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Our customized accounting services ensure the records of your corporate financial transactions are correct and current. Whatever the size of your enterprise, our services help you make intelligent decisions about future costs and measure economic results. Following International Financial Reporting Standards (IFRS), a team of experienced certified accountants, ensures the financial soundness of your business. Count on us for thorough and dependable financial control.
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The Ultimate Guide to Business Accounting Services in Dubai
To ensure the smooth running of your business in Dubai along with legal compliance, accurate financial records and adherence to UAE accounting standards are essential. Proper filing of taxes, and in particular VAT is essential to avoid heavy penalties or the risk of having your business license suspended.
Outsourcing accounting and bookkeeping services has become, in effect for many firms in Dubai the solution to all these problems. Outsourcing is the practice of engaging an outside accounting firm to perform these important financial tasks. Not only does this ensure greater accuracy and compliance, it also reduces pressure on internal resources so your business is able to concentrate more on its core operations.
Outsourced business accounting services in Dubai provide an affordable and convenient way to keep your books clean, stay within the law, and reduce legal liability. As the world of financial management is so complicated, by using external talents businesses can lower the chances of simple mistakes and keep themselves in line with UAE accounting standards.
Accounting and Bookkeeping Policies in Dubai
The UAE’s Generally Accepted Accounting Principles (GAAP) are developed and maintained by the International Federation of Accountants (IFAC). The following principles are important in regard to income recognition and asset/liability measurement. As for income, it is recognized upon actualization or realizable; expenditures are accepted when incurred. Asset and liability measurement generally follow fair value, with the exception of many financial instruments and leases. These latter are all measured at amortized cost using effective interest rates instead.
Doing business in Dubai is an exciting and rewarding experience, but it calls for full adherence to accounting compliance standards. Here are five essential policies for businesses:
Record Keeping Policy
Under UAE Federal Law, financial records and statements must be kept for at least five years–the Ministry of Finance suggests ten as necessary to ensure tax compliance.
For transactions up to AED 1,000 a receipt is accepted as supporting evidence. A receipt must contain name of business, date issued and issuer’s signature as well recipient details.
All bank transactions must be accompanied by a statement of dates, name and address of business concerned in the transaction, which shall contain details. Electronic records are acceptable.
Abiding by the Value Added Tax (VAT) regime, launched on January 1 of this year is imperative. All eligible companies have to register for VAT. To do business, implementing a VAT Return Policy consistent with industry best practices is necessary.
Other Supporting Documents
For businesses not registered for VAT, essential documents include invoices, credit notes and contracts as well as original bank statements.
These policies provide a basis for proper accounting and help businesses abide by UAE standards of accounting. This makes their financial information as clear and trustworthy as possible.
How to Keep Your Business Accounting Records in Order in Dubai
Most small businesses have trouble handling the internal accounting work, which can lead to stress and wasted time. While some choose this approach to save money, the complexity of accounting and the dedicated time it requires make alternative options worth considering:
1. Hiring Accounting Staff:
According to the size of this company, hire an in-house permanent accounting person or a team.
Suitable qualifications should include experience in reconciliation, audit of accounts payables and receivables; basic bookkeeping skills; financial reporting.
An accountant capable of handling all accounting work is very reliable.
2. Outsourcing Accounting Services:
Relying on third-party firms specializing in bookkeeping, tax preparation and financial statement preparation to take over accounting functions.
This means that accounting firms can take over some of the day-to-day work, providing flexibility to outsource all or part of your accounts.
Popular Outsourced Accounting Services:
- Payroll: A complex task that requires specialized knowledge, outsourcing payroll is a popular choice.
- Accounts Payable: The department that handles payments on bills benefits from being outsourced to detail-oriented experts who have a thorough knowledge of tax law.
- Accounts Receivable: Businesses that offer credit for services and products must carefully manage accounts receivable.
- Bookkeeping: Electronic recording of financial transactions is frequently employed when outsourcing to virtual accounting companies.
- Budgeting: Financial planning, income and expenditures.
- Tax Accounting: Computerized handling of tax returns, and calculation of income taxes payable.
Outsourcing accounting services often proves cheaper than maintaining permanent staff. Businesses can outsource to external experts and concentrate on the things they do best.
