No matter what line of business you have, keeping the company’s accounts in order is a mandatory requirement. With UAE becoming the top-most choice as a business destination, many business or company owners select Dubai as a location to expand their business in UAE.
Dubai has been witnessing rapid business growth in the last couple of years, and the need for maintaining Books of Accounts both for business excellence and legal requirements has never been so paramount. UAE commercial company law 2015 and UAE VAT law require business establishments in Dubai to maintain proper books of accounts and for a minimum period of five years. Accounting Services in Dubai help businesses to outsource all accounting functions and provide the best in- house accounting experience at a reduced cost.
There are three leading business jurisdictions in Dubai UAE, and companies in these jurisdictions are Mainland or onshore companies, offshore companies, and free-one companies. All mainland or onshore companies are licensed by DED, Department of Economic Development of UAE, and need to file Tax Returns at the end of every financial year.
There are times when business circumstances compel you to think about bookkeeping and accounting outsourcing companies in Dubai, and some of these reasons are
- When you identify inaccuracies and inconsistencies in your books of accounts maintained by in-house accounting personnel, you usually go for outsourcing accounting services guaranteeing accurate, transparent, and high-quality accounting services.
- As your business grows fast and requires substantial financial information to be processed and accounted for, you usually opt for external bookkeeping and accounting services.
- If you are spending lots of time in day to day accounting activities and can hardly make time for other value-creating business activities, you decide to switch over to external accounting services.
- Regulatory non-compliance and penalties usually force you to look for outside help and hire external accounting services in Dubai.
- As you realize that your in-house accounting team, including yourself, is not knowledgeable enough to independently handle your accounting jobs, you prefer to engage an expert accounting services company to manage your accounts and simultaneously train your in-house accounting personnel
- If your business is growing, but profit is not growing proportionately, you must look for some external expert to handle your accounts and financial statements. It usually happens when facts are buried in books of accounts and don’t correctly reflect the actual financial health of your business
- If you need to raise funds for your business, you will need professional finance and accounts reports for banks and other potential investors and will usually opt for an experienced external accounting services company for necessary support
- When high employee expenses of your in-house accounting team start making dents in your profitability, you normally choose a cost and time effective accounting solution by engaging an accounting outsourcing company in Dubai
Bookkeeping and Accounting outsourcing companies in Dubai can help promote your business in many different ways and provide services in the areas of Cloud accounting, Corporate and Financial Accounting, Bookkeeping, and Statutory Compliance, Part-time and full-time accounting, Cost Accounting, Internal Auditing. Also, accounting outsourcing companies in Dubai offer services related to VAT and Tax management and consultancy. E-commerce accounting and Big Data handling is another area where accounting services in Dubai prove their presence recently and aided by smart technologies of machine language and artificial intelligence.
There are several service offerings from accounting services in Dubai. The primary functions that are covered by accounting outsourcing companies in Dubai are
Bookkeeping and Accounting services outsourcing in Dubai offer multiple advantages to Startups, SMEs, and even to Large Sized Companies and mainly in the following areas
- Cost Reduction
Setting up your in-house bookkeeping and accounting department in Dubai generally means lots of expenses in recruiting internal bookkeepers and accountants, an accounts manager, and a CFO and meeting their monthly salaries and parks. There are other indirect expenses as administrative and human capital cost in addition to these vast fixed salary expenses. Employee cost being a fixed cost in nature, almost always takes away your competitive business advantage. Outsourcing bookkeeping and accounting services can save you a lot of money as an employee and HR cost.
- Opportunity for Value-added Activities
In today’s complicated business setups requiring firing guns in multiple business areas simultaneously, multitasking has become indispensable for Business owners and top management executives. Considerable time needs to be spent by top business executives in promoting product and service development, strategy formulation, marketing management, CRM, and risk management initiatives. Bookkeeping and Accounting services companies in Dubai UAE can relieve top executives from their day to day accounting related issues and administrative follow-ups of the internal accounts team and offers an opportunity to use their time more constructively towards business and strategy development, product and service quality improvement, business expansion through mergers and acquisitions.
- Improved Flexibility and Scalability
Outsourcing your Bookkeeping and Accounting Services in Dubai always offers more flexibility in your choices and engagement of accounting service providers than permanent in-house accounting staff or even a part-time account hired on a contract basis. In the case of underperformance, you always have an option to switch over to other outsourcing companies. Scalability comes when your business is dull, and there are limited business transactions. In such cases, you can always negotiate the cost with your accounting outsourcing company and make some savings. Startups can also go for part-time accounting services and make their ventures more profitable.
