How accurate are your business financial records and statements? Are your accounting practices compliant with UAE accounting standards? Do you file your VAT and other taxes correctly?
Many companies in Dubai struggle with accounting and bookkeeping. Poor accounting and bookkeeping practices are a financial and legal liability. It could cost you hefty penalties or even lead to the suspension of your business license.
How do you avoid that?
Outsourcing accounting and bookkeeping services has become an ultimate solution for many. It involves hiring a party/accounting firm outside the company to perform accounting and bookkeeping services for your business. Keep reading to learn more about outsourced business accounting services in Dubai.
All bank transactions need the support of a bank statement. The statement must include the date of the transaction and the name and address of the business receiving the funds. You also need to include the amount and nature of the transaction.
Companies can keep an electronic record of the statements. Keeping these records helps in accurately preparing an annual budget and profit and loss accounts.
All bank transactions need the support of a bank statement. The statement must include the date of the transaction and the name and address of the business receiving the funds. You also need to include the amount and nature of the transaction.
Companies can keep an electronic record of the statements. Keeping these records helps in accurately preparing an annual budget and profit and loss accounts.
Other supporting documents include invoices, credit notes and contracts. Also, include bank statements for businesses that are not registered for VAT.
The above documents should be in their original form. Copies of the documents are not acceptable.
Many small businesses attempt to do their books. This is common when a firm doesn’t want to spend money on accounting firms. Business owners also think they can keep things more “in-house.”
However, this often leads to a lot of stress and time wasted. Accounting is complex and a full-time job in itself. If you are running a business, you likely already have enough on your plate.
Instead of doing everything by yourself, consider the following options:
Accounting outsourcing is the transfer of accounting functions to third party accounting firms. This includes services like bookkeeping, tax preparation and financial statement preparation. You can outsource these services to an independent professional firm that specialises in that particular industry.
Outsourced accounting services take over the day-to-day tasks of your accounting department. You can choose to outsource all accounting operations or some hectic ones. Here are some of the most popular outsourced accounting services:
This is the department that pays your bills. The person who handles accounts payable must be very detail-oriented and knowledgeable about tax laws.
This department is responsible for collecting money from your customers. If your business offers its services and products on credit, you need agile management of these records. Poor management of accounts receivable can run your business into bankruptcy.
Bookkeeping is the process of recording your financial transactions. This can be done manually or electronically. When dealing with virtual accounting companies, you have to do it electronically.
Budgeting is the process of planning your finances. It involves determining how much money you will make and how much you will spend.
Tax accounting is the process of preparing tax returns for your business. The firm will also calculate income taxes payable by your business.
Tax accounting is different from financial accounting. You are better off having an expert who does both of these accounting tasks.
A company may outsource their accounting because they don’t have the staff to handle these tasks. Whatever the reason, it can be a more cost-effective alternative than hiring permanent employees.
Outsourcing accounting services to a professional accounting agency allows you to work with experts. Every business needs an accounting expert. All successful companies have someone on their team who stays on top of their numbers.
You need to know how much money you are making and how much you are spending. Accounting experts help with the following:
A competent accountant knows how to align your accounts with the business goals. An expert helps you grow your business, reduce costs and make smart decisions. They will also provide the expertise that helps you manage tax and legal issues.
Choose a competent accounting company. You can check their offshore company licenses to confirm their credibility.
Have you ever opened your mail to find a letter from the taxman? The reason behind this letter is that you may not have filed your taxes.
The UAE has introduced VAT in 2018 and is planning to introduce corporate tax in 2023. It is best to make sure your company’s books are in order and updated to prepare for any tax audit or reporting requirements. This can help you ensure your business complies with the country’s tax regulations, among other corporate requirements.
Here are some legal benefits of outsourcing your accounting:
Accounting outsourcing companies have the experience to help your business avoid legal issues. They are well informed of UAE bookkeeping standards. They keep your records as per the set legal standards and advise on minimising legal risks.
Outsourcing accounting services allows you to utilise the latest technology. With a virtual team of accountants, you implement cloud computing and new software programs. This can increase efficiency.
Accounting agencies invest in emerging technologies to improve efficiency. Investing in new technologies can be costly. As new technology emerges, you have to upgrade to new systems.
Outsourcing with such firms allows you to use the latest technologies without the need to invest extra.
You get to keep your accounting in order using specialised accounting software. This automates accounting tasks. This organises your invoicing process manages inventory and other calculations.
