The UAE has established itself as a strong foundation for SMEs and start-ups, assisting them in gaining worldwide visibility. If you’ve recently launched a business in the UAE, you should be aware that accounting services are critical to the business’s future, and you must keep track of your accounts on a routine basis and need to clear all kind of backlog accounts if there is any.
Businesses in the United Arab Emirates are required by commercial law to keep accurate accounting records for a term of five years. It has been noted that many businesses fail to keep accurate books of accounts and reports for years. As a result, it has become mandatory for all firms to update their backlog accounts in order to keep track of the company’s financial activity.
What are Backlog Accounts?
Backlog accounts are those that have not yet been completed or resolved for the calendar year. Customer demand can be met through effective management of the company’s backlog. It is recommended that you outsource these account services since it will save you time, cost, and stress.
Benefits of updating Backlog Accounts
Evaluates the company’s performance
Assists in decision-making
Ensures cash flow is well-managed
Process of Auditing is Simplified
Making effortless Real-Time Decisions
Conformity to legal requirements
Calculate costs and cut down overheads
What methods are employed in Backlog Accounting Services?
Consultation with Management
Evaluate the volume of your business, as well as management’s expectations, and work appropriately.
Gather all essential papers from clients for updating backlog accounts, such as vouchers, bills, transaction documents, cheques, payment slips, bank statements, and other relevant information.
Transactions on the account
Accounts should be updated depending on the papers and explanations provided by the clients.
Preparing a report
After the accounting transaction is completed, the following reports are prepared: balance sheet, income statement, cash flow statement, accounts receivable, accounts payable, sales performance report, financial ratio analysis, working capital analysis, and break-even analysis.
Review of the Report
The prepared reports are examined with management in order to emphasize business performance and identify aspects where the organisation can strengthen.
Backlog accounting must be handled and examined with the assistance of professional firms since it can provide key financial knowledge to a company’s management, enabling them to reduce risks, manage cash flow, and create a profitable enterprise by enhancing productivity.