Accounting and bookkeeping are both essential aspects of any organization as they help in the management and monitoring of finances, income, and overall expenses. Accounting and Bookkeeping in Dubai are as important as one could imagine, given that the region has showcased unlimited potential with a shimmering future for companies that have decided to settle their roots there; do keep in mind there are strict regulations surrounding businesses that call for high accountability for the investigation and checking done by the administration. So no matter the niche or scope of your organization, an accountant and a bookkeeper can help you manage your business in Dubai and UAE efficiently.
First, let’s have a look at what each of them stands for and how are they different from each other as people tend to confuse them with one another.
What is Accounting?
Speaking technically, it is the process of recording financial transactions related to a business that includes analysis, summarization, as well as reporting of the said transactions to the regulatory bodies, and authorities responsible for the collection of taxes.
Accounting utilizes financial statements which are a summarization of the transaction conducted over an accounting period. This, in turn, is the summary of a company’s financial position, its operations, and its cash flows. If you are associated with an accounting and bookkeeping company in Dubai, they will be entailing all your activities resulting in inflow or transaction of money to regulators and tax collecting entities.
What is Bookkeeping?
Bookkeeping is the regular and systematic recording of an organization’s financial transactions for tracking all the information on its books. This is to help the company in making its key financial decisions such as operations, investing, etc. This makes bookkeepers responsible for the management of all the finical data of a company. Hiring an accounting and bookkeeping firm in Dubai will help you remain on top of your financial position and transactions taking place on a daily basis. With bookkeeping, you have an accurate measure of the performance of the company’s finances.
What is the Difference between Accounting and Bookkeeping?
Although both are equally important parts of a business and seemingly similar, there are a few vital differences in both operations.
Accounting deals with budgeting, reporting financial statements, analyzing the performance of a business, and tax returns. It is responsible for the presentation and interpretation of business data to the owners and potential investors.
Bookkeeping, on the other hand, deals with core operations like recording business transactions, generating payrolls, invoicing, managing receipts/bills, etc. in short, it is directed towards organizing and recording financial data. Accounting and bookkeeping firms in Dubai can help you meet these fundamental requirements as a business and help you report adequate data to regulatory authorities.
What Does an Accounting and Bookkeeping Company do?
If you hire the services of an accounting and bookkeeping firm in Dubai, they will help you with ineffective management and record-keeping of your financial data to help you make informed decisions. Important matters such as tax planning, audit, offering business financially, preparation of payrolls, bank statements, cash flow analysis, sales, and purchases are but a few things you can expect accounting and bookkeeping services in Dubai to offer you.
When to Hire of Accounting and Bookkeeping Company in Dubai?
Ideally, you should hire an accountant and bookkeeper the moment you have started a company so you can manage the records as early as possible.
For an accountant, you should hire one as soon as,
- You need advice on writing a business plan
- Need advice about the legal structure of the company
- To help manage finances and for delegation
- To deal with a variety of legal matters pertaining to tax laws
- For auditing
- Before taking on a franchise or buying a business
- To keep the legal status of your company updated
You should hire a bookkeeper as soon as:
- Your company needs to start keeping track of sales, purchases, payments, and receipts
- When your company needs to review internal business procedures and design maintenance
- When your company needs to store the financial data in a standardized fashion so it can be used by the accounting department
- When you need to record, collate, and organize financial data on a daily basis in a general ledger.
Types of Accounting:
There are several types of accounting that your business may be in need of. This includes:
- Financial accounting
- Public accounting
- Governmental accounting
- Cost accounting
- Tax accounting
- Forensic accounting
- Management accounting
Accounting and Bookkeeping in Dubai:
Just like anywhere else, you will also be needing accounting and bookkeeping in Dubai, which offers a lot of benefits and prospects for your business. The 5% VAT introduced by the UAE Minister of State for Monetary Affairs that is even applicable for tax-free territories is something to be considered as a fundamental factor to consider hiring accounting and bookkeeping in Dubai.
Benefits of Accounting Bookkeeping in Dubai:
- Makes it easy to comply with the law and regulations
- Allows for detailed recording and management of financial transactions
- Makes financial decisions easier to plan and record
- Presents a better image of the company to banks and investors
- makes the prediction of taxes easier
- Better business response time
- Faster audits and financial analysis
- Makes financial transactions, payrolls, etc. easier
Accounting and Bookkeeping Services in Dubai
Although Dubai has a variety of accounting and bookkeeping service providers, not all of them are equally apt and suitable for your business. There are numerous big names that may apparently seem suitable for you, but in the long turn, there are many factors such as reliability, affordability, and long term partnership that may affect the relation of a company, especially SMEs with small budgets and long term reliable needs for accounting and bookkeeping.
Accounting and Bookkeeping Firms in Dubai
Dubai is a region with ultimate and unlimited opportunities for those who wish to avail them. As such, there are countless accounting and bookkeeping firms in Dubai, the majority of which are oriented towards big businesses. SMEs looking to enter the market are still at a disadvantage, given that there are limited accounting and bookkeeping firms in Dubai available to cater to their requirements.
Why Outsource Accounting and Bookkeeping in Dubai
Outsourcing accounting and bookkeeping comes with a plethora of benefits some of which includes:
- It saves cost on the services by not having dedicated in-house resources
- No need to waste money, time, and energy on the cost of the entire hiring process
- Organizations offering these services have experts who can handle a wide range of difficult situations
- It makes scaling accounting easy
- Offers competitive cost
- Offers flexible service level agreement with data security
How Avyanco Can Help You in Accounting and Bookkeeping:
Avyanco can provide you highly economical accounting and bookkeeping services in Dubai. Our expert accountants and bookkeepers have helped manage a variety of businesses belonging to a broad variety of niches for long terms. All you need to do is get in touch with us and we can come up with a solution to tend to your accounting and bookkeeping needs. Avyanco stands as one of the most highly reliable accounting and bookkeeping services in Dubai, so for all your associated requirements, we will be more than happy to help.