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.