Bookkeeping and accounting services in Dubai are essential for any type of company be it mainland, free zone, or even offshore. But, before we take a deep dive into the topic given here, let us get familiar with terms like bookkeeping, accounting services, and Freezone companies. This will help you get through this article efficiently without having to wonder what these terms relate to.
What is accounting and explain?
Accounting is essentially a process where individuals use scientific and systematic recording processes and summarize the overall transactions given under some properly defined accounting standards. An essential part of accounting is creating full-blown financial statements to be submitted to the designated authorities. Accounting firms around the globe play a crucial role in the success of their respective companies. Many organizations also hire third-party accounting firms that provide the required service.
Importance of Accounting Services
There is immense importance of accounting services for every company. Accounting is a crucial department since it handles all the funds and revenues. Here are some of the reasons why accounting services are important
- Accounting services and its department are solely responsible for publishing all the financial information and records. With the information they provide, an organization’s financial performance can be determined, which describes their profit, revenue collection, etc.
- The accounting department is responsible for maintaining all the statutory compliances like taxes and other related matters.
- When the department analyses the revenue collected and profit margins of the company, it also studies and predicts future revenue projections. They also have a say in the budget.
Bookkeeping services are pretty similar to accounting but also different in many ways. Bookkeeping is a process where a particular company’s financial transactions and ventures are recorded daily. These records are then put forward into an organized manner of accounts that helps to analyze the company’s financial condition. Besides just financial transactions, bookkeeping also includes creating records from various events of a company, ventures or collaborations, and much more.
Importance of Bookkeeping
- The most considerable importance of bookkeeping is, it keeps the records and data organized. Since bookkeeping is done daily, every bit of data is recorded and managed correctly.
- When every data is organized, including financial records and other essential information, it is easier to set targets and fulfill them. Bookkeeping plays a massive role in achieving targets for organizations.
- Bookkeeping captures data in a systematic manner to be presented for tax filing and record keeping.
Free zone Company
Essentially, a Free zone company is a company formed under specific jurisdiction under a particular Emirate in UAE. Currently, there are many functional Free zones in the UAE. Free zones usually have their own set of rules and regulations for companies to function which are set by a governing body named Free zone Authority.
A Free zone in UAE is categorized by its complete foreign ownership and substantial tax concessions. For a Free zone company to function legally one of the aspects is to maintain financial records either in a soft or hard form, in order to do so accounting and bookkeeping services are essential.
Let us take a deeper look into why Free zone companies require bookkeeping and accounting services in Dubai.
Here is why Free zone Companies need Bookkeeping and Accounting Services in Dubai:
It does not matter if the Free zone company operates on a small, medium, or large scale; every company needs bookkeeping and accounting services in Dubai. There are many rules and regulations for every organization that has its operations based in Dubai. Here are the reasons why,
File Tax Returns
Under the current tax regulations, every company that operates in Dubai or even in any other part of the UAE needs to file their tax or VAT (Value Added Tax) returns to the designated authority at regular intervals once they have reached the specified tax registration threshold. As per these regulations, every company must be equipped with the latest accounting system to control and manage all VAT-related data and documentation.
Keeping the mandatory requirement to maintain financial books in order, accounting and book-keeping play a very important part in sustaining the company. Outsourcing this function with the best accounting firms in UAE is a wise and economical option. Besides saving effort and money, these firms have professionals who have in-depth know-how of the regulations. On the contrary, when you hire a team of accountants or go to install the latest accounting system, it can be a massive exercise and lot of resources to be spent.
Abide by the FTA Compliance
FTA, or the Federal Tax Authority of UAE, has set out a list of rules and regulations that all companies need to comply with. One of the main tasks of accounting firms in the UAE is to help the organizations abide by the FTA compliance to avoid tax defaulting. Moreover, they are also responsible for keeping the systems updated, managing the expenses under financial laws, providing proper accounts, etc.
As discussed earlier, hiring a team of accountants and bookkeepers can be expensive. Moreover, you need to set up the required system at your own cost. Instead, outsourcing accounting services in UAE can be way more pocket-friendly and effortless. When you team up with such a firm that offers bookkeeping and accounting services in Dubai, they bring in all the expertise and give you upgraded versions of the accounting technologies an organization may require.
Opting for bookkeeping and accounting services in Dubai can bring you many additional benefits besides the ones mentioned. When you collaborate with one such firm for your Free zone company, you can rest all the accounting issues on them and concentrate on other operations within your organization. Moreover, they bring on board the latest technology through which you always abide by the compliances set by the designated authority and never miss out on paying the necessary taxes or deadlines.
If you would like to get in touch with an expert on accounting and bookkeeping in Dubai connect with EFFICIENT CFO. We offer you one-stop solutions with all types of financial services.
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