Accounting principles or standards are basically the rules and concepts a company should keep in mind while reporting financial statements and information.

IFRS is the set of accounting framework which serves as a basis to regulate and organize financial information. IFRS proposes guidelines and rules that ensure companies follow a standard accounting system. This helps your company to stay transparent and uniform in the financial statements.  This eventually makes it easier for investors to examine and take essential information from the company’s financial reports. Following these accounting principles also help to understand trend data and budgeting.

IFRS is a decree specified by the SCA, Securities and Commodities Authority, and the Central bank of the UAE. Likewise, the central bank of UAE advises that banks in the 7 states of UAE must follow IRS when maintaining financial reports.

GAAP is another accounting standard followed internationally, although UAE does not have its own GAAP. Generally Accepted Accounting Principles or GAAP comprises of the important rules and guidelines to prepare financial reports and perform accounting tasks.

Accounting Principles In UAE

The standard accounting principle generally followed in UAE is the IFRS, International Financial Reporting Standards.

IFRS is the set of accounting framework which serves as a basis to regulate and organize financial information. IFRS proposes guidelines and rules that ensure companies follow a standard accounting system. This helps your company to stay transparent and uniform in the financial statements.  This eventually makes it easier for investors to examine and take essential information from the company’s financial reports. Following these accounting principles also help to understand trend data and budgeting.

IFRS is a decree specified by the SCA, Securities and Commodities Authority, and the Central bank of the UAE. Likewise, the central bank of UAE advises that banks in the 7 states of UAE must follow IRS when maintaining financial reports.

GAAP is another accounting standard followed internationally, although UAE does not have its own GAAP. Generally Accepted Accounting Principles or GAAP comprises of the important rules and guidelines to prepare financial reports and perform accounting tasks.

If you are a startup and new to businesses, these legal matters might sound too complicated and overloaded for you. So, to ease off things, we can help you take care of your accounting matters in the simplest way.

Accounting automation takes the most manual elements of an accountant’s work and does them automatically. Also known sometimes as computerized accounting software, these systems do the numerical calculations and transaction tracking for you. 

Accountants have used different software in one form or another for decades. Before, software like Excel etc. were used to automate and enhance all sorts of tasks. But the new tools have taken this a step further. 

Most of the accounting system software now delivers advanced technology that takes your business to the next level. Learn some of the of benefits of automated accounting systems. 

Saves time 

The most tangible benefit of automating your accounting is the time you can save for doing productive things. All the manual works your organization used to do is now automated and gives you more time on your hands. Most businesses spend more time during the financial seasons and if you have all the financial data organized in hand, the job can be done in a jiffy. 

Data accuracy 

Accounting automation is the key to data accuracy. More the application is automated, more accurate your data is. It can be considered as simple as, less human intervention reduces human prone errors. Computerized accounting can generate numerous transactions in a few seconds with few or no errors.  

Higher efficiency 

Efficiency is the bottom line of every organization. A highly efficient environment gets things done faster than the normal required time. Automating your business increases the efficiency of your team by focusing on the important things and leaving out the rest.  

Security 

Accounting automation is a godsend for bookkeeping where the proof of work can be digitally secured. Automating your accounting platform can provide consistent security and monitoring, including vulnerability analysis and management. 

Real Time Data 

Real time data is inevitable today as every business is happening on the go. Real time systems help to achieve results instantly and respond immediately. Automated systems deliver real time information to the users to get faster insights and take proactive decisions. 

Accounting terms are fairly confusing with their almost similar-sounding names and combinations. One among them is the accounts payables and accounts receivables. As literal as it sounds, it means an amount of money to be paid and received respectively. Although, a slight mistake can create an imbalance in the accounting equation. So, it is important to be aware of the difference between the two significant accounting factors, accounts payables and accounts receivables.  