Bookkeeping and accounting have undergone a radical change over the past few years. Many companies use cloud-based services to store client data and keep track of finances. You need to maintain a competitive edge by investing in the latest technologies.
The UAE has its own set of GAAP accounting principles. The International Federation of Accountants (IFAC) is in charge of maintaining these standards. The GAAP principles apply to all the UAE government entities and state-owned companies.
The accounting standards of the UAE are based on the following principles:
Income is recognised when it is realised or realisable. Expenses are recognised when they are incurred. Revenue is recognised when it is earned.
You should measure assets and liabilities at fair value, except for financial instruments and leases. These are measured at amortised cost using the effective interest rates.
Running your own business in Dubai is a fun challenge. However, it can also be a struggle when it comes to accounting and bookkeeping. Here are five policies you need to follow:
Transactions of up to AED 1,000 need evidence supported by a receipt. Receipts must be in the name of the business. They must include the date of issue, signature of the person issuing the receipt, and recipient.
You must also indicate the amount and nature of the transaction. The details are essential for proof of transactions. They also improve accounting accuracy.
Businesses operating in UAE must comply with Value Added Tax (VAT) regime, effected on January 1st 2018. The new tax applies to all companies in UAE, whether your services are local or outside UAE.
Businesses are required to register for VAT if they meet the eligibility criteria. Taxes in Dubai can be a complex matter. As such, your business should adopt a VAT Return Policy that makes sense. It should be in line with industry best practices.
This involves getting an in-house permanent accounting employee. Depending on your company’s size, you can hire one or a team of accountants. The hiring process involves posting the job offer on your website or job websites.
You interview several candidates until you find the perfect fit. Some of the qualifications you should look for include experience in reconciliation, monitoring/recording accounts payables and accounts receivables transactions, basic bookkeeping and financial reporting. If you are lucky to find a reliable accounting staff member, they can handle all accounting operations. Alternatively, you can use outsourced accounting services in the UAE.
Hiring the right accounting firm can be your first step towards outsourcing business accounting services in Dubai. These firms have expert accountants. They help you with everything related to financial accounting and reporting.
You can easily outsource your bookkeeping or accounting services online. Below are critical reasons for outsourced accounting services in Dubai:
Outsourcing your accounting and finance operations is cost-effective. There is no need to pay someone on a full-time basis. One full-time employee could cost you up to AED 293,638 per year.
Hiring permanent employees to manage your accounts attracts the following expenses:
Remember, you might need to hire several employees to manage your accounts. This translates to higher salary costs.
Outsourcing cuts these overhead costs and makes your business is more profitable. Outsourced accounting services can be done on a contractual basis. With the tight economy, business owners are looking for cost-effective solutions.
Bookkeeping is one of the most critical aspects of an organisation. It is the documentation of financial transactions and records. Accounting and bookkeeping are tedious and complex jobs.
There are several reasons behind this complexity.
The accountant has many responsibilities to fulfil. They need to ensure all transactions are documented and accounted for. This can be overwhelming when the company has a lot of transactions taking place.
There are many types of documents that need to be maintained. These include cash receipts, bank statements, and cheque stubs. The accountant needs to ensure that all these documents are stored safely, and the information is easily accessible.
It will require more than 60 hours per week to manage your accounting. This draws your attention from other business operations like customer service, partnerships, and others.
Outsourcing your accounting operations frees up time for other operations. It allows you to focus on important business operations.
Talent is the lifeblood of a successful company. You need professionals to meet your accounting needs. Businesses in the UAE have been facing a shortage of skilled workers for years.
Dubai is now specifically facing a shortage of accounting staff. The problem stems from the increased competition for employees.
Employers have a hard time finding the best candidates for their vacancies. When they do, it’s difficult to retain them. Despite government policies to help retain accounting staff, it continues to be hard.
For instance, the government requires an accountant to work for at least two years before they can resign. If he quits before that time, he pays back the salary and benefits.
Outsourcing helps your company avoid labour shortage and retention problems. You have access to competent accountants beyond Dubai.
Although outsourcing business accounting services in Dubai is beneficial, you need to work with the best to enjoy the benefits.
Virtuzone offers reliable business support services to help your business realise its potential. Our team can help you with accounting, bookkeeping, payroll, and VAT. Our goal is to offer advisory services and allow you to focus on your business.
Book a free consultation with one of our company specialists.
