Accounting is one of the oldest yet one of the most important functions which a business can perform. It is so essential that no matter the size or the nature of the company, each and every Business should avail of accounting services. Therefore, maintaining the books of Accounts are deemed mandatory for a business in the UAE. Here are some of the questions that will help you know why accounting is an essential service for your business.
Table of Content
- Accounting Services in Dubai
- Benefits of Accounting Services
- Who Needs Accounting Services in Dubai
- What Are the Business Accounting Services
- Advantages of Outsourcing Accounting Services
- What are the Accounting Methods?
- What are the Accounting Standards in Dubai
- What are the business areas covered by Accounting Services Dubai?
- Why JAXA Accounting Firm
Accounting Services in Dubai
Businesses in Dubai are mandated to maintain a regular Book of Accounts. If you are a business that has no professional team handling your records and finances, you may be charged with incorrect Bookkeeping and VAT return filing. No matter the size of your company, Accounting is essential to help you with your decision making, budget and cost planning, and monitoring of your economic performance.
Benefits of Accounting Services
There is an increase in the number of businesses in Dubai and the need for outsourcing financial operations in the city. Business owners and investors have understood the importance of monitoring the company's finances. The reason is that even the least financial crisis, when not acted upon immediately, can cause a significant setback to a company. Keeping a bookkeeper or an accountant in the house can be costly, so organisations outsource their financial operations. This is where the financial and accounting services firms come into the picture.
Here are the benefits of accounting services in Dubai.
1. Helps in measuring the performance of your business
Your business operations and your business's financial condition are reflected in your financial record. Accounting services help you understand how your business is going financially. They will not only help you keep track of your expenses, possible debt, and gross margin; you can compare your current data with the previous accounting records and then plan your budget accordingly.
2. Ensures Statutory Compliance
Accounting services help you adhere to rules and regulations. These rules vary from one state to another, but when you have a proper accounting process in place, you can ensure statutory compliance when it comes to your business. Accounting services in Dubai will help you ensure that liabilities such as sales tax and pension funds are addressed properly and promptly.
3. Helps in Preparing Budget and Future Projections
Budgeting and planning will decide whether your business will succeed or fail. It can make or break your company, and your financial records have an essential role to play when it comes to it. Business trends and forecasts can make your operations profitable based on historical financial data, and this financial data should be provided only by highly organised accounting processes.
4. Helps in Filing Financial Statements
It is a requirement for all businesses to file their financial statements, for direct and indirect tax filing, like listed entities that should file their FS with the stock exchanges.
5. Helps in Preventing Financial Crises
After all the information is recorded in Financial Statements, the statements will be assessed and analysed. Business owners and executives can have a deeper understanding of their business and the trends in the business environment. This process of analysing records will surely lessen the risk of financial crises in the organisation.
Who Needs Accounting Services in Dubai
All businesses need bookkeeping and accounting services in Dubai to record and audit their finances and balance their books. They pay a monthly service fee to gain access to the expert skills of a team of accountants who are competent in various areas of accounting, be it Bookkeeping or tax management. Through these services, you can save time and money in training and hiring and avoid employee turnover.
These are the industries that need accounting services in Dubai.
- start ups
- businesses that have employees
- government agencies/public companies
- colleges and universities
- health care providers/institutions
- hospitality businesses
- retail stores
What Are the Business Accounting Services
The significant accounting services provided by JAXA Auditors for businesses in Dubai, UAE, are mentioned below.
- Tax management services
- VAT consultancy services
- Cash Flow statements
- Journal entry
- Balance sheet
- Management Accounting
- Internal Audit
Advantages of Outsourcing Accounting Services
- It is cost-efficient. The current trend is increasing the salaries of accounting managers and supervisors, which is why organisations resort to outsourcing their accounting and finance functions. It is found to be the perfect method of meeting your organisation's needs while simultaneously bringing down costs.
- You get all the good things that come with experienced professionals. Accounting agencies that specialise in providing outsourced accounting solutions can boast of their top of the line talents when it comes to industry experts. As a client, you are assured of the benefits of working with these people, as they know how to navigate everything that hinders the company's progress.
- You can concentrate on growing your business. As a high-level executive, it is not your function to monitor the day-to-day accounting transactions. Instead, you should focus on growing and developing the business and finding ways to drive up the company revenue.
- You can make good use of the opportunities offered by new technology. When you partner with a finance and accounting solutions provider, you gain access to new software and technology. This increases efficiency and makes the problems less severe.
- Lessen compliance-related risks. Rules on new taxes and compliance are established every year, so you might find it challenging to become aware of the latest information. Without outsourced accounting services, you might not be able to manage the company's accounting transactions appropriately.
What are the Accounting Methods?
There are two primary accounting methods:
1. The Accrual Method of Accounting
Under this method, revenue is recognised as it is earned; and expenses are recognised as they are consumed. The accrual method is considered the most theoretically correct method, although it requires a great deal knowledge of accounting, so it is more likely to be used by more prominent organisations. This method is great for publicly held entities and those businesses that want their financial statements audited.
