Do you find accounting a time-consuming and tedious task and want to avail accounting services in Dubai? Are you worried about making errors or complying with complex tax laws and regulations? If so, you are not alone. Many businesses in the UAE face these same challenges.
You don’t have to worry, and there is a solution to all of these problems. Accounting services in Dubai can help you take the hassle out of accounting and bookkeeping.
Once, there was a small company in UAE that faced a serious issue of non-compliance. The accountants in that company were ignorant and didn’t keep the financial records properly. During the audit of the company, they received a letter. The company was fined heavily for not keeping financial records for the last few years in the UAE. There are hundreds of companies that face these penalties for errors in their financial records and non-compliance.
Also, there are many challenges faced by a number of businesses in maintaining their financial records. However, you must start maintaining the financial records of your company before it is too late. Here are some of the main challenges businesses face in keeping financial records.
- Lack of time and resources
- Complexity of tax laws and regulations in the UAE
- Risk of fraud
- Lack of expertise
Moreover, if you need help with any of these problems in your company to keep track of every financial record? Then, here come the best accounting services in Dubai to solve your problems. So why wait? If you are tired of keeping financial records regularly, contact an accounting service provider in Dubai, such as ebs to help you out.
Before we go in depth of the topic, here are some quick tips for you to overcome the challenges mentioned above:
- Use accounting software
- Outsource accounting services in Dubai
- Train staff on accounting procedures
- Hire an experienced and qualified accountant
- Implement security measures
Let’s discuss in more detail the maintenance of financial records and how accounting services in Dubai can help you.
How to Keep Your Business Finances in Check
One of the most crucial elements of running a successful business is keeping accurate records. Keeping detailed financial documents and statements can assist business owners in making sound decisions. Moreover, further helps the businesses to comply with applicable laws.
Also, businesses have to be aware of the accounting services in Dubai and their importance. Businesses have to stay updated about the regulations of record keeping in the UAE. If the company or business still needs to keep the record for the last 6 years. Then, these businesses will be penalized by the Federal tax authority.
You don’t have to worry, and there is a well-worn path for every accounting process. Let’s discuss more about financial records and their importance for UAE-based businesses. However, you can always reach for the best accounting services in Dubai to maintain your financial accounts.
Books of accounts as per UAE Federal Law
Businesses are needed to keep accounting records showing transactions to show the financial position of the company. These financial records are maintained to ensure the stakeholders that the accounts of books are maintained. Also, the accounting services in Dubai also focus on maintaining the books of accounts. In the UAE, companies have to maintain the record to comply with the laws and regulations. Federal Law No. 2 of 2015 has enlisted the requirement to maintain books of accounts in the UAE.
Article 26 on accounting records
- The businesses can keep an electronic copy of the records and documents.
- Businesses in the UAE should maintain books of accounts at their main office for at least 5 years. This should be from the end of the financial year of the company.
- Companies have to comply with the International Accounting Standards and Practices. They have to prepare the annual accounts and periodicals to present a clear view of the losses and profits of the company.
Responsibilities for preparing the accounts
The manager of your business corporation or company has to prepare the annual budget. He also has to maintain the profit and loss account. The manager has to compile an annual report on the financial position of the company. He also has to provide recommendations on the distribution of the profits. This should be done within three months of the end of the financial year.
So, it is advisable to use the best accounting services in Dubai to stay compliant. Now, let’s discuss the administrative penalties for non-compliance.
Administrative penalties as per UAE law
Failure to maintain accounting records
According to Article 348 of the Federal Law No 2 of 2015, businesses must ensure that their books of accounts are maintained according to the law. Failure to keep records would cause a fine of AED 50,000 to AED 500,000.
Failure to keep accounting records
According to Article 349 of Federal LAW no 2 of 2015, companies need to keep their books of accounts in their head office. This should be at least 5 years from the end of the financial year for the company. There is a payable penalty of AED 20,000 to AED 100,000.
Now, let’s talk about how you can avoid these penalties and stay compliant. The secret ingredient is to maximize efficiency with the best bookkeeping system. Accounting firms in Dubai always use the right bookkeeping system to maintain the records.
Choose the best bookkeeping system
If you invest in the right bookkeeping system, then you can maximize efficiency. It ensures that your books are always updated.
Also, there are plenty of options on the market. It ranges from simple products that track cash flow to expensive software packages. In addition, the expensive software packages offer more complex features.
QuickBooks, Xero, Sage One, and FreshBooks are the popular solutions to consider. It does not matter which software you use. The best accounting team in UAE will keep it sorted.
Set Up a regular recording schedule
Setting a proper regular schedule for keeping the financial records tracked will make the task easier. You will be able to identify the issues with cash flow. Moreover, the accounting problems can be tracked earlier. Sometimes, the issues bring serious penalties. So, it is better to follow the best bookkeeping practices and stay compliant.
Reconcile Bank statements regularly
It is essential to maintain accurate financial records. Bank reconciliation statement maintenance makes it easier. This is one of the secret ingredients in keeping the records of financials. So, the best accounting firms in Dubai will recommend reconciling the bank statements periodically throughout the year. Some businesses are ignorant about bank statement reconciliations.
- According to FTA, 30% of businesses in the UAE need to perform bank reconciliation regularly.
- FTA imposes a penalty of up to 20% of the additional tax payable.
- If your business fails to keep the records, you can get a fine of up to AED 20,000.
However, we know you don’t want to be one of those who are penalized by the FTA. The best way to hire accounting service providers in Dubai is to stay compliant.
How can ebs help?
For businesses that want to maintain accurate financial records. The best piece of advice is to get professional assistance. However, the laws and filing regulations might change according to the ruling authority in the UAE. For instance, Free zones have their own regulations apart from FTA regulations. So, it is crucial to use the bookkeeping and accounting services in specific areas.
If you are worried about your books of accounts, then ebs comes here. Our professionals will handle all your accounting and bookkeeping tasks efficiently. ebs is one of the best accounting and bookkeeping firms in Dubai. Moreover, our user experience is satisfying. We cater our accounting and bookkeeping services according to the client’s needs. Our team gets to know the business niche and condition and then molds the services according to the needs.
ebs is the best accounting firm in Dubai and provides the best accounting services in Dubai. Not only that, but we also provide other services such as accounting and bookkeeping services, VAT services, Auditing, Due Diligence audit services, and many more. Feel free to contact us and book a free consultation.