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Everything You Should know About The About Management Accounting
Management Accounting 2021-05-25 From: Abbas

What is Management Accounting?

Management Accounting is used by the internal team of the organization and is also known as managerial accounting. In Management Accounting, we analyze, identify, interpret, measure, and communicate financial information to generate the management accounting report. That report is provides all the financial information, statistical, and resources to the managers. With the help of the report, managers can make informed decisions easily for day-to-day and short-term decisions for organization growth.

It’s only used by the internal team which is the only thing that makes it different from financial accounting. The objective of managerial accounting is to improve statistics and make better decisions.

This report contains details of accounts receivable and payable, cash, current generated revenue, etc. If you are looking for a management accounting consultancy then Risians Management Consultancy is the best for your organization. 

In simple terms, Accounting managerial is the process of analysis and measurement of the financial information, resources, economy, tactic, etc. This helps the organization to make better decisions. It has no defined fixed format and structure and is not to be shared with an outsider agency like the government. 

Types of Management Accounting Reports:

  1. Analyzing Cash Flow - Most companies record all financial information on an accrual basis accounting. Although, it shows the exact picture of the financial position, accountants analyze the cash flow to determine the cash impact on business decisions while performing analysis, they will consider the cash outflow and inflow as a particular business decision. The accountants may implement the working capital management strategies to optimize the cash flow and ensure the organization has enough liquid assets to cover the short-term work.

  2. Product Valuation - The cost of the product is determined by the cost of production of goods and services. The Managerial accounts find the overhead cost charges on the production. It may be based on the No. of good production and related to it.

  3. Analyzing Inventory Turnover - It is a calculation of the inventory that has been sold and replaced in a particular period of time. It helps the business to make a better decision regarding the price of products and services, purchasing inventory, and marketing.  It contains the carrying cost of inventory and stores unsold items. Accountants find a possible way to reduce the cost of storage.

  4. Management of AR (Accounts receivable) - In this, the Accountant creates the list of all the accounts receivable according to time like 30 days, 30 to 60 days, 60 to 90days, etc.  It creates a positive effect on the business. Accountants review the receivable accounts and identify if there is any customer that becomes credit risk. If they report to the appropriate department manager that a particular customer is not making payment on time. Sometimes businesses may reconsider doing business on credit with that customer.

  5. Constraint Analysis - In Constraint Analysis, Accountants analyze the whole production and sale process. To identify, there is a thing that will create any prevention and limitation and tell how to improve more sales and production process. Business managers use the report and do some implementation for efficiency in the sales and production process of the organization.

  6. Budgeting - Management accountants do the measurement and analysis of the company perforation and previous expenses to create a budgeting report.  Business budgeting contains the list of all sources of expenses and earnings. Budgeting reports guide the managers to offer better renegotiate terms with vendors and suppliers and employee incentives, cut costs. Management can make new strategies to accomplish the business goal within the set budget amount. Every year businesses set a sufficient amount of budget to run a business efficiently. That’s why a budgeting report is a critical measurement of expenditure, Revenue, etc.

What is the Main Purpose And Objective Of Management Accounting?

The main objective of management accounting is to help the business organization in smooth and efficient performance in controlling, planning, directing, organizing, and more.

  1. Planning - The first main objective of management accounting is to aid businesses in planning for future needs, and accomplish the goal. Managerial accountants analyze and measure the company's current & past performance, generated revenue, expenditure, regular expenditure, and more as per the business structure and function to give the report that shows the real picture of the business. By the report, management makes the decisions to increase production and sales.

  2. Analyzing the data - The main purpose of management accounting is to analyze the data.  That helps in finding the problem area and developing methodologies to correct it. Data analysis increases business efficiency, increases productivity, and prevents future problem areas and harm.

  3. Forecasting - As we mentioned above, managerial accounting analyzes the past and current data of the organization and generates a report based on that analysis.  Generated reports play a vital role in forecasting and make better decisions.

