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Finalization Of Financial Statements in Dubai, UAE

Proper financial settlements and auditing are essential to keep business competing in today's vibrant market conditions. CDA, one of the leading accounting and auditing services companies in UAE evaluates whether your business entities comply with international accounting standards such as IFRS. Our Finalization of Financial Statements in Dubai involves verification of accounting records and assessment of other data supporting the financial statements.

finalization of financial statements in uae

Financial Statement Preparation & Finalization

It is necessary that business owners in Dubai and in UAE should analyze the financial data on a regular basis to ensure the smooth functioning of their business. You must be aware of the output that you receive from your financial professionals. This will help you determine the financial position of your company at a specific point in time and over a period of time.

As a distinguished and experienced outsourced accounting and bookkeeping service provider, CDA can take up the risk and prepare the Financial Statements for the final procedure of your company and make you free from the last moment burdens.

The financial statement is finalized on the basis of the information from your general ledger and accounting journal, the income statement, the balance sheet, the statement of changes in equity, the statement of cash flows, and the information from the previous statement. 

1. The Income Statement 

 It is the Profit & Loss account and prepared on the basis of the information on sales revenue and expenses.

The Income Statement shows the following details:

  • The total profitability of your company for the time period
  • The returns from primary income sources, such as sales of the company's products and services 
  • The revenue from secondary sources: leases of a portion of the company’s business premises
  • The Revenue on sales of equipment or income on interest 
  • The business expenses for the time period
  • Losses from any activity, including current depreciation
  • Adjustment of provision to safeguard from future unexpected losses.

2. The Retained Earnings Statement/ The statement of Changes in Equity

It is the second financial statement a company must prepare in the accounting procedure. It shows the profit retained by the company for its growth, and that are distributed as dividends. Before preparing the statement of retained earnings, the net profit or loss must be calculated. It shows the movement in the equity of the company. Proper balancing of equity with the liability and assets is one of the factors deciding the liquidity position of the company. 

3. The Balance Sheet 

The Balance Sheet shows the financial position of a company pertaining to the assets, liabilities, and equity of the company. The assets of the company must be equal to the total of the liabilities and equity of that company. By analyzing the balance sheet, the investors or the owners of the company can understand where their company stands.

4. The Cash Flow Statement 

The Cash Flow Statement is prepared last because it includes the information from all the other three previously prepared financial statements. It shows the operating cash flows, investment cash flows, and financing cash flows. It gives the owner a complete picture of the cash position of the company, i.e. the position of the cash inflows and the position of the cash outflows. This statement helps the company make a decision towards the diversification of the business or whether further investment is required or not. 

CDA for Finalization of Accounts In Dubai

CDA ensures that all the entries concerning the financial year are recorded in that year itself. This is essential because we record the outstanding payable amounts at the year-end. Most of the invoices linking with purchases, direct costs or other expenses are received in the next year. 

CDA’s Role in General: -

  • Closing of all ledgers
  • Making sure that all expenses and related entries are posted in the respective accounts
  • Making sure that all expenses are posted on the accrual concept
  • Create necessary provisions relating to depreciation, bad debt, gratuity & leave salary, which is recommendable for future unexpected loss, or in case of huge outflow of cash
  • Book management remuneration to show the concept of an owner is separated from the company, i.e, the Separate Entity Concept.

CDA’s Role in P&L: -

  • Always focus on the book the expenses on the accrual basis
  • Proper grouping of expenses
  • Presentation of report on department basis or cost centre basis
  • Prepare report according to the decision-making point of top-level management
  • Analyses of P&L by including Ratios like GP Ratio & NP Ratio.

CDA’s Role in Balance Sheet: -

  • Always prepare the balance sheet by showing the best liquidity position, and advise the management to get the same
  • Incorporate according to the International Financial Reporting Standards
  • Better presentation of a grouping of assets and liabilities according to the Standards
  • Make the process easy for External auditors

CDA’s Role in Preparation of Auditing Schedules: -

The auditing schedule includes the following process – 

  • Preparation of fixed assets schedule
  • Preparation of gratuity and leave salary schedule
  • Preparation of cash flow statement, bank reconciliation statement, etc.
  • Settlement of Subsidiary books, Intercompany statement, and bank statement
  • Analyze if any Provisions, Prepayment or Outstanding entries are pending or not
  • Settlement of Closing Stock.

Why CDA?

CDA is one of the leading accounting and bookkeeping services company in Dubai and all over the UAE. Since the finalization of the financial statements is necessary for a company for its smooth and hassle-free functioning, our experienced professionals can help you out preparing with all these statements and suggest possible ways to improve and gear up. By providing excellent services in finalization of financial statements in Dubai and across the UAE, CDA helps businesses grow, maintaining proper accounts in line with the IFRS standards. 

CDA Accounting & Bookkeeping Services handle CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and Tax Filing & VAT Consultancy services to the business world according to the convenience of our good clients. Our customer-centric approach is well appreciated, and we promise the better than the best service to your business. 

Any assistance regarding finalization of financial statements in Dubai? Feel good to contact us. CDA is there for your assistance!


Frequently Asked Questions on Finalization Of Financial Statements UAE

Finalisation of accounts depicts the financial position of the firm at the end of the accounting year. It shows the balances of the accounts of the business. It is necessary that business owners in Dubai analyse the financial data on a daily basis to ensure the graceful functioning of their business. CDA professionals assist you to determine the financial health of your company for decision making.

Since the finalization of the financial statements is important for a corporation for its smooth and hassle-free functioning, our experienced professionals can assist you in preparing statements and suggest possible ways to enhance and kit up.CDA assure you accurate and precise data entry concerning the fiscal year which is essential to record the outstanding payable amounts at the year-end. We make it clear that linking with purchases, direct costs or other expenses are received within the next year.

Financial statements are important because they contain significant information about a company's financial health. Financial statements help companies To make informed decisions and To highlight areas of the corporate which provide the simplest ROI.

It is mandatory to take care of the books of accounts under UAE company law and VAT law. Each company shall maintain its accounting books/records in its head office for a period of a minimum of 5 years from the start of the fiscal year of the corporates.

Yes, it is highly recommendable because provisions help to prevent the occurrence of unexpected events in future. This in turn maintains some portion of income each year.

The application of IAS 16 is considered with the accounting treatment of Property, Plant and Equipment in financial statements: Recognition of asset, Determination of carrying amount, Calculation of depreciation, Impairment of losses relating them

IFRS 9 consists of the models for the recognition and measurement of assets and liabilities. The applications of IFRS 9 in Financial statements are: Calculation of fair value of the assets and liabilities, Impairment of the assets, Calculation of credit risk, Using hedging tools to mitigate risk

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