Financial records are the official documents that indicate the financial activities, transactions and financial performance of a company. An organised financial record is proof of a successful company as the financial record of a company is a core data source for all kinds of financial analysis (how else does a company owner ensure they are running a profitable business?). It equally provides insights into the company’s assets and liabilities. This explains why some companies seek professional financial advisors especially to comply with vat in UAE.
The following steps will help ensure that your financial records are accurate:
- Make sure that the financial records are accurate from the start
The data entry stage of a financial record is of utmost importance as it determines the accuracy and efficiency of the financial record. This means that a business owner must ensure that accurate data is imputed into the record. A business owner could ensure this by cross-checking all data entries or inputting the data automatically.
- Scan the financial record for errors
This is an effective step in ensuring that your financial records are accurate. A business owner is advised to check the balance sheet for errors such as negative balance, the monthly cost of goods sold, the depreciation rate for fixed assets. When done regularly, the accuracy of your financial record is guaranteed.
- Reconcile all records
Record reconciliation is the process of ensuring that two sets of records are in agreement – usually the accounting records with the external records. Records reconciliation ensures that the money leaving an account matches the external records i.e money that was spent. The external records could be bank statements, supplier invoices or credit card statements. It helps a business owner ensure the accuracy of the financial record.
- Employ the service of an auditing and accounting service
An auditing and accounting service will keep and inspect your company’s financial records and offer suggestions and recommendations based on your company’s financial situation. They will also offer guidance to your company to help you make reasonable financial decisions.
- Manage your in-house talent
Business owners are advised to manage all financial workers at their company irrespective of their level of expertise. This is to ensure that they take full responsibility for their roles and perform all tasks to the best of their abilities. To do this effectively, you are advised to arm yourself with knowledge about the procedures and general functioning of the financial work working hand in hand with your financial team to ensure accurate results.
- Review your financial records regularly
As a company owner, your tasks may be demanding and time-consuming. However, to ensure the accuracy of your financial records, it is crucial to review your financial records regularly. You could do this with your team and your financial advisors. This helps you get rid of errors and mistakes that could have adverse financial effects on your company.
Get in touch with our accounting and auditing experts in Dubai business setup who can handle your entire records while complying with UAE VAT and TAX laws