  4.  Monitoring - In this accounting, we monitor every process of the organization to ensure that decided strategy implementation is appropriate and all the processes are in as per strategy.
  5. Aids In Achievement - Management accounting reports help in making decisions and birth the new effective strategy that makes the business process feasible. They also monitor the process of the organization that the newly implemented strategy is on track or not and also do time to time forecasting. If they found any loopholes, errors, problems, and overhead costing areas. They take steps to resolve it and take precautions.

The Importance of Management Accounting

As we know, Management Accounting is a major tool for business success. The reasons are following:-

  1. Prevention and rectifying -  Management accounting keeps an eye on each process of the business organization and if they find any problem, errors in any particular area they take action to fix them. By analyzing the data and economy they forecast the business performance and take prevention if they found any future problem.

  2. Introducing New Product - If a business wants to launch any new product and service the management accounting plays an important role. It supports the business from the beginning planning to the end execution by giving details about the producing capability, cost of products, real picture of the product market, etc. They also define how much quantity of the product will be best and profit on it.

  3. Reviewing Products -  In management accounting, review all the current products and services and generate the report that has all products' final cost and profit margin so that the business can identify which product is more profitable and which are not.  They provide you valuable metrics that help businesses to reduce the unnecessary cost of the products and how to increase profit.
  4. Staffing - Organization staff is another area in which management accounting plays an important valuable role. Management accounting aids the business to make the right decision by informing the business how much staff is required, how much we can afford to spend, and the return you can expect from the per employees.

If you want to get all the benefits, get a free Management Consultancy in Dubai, UAE. Risians Accounting has become the pillar of some organizations in the UAE by giving accounting service to them. If you have any questions and issues related to accounting, bookkeeping, auditing, VAT, Tax Agent, Company formation, and management accounting feel free to contact us. Connect with us and discuss your problem with us, we are here for all your business needs. 

 

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Guide to Set up Business in Dubai, UAE
Business Formation 2021-05-25 From: Abbas

Dubai, located in the northeastern UAE is the business hub of the country. It is the fastest-growing economy among the world’s other cities. That attracts the investors and business starts-up and they begin setting up their business in Dubai.

Now Dubai government allows ex-pat business owners to own full business in some cases and the 0% tax rate as well. In the UAE expat can get long-term visas that make it the perfect location for overseas entrepreneurs. 

 

Why should you establish a business in Dubai?

The fastest-growing economy has shifted from the oil economy to the business innovation economy in the last 30 years. Multiple reasons make Dubai the first choice for investment and business owners. 

Due to the strategic location and business-friendly government rules and regulations Dubai fascinates foreign investment and business owners alike.

Business owners want to start their business due to two prime reasons. The reasons are following:-

  1. Business Friendly Environment - The United Arab Emirates got the 16th position for an easy place to do business by the World Bank. Setting up the business in Dubai is not complicated. It’s quite simple and easy.  Many business owners can establish their businesses within a week provided they have all the approved documents. There are many free zone areas to set up a business that the UAE government has established. In the free zone areas, the Dubai government allows 100% foreign ownership, profit earned repatriation and large tax exemption.

  2. Low Rate of Taxes And Open Market - In Dubai, there is no tax on personal income. And has a free-trade economy. The Dubai government and regulatory authorities do very little interference in the private sector activities. Dubai has a liberal policy system; this allows a business owner to easily hire employees from anywhere in the world. Dubai has implemented strict rules and regulations for fraud and money laundering. Foreign investors love to invest here because of the clean place and with little worries.

  3. World Class Infrastructure - Dubai has various international standard free zone areas for the business. It also has a modern infrastructure in the entire world that holds significant importance.  Dubai handles thousands of visitors with its beautiful airports and seaports. It also has numerous roads and highways that make travel easy and fast. Trusted telecom infrastructure, undisturbed power supply, and loaded with amenities to attract business owners throughout the world.
  4. Best Accessible location - Dubai is located in the center of Africa and CIS (Commonwealth of independent states). Currently, 8555 airlines are operating here. It is connected with more than 120 Shipping lines.  Dubai is an easily accessible location from anywhere in the world.
  5. High Standard of living - Dubai is a diverse. Numerous foreigners have made Dubai their second home. Dubai leads the world in real estate, housing facilities, educational institutes, recreational activities. Dubai is a low-crime city that makes it the safest city in the entire world.

