September 22, 2023Dated: | ByMarketing Marketing | Corporate Tax | Different Types of Accounting Practices in UAE The process and action of monitoring a firm entity’s continuous financial activities is known as accounting practice. The creation of a company’s legally mandated annual financial statements is vital. Accounting practice involves the systematic procedure that an entity’s accounting department uses to control the accounting records and entries based on accounting principles. Businesses have a variety of accounting methods at their disposal, including accrual accounting and cash accounting. The United Arab Emirates requires businesses to conduct their financial reporting in accordance with Generally Accepted Accounting Principles (GAAP). Accounting procedures are important for a business to be able to prepare the annual financial statements that are legally required, including the income statement, comprehensive income statement, balance sheet, statement of shareholder’s equity account, and statement of cash flows. According to the objectivity principle, the accounting data must be precise, verifiable, and free of the accountant’s personal prejudice. In the UAE, there are 12 types of accounting practices which are clearly tackled below: Cost accounting: This type of accounting involves tracking and analyzing the costs of a business’s operations, products, or services. Forensic accounting: This type of accounting involves investigating financial fraud or other financial crimes. Management accounting: This type of accounting involves providing financial information to internal stakeholders such as management to help them make informed decisions. Tax accounting: This is a type of accounting that requires the preparation and submission of tax returns, as well as the assurance of adherence to tax laws and regulations. Cash accounting: This type of accounting involves recording transactions when cash is received or paid out. Accrual accounting: This type of accounting involves recording transactions when they occur, regardless of when cash is received or paid out. International Financial Reporting Standards (IFRS): This is a set of accounting standards used globally to ensure consistency in financial reporting. Islamic accounting: This type of accounting follows the principles of Islamic law, which prohibits interest and requires certain ethical considerations. Audit accounting: This type of accounting involves examining financial records to ensure accuracy and compliance with accounting standards and regulations. Access control accounting: This type of accounting involves restricting access to financial records to authorized personnel only. Free zone auditing: This type of accounting involves auditing companies operating in free zones in the UAE. Businesses and entrepreneurs in the UAE can profit by outsourcing their accounting requirements to reputable accounting firms in Dubai to cut expenses and take advantage of expert services. Businesses can choose the best accounting practice for their purposes by being aware of the many accounting practices available in the UAE. Flying Colour Tax Consultant LLC and J N J Auditind LLC are here to assist you in your Accounting, Auditing, Tax and Compliance requirements, with over 19+ years of experience in the UAE region. Outsource your requirements to us and our team of professional experts will take care of your books and financial statements, we will give you the financial freedom you truly deserve.