Methods of Depriciation

1)      Straight-Line assumes that the asset will contribute to earning revenue equally during each period depreciation expense is the same for every year of the asset’s useful life Annual Expense: Cost – Salvage Value Estimated Useful Life 2)      Units of Output   an equal amount of depreciation is charged for each unit produced appropriate when the amount of use of […]

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Fixed asset depreciation

Depreciation is the practice of allocating the cost of a fixed asset over its useful life.  This has been defined for accounting purposes as the decline in useful value of a fixed asset due to wear and tear from use and passage of time. The cost incurred to acquire the property, plant and equipment must be spread over the expected […]

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List of Audit Firms Registered In SAIF Zone

All the investors wishing to establish an FZE or an FZCo in SAIF Zone must register the business with a registered SAIF ZONE auditor. They will issue you with an appointment letter which will be valid until your license needs renewing. A condition of operating within the zone is an annual audit report. Following is the list of registered auditors in […]

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Corporate Taxes in UAE

Dubai is a popular destination for expats from all across the globe, not just for the opportunities it promises but also for the lure of living a ‘tax-free’ life. There are circumstances in which you will be required to pay taxation in some form. Corporate Taxes Tax Base For Resident and Foreign Companies No personal tax is levied. Tax Rate […]

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4 Effective Capital Management tips for your Business

Working capital refers to the total current or short term assets of the firm including cash, accounts receivable, marketable securities and inventory. Proper working capital management is a major step for ensuring that you maintain sufficient liquid resources for your daily business operations.  The most effective tips that can help you in effectively managing your working capital include the following: […]

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Inventory Valuation Methods

There are four methods commonly used to calculate a value for ending inventory. A company should select and use the method that best matches their merchandise and how it is sold. Inventory method How it works When used Specific Identification the cost of each individual inventory item is tracked separately; the exact cost of each item is used in the […]

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Top 10 Creative Accounting Team Names

Funny and Clever Team Names for Your Accounting Team or Group Having a friendly tax season competition in the office or putting together a sports team for the upcoming season, and can’t come up with a clever team name? We’ve got you covered with our top 10 creative team names for accounting firms (we even added a couple more as […]

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9 Accounts Receivable Best Practices

  Proper cash flow management is always important for any organization. One of the most common causes of cash flow problems is poorly managed accounts receivable. Don’t assume that just because a customer purchased your product or services that they will pay you in a timely manner, or at all. Slow paying customers may require you to draw down your […]

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Cash management and Accounts receivable

TAKE CARE OF YOUR COMPANY’S BIGGEST ASSETS For most companies, Accounts Receivable (AR) is the biggest asset on their balance sheet. In fact, AR processes affect almost every process in your company, making it hard to overestimate the importance of effective AR management. Weak controls can lead to increased risks in many areas – including your bottom line. The simple […]

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3 Key Financial Reports Every Successful Business Owner Uses

Successful business owners review their financial reports on a regular basis. Small business owners can put in place systems and procedures to obtain the same benefits that the big companies get from having a regular monthly management report and meeting with key stakeholders. There are 3 key reports that business owners must understand and review regularly. They are: 1.  Profit […]

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Don’t Overlook the Cash Flow Statement

One of the most important numbers that business owners and their stakeholders should know is the Company’s cash flow from operations, which is often overlooked in lieu of the income statement and balance sheet numbers.  Being able to internally generate sufficient cash is key to maintaining a healthy business.  A Statement of Cash Flows serves as a map that tells where cash came from […]

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Financial ratios -A Valuable and easy way to interpret the numbers

Understanding financial ratios is a key business skill for any business owner or entrepreneur. Financial ratios illustrate the strengths and weaknesses of a business. By examining ratios over time, a business owner can notice any unusual fluctuations in financial ratios and can note how the business is performing over time. Ratios are also helpful tools in financial analysis and forecasting; […]

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Tips for reading financial statements