How To Set Up Business In Dubai?

If some want to set up a business in Dubai then setting business is a simple and pretty smooth process. Dubai is the best city for the set-up business. The process to apply for business approval is quite simple.

The process to set up business in Dubai:-

  1. If someone wants to start a business in the mainland of Dubai, then they should have a local investor. Investors should be local Emirati. 

  2. After getting local investors the next step to acquire the NOC from the local sponsor.

  3. Now you have to Prepare the MOA of the company. MoA should have the basic condition on which business is carried out.

  4. Get approval from the DED (Department of Economic Development). It’s an initial approval and must.
  5. After obtaining the initial approval from the DED then register your business’s unique name.
  6. After getting a business trade name. Placed your business at the best suitable location for their business.
  7. While setting up the physical office, a business owner should apply for a trade license.
  8. After receiving the trade license, the business will be set up within a week.

 

Required Documents To Start Business

If company location in free zone areas that are governed by the respected rules. Then the required documents will depend on the area rules. A required document may include.

  1. Business plan
  2. Application Form.
  3. If you are an existing company or applicable for the local company then you need a copy of the registration certificate and trade license.
  4. Director, Manager, and shareholder passport copy and Specimen signature
  5. For individuals, we need NOC From the sponsor.

 

Company Formation Fees

The Cost of company formation is low in comparison to the other cities which is another reason that entrepreneurs like.

There are many factors involved, But for the trade license you can expect the AED 15,000 to AED 25,000.

The company formation cost in Dubai depends on the location, premises, No. of employees, etc. If you are establishing your business in a free zone area then the cost will be lower than the mainland. 

 

Popular Area Name in Dubai

  1. Al Quoz
  2. Al Qusaia
  3. Al Karama
  4. Business Bay
  5. Bur Dubai
  6. Deria
  7. Sheikh Zayed Road

Free zone area in Dubai:-

In the entire UAE, there are about 45 free zones. Some division are:-

  1. Energy
  2. Automotive
  3. Aviation
  4. Media
  5. Investment
  6. Academics
  7. Information Technology
  8. Logistics

Establishing company In Mainland.

  1. Real estate
  2. Education
  3. Hospitality
  4. Retail

 

Hope this short Information Help you If you have any doubt and query, please contact our business consultant team.  When you allow us to work with you, first we understand the business model; get information about the business and nature of business. Now you sit back and let our team manage trade license work and communicate with all relevant authorities and departments. After completing our team report you back when all the things are set and you are ready to start trading. We also give time-to-time reports of working status.

 

 

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Accounting Service in Dubai For your Business Growth - Risians Accounting
Accounting 2021-05-17 From: Mr. Abbas

Accounting is the measurement of all financial records of any business and the key form of communication to measure financial or non-financial information. Most small business owners create business models based on business competition, products, and services. They gather all the resources and plan to grow their business accordingly. Business owners are very good in business but not so in accounting. They generally don’t have sufficient accounting and financial experience to make effective financial decisions regarding business growth, keeping business accounts updated as per law, and point out errors in accounting.

If you are also a business owner and are seeking to find the best accounting companies in Dubai to outsource your financial operations, be assured that you have taken the right step towards an informed way of keeping your finances in check. It is much easier to hire an accounting agency to keep your financial records than setting up an entire accounting system in the business itself. 

While searching you will come across hundreds of accounting firms in Dubai but you should hire the best one that is fit for your business needs. To hire the top accounting firm for your business you have come to the correct place, Hire The Best Accounting Firm In Dubai. I’m not saying hire the expensive service, top means the firm suitable for your business which has working experience in your business niche.

In the Accounting Firm, Certified Chartered Accountants deal with each monetary transaction of the business and individuals. It’s one of the main factors to run a business towards success. They provide a business balance sheet, cash flow statement, financial statement, and fill the vat returns. With the help of business accounting, you can make better returns out of your business. Business accounts ensure what is your current financial position and determine further steps for growth. 

