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Being one of the evolved business destinations, Dubai has been grabbing the attention of business owners and entrepreneurs in every possible way. Continuous efforts have been taken by the Government to establish the region of UAE as one of the global business hubs covering all the potential business entities. To excel in every specific domain, the Government has specified different locations to focus in every industry. Dubai Healthcare City (DHC) stands as one of the free zones that have been dedicated to the healthcare industry and encourage investors and business professionals to come forward and set up a business in Dubai.
If you deal in the healthcare industry and looking forward to incorporating a business entity in Dubai, then Dubai Healthcare City stands as an ideal process. However, the government has mandated every business entity incorporated in DHC to maintain a clear record of business books that will be beneficial during the audit process. This guide will take you through the essential aspects that you should know.
Implementation of Accounting Proceedings in the Healthcare Industry
The healthcare industry stands as one of the booming sectors when it comes to the global picture. Dubai Healthcare City is an open ground for business owners and professionals dealing in the healthcare business. Now, the ground of DHC stands as an open territory for clinics, commercial office etc. Some of the business entities that operate in DHC are:
- Branch of a Foreign Company
- Branch of a UAE Company
- Free Zone Limited Liability Company (FZ-LLC)
Every business needs to maintain a set of accounting books recording the business transactions to analyze the profit and loss over some time. When it comes to the healthcare industry, there are multiple bifurcations like a pharmaceutical company, hospitals, clinics, retailers etc. The way of conducting and implementing the accounting procedures for each segment differs. Let’s see how.
Accounting for Pharmaceutical Companies
If you are involved in the pharmaceutical manufacturing business or even suppliers, you need to maintain a complete record of your suppliers and customers. You end up dealing in B2B marketing, and thus the payment made or receive would turn out to be a considerable sum. Non-maintenance of the same will lead you to multiple issues and would ultimately turn out to be a loss.
On the other hand, if the records are jotted, but are not maintained appropriately, there exist a high probability of miscalculations. Dealing with this for a more extended period would turn out to be a severe loss for the business.
Accounting for Pharmaceutical Retail Business
If you deal with a retail business in the healthcare business, you will end up dealing with suppliers and customers. So, it would help if you made sure that both the records are correctly maintained. One must be very clear regarding the amount that needs to be paid to the creditors and the amount to be received from the debtors. When it comes to bad debts, the low account turns out to be profitable and as a separate book of records are to be maintained accordingly.
Accounting for Hospitals
Now, when it comes to hospitals, the task becomes more tedious as the number of factors increases. A separate book of accounts is to be maintained when it comes to suppliers, staff, patients etc. Managing them all at one go serves to be a complicated task, but at the same time, it turns out to be an essential one.
We can see that the implementation of accounting services in the healthcare domain stands as an inseparable part. Be it a small, medium or even large-sized business, every entity needs to maintain the books of accounts and bookkeeping records according to the accounting guidelines of UAE. Additionally, maintaining a proper record from the initial stage will give you the following benefits:
- Keep track of the financial stability of your business
- Maintain complete records of debtors and creditors
- Get a clear picture regarding business cash flow
- Understand the financial stability of your business
- Effective financial planning and future projection
In short, you can see that the accounting domain plays a vital role in leveraging business profits. Since the DHC stands as one of the growing free zones in the region of UAE, it mandates every business firm to follow strict rules in maintaining financial records by approved auditors in Dubai. The business investors and business professionals understand the gravity of the situation and do make a smart move by joining hands with audit experts who are well-versed with the relevant proceedings.
JAXA Chartered Accountants stands as one of the best audit firms in Dubai. Being a DAFZA and JAFZA approved auditors, the firm has been providing high-quality services to the esteemed clients across UAE. Our accounting experts are well-versed and holds industry experience, and thus blending their knowledge and experience they can provide tailored solutions suiting the business needs. To get a better idea on this, speak to our experts. Contact us today-we’d be glad to assist.