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Updating Of Backlog Accounts in Dubai, UAE

CDA is a leading accounting and auditing firm which provides services for updating of backlog accounts in Dubai, UAE to maintain the book of accounts from the date of your company incorporation in the prescribed format under the UAE Commercial Companies Act. With precise accounting services and tactical guidance, CDA professionals provide exceptional services for our customers to set up the backlog account so as to maintain an accurate check on your company’s financial flow. We support our clients to prepare proper books of account from the date of your company establishment, updating backlog accounts in Dubai. Analysing and reviewing all the supporting documents of your accounts, we prepare and finalize the books of account on a periodic basis to avoid any kind of mistakes. 

updating backlog accounts uae

Backlog Accounts Services

If you have started a business in UAE, you must understand that the accounting services play a vital role in the progress of the company and you have to update the backlog accounts regularly.

The commercial law of the UAE makes it mandatory for businesses to maintain proper records of accounting for a period of five years. The UAE has become a golden base for SMEs and start-ups and helps any business establishments to get global exposure. So, it becomes compulsory for all businesses to update their backlog accounts so that it will be easy to keep a check on the financial flow of the company. Since it has become mandatory for every business entity in the UAE to update its backlog accounts in order to keep a proper check on their company’s financial flow, CDA provides support for updating backlog accounting services in Dubai and across the UAE.

What is Backlog Accounts?

Backlog Accounts are accounts that remain unfulfilled or unprocessed for the financial year. Effective management of the company’s backlog can ensure that customer demand is satisfied.

It is common that most of the companies forget to update their income or expenses which will lead them into trouble later. It is advisable that outsourcing these services will be beneficial for you as it will save your time, money and worry. CDA is one of the leading outsourcing service firms in Dubai and all over the UAE who offers class one accounting and bookkeeping services to the clients to their satisfaction.

It is certain that the proper maintenance of your income and expenditure account in the hands of CDA is not a time waste, but a practice that takes you to move forward to success.

Reasons for Backlog

There are various reasons for backlogs in a business. It may be because of the following reasons: -

  • The owner was ignorant or unaware to maintain the accounts
  • Negligence of the owner due to the busy schedule trying to grow their business
  • Owners neglect the accounts as unimportant thinking they are only for compliance purposes
  • Inefficiency of the in-house accounts staff to manage the accounts
  • Staff resignation leaving the accounts undone.
  • Wrong entry of VAT resulting in a penalty

What CDA does to solve the Backlog issues?

CDA takes the following measures to tackle the backlog issues: -

  1. CDA experts will clear and close the backlog accounts on a yearly basis.
  2. CDA experts will update the following accounting reports in compliance with the Tax Law of the Emirates on a yearly basis. These reports are mandatory for any business organization in the UAE.
  • Debtor aging report
  • Creditor aging report
  • Bank reconciliation statement
  • General ledger
  • Fixed Assets Register
  • Salary Schedule
  • Balance sheet (statement of financial position)
  • Profit and loss account (statement of complete income)
  • Cash flow statements
  • Comparative report on sales performance
  • Comparative report on expenses
  • Financial ratio analysis
  • Working capital analysis
  • Breakeven point analysis/margin of safety, etc.
 
After closing of Backlog Accounts, CDA prepares the following details also on a yearly basis:
 
  • Compilation of Financial Reports
  • Documents for Annual Return submission to Government
  • Corporate Tax Computation and related tax schedules
  • Form & Appendixes to submit to the authority

Don’t forget that all these documents are mandatory for the Audit.

Benefits of Updating Backlog Accounts

Right from better cash flow management to time-saving, transparency of funds, etc, the updating of backlog accounts in Dubai will provide insights regarding the proper management of funds, proper auditing, data retrieval, future planning, taking real-time decisions, etc. If you are a business owner in the UAE, you need to understand that your accounting and auditing activities are properly maintained and the backlog accounts are updated. The reports are generated to measure the performance of the company and to foresee the future of the business. Mentioned below are some of the major benefits of updating backlog accounts services in Dubai.

