The role of Accounting and Bookkeeping in achieving success is known to every business. The process of accounting not only will keep a simplified record of all the transactions in the company but will also help the growth of the market. The management will be able to understand the working of the business and take informed and calculated decisions accordingly.
In this ever-changing business environment, accounting services help a company in keeping track of many things and solve many problems of a company such as:
1. Keep Track of the Financial Health of the Company
Bookkeeping and accounting are the essential functions that a company needs to perform. This will allow the management to keep a record of all the transactions of the company and analyze those records to be aware of the present financial condition of the company and to take any financial decision concerning the future of the company.
2. Keep All the Documents in Order
A company need to have audits from time to time, and in such case, the company is required to present all the relevant documents to the auditor. Keeping all the records ready will allow the business to finish off the audit process quickly and in a hassle-free way. Conducting the audit of a company from time to time will help in acquiring the confidence of the present investors and will also assist in gaining more investors.
3. Prepare for Value Added Tax
This is a relatively new addition to the taxes paid the people in the United Arab Emirates. According to the new law, the companies registered by the Federal Tax Authority or FTA need to file for Value Added Tax. Filing of the necessary documents can be quarterly, monthly or annually depending upon the activities of the company.
This has led to an increase in the demand for bookkeeping and accounting services in the country. Depending upon the preference and the requirements of the company, the management can decide upon whether to keep a separate bookkeeping and accounting function or to avail the services of an outsourced accountant. Making this decision will play a significant role in deciding the future of our company.
4. Predict and Prepare for the Future
Keeping a record of all the transactions and then analyzing them will allow the accountant to understand the present trend and then accordingly predict the future. The company can then focus on business activities, which will be more profitable, which will, in turn, increase efficiency.
5. Find a Cost-Effective Alternative
A company can do the cost-benefit analysis and then find out a cost-effective alternative to the product or service which is being produced by them. This will save a considerable amount of funds for the company without compromising on the quality. Proper accounting services will streamline the facilities and see to it that there is no wastage of resources. With all the processes working efficiently and efficiently, the company will be hugely profitable without changing much of the operations.
6. Find Out Procedural Errors
This is an essential function that is performed by the accounting services. With a detailed understanding of the processes of the company, it may further take steps to understand what they can do differently. This will allow them to catch hold of any mistakes and errors that are being done in the company.
These are some of the enormous benefits that a company can avail by utilizing accounting and bookkeeping services in Dubai. Having an accounting and bookkeeping services is very good, but it is not the last thing as there are more methods of adequately understanding the workings of the company. This includes Auditing of the Accounting reports.
Auditing: The After-Accounting Process
The process of the examination and evaluation of the financial statements of an organization is referred to as an audit of the company. The main aim of an audit is to be aware of the financial condition of the company. An audit will check several things such as if the accounting reports are correct or not if the rules or regulations of compliance are being followed or not and various other benchmarks.
An Audit needs to be performed after the said financially, and the accountant prepares accounting reports. The audit will check the veracity of the financial statements and will allow the business to fine-tune further the various processes of the company making the business more productive and profitable.
If you want to avail financial services for your company such as accounting, bookkeeping, auditing, etc. you can check out the services provided by JAXA Chartered Accountants. This is a commercial firm which aims to provide a simple and hassle-free service to the companies established in the Free Zone as well as the Mainland. It provides services related to VAT, accounting, auditing of a company. For more details on the services offered, contact us – we’ll be happy to assist you.