Benefits of Outsourcing Business Accounting Services in Dubai
Picking the right accounting firm is an important first step if you are considering outsourcing your business services in Dubai. Such firms are equipped with experienced accountants capable of handling diverse aspects in financial accounting and reporting.
Online outsourcing of bookkeeping or accounting services has streamlined the process, and there are compelling reasons to advocate for outsourced accounting services in Dubai:
- Accounting and finance operations benefit from the low-cost business model of outsourcing. Not having to commit a full-time employee prevents major associated costs. The salary of one full-time staff member would exceed a staggering AED 293,638 per year.
- Getting permanent employees to handle account management means incurring extra costs, including a portion of corporate pension and health insurance expenses, hiring expenditures, and the cost of training. Because multiple hires are required, salary outlays may be increased.
- These overhead costs are reduced by outsourcing, which contributes to increased profits. Moreover, outsourced accounting services work on a contract basis and can adapt to changing economic pressures. Many business people also find the service economical for their needs.
Acquire Professionals and Experts
Working with an experienced agency for your accounting means that you can rely on qualified professionals to be a huge help in any profitable venture. Accounting experts play a crucial role in:
Research and Development of Financial Models:
Professionals play an important part in building and refining financial models of major significance for strategic planning.
Consulting on Operational Improvements:
It is operational improvements identified and implemented from expert advice that contributes to overall efficiency.
Implementation of Business Process Reengineering Tools:
Accounting experts provide assistance in introducing tools related to business process reengineering (BPR), making for flexibility and growth.
Capable accountants also bring your accounts into line with the broad objectives of business, helping you invest, save money and make informed choices. They maneuver through the minefields of tax and law, providing important assistance. Go for a qualified accounting firm, and have them certify offshore licenses to maintain credibility.
Focus on core business activities.
Bookkeeping is important, but why complex? Accountants have heavy responsibilities, comprehensively documenting all procedures. This is especially true of companies with a heavy transaction volume.
Efficient accounting requires more than 60 hours per week’s work dealing with various documents, requiring great attention to detail. This overwhelming demand takes attention away from more critical aspects of business like customer service and relationships.
Such a burden can be relieved by outsourcing the accounting operations, thus freeing up time for important business functions. This helps you focus on core operations, orienting business development by improving customer service and strategic alliances.
Adhere to Statutory Requirements and Regulations
Have you ever received a tax prompt from the authorities because your financial records are outdated? The implementation of VAT in the UAE back in 2018, and corporate tax hopefully to start up this time next year make good bookkeeping a necessity. Preparation is key: Running your company’s accounts proactively enables you to prepare yourself for tax audits, covering the rules governing taxes and corporate obligations.
Legal Advantages of Outsourcing
Meeting Statutory and Regulatory Standards: Outsourcing helps your company follow standards and reduces the legal risks.
Avoiding Penalties: Thanks to outsourcing, the timely payment of bills can save penalties and interest charges.
Compliance with Deadlines: It is simple to avoid non-compliance risk by outsourcing all due filing dates.
Mitigate Labor Shortage Challenges
Attracting and keeping talented accounting staff is difficult in the competitive UAE environment. It Therefore serves as a tactical solution, not only allowing access to competent accountants that are out there in the country but helping to ease concerns over talent shortages.
Harness Cutting-edge Technology
Through outsourcing accounting services, we can get a hold of the latest technological developments. By using cloud computing and modern software applications, virtual teams improve operational efficiency. Because accounting agencies actively promote the adoption of new technologies, they make constant upgrades and further financial investment unnecessary.
Benefits of Technology Integration
Automation with Specialized Software: Simplifying the invoice, inventory management and computations.
Cloud-Based Services: Cloud-based service keeps your company on the edge of technology, in bookkeeping and accounting as well as data storage and financial tracking.
Work With the Best Accounting Outsourcing Company
Partner With The Most Competent Service Providers When Thinking About Outsourcing Business Accounting Services In Dubai, how can you get the most benefit from this?
GCS Group provides robust business support services to unleash the potential of your company. Our professional staff is able to provide you with all kinds of services which include accounting, bookkeeping, payroll and VAT. Our overall goal is to provide strategy consultation, so that you can concentrate on the main work of your business.
Take the road to optimize your business by booking a free consultation with one of our experts. We are here to understand your demands and plan our services so as having your business properly established.