- Expert and Informed services
Your in-house accounting personnel may not always be privy to the nitty-gritty of Dubai Accounting and Taxation formalities causing regulatory compliance issues and lost money in tax incentives and tax exemptions. Once you opt for outsourcing the best bookkeeping and accounting services in Dubai, your accounts are handled by a team of experts with intimate knowledge of industry-specific rules, ensuring timely regulatory compliance and avoidance of fines & penalties.
- Reduction in Stress level
Employee turnover is very familiar at present days, and there is a constant need for searching and employing new employees through advertising and interviews, putting additional cost burden on your HR and admin department. Focus reviews and periodic evaluation of internal accounting personnel also cause other headaches. Management decisions on incentives, salary hikes, and promotions can even get on your nerves due to many complexities involved. Outsourcing bookkeeping and accounting services in Dubai can keep you free and relaxed and make you more focused and productive.
- Keeping Updated
Bookkeeping and Accounting outsourcing companies can keep you well informed on the latest changes in statutory rules and regulations and on accounting and financial standards. This will result in fast and timely adherence to laws and regulations and help avoid possible penalties.
- Additional Services
When you decide to opt for bookkeeping and accounting services outsourcing, you also become eligible for other value-added services at an optimum cost. Services like internal audits, analysis and reporting of financial statements and GST services, and long term tax planning are often included in the complete accounting suite. Internal audits by independent third parties can help you identify system and process anomalies and rectify them. Multiple reports on financial statements can make your cash flows more transparent.
So why is an efficient accounting practice imperative for a business?
An effective and streamlined accounting process helps in providing all the necessary information that the management and the stakeholders of the company ask for. Though, the dynamic business ecosystem has made the accounting practice more complex than before and managing this function without any professional help could be a very daunting task. We can pitch in at this juncture and our mission is to help professionals and companies in taking care of their end-to-end accounting and reporting needs through IMC’s outsourced accounting services in Dubai. We not only help you to deal with your accounting challenges such as lack of specific accounting expertise, shortage of staff, and operational roadblocks, but our team of qualified and experienced professionals help you to enhance the overall quality and efficiency of your entire accounting function. We also provide solutions to any issues or inefficiencies we spot in the process. IMC also provides custom and tailor-made solutions and accounting services in Dubai for our clients. We offer our services in the following areas:
- Journal Entry
- General Ledger
- Assets /Equipment Ledgers
- Expenses Ledger
- Accounts Receivables
- Accounts Payables Ageing Report & Summaries
- Bank Reconciliation
- Financial Statements preparation
- Trial Balance
- Income Statement (Profit & Loss)
- Cash Flow Statement
- Compilation Services
- Preparation of Tax Returns
- Quarterly and Yearly Reporting
- PDC Management
- Design & Documentation Services
- Management Reporting
- Record Reconstruction
- Choosing Computer & Accounting System
As per the UAE Commercial Company of 2015, there is a legal requirement that all the businesses should maintain their proper books of accounts for a minimum of five years.
As there are different priorities for all organizations at different times, it’s not simple to keep a track of all this and comply with so many legal necessities while taking care of your competition as well. Considering this, the accounting function becomes quite challenging to manage,which is why so many firms find outsourcing accounting an effective proposition today. Outsourcing a company’s accounting services in Dubai is a better and profitable proposition because it enables companies in a big way.
IMC also offers best-in-class accounting and bookkeeping services in Dubai and we also use one of the best accounting software. Highlights of the services we offer are:
To analyze your organization’s performance also to forecast numbers for the future, you would need precise and trustworthy data about your company’s financials. We, at IMC, ensure to make accurate financial statements so that your documents such as income statements, balance sheets, and cash flows are in accordance with the Generally Accepted Accounting Principles (GAAP). We are one of the top accounting firms in Dubai and promise to provide you accurate financial statements and manage them properly throughout the year in compliance to the GAAP so that you do not experience any challenges or concerns.
We manage bookkeeping services in Dubai for various clients, including big multinational companies and even start-up enterprises. We match up our pace with you and extend our support matching your requirements and needs. Our bookkeeping services help in sorting and taking care of the following tasks for you:
- Posting the general ledger and other required ledgers
- Reconciling the bank statements
- Recording and monitoring all the financial transactions in compliance with IFRS
- Managing the accounting reconciliations
- Generating the sales invoices
- Managing the vendor bills and also the payments
Please note: All financial transactions include all the business income and expenses, the receipts, payments and other adjustments.
