Accounting Services in UAE

Every organization requires information to go about its business. The better the data can be found out about the company, the better the management's decisions will be. This information will help the company know the company's current financial statures, assist in developing a budget, and prepare a plan of action for the company's future. All these benefits can be obtained by availing the Accounting services for the business.

The Middle East has become a breeding ground for Business as there are a number of businesses that are coming in from all over the world in the country, both national and international, which has led to considerable demand for Accounting and Bookkeeping services in the country. This is why it is recommended that every Business should take the assistance of a Reputed Chartered Accountancy firm so that the development of the company is not hindered.

What does one mean by Accounting Services?

For any company to function, it needs to analyse all the information generated by its various business processes. This is where Accounting comes into play. Accounting is a functioning in which all the data of the company is accumulated, summarized and analysed. The data analysis provides various insights which can be used in making a decision for the company's future. This is why the accounting function is so essential and is considered the lifeblood of a company.

The Accounting function may sound like a straightforward and easy function which it may be at the start of the Business, but as the Business grows, the Accounting and Bookkeeping of the company will grow more complex. Accounting is one of the functions of a business that cannot be disregarded. It forms the basis of almost all the decisions taken by the management of a business.

The accounting function can be a very repetitive function, but any business management cannot be overlooked. This function is so necessary for a business that it has been dubbed as the language of companies. A keen and learned accountant can find out any information about the company, which makes the accounting function very important.

What are the Documents to be prepared during the Accounting Process?

Whenever the accounting function is performed, then the. As a result, there are mainly three different types of report which are prepared. These are:

  1. Income Statement
  2. Profit and Loss Statement
  3. Balance Sheet

Each of these statements provides in-depth information about the business's work and assists the management in taking decisions for the future of the Business.

The Income Statement provides an insight into the total income of the Business in a particular time frame. This time frame may be a business quarter, a financial year or any other duration as decided by the management.

The Profit and Loss Statement, also sometimes known as Cash flow Statement, provides the information that if the Business is on the correct path of growth. Suppose the profit of the Business turns out to be less than the losses incurred by the Business. In that case, the management must do a further analysis of all the functions so that the Business regains the momentum before it is too late for the Business and the Business has to shut down. This is the reason a business needs to create, maintain and improve the cash flow of the business, which will, in turn, streamline the business processes and will also increase the profits of the company.

A Balance Sheet provides a comprehensive picture of the company as it lists all the assets and liabilities and their present worth. It also provides the shareholder's equity and also shows the total investments made by the investors. The balance sheet, when used alongside the different financial reports, provides a complete financial picture of the Business and also helps the management in finding out the various financial ratios.

The statements as mentioned above or documents of the company are very necessary for both the management and the investors of the company, both present and future investors. This is why the importance of these three company statements cannot be more stressed.

People often get confused and proclaim that the Bookkeeping and Accounting functions are one and the same. This cannot be further than the truth.

What is Bookkeeping, and how is it different from Accounting?

Bookkeeping is a function that keeps track and records all the transactions of a business. It is a bookkeeper’s job to provide all the important transactional information and data of a business to the accountant. Bookkeeping mays sound or feel very similar to accounting, but they both have their own differences.

One of the significant differences is that in bookkeeping, all the business's financial transactions are recorded by the bookkeeper. These transactions are then presented to the accountant, who will further analyze the data.  The job of a bookkeeper is only to maintain a record of the transactions of the Business, whereas the analysis part is done later during the accounting process.

The job of a bookkeeper may sound very simple and easy right now. Still, the bookkeeper has tremendous pressure as it forms the basis of all the accounting activities of the company, and by extension, is responsible for all the decisions made by the management.

Why should a business avail Accounting and Bookkeeping Services?

Bookkeeping and Accounting services are very important for every business and should be followed by the management to the letter. Bookkeeping and Accounting may be elaborate and time-taking, but they also form the basis of all the management's decisions. It will assist the management not only in taking the decisions for a better future of the company but will also help in streamlining all the activities of the Business.

Some of the benefits of a Professional Bookkeeper for a business are as follows:

  1. An expert bookkeeper will record and maintain all the transactions o the Business in a way that is compliant with the rules and regulations of the jurisdiction.
  2. It will provide assistance to the accountant and will also help collect the required information.
  3. It will also help future investors as all the transactions would have been recorded by the business management.

To know more advantages of Bookkeeping for a business, please refer to our blog. Why should you hire a professional Bookkeeper for your company?

