Financial reporting is getting harder and harder as business transactions get more complicated. Accounting is one of the most fundamental and crucial tasks a company may carry out. Every business should use accounting services in Abu Dhabi, regardless of size or industry. A firm in the UAE is therefore required to keep its books of accounts updated.
We, at GAAP Associates, combine knowledge and skills to assist customers in meeting their requirements under the Generally Accepted Accounting Principles and International Financial Reporting Standards. We offer business advisory, accounting services, self-assessment, and bookkeeping to businesses and individuals. Regardless of the stage or structure of your business, our chartered accountants will assist you along the way with tax-efficient and business-forward solutions.
The rules for financial reporting are called accounting standards. These regulations make it very clear how the transactions must be recorded.
Accounting activities and tasks must be accomplished according to this standard. IFRS handles particular types of corporate accounting transactions, whereas GAAP governs balance sheets, revenue recognition, and item classifications for public disclosure.
It comprises all the essential rules that govern particular types of transactions and ensures a common language that can be understood both by accountants and business people abroad.
There are two main types of accounting:
According to this system, revenue is recognised as earned, and costs are recognised as incurred. Despite being the most theoretically correct method, the accrual method requires a great deal of accounting knowledge, so it is more likely to be used by large companies. This approach is ideal for publicly traded companies and organisations that want their financial statements audited.
Cash payments from customers are recognized as revenue, and cash payments from suppliers are recognized as expenses. Customers' cash payments for goods and services are recorded as revenue, and supplier payments are recorded as costs. In addition, there is a variation of the accrual and cash methods known as hybrid accounting methods. In exceptional circumstances, this is allowed but won't make the financial statements susceptible to an audit.
Accounting is a process of analyzing, interpreting, summarizing, and reporting a business's financial transactions. While bookkeeping is the process of recording all of a business's financial transactions in its book of accounts. Bookkeeping is a part of accounting, and accounting encompasses more than bookkeeping.
Small and medium enterprises (SMEs) rely on accounting records to analyze and comprehend their financial data. Accounting is fundamental to small or medium businesses because it provides important information about finances, including the areas in which you earn money.
Outsourcing accounting services can save you time, effort, and money. Your company eliminates the cost of full-time or part-time employee benefits. Whenever you outsource accounting, you only pay for the actual accounting function.