  • Satisfies the mandatory requirements of the FTA
  • Identifies and assesses the performance of the business for the past years
  • Identify the trend of the business
  • Identify the past actions to focus on the future with more profitable investment
  • Ensures Better Cash Flow Management
  • Easy Audit Process
  • Ease in Making Real-Time Decisions
  • Plan for the Future
  • Ease in Data Retrieving
  • Transparency of Funds Available
  • Helps cut-down your expense
  • Helps maintain better financial health for your company
  • Helps attract investors to leverage your business potential to its heights

WHY CDA?

CDA offers error-free services in updating of backlog accounts in Dubai, elevating productions with better accounting, up-to-date technology and tactical guidance. CDA professionals are exceptional in delivering their services to the clients to their satisfaction. Our experienced professionals from accounting and auditing background help the clients make sure that their accounts are up to date as per the IFRS & ISA. They will also have an accurate and up to date financial statements for future references. CDA provides the flexibility of using accounting software by clients or can use inhouse software.

Other than Updating Backlog Accounting Services in Dubai, CDA offers all other business-related services like CFO services, Internal & External Audit Services, Audit in Free Zone, VAT Filing Services, and many other services related to your business needs.

Feel good to contact us as our experts will give you one-hour consultation on your queries on your business needs.

Frequently Asked Questions [FAQ]

1. What is a Backlog Account?

Backlog Accounts are the unprocessed or unfinished accounts of the financial transactions of a company.

2. What are the various reports updated in backlog accounts?

Reports are to be generated to live a company’s performance accordingly and to foresee the longer term of the business. These reports are a mandate for any business. The foremost accounts and reports that are to be updated are:

  • Balance sheet to reflect the financial position
  • Profit and loss account
  • Cash flow statements
  • Receivables and payables list
  • Report on sales performance
  • Report on expenses
  • Financial ratio analysis
  • Working capital analysis
  • Break-even analysis

3. Why is it important to update the Backlog accounts from January 2018 onwards?

Yes, it is mandatory as this law came to effect within the UAE from 1 January 2018 onwards. All businesses in Dubai and across UAE should make sure that every department is required to prepare for the new change. In accordance with the provisions of the Law on Commercial Companies within the UAE, it's necessary to take care of proper books. Sometimes companies might not keep proper ledgers and reports within the same year that business transactions occurred they may face the penalty by law.

4. What is the minimum requirement to keep the Books of accounts in Tax law?

It is mandatory for the businesses to document the books of accounts minimum 5 years in accordance with the Federal Law No 2 of 2015 on Commercial Companies and therefore the UAE VAT law and relevant free port laws. Maintaining proper books of accounts is compulsory within the UAE and any violations will attract administrative penalties. It helps to ensure:

  • Accuracy in receipt and payment of money and other transactions done by the corporate.
  • Addressing income requirements
  • Preventing insolvency & bankruptcy
  • Plan & forecast budgets that help in effective financial management

5. How does backlog work and what's the necessity to eliminate it?

For any company, big or small, the backlog results from issues in revenue generation and operations. This will have an impression on the longer-term earnings of the corporate. However, the backlog is just like the two sides of a coin. It has both positive and negative implications, which include:

  • On a positive note, it signifies the rise in demand and rising sales of the products.
  • While on the opposite hand, it signifies the inefficiency within the management and production process of the corporate.

Whatsoever the case is, it's important to avoid backlogs as these can cause compromising company schedules and sales. 

6. What are the Benefits of Updating Backlog Accounts?

  • Cash Flow Management, Sales trend analysis
  • Easy Audit Process
  • Time Saver
  • Ease in Making Real-Time Decisions
  • Comparison of business performances with historic analysis
  • Plan for the longer term
  • Ease in Data Retrieving
  • Avoiding Duplication of knowledge
  • Transparency of Funds Available

7. Do Updating Backlog Accounts give Added value to the business or its just only a time-consuming process?

Yes, it gives added value in the form of making business decisions based on past experience. It urges the analysis of a company’s past data and creates the future policy, so that company can prevent further faults.

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