Accounts Payable

Accounts payable is the amount of money a company need to pay on credit to its suppliers or creditors for the purchase of goods or services in a short period of time. It is shown as liability in the company’s balance sheet. Stock, services or utilities may be considered as Accounts payable. 

Accounts payable comes under current liabilities as it is not paid in advance to the creditors rather it is recorded as a credit. Accounts payable is an important element to manage company’s performance. If AP is high, it means that the company has been purchasing in credit excessively instead of payment as cash. If AP is low, then the company is paying more money upfront for the goods or service they use. The accounts payable balances the company’s cash inflow.  

Accounts Receivable

Accounts receivable is the amount of money owed to a company by its customers on credit in return for the goods or services received by them. The amount to be received is recorded in the company’s general ledger as current assets. The money is usually collected in a year or less from the debtor. As it is a current asset, the accounts receivables measure the company’s liquidity and ability to conduct short-term covenants with seamless cash flow. 

An accounting software is an application widely used by accountants and businessmen to organize and manage their finances in one place. Normally, accounting software comes with a myriad of features that are tailored to all business needs. It helps businesses to keep track of their accounts.  

Most of the software allows the user to create and send invoices, manage expenses, record transactions, reconcile bank, filing taxes, generate reports, and much more. Accounting software has an edge over traditional accounting process by delivering comprehensive data reports. These analysis reports are the key element to make important decisions and allow efficient forecasting. 

There are accounting platforms that offer free accounting services along with accountant consulting. They help to develop small businesses by enabling them to stay on top of their finances. Today, Many accounting platforms have adopted advanced technology like cloud computing, blockchain, and triple entry which ensure secure and reliable bookkeeping.  

What Does an Accounting System Do? 

Manages cash flow – from supplier expenses to customer income, an accounting system manages and streamlines every cash inflow and outflow. While older methods of accounting require hours of effort for manual entries, the automated accounting systems make faster entries and better organization. 

Generate finance reports – with all the input data in the system, accounting software generates efficient financial reports. It mostly comprises of profit and loss report, trial balance report etc with easily comprehensible data.  

While technology has disrupted most of the industries with its easy and effortless processing, accounting and financing industry is still reluctant to adopt futuristic innovations. Though with the advent of advanced technology happening around, we can foresee some real paradigm shifts that will revolutionize the face of accounting in the near future.  

Cloud Accounting 

As Cloud accounting is already in effect in the past few years, a significant amount of users have been conveniently adopting it. It has proved its efficiency and easy accessibility with time. Though most of the accounting platforms offer traditional on-premise services that possess confidential data storage systems, the flexilibity and real-time work flows of cloud systems is a godsend to accountants. With this they are able to save a great amount of time and effort.  

According to a study of Flexi, ‘Companies using cloud accounting has 5 times more clients than companies without it’. The great efficiency of cloud computing translates into higher business performance.  

Blockchain Technology enabled Accounting 

Blockchain has evolved into a disruptive technology leaving other record-keeping technologies in the dust. Initially designed for the mining of digital currency, blockchain technology was later applied to several other potential domains like banking, investment, voting, and more. And now, it’s bringing a paradigm shift in the face of accounting with its reliable features.    

According to Blythe Masters, “The blockchain is the financial challenge of our time. It is going to change the way that our financial world operates”. 

Simply put, blockchain and accounting is a perfect mix to bring effective financial operations. Now being in the incubation period, unleashing the full potential of blockchain can revamp the accounting management in the upcoming years. 

The world has lots of false impressions regarding many professions, especially jobs that seem incomprehensible to the public. A prime example of this is accounting. Many people including business owners have misconceptions on financial matters. It is important to know the actual truth behind the stereotyped beliefs so that you avoid serious consequences in the future. Here, we are throwing some light upon those accounting myths and facts.

Myth 1: My business is small, I don’t need an Accounting Software.

