Manage your accounting, payroll and financial reports efficiently
Efficient management of accounting, payroll and financial reports is the backbone of any successful business. It becomes even more crucial when your enterprise is based in a place like Dubai known as a city of exponential growth and economic vibrancy.
Accounting policies in Dubai
Every business operating in Dubai must adhere to certain accounting policies regulated by the UAE federal laws. There are different accounting standards and laws that apply to businesses in Dubai, depending on their legal structure, size and activities. Some of the common ones are:
GAAP (Generally Accepted Accounting Principles) which are the basic rules and principles for corporate accounting.
IFRS (International Financial Reporting Standards) which are the global standards for preparing financial statements.
Federal Decree-Law No. 8 of 2017 that regulates Value added tax in UAE.
Federal Law No 2 of 2015 on Commercial Companies which is the main law that governs the formation and operation of companies in the UAE.
Free zone laws which encompass the specific laws & regulations that apply to companies registered in Dubai's free zones, such as DIFC or DMCC.
Some of the factors that affect the choice and application of accounting policies are:
The legal structure of your business, whether it is a sole proprietorship, a partnership, a limited liability company or a branch of a foreign company.
The location of your business, whether it is in the mainland or in a free zone. Different free zones have different regulations and requirements for accounting and auditing.
The industry and activity of your business, whether it is in manufacturing, trading, services, or finance. Different industries have different accounting standards and practices.
The size and complexity of your business, whether it has multiple branches, subsidiaries, or affiliates. Larger and more complex businesses may need more detailed and comprehensive accounting policies.
The record keeping policy as well as cash receipts, bank transactions, etc.in Dubai is regulated by the UAE Federal Law:
Record keeping policy
The record-keeping policy mandates businesses to retain their books for a period of at least 5 years. This duration extends to 15 years for real estate businesses.
Cash receipts
All cash receipts, whether received through cash, checks or electronic transfers, must be recorded and maintained meticulously.
Bank transactions
Any bank transactions, including deposits, withdrawals and fund transfers, should be correctly recorded. The relevant bank statements must be kept on file.
VAT returns and return filing
All VAT-related documents (e.g. tax invoices, tax credit notes, and other documents) to substantiate the reported figures must be retained.
Other supporting documents
Other documents that may need to be recorded include wage and salary records, plus customs records and inventory records.
How to keep your business accounting records in order in Dubai
Maintaining organized and efficient accounting records can be achieved by hiring accounting staff or outsourcing accounting services.
Hiring accounting staff
Employing an in-house team of accountants can ensure personalized and prompt services.
Outsourcing accounting services
However, outsourcing can provide specialized services while saving costs and efforts. Services typically outsourced are:
Payroll
A professional service can efficiently manage payroll ensuring timely payment as well as accurate records.
Accounts payable
Managing debts and payments can be outsourced once your goal is to maintain liquidity and financial stability.
Accounts receivable
Professional services can ensure prompt payments, thus reducing the financial burden.
Bookkeeping
Outsourced bookkeeping can ensure accuracy, timeliness and compliance with relevant laws.
Budgeting
Professional budgeting can help control cost, optimize profit and contribute to the smooth running of business.
Tax accounting
Expert tax accounting services can minimize liability and at the same time ensure compliance with the tax laws.
Setting up/reviewing of books of account
Accounting services can set up new books or review existing ones for accuracy and completeness.
Monthly management reports
These reports, prepared by outsourced services, provide valuable insights into the financial health of the business.
General advice regarding accounts & finance-related matters
Professional advice is helpful while making informed financial decisions.
Benefits of outsourcing business accounting services in Dubai
Outsourcing accounting services come with several benefits:
Cost-effective
Outsourcing can save costs related to recruitment, training and maintaining an in-house accounting team.
Get a team of experts and professionals
Outsourcing gives you access to a pool of experienced professionals who can handle complex accounting tasks.
Stay focused on your business
With accounting handled by experts, business owners can fully focus on core operations.
Meet statutory requirements and regulations
Professional accounting firms not only ensure compliance with local laws. They also ensure the fulfillment of international accounting standards.
Address inefficient workforce issues
Outsourcing can fill skill gaps without the need for long-term commitments.
Reap the benefits of the latest technology
Accounting firms use the latest software and tools ensuring efficient and proper work.
Whether you opt for hiring an in-house team or outsource, effective management of accounting, payroll and financial reports is crucial for business success in Dubai. Outsourcing might be a particularly attractive option bearing in mind its cost-effectiveness and ability to give you the access to a team of professionals. Gain more time to focus on your core business activities!
