Accounting: the backbone of any business

You must have heard the phrase that accounting is the backbone of any business at least once in your life. Whether you are based in UAE or anywhere else, if you have to run businesses efficiently, you need to keep the accounting record in line. The principles and methods of accounting have been in practice ever since the trade was introduced as a practice. It has only improved technologically in recent times and has taken new forms but the basics are followed as before. For instance, the double entry method has been in practice for more than 500 years! Accounting and bookkeeping are integral to adding more value and credibility to businesses. That’s the reason why most companies in the UAE are always in search of hiring a full-time professional auditor for their team. Some companies also prefer to outsource the responsibility to an experienced Top Accounting Firm in Dubai such as Akai Group. The efficient team of accountants also enables the management to develop short and long-term targets. Let’s go through some of the roles that an accountant plays which make the job integral for businesses;

Cost Cutting

One of the basic jobs of an accountant is to keep an eye on the financial situation of the business and keep the operational cost to the minimum level. Having minimum operational cost enable businesses to take advantage of the margin and expand their operations. The accountants use various techniques to achieve this objective such as arranging cost-benefit analysis, budgetary control, value analysis, stock level management, and many others.

Forecasting Costs

The efficient accounting team helps in gaining maximum profit from the available resources while anticipating future costs. They conduct accurate research and develop estimates to chalk out a plan for future avenues of investment and other expenses.

Cash flow management

To run a sustainable business entity, it is important to maintain a safe amount of cash in the business. The accountants prepare the cash position by delaying payments, assuring overdraft facilities, offering incentives, and so on. They also help the management grasp opportunities or deals that are favorable for the business and make the investment to purchase new assets.

Assess Business performance

A professional accountant enables the management to get the true picture of the business and identifies problem areas to improve them. They do so by comparing the performance of the business according to the targets set by the management. Outsourcing the Accounting Services Most companies in UAE prefer to outsource the Top Accounting and & Bookkeeping in Dubai to reliable companies like Akai Group. It enables them to enjoy professional help without having to recruit them on regular basis. If you are in search of accounting services in Dubai, don’t hesitate to reach out to us at Akai Group.

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