Generally, a backlog refers to an order or document that needs to be completed. This is why backlog accounting is essential. In addition, it represents revenue that the company can earn but has not earned. This is because the company cannot handle the increase in orders or workload, which is outside of its capacity, or improper management can cause this problem.

The increase in backlog can be attributed to several factors, including:

  • Establishing a new sales region.
  • Growth in the investment of sales staff.
  • A reduction in product prices.

Benefits in Updating of Backlog Accounts

  • Simple Audit Process

    As all the earlier details would be accessible to the auditor, updating backlog accounts will simplify it for them to audit the firm. It will also help the auditor compare the past information obtained by the business and draw a trend line for the organization.

  • Supports Decision Making

    Reports drawn from the accounts will assist the organization in making tactic decisions for the company's benefit. For example, with an immense cash balance, it can opt for investing in any project, or with a low cash balance, it can avail facilities to guarantee that the business runs smoothly.

  • Better Management of Cash Flow

    Updating backlog accounts will provide the management insights as to how the association managed to handle and advantage from the funds and studying from it so they could better manage the funds of the organization in the present scenario.

  • Saves Time

    Suppose there is a failure in updating backlog accounts, which results in the financial statements of the organization being unavailable. In that case, the administration doesn't need to waste the valuable resources producing the data for the prior duration to be able to compare them with the most recent reports. Which could disrupt the entirety of the company’s critical production cycles?

  • Data Retrieval Made Easy

    Suppose a certified accountant has been updating backlog accounts, and it's updated. In that case, it will become more convenient for the management of the business to sort out the earlier information in case they decide to chart a trend line or analyze the clients' preferences.

  • Prevents Data Duplication

    Failure to update backlog accounts makes it feasible for small-scale industries to miss recording certain transactional information. At this point, the association might think it doesn't have to record the entry; however, it might require it later. Later, while updating backlog accounts, any duplicate entry is immediately eliminated.

Why Do Clients Need a Backlog Accounting Service Provider?

To execute smooth business processes efficiently, valuable clients require backlog accounting services. Among them are:

  • Resources and efforts are needed to accomplish it
  • The best approaches to managing a backlog are often unknown to business owners
  • Keeping accurate books of accounts is neglected by companies due to busy schedules
  • The in-house accountant was inefficient and inexperienced in supporting the company's books of accounts
  • In most organizations, accountants leave the organization without completing the accounts
  • If you reconcile VAT incorrectly and incorrectly, you may be penalized


As one of the leading Accounting and Auditing consultants, AMCA 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.

Periodically, we finalize the books of account, primarily on an annual basis. Among the reports we generate are:

  • Balance sheet
  • Comparative report on expenses
  • Breakeven point calculation.
  • Sales and expenses comparison report.
  • Profit & loss account statement.
  • Cash flow statement.
  • Accounts receivable/ payable aging report.
  • Financial proportion analysis.
  • Working capital analysis
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