Accounting And Financial Reporting Services In Dubai, UAE

The primary goal of accounting and financial analysis reporting is to present an accurate and fair picture of the business's financial affairs. To assist a company in completing its Accounting and Financial Analysis Reporting process, CAPELLA takes the following steps.

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1. Double Entry System

CAPELLA helps the company prepare the double-entry system. The double-entry system of accounting or bookkeeping means that for each business transaction, the sums must be recorded in a least of two accounts. In this system, the sums recorded as debits must be equal to the sums recorded as credits. Proper data entry is the prime responsibility for correct reporting.As stated by the rule of debit and credit, debit the account when an asset increases; and credit the account when liability increases.

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2. Ledger Entry

A Ledger Entry is a recorded statement of the business transactions of a company.

It should include: -

• The correct date 

• The totals to be debited and credited

• The account of the transaction 

• A unique reference number (URN)

CAPELLA prepares the Ledger Entry on the bases of the debit and the credit of the accounts and ensures proper and accurate closing of ledgers as per the requirement of the management reporting.

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3.Trial Balance

CAPELLA prepares the trial balance for the company after preparing the Ledger. A trial balance is the list of all the general ledger accounts of both revenue and capital recorded in the ledger of a business. This list covers the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account carries either a debit balance or a credit balance.

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4. Financial Statements

Finally, after collecting all the relevant data, CAPELLA goes for the Financial Statement preparation for the company.  CAPELLA also offers Finalization of Financial Statement Services to help clients verify their accounting records for better financial planning.

There are four financial statements that every company must prepare and every investor should look at: –

• The Income Statement

• The Balance Sheet

• Equity Statement of the Shareholders

• Cash Flow Statement

Along with the Financial Statement, other MIS reports as mentioned below help the management take a decision.

• Comparative Income Statement

• Customers and suppliers ageing report

• Profitability Analysis Report

• Preparation of Auditing Schedule

a. Income Statement

The purpose of the income statement is to get the net income of the company for the financial year. CAPELLA considers all the financial transactions, including non-cash ones and analyzes the revenues and expenses of the company to find out the profit for the year.

b. Balance Sheet

Balance Sheet is prepared on the basis of the equation – ‘Assets = Liabilities + Shareholders’ Equity”. It shows the financial position of the company.

c. Shareholders’ Equity Statement

The shareholders' equity statement is a financial record that a company issues as part of its balance sheet. It is highly recommendable for limited liability companies, who have more than two partners, showing transaction wise details of parties.

d. Cash Flow Statement

Cash flow statement is prepared to find out the cash inflows and cash outflows of a company. It is a combination of three statements: –

• Cash flow from functioning activities 

• Cash flow from financing activities

• Cash flow from investing activities.

 CAPELLA analyze all the losses and profits of the company. Then all losses are added and all profits are subtracted to find out the net cash inflow for the financial year. It helps the management know where the company stands in terms of collection, prepare the credit policy, and further investment and diversification of business.

Accounting Reports are always made on the accrual basis of accounting. The reporting is based on IFRS auditing Standards.

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IFRS Standards and Interpretations as per 2019 updates

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IFRS or International Financial Reporting Standards is a set of accounting standards advanced by the IASB or the International Accounting Standards Board. It is a set of universally accepted standards for financial reporting applied mainly by registered entities in over 160 countries.

The IASB and the IFRS Interpretations Committee develop Individual standards and interpretations. IFRS is intended for use by profit-oriented entities.

• IFRS 9 Financial Instruments

• IFRS 10 Consolidated Financial Statements

• IFRS 15 Revenue from Contracts with Customers

• IFRS 16 Leases – a finance lease or operating lease 

• IAS 16 Property, Plant & Equipment

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Types of Financial Statement Users

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There are many different types of external users who want or need financial information for different purposes. They are interested in doing business with a company but only have limited access to the company’s financial information. Financial accounting gives financial information that is dependable, pertinent, and analogous to these external users. The followings are the financial statement users: -

• Shareholders or Investors

• Lenders or Creditors

• Potential Customers

• Suppliers

• Regulators/UAE Tax Authority

Financial accounting aims to provide all of these groups with information that can be useful for them in their individual decision-making processes. So, it is mandatory or recommended to all businesses in the UAE to have proper accounting and reporting to safeguard the company and to satisfy the external parties for the further development of the business.