How accurate are your business financial records and statements? Are your accounting practices compliant with UAE accounting standards? Do you file your VAT and other taxes correctly?
Many companies in Dubai struggle with accounting and bookkeeping. Poor accounting and bookkeeping practices are a financial and legal liability. It could cost you hefty penalties or even lead to the suspension of your business license.
How do you avoid that?
Outsourcing accounting and bookkeeping services has become an ultimate solution for many. It involves hiring a party/accounting firm outside the company to perform accounting and bookkeeping services for your business. Keep reading to learn more about outsourced business accounting services in Dubai.
The UAE has its own set of GAAP accounting principles. The International Federation of Accountants (IFAC) is in charge of maintaining these standards. The GAAP principles apply to all the UAE government entities and state-owned companies.
The accounting standards of the UAE are based on the following principles:
Income is recognised when it is realised or realisable. Expenses are recognised when they are incurred. Revenue is recognised when it is earned.
You should measure assets and liabilities at fair value, except for financial instruments and leases. These are measured at amortised cost using the effective interest rates.
Running your own business in Dubai is a fun challenge. However, it can also be a struggle when it comes to accounting and bookkeeping. Here are five policies you need to follow:
All bank transactions need the support of a bank statement. The statement must include the date of the transaction and the name and address of the business receiving the funds. You also need to include the amount and nature of the transaction.
Companies can keep an electronic record of the statements. Keeping these records helps in accurately preparing an annual budget and profit and loss accounts.
Transactions of up to AED 1,000 need evidence supported by a receipt. Receipts must be in the name of the business. They must include the date of issue, signature of the person issuing the receipt, and recipient.
You must also indicate the amount and nature of the transaction. The details are essential for proof of transactions. They also improve accounting accuracy.
All bank transactions need the support of a bank statement. The statement must include the date of the transaction and the name and address of the business receiving the funds. You also need to include the amount and nature of the transaction.
Companies can keep an electronic record of the statements. Keeping these records helps in accurately preparing an annual budget and profit and loss accounts.
Businesses operating in UAE must comply with Value Added Tax (VAT) regime, effected on January 1st 2018. The new tax applies to all companies in UAE, whether your services are local or outside UAE.
Businesses are required to register for VAT if they meet the eligibility criteria. Taxes in Dubai can be a complex matter. As such, your business should adopt a VAT Return Policy that makes sense. It should be in line with industry best practices.
Other supporting documents include invoices, credit notes and contracts. Also, include bank statements for businesses that are not registered for VAT.
The above documents should be in their original form. Copies of the documents are not acceptable.
Many small businesses attempt to do their books. This is common when a firm doesn’t want to spend money on accounting firms. Business owners also think they can keep things more “in-house.”
However, this often leads to a lot of stress and time wasted. Accounting is complex and a full-time job in itself. If you are running a business, you likely already have enough on your plate.
Instead of doing everything by yourself, consider the following options:
This involves getting an in-house permanent accounting employee. Depending on your company’s size, you can hire one or a team of accountants. The hiring process involves posting the job offer on your website or job websites.
You interview several candidates until you find the perfect fit. Some of the qualifications you should look for include experience in reconciliation, monitoring/recording accounts payables and accounts receivables transactions, basic bookkeeping and financial reporting. If you are lucky to find a reliable accounting staff member, they can handle all accounting operations. Alternatively, you can use outsourced accounting services in the UAE.
Accounting outsourcing is the transfer of accounting functions to third party accounting firms. This includes services like bookkeeping, tax preparation and financial statement preparation. You can outsource these services to an independent professional firm that specialises in that particular industry.
Outsourced accounting services take over the day-to-day tasks of your accounting department. You can choose to outsource all accounting operations or some hectic ones. Here are some of the most popular outsourced accounting services:
This is the department that pays your bills. The person who handles accounts payable must be very detail-oriented and knowledgeable about tax laws.
This department is responsible for collecting money from your customers. If your business offers its services and products on credit, you need agile management of these records. Poor management of accounts receivable can run your business into bankruptcy.
Bookkeeping is the process of recording your financial transactions. This can be done manually or electronically. When dealing with virtual accounting companies, you have to do it electronically.
Budgeting is the process of planning your finances. It involves determining how much money you will make and how much you will spend.
Tax accounting is the process of preparing tax returns for your business. The firm will also calculate income taxes payable by your business.
Tax accounting is different from financial accounting. You are better off having an expert who does both of these accounting tasks.