The next step after the Bookkeeping function is the Accounting Function. The various advantages of the accounting function for a business are:

  1. One of the most significant advantages of Accounting is that they help in the preparation of the various financial statements, which help the management in understanding the present financial situation of the Business.
  2. These financial statements also help the management make a decision for the future of the Business and help the management keep the company on the right path.
  3. A business needs to deal with matters of taxes at some time, and the Accounting Function helps a business to prepare and maintain all the necessary reports which will be used to assess and file taxes.

There are many more advantages of availing the Accounting Function for a business. To know more about the advantages of the accounting functions, refer to our previously published blog, Why is Accounting necessary for the Business?

What are Accounting Standards?

Businesses need to follow the rules and regulations which have been set by the jurisdiction or will have to face huge penalties. In the United Arab Emirates, businesses need to follow IFRS or International Financial Reporting Standards.

These are standards for Accounting Standards that need to be followed by each and every company in the UAE. The IFRS has been issued by IASB or the International Accounting Standard Board and has been ratified by the IFRS Foundation. The IFRS slows for the easy understanding of the Business's financial statements if the Accountant changes or the accounting reports are analysed in a different jurisdiction.

The IFRS provides a sense of consistency as about 90 countries in the world use the International Financial Reporting Standards for their accounting requirements. For more details on the accounting standards to be used by private businesses, refer to our blog Accounting Standards for Private Companies in the UAE.

What is Outsourcing Accounting, and how can it benefit your Business?

There can be instances when it is not possible for a company to keep an in-house accounting department. This may be due to the financial constraints of a business or due to any other reason.  In such a situation, it is recommended that the company should outsource its accounting function to a third party.

In this process, all the accounting functions of the company are outsourced to a third party. This helps in freeing up the company's human resources and will also allow the management to focus on the company's growth and development properly. Outsourcing the accounts of the company to a third party will also help the company to follow all the compliance requirements of the jurisdiction. It will also reduce the costs and time incurred in the accounting process.

Availing outsourced accounting services can be very beneficial to a company. Some of the benefits of outsourcing the accounting process are as follow:

  1. It will play a huge part in reducing the costs of the Business and will also allow the management to focus on the business processes properly.
  2. As the accounting function of the company is being handled by a third party, the management can be assured that all the accounting processes will be handled by expert professionals who will use all the expertise to conduct the task at hand.
  3. As the management will not have to conduct accounting for the company and will be free of the burden, the management will have the time as well as the resources to focus on the various aspects of the Business, which will, in turn, increase the productivity of the company.

To know more about the benefits of outsourcing the accounting functions, refer to our blog Outsourced Accounting: How can it Benefit your Business?

There can be situations in which the company may only require accounting assistance only in certain business aspects. In such a case, instead of opting for or outsourcing the accounting services, the company can avail the Accounting Supervision Services.

If a company avails Accounting Supervision Services, then the management can be assured that no detail about the company is missed during the accounting process. The experts at JAXA Chartered Accountants will supervise all the accounting requirements of the Business. They will guide the accounting department of the company to conduct the process in a proper manner.

There are various advantages which be availed by a company by utilizing the Accounting Supervision Services. These advantages include:

  1. Accounting supervision services will allow the management to understand if any fraud or any other activity is happening in the company.
  2. It will help the Business to address all the compliance issues and will also assist the company in being more profitable.

To know more about Accounting Supervision Services, you can go through our Accounting Supervision Services page.

How can a Business find the right Accounting and Bookkeeping Services in Dubai?

As proper Bookkeeping and Accounting are very important in making any future decisions of the company it is crucial that the company avails such services from a reputed firm which will fulfil all the necessary requirements of the company and will also provide the best services possible.

Before availing of the services from any of the Accounting and Bookkeeping firms, the management should do research as to which firm will be able to provide the best possible services to the Business. The management also keeps in to account the cost of availing the services and also if the firm provides any other services to the company. Also, the services should be sector or industry-specific so that the Business is able to avail of the best possible services.

The management also needs to keep in mind that Bookkeeping services are different from accounting services. There are many firms in the market that only provide one of these services, but many of the firms also provide both of the services together. A firm should try to avail services from such a firm as bot the services are provided by the same company, which will result in seamless transfer of data between the two functions.

In order to select the correct Bookkeeping and Accounting firm for the company, the management needs to keep in mind certain key characteristics such as:

  1. Look at the qualifications of the firm. The firm should be equipped with the necessary qualifications, and to check this, the management should conduct background checks. They can also ask around and look at the reviews of the services of the firm.
  2. The costs of the services availed affect the organization in a major way. Many start-up businesses may not be able to spend so much on the services. The management should look into the firms which provide the best possible services within acceptable costs.
  3. The firm should be updated with the latest changes in the business environment and should be able to use the latest technologies such as Accounting Software, Cloud Accounting, etc.

