Accounting System Analysis & Implementation 

Accounting system analysis and implementation

Accounting is the most important part of small and large businesses. In today’s technological age, financial accounting is no longer done manually, but through the use of appropriate accounting software. The finance department of each company analyses and maintains the accounting system on a daily, quarterly, monthly, and annual basis. Customers also need IT systems to request reports and invoices in digital format according to their specifications. Generally, business owners are not familiar with the different accounting software available on the market and usually complete the process by choosing the wrong financial accounting software. However, do not hesitate to solve this problem; BestaxCA has taken care of you and provides the best accounting information system services in Dubai, Sharjah, Abu Dhabi, Ajman, and all the Emirates of UAE.

What is Accounting System Analysis?

Accounting system analysis is the process of studying and observing a system to find out how efficiently it is working. It ensures the accuracy of a company’s financial and non-financial information. The analysis mainly focuses on identifying gaps in the existing ERP accounting system. Based on the assessment, management can make the necessary changes to the system to obtain the desired results.

UAE Accounting Regulations 

According to the UAE Companies Law, every registered company is required to maintain accounting records for at least five years. To avoid unnecessary penalties, financial records must be up-to-date, accurate, and relevant. The UAE VAT Regulations also make it compulsory for companies operating in any emirate to keep financial records. Thus, every individual or company is required to implement a financial accounting system to record all transactions.

Stages of the financial accounting system

The process of analyzing and implementing an accounting system involves several stages. The analysis of the accounting system is mainly intended to ensure that the appropriate software is developed to meet the exact requirements of the business. Each stage is important and requires the expertise of accountants. Companies often take the help of a certified accountancy firm in the UAE to ensure that the procedure runs smoothly. The following steps are involved in the analysis of an accounting system:

  1. Analysis

In the first stage, the accounting team understands the company’s structure and assesses the maintenance of accounting records. A thorough analysis of all financial accounting systems is essential to assess the performance of the business. The aim is to determine whether or not the existing system is capable of accounting for and managing transactions. At this stage, every aspect of the accounting information system (AIS) is examined in order to improve the financial position of the company.

  1. Design

Once the analysis process is complete, the next stage can be taken – the design of the accounting system. This is mandatory if the previous system is not compatible to meet the basic requirements of the organization. The new design should update reporting methods, accounting standards, reports, and other financial issues.

  1. Implementation

The final and most important step in the implementation of the newly developed accounting system in the company. This is a complex and time-consuming exercise for ordinary accountants. To use ERP and accounting software professionally, the finance department usually needs training. Companies can expect to grow once all these steps have been completed.

How does AIS help SMEs and businesses?

The business environment in the United Arab Emirates is fast-paced and technically advanced. The needs of individuals or businesses may also continue to change and require further development. Modern accounting technology is best illustrated by the Accounting Information System (AIS). It helps many SMEs and large companies by increasing their performance as well as their profitability. Periodic analyses will be carried out within this accounting system to enable management to develop policies for the future. It shows the real financial situation of the company so that corrective actions can be taken immediately.

The analysis of the accounting system allows us to be informed and updated on the constant evolution of the accounting and business management field. In addition, it helps to reduce costs, improve output and provide better information for decision-making.

Benefits of accounting system analysis

For effective accounting and bookkeeping, a company needs to use accounting system analysis to keep track of financial issues. Some of these are listed below:

  • Improves the technical processes of the organization.
  • Management Information Systems (MIS) evaluation.
  • Identifies gaps in existing accounting software.
  • Ensures accuracy and compliance with financial activities.
  • Provides useful information for decision-making.

BestaxCA accounting system services in Dubai

BestaxCA is one of the reputed accounting and tax consultancy firms in Dubai, UAE. We are professionals in all areas of accounting and management. Our team of experts serves business giants in audit, corporate tax, accounting, and accounting software implementation. BestaxCA helps companies to manage their financial statements and accounting. Our chartered accountants in the UAE assist companies in the installation, implementation, and use of accounting information systems (AIS). Ultimately, we ensure that the process is as accurate as possible and give our clients the full benefit of the process. Contact us with any questions about accounting systems analysis or other business services in the UAE.

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