A company may outsource their accounting because they don’t have the staff to handle these tasks. Whatever the reason, it can be a more cost-effective alternative than hiring permanent employees.
Hiring the right accounting firm can be your first step towards outsourcing business accounting services in Dubai. These firms have expert accountants. They help you with everything related to financial accounting and reporting.
You can easily outsource your bookkeeping or accounting services online. Below are critical reasons for outsourced accounting services in Dubai:
Outsourcing your accounting and finance operations is cost-effective. There is no need to pay someone on a full-time basis. One full-time employee could cost you up to AED 293,638 per year.
Hiring permanent employees to manage your accounts attracts the following expenses:
Remember, you might need to hire several employees to manage your accounts. This translates to higher salary costs.
Outsourcing cuts these overhead costs and makes your business is more profitable. Outsourced accounting services can be done on a contractual basis. With the tight economy, business owners are looking for cost-effective solutions.
Outsourcing accounting services to a professional accounting agency allows you to work with experts. Every business needs an accounting expert. All successful companies have someone on their team who stays on top of their numbers.
You need to know how much money you are making and how much you are spending. Accounting experts help with the following:
A competent accountant knows how to align your accounts with the business goals. An expert helps you grow your business, reduce costs and make smart decisions. They will also provide the expertise that helps you manage tax and legal issues.
Choose a competent accounting company. You can check their offshore company licenses to confirm their credibility.
Bookkeeping is one of the most critical aspects of an organisation. It is the documentation of financial transactions and records. Accounting and bookkeeping are tedious and complex jobs.
There are several reasons behind this complexity.
The accountant has many responsibilities to fulfil. They need to ensure all transactions are documented and accounted for. This can be overwhelming when the company has a lot of transactions taking place.
There are many types of documents that need to be maintained. These include cash receipts, bank statements, and cheque stubs. The accountant needs to ensure that all these documents are stored safely, and the information is easily accessible.
It will require more than 60 hours per week to manage your accounting. This draws your attention from other business operations like customer service, partnerships, and others.
Outsourcing your accounting operations frees up time for other operations. It allows you to focus on important business operations.
Have you ever opened your mail to find a letter from the taxman? The reason behind this letter is that you may not have filed your taxes.
The UAE has introduced VAT in 2018 and is planning to introduce corporate tax in 2023. It is best to make sure your company’s books are in order and updated to prepare for any tax audit or reporting requirements. This can help you ensure your business complies with the country’s tax regulations, among other corporate requirements.
Here are some legal benefits of outsourcing your accounting:
Accounting outsourcing companies have the experience to help your business avoid legal issues. They are well informed of UAE bookkeeping standards. They keep your records as per the set legal standards and advise on minimising legal risks.
Talent is the lifeblood of a successful company. You need professionals to meet your accounting needs. Businesses in the UAE have been facing a shortage of skilled workers for years.
Dubai is now specifically facing a shortage of accounting staff. The problem stems from the increased competition for employees.
Employers have a hard time finding the best candidates for their vacancies. When they do, it’s difficult to retain them. Despite government policies to help retain accounting staff, it continues to be hard.
For instance, the government requires an accountant to work for at least two years before they can resign. If he quits before that time, he pays back the salary and benefits.
Outsourcing helps your company avoid labour shortage and retention problems. You have access to competent accountants beyond Dubai.
Outsourcing accounting services allows you to utilise the latest technology. With a virtual team of accountants, you implement cloud computing and new software programs. This can increase efficiency.
Accounting agencies invest in emerging technologies to improve efficiency. Investing in new technologies can be costly. As new technology emerges, you have to upgrade to new systems.
Outsourcing with such firms allows you to use the latest technologies without the need to invest extra.
You get to keep your accounting in order using specialised accounting software. This automates accounting tasks. This organises your invoicing process manages inventory and other calculations.
Bookkeeping and accounting have undergone a radical change over the past few years. Many companies use cloud-based services to store client data and keep track of finances. You need to maintain a competitive edge by investing in the latest technologies.
Although outsourcing business accounting services in Dubai is beneficial, you need to work with the best to enjoy the benefits.
Virtuzone offers reliable business support services to help your business realise its potential. Our team can help you with accounting, bookkeeping, payroll, and VAT. Our goal is to offer advisory services and allow you to focus on your business.
Book a free consultation with one of our company specialists.
Office 402 – 16, Crystal Tower, Marasi Drive, Business Bay, Dubai, United Arab Emirates
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