Accounting

In the last few years, we have witnessed a vast expansion of businesses in the UAE. Moreover, the legal requirement to maintain proper books of account is also becoming more important in the region. As per the UAE Commercial Company Law 2015 it is mandatory to maintain proper books of account for at least five years. In the UAE VAT law also books of account are to be maintained for 5 years.

To keep pace along with the growing economy of the country, to comply with the legal requirements and to compete with the businesses, it is sometimes difficult to manage the accounting activities of their businesses within the company especially for SMEs. Hence, accounting outsourcing services could be the best option for them to choose.

• Outsourcing of non-core activities can improve efficiency, streamlining and productivity of the company because another independent accounting firm can perform those tasks efficiently with expertise better than the company itself.
• Businesses can reduce costs significantly by outsourcing accounting services.
• Companies can simultaneously have access to the latest technology without investing large amounts of money to own the technology/software.
• Businesses can concentrate more on their core activities and not lay stress on Accounting Systems for smooth functioning and development of the business.
• There is no additional requirement and expense to hire accountants when accounting is outsourced to the right professionals in the field.
• Confidentiality can also be maintained once the accounting service is outsourced.
• Service of more experienced professionals will be available at a lower cost.
• The difficulty of training the new accountants and the transition process from the existing accountant to a new accountant during replacement can be eliminated.

Our accounting experts support the clients in the reconciliation of their accounts whether it is bank reconciliation, customers’ ledger reconciliation, suppliers’ ledger reconciliation, inter-company reconciliation, or any other statements/ledger. We provide accounts reconciliation services to small and medium size companies, corporates, MNCs, etc.

This helps organizations eliminate legal issues, to maintain the confidentiality of critical data, and to reduce the chances of fraud and corruption. The accounts reconciliation services include the following:

• Bank Statement Reconciliation
• Suppliers Ledger Reconciliation
• Vendor Payments Reconciliation
• Customers’ Ledger Reconciliation
• Intercompany Reconciliations

Our executive will visit your office on periodic basis, weekly or monthly depends upon the scope of the work and time required to complete the assignment. All the data entry work has to be done by the full time accountant of the company. Our accounting supervision service will cover the following:

• Review of books of account with necessary supporting documents will be carried out. Major observations that require management attention and actions will be conveyed depending on their importance.
• To ensure that recognition of revenue transactions were properly made as per prudent accounting principles and in conformity with the nature of business and as per contracts.
• Analysis of sales will be made to see from the angle of contributions made by different categories of products, salesmen, etc.
• To ensure the payments made by the company are supported with proper documents and authorized by the concerned manager/owner.
• Check whether the payments are entered on an accrual basis and proper cut-off procedure is done at the end of every month.
• To ensure that reconciliation of bank accounts, customers’ accounts, suppliers’ accounts, and other major accounts were prepared correctly and on time.
• Further monthly review reports will be prepared and issued to the management at the end of every month including the analysis of financial statements, financial ratio analysis, analysis of working capital, BEP, marginal safety, etc., and our findings on the review of books of account.

Sometimes the companies might not maintain proper Books of Account and reports in the same year the business transactions were happened. It happens mainly for start-ups in the SMEs (Smaller & Medium Enterprises). As per the regulations of the Commercial Company Law in the UAE, it is mandatory to maintain proper books of account. Hence, after one or two years such SMEs understand the necessity to maintain proper books of account and look for accounting firms to prepare books of account.

Kress Cooper support the clients to prepare the books of account from the date of incorporation of the company till date. However, proper supporting documents are necessary for us to prepare the books of account. Hence it is important for us to get the original supporting documents of the transactions including sales invoices, purchase invoices, payment vouchers, receipt vouchers, petty cash expenses, bank statements, cheque counter foils, bank transfer copies, etc. Our representative will visit the company’s office location or bring the documents to our office and update transactions in a suitable accounting software. We finalize the books of account on periodic basis, normally on annual basis. The reports generated includes:

• Balance sheet (statement of financial position)
• Profit and loss account (statement of comprehensive income)
• Cash flow statements
• Receivables ageing list
• Payables ageing list
• Comparative report on sales performance
• Comparative report on expenses
• Financial ratio analysis
• Working capital analysis
• Breakeven point analysis/margin of safety etc

We update the daily transactions of the company in to the accounting software and generate monthly/periodic reports for the management for decision making.

Our representative will be visiting your office on a weekly basis and update transactions. This will cover entry of all purchases, sales, receipts, payments and other business transactions including recognition of transactions on accrual basis.

The system generated Management Information System (MIS) reports will be generated and discussed then and there with the management. Monthly reports will be prepared and issued to the management at the end of every month. Such reports include:

• Balance sheet (statement of financial position)
• Profit and loss account (statement of comprehensive income)
• Cash flow statements
• Receivables ageing list
• Payables ageing list
• Comparative report on sales performance
• Comparative report on expenses etc
• Variance/ratio analysis

By the end of the month, we will visit to verify all purchases, sales, receipts, payments, and other business transactions including recognition of transactions on an accrual basis. The system-generated Management Information System (MIS) reports will be prepared and discussed with the management by our executive.

In order to do the regular accounting services weekly or monthly, the administrator or the secretary in the office of the client has to maintain the basic information of the transactions that happened during that period and those should be made available to verify and update.

We can support the client to update the transactions on a daily basis. It includes updating of transaction like sales, purchases, payments, receipts or reconciliation with bank statements /customers’ accounts/ suppliers accounts etc or any other requirements from the clients’ side on a full-time/part-time basis. The data has to be provided by the client through email or online portal to our executive. The periodic reports will be given to the management for such assignments we undertake.