How Accurate Are Your Business Financial Records?

Do your accounting procedures adhere to UAE accounting standards? Do you accurately file your taxes and VAT? Numerous businesses in Dubai have bookkeeping and accounting problems, which can result in both legal and financial problems. Inadequate bookkeeping procedures may lead to severe fines or even license suspension for your company.

How Can That Be Avoided?

For many businesses, outsourcing bookkeeping and accounting services has become the best option. You can concentrate on expanding your company while guaranteeing adherence to UAE regulations by working with an outside accounting firm. To find out how GoGulf Consultancy can assist with Dubai’s outsourced business accounting services, continue reading.

Dubai’s Accounting and Bookkeeping Regulations

The International Federation of Accountants (IFAC) upholds the UAE’s unique GAAP accounting standards. All government agencies and state-owned businesses must adhere to these rules. Among the fundamental ideas are: When income is earned and obtainable, revenue is recognized. When expenses are incurred, they are recognized. With the exception of financial instruments and leases, which use amortized cost, assets and liabilities are measured at fair value. Although managing accounting policies can be challenging, operating a business in Dubai is exciting. You must abide by the following five important policies

Policy for Record Keeping

Businesses are required by UAE Federal Law to keep financial records for a minimum of five years. To guarantee adherence to tax laws, the Ministry of Finance advises maintaining records for ten years.

Cash Invoices 

For purchases over AED 1,000, a receipt must include: Name of business Date of publication The signature of the issuer Details of the recipient The amount and purpose of the transaction

Transactions in Bank

Bank statements that support bank transactions must contain the following information: Date of transaction The recipient’s business information The transaction’s nature and amount Maintaining digital records facilitates accurate financial statement preparation and budgeting.

Returns on VAT

Businesses in Dubai are required to abide by UAE VAT laws as of January 1, 2018. Businesses that fit the requirements must register for VAT. Tax compliance is ensured by having a VAT return policy that follows industry best practices.

Additional Supporting Documents

Businesses must maintain original documents, including:

• Invoices
• Credit notes
• Contracts
• Bank statements (for non-VAT registered businesses)

How to Keep Orderly  Accounting Records for your company in Dubai

Internal bookkeeping is a common attempt by small businesses, but it can be stressful and time-consuming. Instead, think about these choices:

Hiring Accounting Staff

Employing Accounting Staff Having an internal accountant guarantees that day-to-day financial operations are handled. Look for experience in the following areas when hiring: Making amends Receivables and payables Accounting Reports on finances On the other hand, outsourcing might be a more affordable choice.

Accounting Service Outsourcing:

Accounting outsourcing assigns financial responsibilities to outside companies with expertise in: Bookkeeping Getting ready for taxes Reports on finances Companies have the option to outsource all or part of their accounting functions. Typical services that are outsourced include: Payroll management is making sure that deductions, bonuses, and salaries are processed correctly. Accounts Payable: Overseeing tax compliance and supplier payments. Accounts Receivable: Monitoring and obtaining client payments. Bookkeeping: Digitally documenting financial transactions. Planning financial objectives and expenses is known as budgeting. Tax accounting: Creating and submitting corporate and VAT tax returns.

Advantages of Outsourcing Business Accounting Services in Dubai

Economical

Compared to hiring full-time staff, outsourcing is more cost-effective. The annual cost of a permanent accountant can reach AED 293,638 and includes: Pension Health coverage Costs of training Outsourcing lowers overhead costs because you only pay for the services you require.

Work With Professional

Collaborating with qualified accountants provides access to expertise in: Development of financial models Enhancements to operations Reengineering business processes Outsourced accounting companies help you maximize your financial performance and guarantee adherence to UAE regulations.

Keep Your Attention on Your Business

Bookkeeping and accounting take a lot of time. While experts manage financial records, outsourcing enables business owners to concentrate on partnerships, customer service, and expansion.

Fulfill Legel Obligations

Accurate financial records are required by Dubai’s corporate tax and VAT regulations. Businesses benefit from hiring out accountants: Prevent fines Meet the deadlines for filing taxes. Cut down on legal risks

Take Action On Labor Shortages

There is a scarcity of qualified accountants in Dubai. Businesses can access qualified accountants through outsourcing without having to deal with the difficulties of hiring new employees. .

Utilize Most Recent Technology

Accounting firms make use of cutting-edge technologies, such as Using cloud-based accounting to store financial records securely Systems for automated invoicing to expedite payments Tools for inventory control and financial monitoring Businesses benefit from the newest accounting tools without incurring extra costs, as opposed to investing in pricey software.

Collaborate With The TOP Accounting Outsourcing Firm

It’s a good idea to outsource business accounting services in Dubai, but picking the right partner is essential. Accounting and bookkeeping are among the trustworthy business support services offered by GoGulf Consultancy. Processing payroll and registering and filing for VAT Services for tax advice With GoGulf Consultancy, take charge of your company’s finances by scheduling a free consultation with our professionals right now.