Backlog Accounts Updating: Businesses that have been in operation for a few years, particularly SMEs in the UAE, would not have kept their books of accounts and would manage their transactions in the old-fashioned way of recording in books or excel sheets. With various laws requiring the keeping of books of accounts, businesses find it difficult to set aside time for recording old transactions in an orderly manner.
Updating Backlog Accounts is the process of recording prior period transactions from the inception of the business and ensuring that all transactions are captured in order to portray the true position of a company. It defines a company’s financial position, making it possible to forecast the company’s future.
The Importance of Keeping Backlog Accounts Up to Date
Businesses that are aware of the problem in order to record important transactions in a timely and organised manner, staff for bookkeeping would have been engaged. However, management may not be able to establish whether the transaction was accurately recorded or whether the rules of the land were followed. It’s possible that the personnel won’t be able to study the transactions and provide a financial assessment of the company’s status. As Warren Buffett stated, it is always a good idea to evaluate previous mistakes before making new ones.
It's difficult to keep track of transactions without recording them over time. Accounting the transaction would result in a permanent record from which the businessman could simply acquire data
Investors can generate reports on the efficiency of the business and examine the work once the finances have been updated. The studies can be used to examine market trends, diversification prospects, and future potential
When accounts are recorded in software, investors/employees won't have to go back and look up information on previous transactions. It will be easily accessible in the system, and the accompanying documents may be tracked using the reference provided number
Accurate transaction recording provides a clear picture of the company's financial situation. The company will be unable to grasp its financial situation and arrange money if necessary if expenses and income are not recorded
Once the accounts have been updated, the audit procedure will be simplified, and comparative figures can be reflected in the report while it is being prepared
When updating the accounts, legal requirements compliance can be checked and necessary changes made to the extent possible
Our professionals can assist you with updating your company’s financial records dating back to its foundation. We make certain that each year’s accounts are properly concluded, ensuring that all applicable regulatory obligations are met.
We will ensure that the books are up to date in all respects, with the help and collaboration of management, so that regular accounting can be carried out in the future.
We will assign a dedicated and qualified team to your entity, who will assist you in ensuring statutory compliance and providing necessary management reports.