations. It's possible that the workforce is unable to evaluate the transactions and offer a view on the company's financial situation.

1. A permanent record of transactions: It is challenging to keep track of transactions over time without recording them. Accounting the transaction would give the businessman a permanent record that would make it simple to acquire information.

2. Business analysis: After the accounts are updated, investors can compile reports on the effectiveness of the company and examine how the company operates. From the studies, one may examine market trends, the potential for diversification, and upcoming prospects.

3. Saves time: When accounts are entered into software, employees and investors won't have to go back and look for information on a previous transaction. It will be easily accessible in the system, and the reference number provided can be used to trace the supporting papers.

4. Facilitates cash flow management: Accurate transaction recording will provide a clear picture of the company's financial position. Without keeping track of expenses and income, the business will be unable to comprehend its financial situation and make the required arrangements for funding.

5. Supports Decision Making: Reports derived from the accounts will assist the business in making decisions that will be in its best interests. If the company has a large cash balance, it can choose to invest in any project, or if it doesn't, it can use facilities to keep the firm running smoothly.

6. Simplifies Audit Procedure: The audit procedure will be simplified when the accounts are updated, and comparable statistics can be reflected while writing the report.

7. Legal Compliance: When updating the accounts, legal compliance can be checked, and modifications can be made where they are necessary.

In UAE the methodology adopted for backlog accounts

Discussion with the management:The management has a thorough understanding of the company's unique needs after analysing the nature and volume of business.

Collection of documents:The client is asked for information about every transaction that has been completed so far. Vouchers, transaction source documents, checks, counterfoils, payment slips, receipts, bank statements, and other inputs required for updating the accounts are among the documents gathered.

Accounting of Transactions: Our executive will update the accounts in accordance with the documentation and justifications given by the client.

Report Generation:The following reports will be created once the transactions have been fully accounted for.

  • a. Balance sheet (statement of financial position)
  • b. Profit and Loss account (statement of comprehensive income)
  • c. Cash flow statements
  • d. Ageing Report
  • e. Comparative report on sales performance and expenses
  • f. Financial Ratio Analysis

Report Discussion with the management:Discussion of the produced reports with the management will focus on the business performance and potential investment opportunities for the organisation.