Importance of Accounting in Dubai World Trade Centre
30

Dec 2019

Setting up a business in UAE is a very lucrative prospect and a profitable one too. In order to diversify the economy of the country, the government of UAE has taken several steps which allow a foreign company to be established in the UAE without much hassle. One such effort made by the government is the establishment of free zones all over the country.

These free zones welcome people in business and entrepreneurs from all over the world with open arms and even help them establish a company in the free zone. The free zones are usually independent and have their own rules and regulations. One of the lesser-known free zones in Dubai is the Dubai World Trade Centre, better known as DWTC.

Dubai World Trade Centre Free Zone

Dubai World Trade Centre Free Zone (DWTCFZ) located very conveniently in the heart of Dubai's Central Business District and provided easy access to the region and the markets at a local as well as a global level. The competitive and very well regulated business environment allows the companies from all around the world to come to the free zone and register a company in the Dubai World Trade Centre Free Zone.

This free zone comes under the DWTC Authority which is a public corporation which came into existence by the combined orders of His Highness Sheikh Mohammed bin Rashid al Maktoum, The Ruler of Dubai, Vice President and the Prime Minister of the UAE. It is a financially autonomous body and enjoys a corporate body status.

The operations in this free zone were commenced to provide a business environment to companies which will assist in a comfortable and simplified business setup process, and the free zone will also help in the carrying out of the business activities by providing state of the art infrastructure. From the point of view of an investor, the incentives provided by this free zone are numerous and will help the company in reaching its highest potential.

The need for Accounting in DWTC

With the presence of so many companies in the free zone with numerous companies still coming in, there is a demand for proper accounting and bookkeeping services in the free zone. The various benefits of availing the accounting services in the Dubai World Trade Centre Free Zone are:

·Understand the Present Situation of the Company

This is one of the most basic functions of accounting. By recording all the financial transactions of a company, the management will have a better understanding of the present condition of the company, which will help to make better and efficient decisions.

·Budget Preparation

After all the records of the company are in hand, the management needs to allocate the resources, both physical and financial, in such a way that the company will be effective and efficient. This will also help in the reduction of any wastage of resources.

·Monitoring and Controlling the Company

By correctly utilizing the accounting services, we can track and keep a record of all the transactions made by the company in real-time. This will help in keeping a check on the spending of the company and will bring the company to the correct path if there is any deviation.

·Forecasting the Future

Having all the data will help in making decisions about the future. Once all the data of the company and the business environment in which it operates is known, the management will be in a better position to forecast the future and make decisions based on these forecasts.

·Helps in Conducting an Audit

The next stage, after availing the accounting services is to get an audit service. Auditing is the process of conducting an inspection or examination of the financial accounts of the company. By performing accounting, all the necessary financial reports are in hand of the management. As all the documents are in a single place, it is easier for an auditor to conduct a financial audit.

These are only some of the reason why accounting is essential for a company. With proper accounting, the company can be very beneficial and utilize all its resources to the fullest. The ability to control the results of a company and change them according to the present condition makes the accounting as one of the most sought after function for a company.

It is always recommended that if you are looking for accounting and auditing services, always take the help of a reputed financial company. One such Auditing and Accounting firm which will take care of all your accounting and auditing needs are JAXA Chartered Accountants. This financial firm is approved by the Dubai World Trade Centre Free Zone and can also conduct an audit in the free zone. To know more about JAXA Chartered Accountant, Contact Us. We will be happy to help.