A financial statement is a formal and written record, which convey the financial performance and activities carried out by a business or entity and usually consists of four main components. Financial statements present the financial status and information of an enterprise very clearly and concisely. Any company’s financial statements typically include their balance sheets, income statements, and statements of retained earnings and their cash flows. However, at times an entity may also need some additional disclosures in detail depending on the pertinent accounting framework. These financial statements are at times, audited by accountants, firms, or government agencies, to make sure that they are accurate for taxation or other purposes such as financing or investing. Due to various global and UAE jurisdictions, preparing financial statements is a mandate for all businesses. IMC offers to take care of preparing your financial statements including the following:
- Income Statement or a Profit and Loss Statement (Statement of Comprehensive Income)
- A Balance Sheet or Statement of Financial Position
- Cash Flow Statement
1. What are the basics of bookkeeping?
Bookkeeping is the recording of financial transactions and is an integral part of a business’s accounting process. It is basically an activity that keeps track of all financial transactions and posts debits and credits.
2. What is the difference between bookkeeping and accounting?
Bookkeeping is the process of recording and organizing all financial data, while accounting is the process of analyzing financial data and preparing financial statements, namely balance sheet, Cash flow statements, and profit and loss accounts.
3. What are the mandatory accounting standards in Dubai UAE?
International financial reporting standards (IFRS) are the mandatory accounting standards in Dubai. All listed companies, in NASDAQ Dubai or Dubai Financial Market or Abu Dhabi Securities Exchange, must manage and control accounting records in accordance with IFRS.
4. How outsourcing Bookkeeping and Accounting can help you manage your e-Commerce business better?
You can access the latest smart technologies that can assure more reliable support without increasing your fixed cost. E-Commerce businesses handle big data that is a large collection of information used to determine price, product and promotional priorities.
5. What are the accounting regulatory authorities in Dubai?
Dubai UAE Ministry of Economy is the accounting regulatory body. There are other professional bodies, e.g., UAE AAA, UAE National Accountants, and Auditors Association.
6. What is the accounting year in Dubai UAE?
From 1st January to 31st December is the accounting or financial year in Dubai.
7. Is Financial Audit Mandatory for SME Companies registered in Dubai?
As per Dubai UAE Commercial Companies Law, Federal Law No. 2 of 2015, Article 27 Chapter 2, every company needs to appoint a licensed Auditor registered under the Ministry of Economy for auditing its Books of Accounts.
8. What are the primary purposes of maintaining Books of Accounts?
Books of Accounts are typically maintained for four main reasons, e.g., Legal Requirements, Management control of Businesses, informing investors and shareholders on the organization’s financial health, and other third party requirements, e.g., Banks, Municipalities, or Financial Institutions.
9. Why Bookkeeping and Accounting are so essential for your business?
Bookkeeping and Accounting can help you manage your business better and more profitably. Bookkeeping and Accounting helps a company or industry in the following manner
- It helps you identify your budgetary requirements for your business
- It helps your company to prepare timely tax returns
- It helps you to comply with mandatory legal requirements
- It helps you to analyze your financial data and make informed business decisions for competitive advantage
- It also helps in future business planning by analyzing past business data
- It helps you to report the business health to concerned investors and shareholders and raising funds for your business
- It supports other business processes like operations, marketing and sales, and HR and used for identifying process inadequacies and improvement opportunities
- Bookkeeping helps you identify debtors and creditors and can be used for better cash flows.
- It also helps in tracking business growth and accordingly decides on future business strategies
10. Why choosing part-time accounting is so vital for startups?
Startups need to infuse a lot of money as working capital in their business initially and for the most effective use. Choosing an in-house accounting involves a lot of money typically and even then doesn’t always guarantee the desired output due to the lack of expertise. Outsourcing bookkeeping and accounting companies become cheaper, more value-creating, more flexible, and negotiable based on business needs and expert training for internal employees.
11. How do you know it is time to outsource your bookkeeping and accounting activities?
Some situations commonly compel you to decide on outsourcing your bookkeeping and accounting needs. When your company is growing, and on multiple fronts, a considerable amount of financial information needs to be processed and can’t be handled by in-house accounting personnel.