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Project Accounting Services In UAE

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Project Accounting Services In UAE

Accounting and management are a vital part of each SME and corporate house. It is a vast field, and accountants manage it by breaking it down into projects. Across the United Arab Emirates, business owners look forward to advanced accounting and bookkeeping assistance. Modern financial accounting uses project accounting to provide a clear understanding of the company’s ongoing projects and their progress. This is essential to measure an organization’s performance on a daily or quarterly basis. We are a team of qualified chartered accountants in Dubai and offer one of the best project-based accounting services to individuals and organizations. Let’s get more familiar with our exclusive service:

What Is Project Accounting?

Project-based accounting is also referred to as job cost accounting which is the process of measuring the costs and financial benefits associated with a project. This is an accounting practice to track the different types of complex projects in a specified time period. Accounting for projects is mostly used to make sure material costs, time, and special equipment are cost-effective and contribute to the company’s profitability. The internal or external accountants can perform project management accounting.

Why Is Accounting For Projects Important?

There are numerous reasons why accounting for each project is really important for a business. For example:

  • To assess any project’s cash flow
  • On-time completion & delivery of the proposal
  • Track the financial side of the projects
  • Management of multiple tasks at once
  • Organizing business plans with symmetry
  • Adds value to each accounting project

How Project Accounting Enhances Business Profitability?

Project management hugely affects your business profitability and growth. This ensures that your financial accounting is capable enough of managing clients’ complex projects. Accounting for projects is a way of monitoring whether a project is generating revenues or not. By performing project cost accounting, one can determine which projects exceeded budget. The proactive approach will save your business from loss in the long run. This accounting supervision of projects helps to effectively manage projects in the given deadlines. Your organization’s ability to handle projects efficiently can boost your profits and improve your customer relationship.

General Accounting VS Project Accounting

Project accounting is far different from general financial accounting in the United Arab Emirates.

  • Standard accounting assesses transactions according to the company’s financial year which is different in each organization, while project accounting has a start and end date.
  • Project accounting is only focused on the factor that is entirely related to the project task and general accounting covers all the aspects of business financial affairs.
  • In general, accounting, and reporting criteria are based upon the overall profits and losses a company earns, although project accounting is determined by the deliveries of the projects. Cost breakdowns are calculated based on each project delivery.
  • With project management accounting you get a more clear insight into your day-to-day finances, such as costs, bookkeeping, estimates, billings, etc. As opposed to general accounting, it provides a broader view of the company’s finances.

Role Of Project Accountants In Enterprises

Accountants and project managers employ different methods and techniques for tracking accounting on a project-by-project basis. There are some basic roles of project-based accounting, such as:

  • Prepare financial reports, timesheets & billing, etc.
  • Planning and strategies designed for the success of the project.
  • Create related records, by using project accounting software.
  • Arrange resources and budget required for completing the task.
  • Approve supplier invoices and timesheets for work related to a project.
  • Adjust the project’s budget & work breakdown structure (WBS).
  • Assemble pre-billing details in the form of a report for manager review
  • Assess the total overhead cost and expenses applied to a project.
  • Evaluate project variances and pass on details to the management.
  • Prepare a proper report regarding project progress.

All the above mentioned are the primary responsibilities of a project-based accountant and he/she needs expertise at all stages. If the in-house team is not competent and unable to accomplish these tasks efficiently, then it’s better to outsource external accountants to manage workloads and projects proficiently. This is a cost-effective approach and boosts your project’s financial aspects by meeting the client’s expectations.

5 Biggest Advantages Of Project Accounting?

There are several advantages to project accounting for a company’s profitability and goodwill. Some of them are mentioned here:

 

1. Avoid Project Deadlines

Whenever a deadline is missed for any type of project, it is highly unethical and shows bad management of the company. To avoid projects delays, project accounting is the best accounting solution for small and large businesses.

2. Streamline Daily Tasks

Project-based accounting helps you to streamline daily tasks and enhance the performance of management.

3. Maintain Account Reconciliation

Accounting for the project will assist you to maintain bank statement reconciliations for each month’s financial cycle. This updating of records and reconciliations ensures the accuracy of projects’ cash flows.

4. Reduce Costs & Time

Well-managed projects efficiently reduce the costs and time of accountants and management. They handle several tasks simultaneously with minimal downtime.

5. Well-defined Project Reporting 

The pre & post-billing, receivables, tax reporting, and many others are prepared through the project accounting information. This comprehensible detail supports management in decision-making.

Why Outsource BestaxCA’s Project Accountants?

Bestax Chartered Accountants in UAE is a group of professional financial advisors and business consultants in all major fields. We have decades of experience in accounting & bookkeeping and understand our clients’ exact needs. Our experts delicately handle each small and big accounting assignment. We are professionals in Forensic, IFRS, Backlog, Payroll, and especially project accounting. Our accountants implement advanced techniques and software to track daily finances related to a specific project task. You will be able to get in-depth reporting about all transactions and monitor progress. Through BestaxCA’s exclusive project-based accounting service businesses can manage multiple projects in a timely manner. Feel free to contact a reputable accounting firm in Dubai.

 

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