Accounting & Bookkeeping in Dubai, UAE.
Here Are Some Interesting Facts That Maybe Be Unheard Of.
The UAE, and Dubai specifically, are active business hubs. Owing to the fact that Dubai’s economy has been flourishing, there are millions of aspirants who not only wish to work here but also plan to set up their permanent businesses. Since its economy has been on an upward curve, it’s an extremely lucrative locale for business owners, resident or otherwise, to set up their business operations here or to at least expand their area of coverage to Dubai that can potentially assure them of high returns and future profits.
For any business to be successful, owners must foresee all the departments making sure that all is as it should be.
While it’s a fact that ancillary departments such as advertising, sales, marketing, HR management, research, etc. all play a very vital role in shaping up business, but interestingly one of the most important factors to be considered is finance management. Any business likewise will have a constant flow of money, whether its incoming or outgoing, and these do need to be recorded, helping future decisions pertaining to economic matters can be easily made. In order to manage finances, businesses mostly hire expert professionals known as accountants in Dubai, UAE.
The importance of Accounting in Dubai, UAE & the Gulf for a company
Any business will have a large recorded number of financial transactions in the form of invoices, receipts, sales, purchases, payments, discounts, rebates, subsidies, etc. and all of them need to be organized and recorded quite systematically. This is precisely where accounting steps in. It eases processing or analyzing all financial data to prepare reports on the same. Expert accountant firms in Dubai, UAE, and bookkeepers alike perform a similar task. These reports provide an idea of the company’s financial state, and on the basis of these reports, accountants advocate advisories on how saving money, implement spend control, and channelize to divert financial attention, etc. Besides being of value to the company, these reports are also presented to annual auditors, tax collectors, regulators, investors, etc.
Without expert accountants firms, it would be a dystopia to organize and process all the financial data, and would become difficult to keep track of all finances and enable decisions as those regarding savings, allocations, payments, and investments, taxes, etc. However important all these operations may be, it will be practically impossible to implement strategies without channeling funding, and this is the work of expert accountants in Dubai, UAE that solely decides how much money can be allotted to specific departments.
Interesting Facts About Accounting in Dubai
Given the fact that there is a mushrooming of businesses operating in Dubai, this calls for a constant need for an expert accountant firm , it is an established fact that the work of accountants in Dubai, UAE is nearly collateral to the basic functioning of an enterprise. While accounting, is considered a common profession all over the globe, the laws or rules surrounding this profession differ everywhere.
So, here are some interesting unheard facts about accounting in Dubai that most perhaps are not aware of:
Some Basic Information
When it comes to accounting in Dubai, the tax year starts 1st January to 31st December, and IFRS (International Financial Reporting Standards) or International Financial Reporting Standards financial statements is necessary for every business that is listed on the Dubai stock exchanges and also for banks. The UAE Ministry of Economy is the sole regulatory body for accounting while the UAE AAA or the UAE Accountants and Auditors Association, UAE National Accountants and Auditors Association are the professional accountancy bodies in charge. Businesses are required to preface the Ministry of Finance with the audited annual activity reports and the financial statements should also be prepared and presented every year (the State Audit Institution of the United Arab Emirates serves as the main audit organization).
Another interesting fact about accounting in Dubai is that accountants, even when outsourced, can help you manage the payroll for your company. Payroll is the monthly process through which employees are paid their salaries post tracking their work hours and depositing the money in their accounts. Not only can accountants manually manage that , but businesses can also purchase payroll software’s from them so the work can be automated.
Accountants help you with everything related to taxes. Accountants are well educated experts on taxation policies and laws, not only in Dubai in this case, but everywhere else as well. Moreover, since Dubai introduced VAT (Value Added Tax) or value-added tax, tax filing has turned slightly more complicated for businesses, and so, accountants can step in to calculate the corporate tax to be paid along with the VAT charges and also help you file returns.
Accountants serve as excellent financial consultants for businesses, small or big alike. They can help prepare comprehensive reports about businesses financial and liquidity situation and help file tax returns, also advising to expand area of operation, in terms of money allocations. They can advise where to invest, and save money, advise the pricing policy etc. to maximize profits.
Financial Analysis or Auditing
As mentioned above, businesses are obligated to present financial statements and activity reports on an annual, half-yearly, or monthly basis, and all accountants help specifically with that. They prepare your statements and go over your financial situation and advising necessary changes in your business. Accountants can act as internal auditors and go over all the reports to cross-check errors or discrepancies, correcting any before an external audit.
Setting up ERP/ Accounting System
Accountants also help with setting up ERP or Enterprise Resource Planning and/or accounting systems. These , in the long run, are quite profitable since they offer the possibility of automated recording, processing, and managing business processes of financial data.
Dubai is home to a wide range of businesses, which entails a constant commercial, financial, and economic activity, and this unending activity needs to be systemically recorded and analyzed. To ensure that everything is done within the framework of law, there are justifiable regulations imposed on businesses.
Financial management is the turnkey for the successful functioning of any company, and thus, it’s imperative to hire expert accountants providing a variety of services that help businesses in the long run. Without their expert work ethos, it would be nearly impossible to keep track of finances and enable any decision for that matter.
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At Financial Cube – we have been guiding VAT and Corporate Tax registration in the UAE since its inception.
We are a responsibly well-known competent finance based network offering accounting and taxation solutions, based in Dubai, UAE and the Gulf.
Offering a wide range service portfolio in filing taxations, auditing, accounting and bookkeeping. Financial cube is your truly wholesome financial service provider offering high level VAT filing services across UAE along with tailored Corporate Tax solutions in Dubai for all your business and accounting needs specifically in the Gulf region.