Financial Reporting
Preparation of Financial Statements as per International Financial Reporting Standards
Financial reporting is an integral part of a company’s operations, allowing it to assess its financial health accurately. Unfortunately, many companies rely on in-house accounting and bookkeeping staff to create these reports, even if they lack the right qualifications and knowledge. This can lead to financial statements that are inaccurate or difficult to understand, creating serious issues for the company. To ensure accurate financial records and statements, companies need to invest in qualified professionals with the appropriate experience and understanding of financial reporting.
What is Financial Reporting Service?
Financial reporting is the process of tracking and recording financial transactions taking place within a business. This includes income, expenses, sales, production costs, liabilities and more. It involves the preparation of detailed and accurate financial statements, reports and records that provide information about a business’s financial position, results of operations, and cash flows. These documents are used to evaluate a company’s performance over past and current periods. This method provides investors, creditors, suppliers, government agencies and clients with an in-depth overview of the company’s financial status. Furthermore, these documents also provide useful insights into how different decisions may affect the business’s future prospects.
Why do you Need a Financial Reporting Service?
Financial reporting is designed to convey the financial performance and position of a business accurately and objectively. Financial reporting serves to inform investors, creditors, suppliers, government agencies and customers about the company’s financial results. Financial accounting and financial reporting details can be summarized on financial statements that cover assets, liabilities, incomes, equity and expenses as well as other monetary transactions.
Financial reporting provides a way for owners to gain insight into their organization’s finances by examining critical numbers pertaining to investment decisions, liabilities, and assets. With the use of these statements and reports, businesses can effectively make informed decisions to ensure future success and growth. Moreover, the UAE Commercial Companies Law No 2 of 2015 came into effect on 1 July 2015. It required companies to adhere to international financial reporting standards and practices when compiling their financial reports.
Benefits of Financial Reporting
Bookkeepers are essential for the organization and maintenance of financial records and information of companies by performing daily accounting activities such as ledger entries, payroll processing, processing payments and receipts, costing, budgeting, monthly financial reporting etc.
Benefits of Accounting and Bookkeeping
- Financial reporting provides business owners with a comprehensive overview of their financial performance, allowing them to make informed decisions.
- It provides insights into important financial information such as profits and losses, total assets, liabilities, equity, and more. This helps owners identify areas where they can make improvements or need to take action.
- Financial reporting also makes it easier for businesses to set benchmarks and goals in order to measure their progress toward achieving them
- It allows business owners to compare their performance with other businesses in the market and track changes over time, giving them an edge over competitors.
- Financial reporting can be used as a tool for developing strategies and setting budgets, to track and control cash flows of the company as it provides accurate data that shows the cost of operations, investments, and other activities that affect cash flow.
- Furthermore, it improves transparency within an organization by supplying clear visibility into its finances which can help reduce discrepancies and frauds by detecting any suspicious transactions or misappropriation of funds.
- Lastly, financial reporting aids in meeting regulatory requirements by providing detailed reports on financial activities so as to comply with government regulations such as tax filing laws and disclosure rules.
Process of Preparing Financial Reports
The primary objective of financial reporting services is to provide an accurate picture of a company’s financial performance and position.
We assist businesses in completing their processes through the following steps:
- Double Entry process review
- Trial balance review
- Ledger entry recording and adjustments, if required
- Financial statements preparation and analysis
At ADEPTS, we evaluate a company’s profit and loss to determine its cash flows for the financial year. This enables management to comprehend the organization’s standards and to plan for future investments. Financial reports are based on the accrual method of accounting, and they adhere to IFRS accounting rules.
frequently asked questions
Financial reporting includes information such as income statement, balance sheet, and cash flow statement that provide an overview of a company's overall financial health. It also includes other documents such as notes to the financial statements, management's reports.
The management of a company is typically responsible for the accuracy and integrity of its financial reports. It is advisable to consult with an external accounting firm to ensure that all relevant information has been included in the report and that it meets all applicable regulations and standards.
Financial reporting is an essential part of a company's operations as it provides stakeholders with an insight into the company's performance and position. It helps investors, creditors, regulators, and other stakeholders to make informed decisions about their involvement with the company.
Why Choose ADEPTS
Expertise and Experience
At Adepts Chartered Accountants, our team consists of highly skilled professionals with extensive experience in managing complex regulatory and accounting standards. We are proficient in both local and international regulations, ensuring our services are accurate and fully compliant.
Tailored Solutions
Recognizing the unique nature of each Business, we offer customizable services designed to align with your specific needs and business objectives. We collaborate closely with you to understand your requirements and deliver solutions that achieve optimal results.
Time and Cost Efficiency
By choosing our services, you benefit from significant savings in time and resources. Our solutions are engineered to be cost-effective, providing high-quality support without the need for substantial internal investment.
Accuracy and Compliance
We prioritize accuracy and compliance in every aspect of our service. Our meticulous approach and rigorous procedures ensure precision and adherence to standards, reducing the risk of errors and the potential for non-compliance penalties.
Dependable Service
Dedicated to delivering reliable and consistent services, we aim to build long-term relationships with our clients based on trust, integrity, and mutual respect.
