What is an Accounting System Analysis?
An accounting system analysis simply means the process of evaluating and analyzing the effectiveness of the accounting system followed by a company. Carrying out an accounting systems analysis helps organizations to identify the weaknesses present in the current accounting system, and how they can eliminate such flaws to achieve anticipated profits. Based on the results of the accounting systems analysis, you can make necessary changes to the accounting systems and effectively achieve the desired results.
Key Parts of Accounting System Analysis
The process of carrying out an accounting system analysis involves a series of steps. Most of these steps are part of the standard procedure followed by most accounting companies in Dubai to carry out accounting system analysis. The following steps are involved in an accounting system analysis:
1. Analysis
An accounting system in essence is the concrete base every business relies upon. Organizations measure their business performance and financial position through the accounting process. Since the business environment in Dubai is highly dynamic the requirements of businesses may also keep change warranting an analysis. Apart from that companies must analyses accounting systems from time to time to identify the changes needed to be made in tandem with the changes in nature and type of business transactions.
2. Design
After the analysis process is done, you can start the design of the accounting system. The newly designed system should be robust enough to help you meet the company’s core requirements and the needs of the individuals handling key responsibilities in the organization. The new design should accommodate revised & updated accounting standards and other updates such as VAT ratings. Accounting & bookkeeping firms in Dubai can help you design the accounting system of your company.
3. Implementation
We are done with the analysis and designing part, which means it’s time to implement the new accounting system in your company. Implementation is a time-consuming process. Moreover, the system may require changes in some areas even after the implementation. Training must be provided to your in house accounting team about the newly implemented accounting system. The time required to complete the implementation is also dependent upon the level of complexity of the system. Once all these steps are executed businesses can expect growth without facing any potential obstacles.
