First off, as per the UAE commercial company law, maintaining the book of accounts is obligatory. Accounting & financial reporting periodically lets the investors assess the financial position of the company, analyse investment opportunities and minimise unnecessary expenses. Besides that, generating financial report helps organisations in:
- Enhancing the debt management of a company.
- Managing the liabilities through loan management and credit management.
- Real-time tracking of the accounts, which facilitates liquidity management. If the businesses are in the know of the available funds, they can devise expansion plans.
- Determining the trends of past and future which enables them in business forecasting by performing comparative study.
- Business planning and making sound business decisions as it provides companies accurate information on the availability of capital.
- Boosting quality of business decisions taken by public and internal management.
- Maintaining transparency with customers.
- Maintaining the share prices of the firm and treating all the investors equally.
- Bringing down the employee iteration rate as it keeps the employees informed about company’s growth potential, thus increasing job security.