It has been mandated for the 2015 commercial companies to maintain the proper accounting books at least for five years as a legal requirement. As you know VAT is also mandatory and VAT and tax returns are now too important otherwise you can get the penalty from the FTA. That’s why accounting and bookkeeping services in Dubai are advised by experts. There are a lot of things to be done in the business and it is not easy to comply with the legal requirement and keep business strategy running on track continuously in this competitive race.  It’s very difficult to manage business accounting along with business accounting. That's the biggest reason, accounting services in Dubai UAE are offered by many various companies as an outsource. 

Accounting service outsourcing has become highly recommended since it helps the business especially when service provider companies use the latest accounting software and technology like Risians Accounting. Accounting software makes the work easy. It is more effective and fast in recording transactions. 

 

Get The Service From The Best Accounting Firm In Dubai 

Risians Accounting is an FTA-Approved accounting firm located in the heart of Dubai. Risians Accounting offers accounting and bookkeeping, advisory, VAT Consultant, Tax Consultant, Tax agent, VAT return services, etc. We have a certified team of chartered accountants who have 10+ years of working experience in different industries and projects.

At Risians Accounting, We provide you with the best strategies. Our expert team first understands the accounting requirements of the business and discusses each step, process, and aspect based on the client’s business needs. Our Chartered accountants reduce the owner's burden and financial costs wherever possible. We count our success when we are able to carry out successful decision-making and tasks for our clients.

Risians Accounting is considered amongst the top accounting service providers and prominent accounting firms in Dubai, UAE.  Our business auditors and consultants keep your business’s financial records up to date and financial statements that help you coordinate well with the law and regulation. They concentrate on the risk areas and improve the company performance with flexibility to grow business and accounting requirements.

We give the tailoring service and fee package based on your activity and requirement. We also provide full-time support to fulfill your requirement on time and with utmost efficacy.

Bookkeeping Service

In bookkeeping, bookkeepers record all the financial transactions appropriately and summarize the records. In the old times when computers weren't born these entities were recorded in the book that’ why it’s called bookkeeping. 

Currently, we are managing the bookkeeping service of various industry clients. Our Bookkeeping Service in Dubai Includes

  1. Recording all business transactions.
  2. Vendors bills payments
  3. Make ledger
  4. Reconciliation of Accounts, Bank statements, and passing.
  5. Include receipts & payments & income & expenses or other adjustments for recording transactions.
  6. Create and prepare the invoices.

VAT Tax Service

1st Jan 2018 UAE government has introduced the VAT with a 5% rate of interest. It became a new source of income in the UAE. We prepare and fill the VAT return on time and fulfill the FTA requirement on the behalf of the client's business. Save the unnecessary amount on the VAT Tax.

Audit And Assurance Service

The financial statement audit means reviewing the business accounting books to make sure that all financial records are in the right place as per rules and regulations. It increases the value and credibility. We provide full support during the auditing by giving full support to the Auditors and prepare the requirements. 

Financial Statement Or Financial Position.

It's a formal record of financial record of a business. It presents the financial position of the business. It’s mandatory for business because With the help of the financial statement business makes decisions for future growth. 

We provide proper business accounts statements along with recommendations to improve the business. We offer:-

  1. Profit and loss account.
  2. Cash flow statement
  3. Balance sheet

Monthly, Quarterly, And Yearly Reviews

For business security and accuracy of your financial records and accounts, we review your entire business in order to mitigate risks and harms. We share the review report along with suggestions and recommendations and discuss with clients ways on how to grow their business.  We help businesses realize their full potential and reap the benefits of informed decision-making and smart execution of their finances. 

 

Why Choose Risians Accounting Firm?

Accounting is a major part of any business. Our business consultant and Chartered accountants give you full support in your business accounting and bookkeeping services. They have the caliber to take care of your business accounts & finance and know how and where you can save money without any further harm. We have decades of working experience in different industries.