As the year comes to an end, many business owners are taking a look at their financial reports the first time. Financial reports are necessary tools for businesses but are often ignored because of uncertainty about what they are telling you. The ability to read and comprehend your financial statements is key to developing and growing your business. A few statements […]

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Common examples of Payroll frauds

Payroll fraud, like many other frauds, often starts out small and grows over time as the perpetrator finds success. Some common examples are as follows: Ghost Employees ― Fake or fraudulent employees created by an individual who processes payroll. Checks are then deposited into an account in which the individual can access the funds. Inflated time records ― Time cards […]

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Why fixed asset management is important for business

How can a robust asset register be effectively created and managed? There are ten good reasons to switch to a specialist asset management system. 1. Corporate governance (sigh!) Red-tape, red-tape and more red-tape! It’s everywhere these days. With companies of all sizes subject to increased scrutiny by government agencies, regulatory boards and investors, accountability and transparency is key. With Big […]

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Causes Of Corporate Accounting Scandals

When a corporation deliberately conceals or skews information to appear healthy and successful to its shareholders, it has committed corporate or shareholder fraud. Corporate fraud may involve a few individuals or many, depending on the extent to which employees are informed of their company’s financial practices. [ Directors of corporations may fudge financial records or disguise inappropriate spending. Fraud committed […]

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Checklist that highlights “Best Practice” for effective Credit Control

Below is a checklist that highlights “Best Practice” for effective Credit Control. Decide which customers will receive credit – credit is not an automatic entitlement. Use a credit application form along with following documents: Customer Visit Report (to be completed by Sales Representative. This report should contain key information about a prospective new customer i.e. length of time in business, […]

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8 Accounts Receivable Management Strategies for a Best-in-Class Process

What used to be considered a back-office function has transformed into one of every organization’s largest assets: accounts receivable. Why? Because it deals with one very important asset that doesn’t appear on the balance sheet — customers. In order to capitalize on the assets of AR, organizations need best-in-class management strategies in place. These eight strategies are excellent starting points for […]

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5 Invoicing tips for small businesses

I have developed a list of invoicing tips that could help any small business get paid faster. It is important to remember that at the end of the day any tip about better invoicing should be focused on the ultimate goal of being paid the full amount, on time. Pick your credit terms wisely The shorter the credit terms on […]

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6 TIPS TO MANAGE YOUR PETTY CASH

Petty Cash is a small amount of cash that a business has on hand to use for transactions where the amount involved makes payment by anything other than cash a pain! Petty Cash has two uses: To provide change for customers paying cash To pay for small purchases which require cash (e.g. tea and coffee supplies, parking) Did you know […]

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Bank reconciliation procedures and process

Bank reconciliation procedures Bank reconciliations should be done on a monthly basis and these must be duly signed for by at least two different people. Some of the normal standard routines to be followed regarding bank reconciliations are as follows: Ensure that all bank statements for each bank account are at hand before attempting the reconciliations Details from the source […]

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Bank Reconciliation Statements

Purpose of a bank reconciliation It should be prepared regularly as part of the internal control system of the business to check: the accuracy of the cash book the accuracy of the bank statement that undue delay is not occurring between payments, receipts and their clearance by the bank to discover payments made and items received by the bank not […]

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10 Budgeting Tips

Setting and sticking to a monthly budget can give you peace of mind. With a budget in place, you can more effectively manage your money, save for large expenses, and prepare for emergencies. Below are ten budgeting tips. 1. Be Realistic About Your Budget If you’ve never made a budget before, you need to start by forecasting how much money […]

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Monthly financial reports

The monthly financial reports will cover transactions on a period basis starting on the first day and ending on the last day of each reporting period. The monthly financial reports normaly include: cash book budget summary expenditure summary bank reconciliations 1. Cash book Shows the dates, all the cheques in chronological order including cancelled cheques, bank transfers, details of payment, amount […]

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