Accounting Review
Accounting Review
Farahat & Co. provides expert accounting review solutions throughout the UAE. Businesses operating in the UAE are mandated to maintain comprehensive records of their financial transactions, prepare tax returns, and adhere to corporate obligations by accurately recording all transactions. Our approved and proficient accounting review professionals conduct thorough audits and reviews, guaranteeing the accuracy and credibility of tax filings and financial reports. We excel in top-notch bookkeeping and accounting services in UAE.
What is an accounting review?
- Accounting reviews are expert assessments of a business’s financial information, operations, and statements carried out by trained accounting professionals or auditing companies.
- It entails a detailed evaluation of financial statements, general entries, ledgers, and financial transactions to ensure their reliability, transparency, and conformity with accounting principles.
- In an accounting review, a team of accountants examines financial information to verify the data follows the relevant accounting rules and standards. They evaluate the internal systems, detect shortcomings or gaps, and make suggestions for enhancements.
- The goal of performing an accounting review is to deliver an unbiased and fair evaluation of the financial information of a business. It improves the confidence and accuracy of financial data, guarantees that it meets accounting requirements, as well as facilitates responsible choice-making by owners, stakeholders, and other parties involved.
What is a Basic Accounting Review?
A basic accounting review addresses the essential perspectives of accounting. It covers an overview of accounting, the equation for accounting, along with fundamental financial reports such as the cash flow statement, income statement, and balance sheet. This investigation also discusses various account approaches and the accounting process, which includes summarizing, categorizing, and recording transactional activities. A basic accounting review aims to offer a synopsis of key ideas and concepts required for grasping the accounting methods and processes.
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Commercial Companies Law on Accounting Standards
Federal law no. 2 on commercial companies describes accounting records, company’s accounts, and company’s financial year as follows;
Accounting Records
- Companies are required to keep accounting records that include accurate transactions that display the company’s financial standing to its shareholders and partners.
- From the company’s financial year end date, it is required to keep accounting records of at least the last five years at the head office.
- Companies must keep electronic copies of accounting records.
Company’s Accounts
- LLCs and joint stock companies must audit their accounts annually.
- Financial accounts such as loss and profit accounts, and budget accounts must be kept.
- Companies must abide by the IFRS regulations when maintaining their annual accounts.
- Shareholders and partners must also acquire the latest account books.
Company’s Financial Year
- A company’s first financial year must not be less than 6 months or more than 18 months.
- After the first financial year, all successive years can be 12 months only.
| First Fiscal Year | 6 to 18 months |
| Successive Fiscal Year | 12 months each |
How Tax Consultants Enhance Your Business?
The following points explain the significance of acquiring an accounting review service in the UAE;
Financial Statements Verification
An accounting review service allows you to produce statements with the click of a mouse. As a result, you may go over your finances and resolve any concerns before they arise. Accounting review services allow an unbiased qualified independent auditor to carefully audit companies’ financial records to verify correctness, transparency, and conformity to legislative standards. It provides a means to verify that the business’s accounting records are correct.
Comply with IFRS Standards
Account review services assist businesses in complying with numerous business laws and standards standards. International Financial Reporting Standards or IFRS conformance is critical in accounting. IFRS establishes the guidelines and standards for reporting financial information that businesses have to meet to guarantee that their financial statements are legitimate, in line, and dependable. Failure to comply with IFRS requirements will result in the audit report being required, as well as difficulties with consolidating and access to bank facilities, among other things.
Error Identification
To maintain the integrity and precision of financial accounts, mistakes must be identified and corrected shortly into the procedure. Accounting review services will assist in this area by identifying errors with transactions, improper computations, or accounting processes. Companies that undertake quarterly or monthly reviews can fix any inaccuracies before sending the financial statements to governing bodies, thus preventing severe penalties and fines levied by the FTA (Federal Tax Authority) for accounting standards offenses. As a result, accounting reviews can assist you escape sanctions from numerous agencies such as the FTA for Value Added Tax, the MoF (Ministry of Economy) for Economic Substance Regulations, and the UBO, among others.
Be a Better Decision Maker
Correct financial accounts could help stakeholders make informed decisions. Accounting review services help verify that the data presented in financial statements is correct, allowing investors to come up with wise choices.
Internal Control
A robust internal control structure is essential for assuring the correctness, transparency, and authenticity of financial data. Establishing and upholding a structure like this allows businesses to correctly report financial information, avoid fraudulent activity, and conform to laws. In this scenario, implementing frequent account review activities could turn out to be quite advantageous. These assessments are able to assist businesses enhance their internal control system by detecting any flaws in their system.
Manage Cashflow
Accounting review services often assist with cash flow optimization by offering a comprehensive and unbiased study of the accounting records of a business. These reviews assist in identifying any errors or irregularities in reporting financial data that may hurt cash flow. It allows companies to keep track of receivables and payables before money crosses hands. in addition, this allows companies to produce a correct cash flow statement as it provides a broader perspective of the business’s financial health.
Conclusively, it is imperative for companies to engage in accounting review services continuously to ensure the regular scrutiny of their accounts and the preparation of financial statements. This practice ultimately ensures compliance. Thus, contact us today and we shall be glad to assist you.