Our aim is just to take care of the client's business accounts and finances along with full transparency. Our accounting service business growth is after your business success. We provide tailor-made strategies with tailor-made quotes or packages.

 

 

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What is the difference between Accounting And bookkeeping.
Accounting 2021-04-26 From: Mr. Abbas

In Accounting or financing language,  the term accounting and bookkeeping are almost used interchangeably because they both deal with business accounts. However both concepts are different but if someone asks about the difference between accounting and bookkeeping it becomes taught to describe because both support the business finance in different stages and ways. Let's take a look at the difference between Bookkeeping and accounting.

What is Accounting?

Accounting is high level work that uses the financial information that is accumulated by the bookkeeping and business owners. Accounting is the process of systematically recording, communicating and measuring about business finance and financial transactions. It determines the business finance position & health and Position of the stakeholders. It plays a vital role in decision making for a short and term period and passes the reliability of the company in the market.

The main purpose of accounting is to provide a clear view of the finance with the full insight for the business users like owners, stakeholders, employees, government and etc that’s why it’s more subjective in comparison to bookkeeping. In accounting, an accountant converts the information into ledgers and then into statements that present the business financial situation and how business is going. 

What is Bookkeeping?

Bookkeeping is the essential key to building a successful business. Bookkeeping is a process of the classification and recording of each transaction of the business consistently. 

It's said to be basic accounting. The importance of bookkeeping is that it maintains each record of the monetary transaction. Businesses use this information for business financial statements and investment decisions. 

The complexity of the bookkeeping is dependent upon the business size and how much financial transaction is done weekly, daily or monthly.  All the sale purchase transactions are recorded in the bookkeeping book. 

To be a successful bookkeeper we don’t need  any formal education. We can become experts in bookkeeping easily. Bookkeepers always work under the eye of either accounting or business owners. Keep in mind bookkeepers can’t call themselves accountant. 

The bookkeeping process contain:-

  1. Identifying a financial transaction
  2. Recording a financial transaction
  3. Preparing a ledger account
  4. Preparing trial balance

 

What Is the Difference Between Bookkeeping and Accounting?

 

 

Particular

Accounting

Bookkeeping.

Definition

Accounting means summarizing the data and communicating with business financial information to make financial statement, preparation for tax returns.

Bookkeeping means identifying each transaction to record systematically only.

Decision

We all know that a business financial statement and balance sheet is prepared by the accountant, Based on the financial statement and balance sheet business management take important steps for the business growth.

Bookkeepers just record the  transaction and provide trial balance which is not helpful for decision making. It’s used by the only accountant.

Financial Preparation

Financial report is very important and created by the accountant. 

Financial report is not prepared by the Bookkeepers.

Analysis

To create insight, accountants have to analyze the data for financial statements and balance sheets.

For Bookkeeping, we don’t need any kind of analysis. 

Persons

A person who takes care of business accounts is known as an Accountant.

A person who only records the transaction is known as bookkeepers.

Determine the Financial Position of the business

Accounting presents the clear picture of the business financial positions.

Bookkeeping of the transaction does not show the financial position of the business.

Learning

Required the higher qualification to analyse and understand the accounting concepts.

Not required for higher qualification. 

 

 

We hope this short information helps you  to understand the difference between bookkeeping and accounting. To get tailor-made accounting and bookkeeping service contact risians accounting and auditing firm in dubai, leading firm in dubai who has practically working experience in different industries, shops, malls and Projects.

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Best Tips For Small Business Bookkeeping
Accounting And Bookkeeping 2021-04-25 From: Mr. Abbas

A business book is a scorecard of your business that defines how you are doing. Being a good business, it’s your responsibility to stay one step ahead in the industry. Having accurate and up-to-date accounting records is the sign that shows the business is on track of success.

 

Small Business Bookkeeping Tips

Tips will help you to be skill full to manage the business process and increase the ability and knowledge to operate your business skill.

