Jun 15, 2022

One of the leading accounting and auditing organisations that gives services for the updating of the backlog accounts for managing the account books from the date of the organization’s incorporation in a pre-described manner under the act of UAE commercial companies. In the UAE commercial law has made it obvious for businesses to handle the actual records of the accounting for at least five years. For the SMEs and start-ups, the UAE has a golden base, and also there is help available for any business institution for global exposure. Hence, all businesses must update their accounts of backlog and it will be easier for the business organization to keep a check on their financial flow. As it has become a must for all the businesses in the UAE for updating their backlog accounts for keeping a check on the financial flow of the organization.

The backlog accounts are the accounts that stay disillusioned and unprocessed and unfulfilled for the fiscal year. The efficient and strong management of the backlog of the organization always ensures that the demands of the consumers are fulfilled and satisfied. For most companies, it is very common that they forget to update their expenses and profit or income and it will lead them to big trouble later. So it is advised to most businesses to outsource their services which will be advantageous for the company as it will save their time and money and also any tensions. The business needs to do proper maintenance of its expenditure account and its income to move towards success. The scene was different before as though UAE has now made it compulsory for every business there to update their backlog accounts and the reasons behind that include- the ignorance and unawareness of the owner to maintain and manage their accounts can lead to many troubles, the owner’s negligence for the busy schedule as the business is continually growing up. Also, the thinking of the owner is that accounts are unimportant and are used only for compliance purposes. It has been observed that the ineffectiveness of the staff of the in-house accounts for managing the accounts. Most of the time the resignation of the staff and leaving the accounts incompetent and undone. Also, incorrect entry of VAT causes a penalty.

After thorough research, it can be seen that many organizations are there available in the UAE for solving the backlog issues through some particular processes, like clearing and closing of the backlog accounts by different experts. Updating the reports of the account is in adherence with the tax law of the UAE on the yearly basis and these reports are mandatory for all the business organizations in the UA, ageing report of creditor, ageing report of the debtor, statement of the bank reconciliation, general ledger, salary schedule, fixed assets register, statement of financial position or the balance sheet, account of profit and loss or statement of the whole income, statement of cash flow, comparative report on the expenses, analysis of financial ratio, analysis of working capital, analysis of break-even point and also many others.

Even after the closing of the backlog accounts, the experts prepare some details on the yearly basis, such as complaining about the financial report and statement documents for the submission of an annual report to the government of the UAE and the computing of the corporate tax and the connected tax schedules and the appendixes and forms for submitting to the authorities.

We can see many advantages of backlog accounts from better cash flow management to saving of time and transparency of the funds and more also the updating of the backlog account in Dubai will give an intuition for the proper management of auditing and funds and future planning and retrieving of data and take real-time decisions and so on. When someone is a business owner in the UAE, they need to understand that the organization’s accounting and auditing services are needed to be properly maintained and to update the backlog accounts. The reports of the backlog accounts are produced for measuring the performance of the organization and to predict the future of the business.

On the ending note, the benefits of backlog accounts updating in the UAE can be comprised of the satisfying the needed requirements of the FTA, recognising and evaluating the business performance for the past years, recognizing the trends of the business, recognizing the past actions of the business to concentrate on its future for the investment of profits, easy processing of auditing, planning for the future and transparency of the available funds and easy to make real-time decisions and also many more.