Accounting Issues That Need to Be Fixed

Accounting Issues That Need to Be Fixed

Several issues may occur in your business that will require the attention of accounting services in Dubai. Misclassification, for example, may result from the misclassification of expenses in your previous financial statements. In these cases, you must take steps to correct the issue. There are several ways to rectify the problem. Here are some examples.

Changes in tax laws

Whether you are a small business or a large corporation, changing tax laws can significantly impact your accounting and financial reporting. New legislation can make the tax year much more complex, and accounting teams must be prepared to apply these changes. The COVID stimulus bill, for example, has five hundred and nineteen pages of new provisions. These changes affect everything from the deductibility of PPP expenses to the potential for second-draw PPP loans. Additionally, companies must navigate changing trade and tariff policies that impact their businesses.

Changing regulatory landscape

As the accounting industry moves toward a more transparent financial reporting system, one of the biggest challenges is determining how to comply with increasingly sophisticated and complex regulations. New forms of regulation are emerging, including integrated reporting and supply chain transparency disclosures, which are required for many companies. Members of accounting organizations are already engaged in this transformation, and more changes are likely in the future.

Expense accounting

More accountants are working from home in today’s world, creating new expense management challenges. For example, many employers pay for employees’ home office supplies but have little or no control over the purchases made by their employees. Clearly defining how expenses are managed and disseminating policy changes can help eliminate confusion and make expenses easier to manage. Lastly, managers should keep an eye on spending and improve monitoring systems to prevent fraud and waste.

The morale of your accounting team

Employee burnout is a common problem in the accounting profession. Heavy workloads, unpredictable roles, and a changing regulatory landscape contribute to the issue. Low morale is detrimental to the performance of the accounting department. The issue is compounded by understaffing. On average, businesses with less than DH25 million in revenue employ three people in finance roles, while those with Dh50 million to Dh499 million in annual revenue employ thirteen employees.

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