At first glance, starting Accounting and Bookkeeping Companies in UAE might seem like the most exciting step in the world. You create your brand, start marketing your services, and make millions of dollars, right?

Well, there’s more to it than that. Building a business isn’t free, and you’ll find yourself paying different types of taxes to maintain a legal presence. If you’re interested in learning more, this post covers everything you need to know.

What Are the Accounting Services In Dubai?

Accounting and Bookkeeping Companies in UAE play a key role in shaping the country’s thriving business landscape. Everyone knows that Dubai offers the most vibrant business environment in the Middle East. Here’s the thing: Dubai’s companies didn’t gain that reputation from working mindlessly. they rely on Accounting Services in Dubai that ensure accuracy, transparency, and financial organization to support business success and sustainable growth.

You can tell that they’ve optimized each step they take to ensure a prominent legal presence. That includes their accounting efforts, specifically tax payments.

You see, the UAE government introduced the value-added tax (VAT) in 2018 and corporate tax in 2023 to add more streams of income that are not oil-/gas-related. Naturally, businesses must register for that tax.

However, not all businesses are required to register. Those who do must meet certain standards. Accounting services help companies go through the process, maintain accurate records, and ensure compliance with VAT laws.

The Role of Accounting and Bookkeeping Companies in UAE

Now that you understand the premise of accounting and bookkeeping services, let’s see the role of these services in more detail.

Keep Accurate Financial Records

If you don’t know, registering for VAT requires companies to maintain detailed financial records for at least the previous 5 years. That’s not an easy standard to meet. One file goes missing, and your company would face a lot of trouble.

That’s where accounting and bookkeeping companies in UAE come in. They record your company’s daily transactions, manage cash accounts, process payroll, and prepare financial statements.

In other words, they make sure that you can provide documents of every invoice and payment you’ve made if the UAE government decides to audit/inspect your company.

Facilitating Strategic Decisions

Accounting in UAE is not just about ensuring compliance. They also help make strategic decisions easier for company owners. You see, companies have to make decisions to ensure progress all the time.

Naturally, most of these steps would require the decision makers to have a clear and detailed understanding of the company’s financial status. Detailed bookkeeping provides them with the necessary information to ensure they make the right decisions.

One small recorded error might cause them to misunderstand the company’s financial status, which could prompt them to make decisions that harm the company.

Read More: UAE VAT registration fee

What Is the Difference Between Accounting and Bookkeeping Services?

So far, we’ve mentioned accounting and bookkeeping services side by side, but what’s the difference between each one? Let’s find out!

Bookkeeping

As the name suggests, bookkeeping services involves recording every financial transaction your company makes, maintaining receipts/invoices, and preparing detailed reports.

Whether it’s sales, payments, receipts, or financial statements, bookkeeping has it all. Think of it as the bread and butter of your company’s financial system. Without it, your company won’t have enough reliable data to keep its prominent, legal presence.

Accounting

Accounting is the step right after bookkeeping. What does it do? Simply transform the data bookkeeping offers into effective insights. You see, accountants review and analyze financial data in bookkeeping reports, and then use that data to determine what the right next step is for that company, whether it’s through tax planning, budgeting, or financial strategy.

You can probably tell that accounting is more complex and requires specialized knowledge that allows accountants to take the right steps in your company’s interest.

Why Businesses in the UAE Need Accounting Services?

At this point, you probably understand how important accounting services in Dubai are for businesses. That said, we still want to explore why you might need it to help you paint a clearer picture.

Financial Reporting

As previously mentioned, registering for VAT requires you to keep detailed financial records of the previous five years, at least. Not to mention the fact that certain free-zone companies and businesses with revenue over AED 50 million must deliver audited financial statements.

Do you think you can finish this mission without accounting services? Of course not! Preparing these technical reports and handling these overwhelming audits requires specialized knowledge and experience.

Tax Compliance

You already know that Corporate Tax Registration Mandatory in the UAE for businesses where the taxable supplies and imports exceed AED 375,000. Naturally, companies would need accounting services to help them identify whether they qualify or not and how to navigate the process to eliminate potential fines.

What Daily Tasks Does a Bookkeeper Handle for UAE Companies?

Let’s see what bookkeepers do on a daily basis to help you understand their job better.

Recording Everyday Interactions

Bookkeepers record every financial interaction your company makes, whether it’s payments, receipts, sales, or purchases. Not only do they build proper classification systems, but they also make sure each document is filed and classified accurately.

Supporting Payrolls

Yes, bookkeepers don’t just record. They also calculate salaries, deduct taxes, prepare payslips, and ensure timely payments.

Reconciling Banks

Do you know how companies make sure their bank statements actually match the cash balances in their books? Bank reconciliations. They help your company identify errors and fraud attempts early, making it an indispensable step in the financial world.

Do Small Businesses in the UAE Need Both Accounting and Bookkeeping?

Some small companies believe that they only need bookkeeping services to get by. And that couldn’t be farther from the truth. No matter how small your company is, you still need accounting services to understand the numbers in your books and use them to take the right steps for your company.

Ultimately, these services are two sides of the same coin. Without one of them, your company wouldn’t be able to function at full speed.

Choosing the Right Accounting and Bookkeeping Company in the UAE

So, at this point, you know all there is to know about accounting and bookkeeping services in dubai. The question is: How do you choose the right accounting and bookkeeping company?

Well, every business owner has their own criteria, but you can’t overlook skills, knowledge, and experience. You know what? You can find all that and more with Alsun Bookkeeping and Taxation.

With 10 years in the industry, we offer more value in our work than any of our competitors. How? Well, not only are we FTA-accredited, but we also have 24/7 customer support and offer our services for affordable prices.

In other words, everything in our company is built to offer the most seamless customer experience on the market.

Conclusion

Whether your business is big or small, you have to look for accounting and bookkeeping companies in UAE. And no matter what your needs are, Alsun can fulfill them with the utmost ease. So, contact Alsun and let us help maintain your business’s legal presence.

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