To know more about choosing the best accounting and bookkeeping firm for your Business, Refer to our blog titled How to select an Accounting firm in the UAE?

How can Accounting Services in UAE process help your business to grow?

Enhances Company Goodwill

The accounting process will help in keeping a record of all the transactions made by the business which will leave no chance of any fraud, and will ultimately contribute to the enhance the company's goodwill.

Ease the Audit process whenever it gets due

The various reports created by the accountants will be a great help to the auditor in conducting an external audit for the company

Better Credit management

Maintaining the accounting books in a proper way will enhance the credit management, and building the trust of the company stakeholders

Displays the company’s financial health

The book of accounts displays the overall health of a company in financial terms. This helps the business owners to take respective decisions accordingly on time by considering the present financial status of the company

Ease of loan approval

Better management of book of accounts will help your company to get easy loan approvals, and also becomes easier for the financial institutions to ease the loan process

Helps to capture the mass market

Having all the reports in hand would be very helpful to the potential investors as they would have an understanding of what they are getting into

How JAXA Can Help Your Business?

With a team of accounting professionals, JAXA stands as certified public accountants in Dubai, and can cater to your accounting needs.

Client Approaches

Unstructutrd Data is handed over

JAXA Understands the Business

JAXA understands the working style and business model

Plans & Impliments the Process

Planning is initiated on the reviewed docs and audit processes gets implemented

Maintains Follow-ups

JAXA makes sure that continuous follow-up is done after a certain interval, and significant changes are made accordingly

Reviews the Audit File

JAXA Reviews the audit file and makes sure it is in accordance with UAE Audit Laws

Generates Audit Report

Audit report is generated once the VAT processes gets implemented

Other Services

Our Strengths

  • Adoption of best accounting practices across industries and geographies
  • Handling businesses of different nature and sizes dealing in different sectors
  • Team of highly experienced professionals
  • Tailor-made solutions based on company requirements

How JAXA can help your business?

The JAXA Accounting and Bookkeeping services will help you to understand the accounting functionality which will depict a clear financial picture of your company. The accounting experts at JAXA Chartered Accountants are well-versed with the UAE accounting rules and can guide you accordingly at each step. So, free yourself with the burden of handling accounts by outsourcing them to our accounting experts. JAXA provides accounting services in Sharjah and Abu Dhabi also. To have a word, do contact us-we’d be glad to assist.

FAQ

What is Accounting?

Accounting can be defined as the process in which all the financial transactions of a company are summarized, analyzed and reported. This will help both the investors as well as the management as it will allow the management to understand the shortcomings of the business process. In contrast, the investors will be able to make an informed decision as they should invest in the company or not.

 

What is Bookkeeping?

In layman’s language, Bookkeeping can be understood as recording all the financial transactions made by a company. It is the basic function that should be performed in every company as this forms the basis for Accounting as well as the Auditing function.

 

What are the benefits of Accounting and Bookkeeping?

The benefits of Accounting and Bookkeeping to a company are mentioned below:
Bookkeeping
• It streamlines all the business activities of the Business.
• Helps in the analysis of the business activities of the company.
• It is a very basic function which forms the basis for activities such as Accounting and Auditing.
• It helps in maintaining all the documents which are required during VAT filing.
Accounting
• It helps in the preparation and maintenance of all the financial books of the company.
• Accounting can help the company to prepare for the future and will also assist in comparing its activities to its competitors.
• An accounting will ensure that all the compliance requirement s are being followed by the company.
After the formation of a company in the UAE, a company is required to follow Accounting and Bookkeeping so that the existence of the companies are guaranteed.

 

Which companies require Accounting and Bookkeeping Services?

Accounting and Bookkeeping are very crucial functions which should be performed by every company. It is possible that when the size of the business is small, the management will think that accounting and bookkeeping are not required for the company, but as the size increases, the need for accounting and bookkeeping will increase.

 

Is there any difference between Accounting and Bookkeeping?

Accounting and Bookkeeping may seem like the same thing, but they both are different from a professional. Bookkeeping is only the recording of the financial transactions of the company, whereas accounting is the summarization, analysis and presentation of the financial data of the company.

 

Why should you keep updated backlog Accounts of the Company?

Many companies, either voluntarily or by mistake, do not record the transactions of the company. This may not cause any problem initially, but it can be problematic for the Business in the long run. This is why it is recommended that all companies should maintain the transactional and financial records of the company from the initiation of the company. In the UAE, it is mandatory that the records of the company maintained at least for the past 5 Years for Auditing purposes. Apart from this, it is also recommended that the company covers all the company's previous accounting records.