 

  1. Separate Personal And Business Bank Account:- The business owner must have separate accounting for their business and personal account so that we can separate the business fund from the personal amount. Recording personal expenses transactions is a waste of time and energy. It becomes worse when you outsource for bookkeeping and get mixed with personal expenses. Always use the separate account and only record the business account transaction so that you can track your business cash flow easily. If you want money in your personal account then make the bulk transaction from your business to your personal account on a monthly and weekly basis.

  2. Identify The Personal And Business Expenses - The business owner withdraws the money from the business account to the personal account to fulfill their needs, wants, and desires. The best practice is to choose the one fixed amount to transfer from the business account to the personal account on a weekly or monthly basis.  By doing this business account will be clean and tidy with only business transactions. It will avoid confusion between personal and business transactions.


    To reduce tax business owners should know and recognize what types of expense transactions can be claimed against the profit. 
    1. Those expenses that directly related to the business operation and producing income.
    2. Owner personal Expenses and etc.

    To know more about these types of transactions contact risians accounting and auditing firms.
     
  3. Make Automate As Much As Possible.
    Use accounting software to save time and money. With software, you can goodbye the putting data into spreadsheets and manually action. The software records the transaction automatically in the right manner. While selecting the software, look at the storage, accessibility, and security. you must make a list of things that software must-have for your business. Don’t rush to buy the software and first perform your homework to find what software should be fit for my business.
    Applying automation in business means you are saving your time and energy by automation process. After automation, you will have time to focus on the business. Putting data into a spreadsheet and crunching numbers manually is an old and time taken method.

  4. A Regular Check of Business Books -  Business owners should check the business book on a regular basis such as weekly and monthly in order to confirm that transaction is recorded accurately and timely.  Up to date information on accounts defines the business health, how business is going and etc.

  5. Reminder for Deadlines - It’s possible for business owners to miss the due and last date of tax filing.   To avoid this, the business owner should set the reminder, can use the google digital calendar and any other preferred calendar, and fill the tax return on time. A business owner also uses reminders also for other important works. Complete work on time it’s a sign of success.

  6. Track Business Expenses - We can forecast some expenses but it’s very difficult to predict unexpected expenses. But if you plan and plan for the expected and unexpected expenses then it will be beneficial for the business’s health. With the help of bookkeeping records, such as supplies, inventory, insurance, and utilities. We can easily predict the expenses that will happen in the future and prepare ourselves for them.

  7. Give Priority To Your Accounting Books - As business owners, we have lots of tasks to do for running the business and forget to update the business books. To keep business on the success road we should give top priority to maintain the books.

    From day one we should record each and every transaction and organize the books in a proper manner.  If we avoid maintaining records timely and accurately then we push our business towards failure.  We should give priority to business accounts to keep them updated and keep reviewing the transaction for accuracy and transparency.

  8. Ask From Accountant - Take assistance from your accountant to figure out this. Your accountant gives you advice on how to do it and also helps in setting up software and customize software as per your business needs.

If you have any doubt and query feel free to contact Risians Accounting. We will help you to set up a cost effective tailor made business accounting system for your business from which you can record each and every transaction systematically and focus on the business.

 

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My experience in working with this team is very much a positive one. Their professionalism is refreshing. Thank you for making the process a very pleasant experience.

Ms. Arshameh Parmoun Tag Properties

We have been working with RISIANS Chartered Accountants on a couple of assignments. At all times they are professional, organized with whatever assignments we have entrusted with them. Being a approved audit firm they are well aware with the regulations and compliances. I will recommend the team highly enough and shall certainly be engaging with them again and again in future assignments.

Moin Abbas Al Ajwad Auto Works

I would overall rate team RISIANS work as exceptional. The team was successful in delivering quality audit, irrespective of the tight deadline and it was way better than the predecessor. We can definitely build more knowledge for future.

Ajit G Vernekar AL SHAFAF REPACKING SERVICES

RISIANS proactiveness and precision towards managing our accounts and helping us constantly whenever we are in need of is a dynamic quality that makes us want to recommend to any company or an individual. Looking for a great accountants without any hesitation.

Aqeeb Aqeeb Internstional
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Sheikh Zayed Road, Dubai-UAE

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