2. Cash Method of Accounting
Revenue is recognised as customers pay for cash, and expenses are recognised as cash paid to suppliers.
There is also a variation of the accrual and cash methods, called hybrid accounting methods. This can be acceptable in exceptional circumstances but not result in financial statements subject to audit.
What are the Accounting Standards in Dubai
Accounting standards are the rules for financial reporting. These rules clearly specify how the transactions are to be recorded. Accounting standards provide some advantages and financial information to lenders, creditors, and investors.
1. International Financial Reporting Standards (IFRS)
This is the standard for accomplishing the activities and tasks of financial management. IFRS deals with particular types of transactions managing corporate accounting, and GAAP is used to manage Balance Sheets, Revenue Recognition, and Item Classifications for public disclosure.
2. Accepted Accounting Principles (GAAP)
This is comprised of all absolutely important rules that deal with particular types of transactions and ensure a common language that is understandable with both the accounting companies and business people around the globe.
What are the business areas covered by Accounting Services Dubai?
Accounting services cover the areas of:
Finance and Accounts
- Financial Statements
- Balance Sheets
- Income Statements
- Cash Flow
Human Resources and Industrial Relations
- Employee database management
- Payroll processing
- Leave application processing
- Insurance and statutory deposits
- Employee claims management
- Safety data analysis
- Company's tax structure
- Tax audits, tax filing and tax returns
VAT Registration Services
- VAT registration
- VAT filing and return services
- VAT accounting procedures implementation
Why JAXA Accounting Firm
1. Cost-effective services
Hiring JAXA Auditors' accounting services, you will have to pay only a fixed monthly fee tailored to your company's specific requirements. This is a cost-effective option and a more affordable one than hiring a dedicated or full-time accountant in house. Here you will spend on their monthly salary, travel expenses, OT benefits, etc.
2. Flexibility and timesaving
By outsourcing your accounting and bookkeeping functions to JAXA Auditors, you can concentrate on more critical tasks such as business development, thus saving you precious time. According to your preferences and schedule, we can visit your office and work on your book of accounts.
3. Benefit of Expert Knowledge
JAXA boasts of a team of expert professionals who are qualified and certified accountants, and you benefit from their expertise.
Within the context of business strategy, your company can grow without being hindered by its structure or available resources when it faces increased production.
What is Bookkeeping?
Bookkeeping is the process of recording the financial transactions of an organisation. This activity is regularly summarised in reports that show how the business is doing financially. Other tasks may also be performed in Bookkeeping, such as invoicing, bills payment, preparing tax returns, observing and checking the progress of key performance indicators, and providing strategic advice.
What is the Difference Between Accounting and Bookkeeping?
Many people often use Accounting and Bookkeeping interchangeably in business. Although these two are inseparable, there is a distinguishing line between them. Bookkeeping is a part of Accounting and Accounting has a wider scope than Bookkeeping.
Bookkeeping is recording all the company's financial transactions in the business' Book of Entry. It concentrates on the financial activity and transactions of the day-to-day activities. This Book of Entry or Book of Account needs to incorporate the latest entries because it is the basis for accounting.
Accounting is the process of analysing, interpreting, summarising, and reporting the financial transaction of a business. The records of a company's daily transactions are maintained and compiled into financial statements such as Income statements, Cash Flow Statements, and Balance Sheets.
How Accounting Services Help Start-ups?
If you have a start-up business, hiring an outsourced accounting service can help it in the following ways.
- You can get all the help in building good business habits from the very beginning. For example, you will be able to know where your company stands financially, and you will also learn to keep strict control over expenses.
- Your bookkeeper and accountant will be able to provide you with the required information and analysis to support your application for investment capital.
- Accounting services will let you know what your burn rate is. You'll be informed how much money you are currently spending; and how long your business will operate if you continue spending at that rate.
- Accounting services providers can give you advice you can trust during your business's decisive or critical first years in operation.
- Accounting services can scale with the needs of your company. When you start with the right provider, they can scale to your needs, now and in the future.
Is Accounting Services Mandatory for SMEs?
For small and medium enterprises (SMEs), Accounting is the distinct stage through which your company records evaluate and comprehend your financial data. You will be made to understand Cash Flows, Assets and Liabilities, and whether your company is making profits or losing money. Accounting is fundamental to your small or medium enterprise because it has the information on everything that concerns your finances, including the area where your business is making money.
Why you Need to Outsource Accounting Services?
When you hire a 3rd party (meaning outside of your company) to perform and complete the accounting function of your enterprise, it is called outsourcing Accounting.
You need to outsource accounting services because it can save you time, effort and money. You altogether remove the costly benefits packages for a full or part-time employee. You pay only for the actual accounting function when you outsource accounting, nothing else. No salaries, travel expenses, sick/vacation leaves, etc. Save you in productivity and payroll costs.
If you are thinking about a prosperous future from a business or personal standpoint, reach out to us. We have a team of dedicated accounting specialists, and one phone call can make the difference when it is about accounting, audits, tax, or business consulting. So, dial our numbers at 971 4 220 7355 or email us at firstname.lastname@example.org.
We look forward to working with you.