Accounting is the financial backbone of any business. And in the world of accounts, bookkeeping can be regarded as the initial foundation whereas accounting is the building that stands on the support made by bookkeeping. It is referred to as one of the strongest pillars that hold the stability of a company and allows a company to think and act accordingly. Bookkeeping is the ground that keeps a record of the financial transactions that take place while dealing with day-to-day business activities, while the concept of accounting is much broader that blends steps like recording, classifying, analyzing, reporting and summarizing the data recorded. Be it a small or a big, national or multi-national organization, the concept of accounting is accepted internationally and that is why managing them becomes extremely important.
While establishing a business in a foreign land, one should know that dealing with the accounting firm and abiding by its rules becomes a mandate. International accounting standards have been built so that there exists a harmonized way in the system of accounting throughout nations. Accounting in UAE becomes a mandate by both corporate and VAT law, that gives rise to numerous audit firms in Dubai and today the number of auditors in Dubai has reached a vast count. Apart from Dubai, the number of accounting firms in Abu Dhabi and other emirates have significantly grown over the years.
Accounting Services in Dubai
As already mentioned, the scope of accounting has reached to the next level in today’s globally competitive market. Any country in this world has got their own challenges in the field of accounting. In UAE, Accounting is not triggered by tax for individuals but has got to do with corporates. The accounting firms in Dubai has significantly increased which gave a push to a large number of an accountant in Dubai. Let’s have a look at the accounting services in Dubai that a company needs to avail.
- Bookkeeping and Reporting Services available with GAAP and IFRS local requirement
- Monthly Bookkeeping to track on each transaction
- Financial reports that include the preparation of Balance Sheet, Income Statement, Trial Balance
- Accounts Payable Service to review the invoice and payment documentation
- Accounting Reconciliations
- Business Valuation to figure out asset valuation, compliances regarding mergers and acquisition transaction, forecast the possibilities
Benefits of Availing Accounting Services
Till now we have seen the necessity of accounting and bookkeeping services in a business organization. Now let’s have a look at the benefits that can be derived from these services:
1. Decision Making
Accountancy and bookkeeping services help an organization to take decisions regarding purchase, expansion, promotion, demotion, budget preparation, etc. It helps to take decisions considering both the internal and external environment.
2. Legal Requirement
Accounting books are to be maintained in a transparent and clear way so that it eases out the audit process and suffices the legal requirements. According to the legal requirements of the UAE, proper accounting records are to be maintained, and failure to do so will have legal implications for the company.
A clear book of accounting records helps a business to sustain in the competitive market. As mentioned above, it helps in decision making. Proper decision making can help the business to grow and sustain in this competitive market.
4. Tracking Malpractice
It becomes easier for any firm to track any financial malpractice that takes place in an organization. Moreover, they can be rectified and redirected.
5. Budget Preparation
Well maintained book of records helps an organization to keep a continuous check on their budget. It provides a flexibility to increase or decrease the budget as per their company requirement. Old and new budgets can be prepared, maintained and controlled anytime.
6. Averting Financial Crises
Since these recorded statements are recorded and evaluated continuously, they reduce the risk of the financial crisis for the organization.
JAXA Accounting Services
At JAXA, we aim at streamlining our clients’ accounting and administrative system. We provide a wide range of services that include:
- Maintaining accounting records and secure database
- Preparing management reports
- Preparing and maintaining sales and purchase ledger
- Reconciling bank statements
- Generating creditor listings and inventory reports
Being a financial consultant in Dubai, we understand the crux of the business establishment process. We assure our clients in providing reputation building, maximizing the credibility, and standing out from their competitors. We hold ISO 9001-2015 certification, and follow the International Financial Reporting Standards (IFRS) to main the professionalism in our deliverables that made us one of the top audit firms in Dubai. Currently, we hold more than 1500+ clients at a global count that includes multinationals, limited liability, offshore companies etc., and are registered with free zones like Jebel Ali, Dubai Airport, Ras-Al-Khaimah, and Sharjah Airport etc. Our team experts are members of Institute of Chartered Accountant of India (ICAI) and hold high industry experience in the field of Finance, Auditing, and Financial Advisory Services that guides you in the financial journey of your business.
What is the corporate tax rate in Dubai?
There is no corporate tax in the UAE, except for foreign banks and the oil industry.
What is IFRS?
IFRS stands for International Financial Reporting Standards. These set rules have been designed in order to bring transparency and a common rule in the world of business affairs across boundaries. The UAE Commercial Law came into force on 1st July 2015, and mandates the application of IFRS rules to all companies while preparing their accounts.
Are the IFRS applicable on SMEs?
Yes, IFRS apply to SMEs in the UAE as well.
What are the records to be kept as per the applicable laws?
Every company is required to keep accounting records showing its transactions to accurately reveal at any time the financial position of the company and enabling the partners or shareholders to confirm that the accounts of the company are properly kept in accordance with the provisions of the Commercial Companies Law or any other applicable Laws. Such records include, but not limited to, bank statements, sales and purchase invoices, payment and receipt vouchers, LPOs, contracts/agreements, etc.
What is the period for which accounting records are to be kept?
Every company is required to keep its accounting books in its head office for a period of at least 5 years from the end of the financial year of the company.
Are electronic copies accepted?
A company may keep an electronic copy of the original of the documents and records kept.
What are the benefits of using proper accounting software?
A proper accounting software:
- Reduces the time spent on manual processes
- Provides greater accuracy, with minimal errors
- Generates real-time financial information
- Can create automated invoices, credit notes and receipts
- Employs innovative financial technology
- Saves money on resources
- Leads to faster record-keeping, which generates more business