Accounting software is necessary for even small businesses to stay on top of their finances. It makes cash handling easier and keeps business intact. These digital solutions cater specifically to your business needs. Accounting software speeds up the data entry process, that is with less time and effort you get efficient financial results of your company. It eliminates manual errors and improves accuracy. All these benefits your company to make better decisions and forecasting.  

Myth 2: Accounting is only important during tax season. 

Tax season is an important and busy period for all businesses and accountants. Some companies make a huge mistake by making their accounts active only during this tax season. Rather, it is important to keep track of your books throughout the year. This helps data entry and tax filing much easier. Staying on top of your finances all through the year ensures that your business performance is intact.  

Myth 3: It is not affordable to own accounting software. 

This varies according to the different accounting software you go for. There are many accounting software that are affordable to your business in the market. There are accounting platforms that even give free packages. Certain online accounting systems provide different plans from which a user can choose a suitable one that complies with their business needs. This allows the user to customize financing according to their business niche and pay only for what he uses.  

B

lockchain is one of the most looked forward technology in today’s digital world. The tech world finds immense potential for this amazing technology to disrupt finance, supply chain, real estate, and many other industry sectors. 

Blockchain is a digital record-keeping system that records and distributes assets in different places at the same time. Blockchain can only be updated by consensus between users in the system, and once new data is recorded it can never be removed.  

As accounting demands for reliable distribution of ledger, blockchain becomes the mechanism for achieving the same. In blockchain, data is cryptographically stored and shared through systems; it promises high-level security without being handed over to a third-party. Blockchain also enable users to keep track of their activity or data and detect frauds. This service saves your money by disabling third-party interference, keeping track of your data, giving better data analytics, and more. 

Simply put, blockchain and accounting is a perfect mix to bring effective financial operations. Now being in the incubation period, unleashing the full potential of blockchain can revamp the accounting management in the upcoming years. Here we introduce some accounting software that incorporate blockchain technology for a secure, transparent and immutable financial operations. 

SimpleAccounts

SimpleAccounts is an all-in-one accounting software with advanced features catering SMEs and accountants. SimpleAccounts is introducing an efficient blockchain feature that helps you to run a hassle-free business by managing your books incredibly. It enables you to make efficient forecasting with their elementary reports and statements absolutely free. 

Secure, consistent, real-time – this blockchain enabled triple-entry accounting software has an edge over other accounting systems. SimpleAccounts’ blockchain based technology allows for developing an immutable accounting ledger and automated account auditing using a triple-entry accounting system, assuring every transaction is immutable, tracked, and verified.  

Integrating SimpleAccounts’ service to your business can bring manifold benefits to your business. With its reliable bank-reconciliation feature, sync your bank account with the SimpleAccounts for an error-free, fast and accurate financial statements. The blockchain enabled accounting software detects frauds, tracks receivables and manage transactions to make your business good-standing. 

SimpleAccounts is the one-stop solution for all your accounting related problems. We streamline your invoices, VAT reports, and cash flow with the most secure blockchain technology. Get insights into your business status anytime, anywhere in a glance through our proficiently designed dashboard. 

SARA Technologies

SARA Technologies offers the most accessible and most efficient blockchain accounting software to manage your organization accounts and ledgers, without the risk of data tampering. They have satisfied a massive range of business accounting needs by their highly secured and technically superior accounting based on blockchain technology.  

SARA Technologies offers the most accessible and most efficient blockchain accounting software to manage your organization accounts and ledgers, without the risk of data tampering. They have satisfied a massive range of business accounting needs by their highly secured and technically superior accounting based on blockchain technology.  

The integration of blockchain into the accounting system free-up the businesses from the headaches of maintaining separate records as per the transaction receipts. Organizations can record their transactions right into a decentralized ledger, forming an interlocking arrangement of abiding accounts and records. 

The team of blockchain professionals here have helped a vast number of clients with the accounting software development services and assisted them to establish a highly secured accounting system using blockchain technology. 

As a blockchain software developer, it understands the importance of accounting transactions, and financial records for your business thus offer smooth audit services as well.