Accounting and Bookkeeping Policies in Dubai (A Comprehensive Guide)
As one of the fastest-growing economies in the world, Dubai is a hub for businesses of all sizes and industries.
Whether you're an entrepreneur just starting out or an established company looking to expand, managing your finances is crucial to running a successful business in Dubai.
In this article, we'll take a deep dive into Dubai business accounting services on below areas:
1. What are the Must-know Accounting and Bookkeeping Policies in Dubai?
2. How to Keep Your Business Accounting Records in Order?
3. What are the Benefits of Outsourcing Your Business Accounting Services?
In Dubai, businesses must comply with the Federal Law No. 2 of 2015 on Commercial Companies (CCL). Under this law, companies must maintain accurate and up-to-date financial records and prepare annual financial statements following International Financial Reporting Standards (IFRS).
In addition, businesses must comply with the UAE VAT law, which requires companies to maintain detailed records of all transactions and file regular VAT returns.
What are the Must-know Accounting and Bookkeeping Policies?
The UAE has its own set of GAAP accounting standards. Hence, it is the responsibility of the International Federation of Accountants (IFAC) to uphold these standards. All state-owned businesses and government agencies in the UAE must adhere to GAAP principles.
To ensure compliance with these regulations, businesses in Dubai must adhere to specific accounting and bookkeeping policies. These policies include:
If a business meets the eligibility requirements, it must register for VAT. In Dubai, taxes can be a complicated issue. Therefore, your business needs to implement a sensible VAT Return Policy. It ought to adhere to industry standards.
How to Keep Your Business Accounting Records in Order in Dubai?
Maintaining accurate and up-to-date financial records is critical to the success of any business in Dubai. Here are some tips to keep your business accounting records in order:
You can contract with an independent professional company specializing in that area to provide these services.
Outsourced accounting services take over the routine duties of your accounting department. You can decide to outsource your accounting tasks or just the busy ones. The most popular outsourced accounting services are listed below:
One of the main justifications for outsourcing accounting is payroll. Payroll is challenging, and requires specialized knowledge and skills.
b) Accounts Payable
This division pays your bills. Accounts payable managers need to be very meticulous and knowledgeable about tax regulations.
c) Accounts Receivable
This division is in charge of collecting money from your clients. Your company needs agile record management if it provides its goods and services on credit. Accounts receivable management mistakes can bankrupt your company.
Recording your financial transactions is done through bookkeeping. Both manual and electronic methods are acceptable. Dealings with online accounting firms must be conducted electronically.
Planning your finances is the process of creating a budget. It entails calculating how much money you'll earn and how much you'll spend.
f) Tax Accounting
Creating tax returns for your company is known as tax accounting. The company will also figure out the income taxes your company must pay.
Financial accounting is distinct from tax accounting. You would be better off hiring a professional to handle these accounting duties. Due to a lack of staff, a business may outsource its accounting. Whatever the reason, it might be a less expensive option than hiring long-term employees.
What are the Benefits of Outsourcing Business Accounting Services?
Outsourcing your business accounting services can offer numerous benefits, including:
INSPIRE provides trustworthy business support services to help your company reach its full potential. Our objective is to provide advice while letting you concentrate on your company.
You can get assistance from our team with accounting, bookkeeping, payroll, and VAT.
Contact us for more information: info@Inspiretaxconsultancy.com
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