The business regulations and the Commercial Law of the UAE require the businesses in the UAE to keep their books of accounts for at least the last six years. Accounting companies in Dubai and other parts of the UAE depend on their accounting systems for the purpose of maintaining important accounting records such as records of all financial transactions of every fiscal year. However, some businesses in the UAE prefer to Outsource accounting services in UAE since it is one the best solutions for maintaining books of accounts accurately.
The accounting system is also one of the factors that contribute to the growth of a business because it helps in making good decisions, complying with business regulations, and preventing fraud. However, it is a challenging task to implement an accounting system that is perfect. If a business manages to perfect its accounting system, there is still a need to frequently analyze it for the purpose of finding and removing any flaws from it. This process of examination of an accounting system is termed accounting system analysis which is a service often offered by accounting companies in Dubai.
Accounting System Analysis
Accounting system analysis is basically an assessment and evaluation process that focuses on the strength and efficacy of a company’s accounting system. No accounting system is free of errors and these imperfections can develop unknowingly. If left unchecked, these imperfections can influence the whole system. The purpose of accounting system analysis is to keenly observe the existence of imperfections and eradicate them for increasing the effectiveness of the system. The results revealed by accounting system analysis can suggest significant changes in the system that can help in achieving the anticipated profits. Companies in the UAE can also outsource accounting services for better analysis of their accounting system.
Levels of Accounting System Analysis
Accounting system analysis is a process based on several levels. By following all levels of accounting system analysis, desired outcomes can be achieved very easily. Outsourced accounting companies also go through these levels when analyzing an accounting system. Outsourcing accounting companies in Dubai is the best option for those companies in Dubai or UAE that find the process difficult. Usually, the analysis process is divided into the following three levels;
The growth of a business is based upon the strength of its accounting system. Accounting helps businesses in estimating the financial position and overall performance of the business. When it comes to business in Dubai or other parts of UAE, business here is extremely dynamic which means that the requirements of standing out in the business market keep changing frequently. This requires the businesses to be more active and keen on the analysis of their accounting systems. So, in the very first level of accounting system analysis, the business analyzes the tools and strategies being used in the accounting processes and looks for defects and flaws. This will reveal all the drawbacks of the system to you.
Once the accounting system has been analyzed and you have come up with results including present defects in the system, it is time to redesign the system. In a newly designed accounting system, everything is mostly the same but all the flaws have been removed. The design can end up installing new strategies to the system or improving the previous ones. This new system should be able to help the business in achieving improved positions in the market or any other business goals. The new system should also comply with business standards relative to the UAE. Businesses that are not experts at observing frequently updating standards should always prefer outsourcing accounting services.
As soon as the designing process is done, the next most significant level focuses on implementing the new design of the accounting system in your business. Implementing the new system can be a lengthy and tiring task. Even after implementing the new system, it might require slight changes at some points before it runs smoothly. Implementation of a new system also requires the business to train its employees in the in-house accounting department so that they can work in the new system accordingly and efficiently. Systems can either be simple or complex. A simple system is easy to implement and takes less time, however, a complex system can take plenty of time and effort to implement. Businesses that can not face such complexities can outsource their accounting functions.
Read also : Factors to consider when choosing an Outsourced Accounting Firm
Choose the Best Services FAR Consulting Middle East
If you think that your accounting system might contain some flaws but you are unable to detect them, hire our experts to get your accounting system analyzed. If your business needs improved accounting functions that your in-house accounting department can not provide, choose our best services for immediately hiring outsourced accountants. Our seasoned and qualified accountants not only make your accounting system effective but also boost the growth of your business.