Accounting in UAE
Accounting in UAE follows strict rules and regulations. You must also keep your business’ accounting data for a stipulated time to comply with the laws.
What is Accounting?
Accounting is a systematic way of identifying, classifying, recording, authenticating, and assessing a business’ financial transactions. Regularly updating books gives you the latest information on your profit or loss, value and type of assets, liabilities and shareholders’ stake.
Regular updating of books of accounts is a time-consuming and complex task. It means using methods to record and analyse transactions, financial data, and Value-Added-Tax (VAT). It also involves conducting internal audits, preparing reports, analysing monetary data, Etc.
Accounting tells you about a business’ assets, how they are financed, and the results of using those assets. Timely and proper accounting in UAE helps you improve your business’ goodwill, financial state, credibility, auditing, and reporting.
As you can see, you must know a lot of accounting principles and rules to do it right. This is why many business owners use expert accounting services firms to manage their books.
These professional firms provide top-notch services in accounting for UAE businesses. They employ a team of financial and accounting experts to handle every aspect of their client's accounting. You can rely on them for expert services in:
- Bookkeeping
- Accounting
- VAT accounting
- Auditing
Accounting Methods
Accounting methods assist you in streamlining the recording of your income and expenses. Depending on your business needs, you can use either Accrual Accounting or Cash Accounting methods.
Cash Accounting Method: This basic method is helpful to small and new businesses. It records your revenue or expenses on receiving or payment of money respectively.
Accrual Accounting Method: This method records your revenue or expenses when you receive a bill or raise an invoice respectively.
Are Accounting Services Good for UAE Businesses?
Hiring an experienced firm of services in accounting in UAE is a forward-looking move for any business. The firm can help you grow your business by providing:
Bookkeeping Advice: The firm provides updates and keeps your books relevant. It helps avoid compliance-related issues or delays in account filing.
Cash-Flow Advice: The firm advises on streamlining of cash flow. It also helps you resolve cash flow or liquidity problems.
Tax Advice: The firm provides timely tax advice and helps prevent fines and penalties.
Advice for Business Growth: The firm assists in creating a strategic business growth plan. They help you solve issues, optimise business operations and capitalise on new opportunities.
Benefits of Accounting Services
Many multitasking business owners need help to compete and do the accounting tasks simultaneously. It harms their compliance. Hiring accounting services solves the issue.
As per the UAE’s Commercial Company law, every company must maintain its books for at least five years. Failing to do so can get you fined.
Your accounting services firm can take care of this issue. It also saves time and operating costs and helps increase profits.
Here are the benefits of services in accounting for UAE business:
- You get to focus on the business’ core activities
- Use the latest accounting software
- Recording of financial transactions and report preparation by experts
- Increase your business’ productivity and efficiency
- Confidentiality of the financial information
- Affordable accounting services
Be careful in selecting a firm providing services in accounting in UAE for your business. Make sure they can fulfil your business needs and, if needed, offer customised solutions to you.