What is Backlog Accounting?
Backlog accounting is a method of accounting for work that has been contracted but not yet completed. In this method, the value of the contracted work is recognized as revenue in the period in which the contract is signed, rather than when the work is actually performed. The value of the contracted work that has not yet been performed is referred to as a “backlog.”
Backlog Accounting in Dubai is a beneficial accounting method in construction and project-based industries as it offers an accurate forecast of future revenue by recognizing revenue at the contract signing. However, it’s essential to note that this method may not be suitable for all industries, and alternative methods such as the percentage-of-completion method may be preferable. Furthermore, companies should adhere to relevant accounting standards like IFRS or GAAP when reporting revenue and backlog.
Importance of Backlog Accounting
- It provides information necessary for decision making.
- It enables systematic comparison of business revenue and costs.
- It offers a means to reduce overhead expenses, thus increasing a company’s profit.
- It offers current and up-to-date information about the company’s status.
- It ensures business compliance and sustainability.
- Providing a more accurate picture of a company’s future revenue stream.
- Company can better match its revenue with the costs associated with the project.
- Provide a clearer picture of its future financial performance.
Best Backlog Accounting Services in Dubai, UAE
Backlog Accounting in Dubai allows proper tracking and helps you to build the future by managing cash flow and increasing productivity. As one of the leading Accounting and Auditing consultants, Elevate provides all types of Backlog Accounting services in Dubai, UAE. Our well-experienced experts are fully equipped with the knowledge and technical expertise to assist our clients with minimal cost.
Benefits of Backlog Accounting services in UAE
- Saving on hiring cost
- Easy Audit Process
- Time Saving
- Future forecast
- Data retrieving
- Business Analysis
- Avoid the fragility of data
- Quick Support to Compliances
Our approach is lined for providing your company with Backlog Accounting services in UAE
- Requirement Analysis
- Document collection
- Transaction accounting
- Preparation of report
- Final Discussion