Each small, medium and large size company needs accounting and bookkeeping services to keep track of its financial records. Maintaining well-defined books of account is more essential when your business deals with both national and international clients. The main aim of bookkeeping is to provide a clear insight into the business, predict its future growth. The UAE government facilitates businesses if they maintain accurate accounting records. It is mandatory for all companies operating in the United Arab Emirates to safeguard their bookkeeping records as per IFRS. In this article, we will discuss how you can outsource the best accounting services in Dubai.
Basic Difference Between Accounting and Bookkeeping
The bookkeepers and accountants focus on growing and maintaining your financial cycle. These two terminologies are taken as one, but there is a very basic difference between bookkeeping and accounting.
Bookkeeping is a method of recording daily financial transactions to administrate accounting matters. This is the key to growing a successful business anywhere in the world. The bookkeeper focuses on these activities:
- Record day-to-day financial transactions.
- Posting payments and receipts.
- Generating sale and purchase invoices
- Maintenance of financial statements
- Settle down payroll
Accounting is a higher-level task of monitoring and generating financial records and performing audits. Based on bookkeeping statistics, accountants analyze business performance and indicate future projections. Accounting services include:
- Financial health check-up
- Review adjusting entries.
- Indicate business growth opportunities.
- Prepare income tax returns
- Analyze costs of operations
- Take financial decisions
Maintaining Accounting Records Under VAT Laws
In the United Arab Emirates, companies should maintain their financial records to ensure authorities about the provision of laws. Under the commercial companies’ law, businesses must fulfill the requirements of International Financial Reporting and International Financial Reporting Standards (IFRS). Federal law no 2 of 2015, defines a checklist for accounting and bookkeeping services in UAE. Article no 6 on accounting records stated that a company must maintain its book of accounts at headquarters for at least 5 years by the end of the financial year. Get more information about VAT consultancy from here.
The records should be in electronic form and comply with all IFRS standards as per the legislations of ministerial decision. This proactive approach is essential to timely understand the financial position of the company.
Consequences of Non-compliance in Bookkeeping
The accurate records of account ensure partners, shareholders, and relevant authorities that the books of the company are properly maintained in accordance with the laws. If a business fails to deliver this fair reporting, the government charges fines and penalties as per UAE law. As per federal law, no 2 of 2015, administrative penalties for non-compliance in bookkeeping may result in a fine of AED 50,000 to AED 500,000.
According to Article 349, If a business fails to submit their financial records within the deadline then they have to pay a fine of AED 20,000 to AED 100,000. To safeguard your earnings from these unnecessary penalties, you could hire a team of experts for accounting and bookkeeping services in UAE.
Main Aspects of Bookkeeping and Accounting Services
Maintaining the books of accounts is a conglomeration of thousands of financial tasks. This provides a clear indicator of the business’s financial standing and plans. Accounting and bookkeeping companies in UAE, layout the following elements to the business:
- Adjust Journal Entries
- Prepare Financial Statements
- Sales & Revenue Posting
- Assign Items to Appropriate Accounts
- Bank Reconciliation Statements
- Assist in Payroll Accounting
- Accounts Payable & Receivable
- Set up year-end financial reports
- Ledger & trial balance reporting
- Adjust debtors & creditors statements
- Budgeting and forecasting
- Daily or weekly accounting entries
- Balance sheets & cash flows
- Depreciation & Fixed Assets
- Profit and Loss statements
- Admin & General Expenses
- MIS Reports assessing performance
- Cash Management
- Prepare Vendor & Customer Files
- Owner equity statements
- Monthly management reporting
- Many other financial activities, etc
Why You Should Outsource Your Bookkeeping
In small businesses, financial transactions are simple and easy to handle but multi-structured firms have thousands of complex transactions daily. That’s why recording their books of account in the required manner as per UAE law is a much more difficult task for businesses. The best possible solution is to outsource accounting and bookkeeping services in Dubai and take advantage such as:
- Facilitate you in remote bookkeeping.
- Saves your time and money.
- In-depth analysis of books of accounts.
- Get expert financial consultancy.
- Qualified accountants handle your records.
- Focuses on international and domestic laws.
- Guaranteed best accounting solutions.
- Minimize the risk of financial errors in accounts.
- Assist you in the reconciliation of statements:
- Notifying any fraudulent activities in records.
- Safeguard business from fines & penalties.
What to Look for in Professional Accountants in UAE
There are certain things you need to focus during selecting accounting and bookkeeping services for your business. The foremost thing to examine is that they have a team of well-qualified and experienced accountants. You may also ask them about the prior industries they have successfully worked. If they have experience in the same industry in the past, this is an added benefit for your business.
The client’s online review and testimonial also assist you in choosing the best accounting firm in Dubai. It is important to look at the awards and professional certifications of the firm. If you are getting all these entities in a firm, you may set up a meeting with the consultants. It is the perfect way to discuss whether their accounting packages are meeting your budget. After getting a final quote, you may outsource the firm for your accounting and bookkeeping services in Dubai.
BestaxCA – A Leading Accounting Firm in Dubai
The BextaxCA is an award-winning and certified financial consultancy firm in Dubai. The team of professional chartered accountants serves all of its domestic and international clients in the best manner. It is renowned as one of the best bookkeeping and accounting firms in UAE, due to its reliable commitments. In addition to analyzing your current financial records, the experts forecast your future financial situation as well.
Get in touch with the leading accounting firm in Dubai right away.
Call +971 56 798 1808