Did you know that maintaining the book of accounts in Dubai is a law? The law was stated by the government in 2015, according to which all commercial companies have to maintain their book of accounts for at least five years since they’ve established themselves. If any business owner refuses to follow this rule, it can lead to serious penalties.
Businesses can hire a professional team of accountants or seek help from reputable bookkeeping services in Dubai so that maintaining the books of accounts becomes efficient for them. This is to ensure that the data pertaining to their financial transactions and trading activities are stored according to the most recent accounting standards, which have been made official by all governmental bodies regarding business practices. This means that if businessmen have not outsourced their accounting responsibilities, they must hire professional accountants to take care of this job from now on. The best way to not spend any unnecessary money while taking advantage of such expertise is by outsourcing this process. And that is another reason why bookkeeping firms in Dubai have been growing rapidly.
Some Benefits of Maintaining Documents for Records
When a company maintains the account records, the government gets benefits from it. Well-maintained account books are not only essential for understanding the company’s ups and downs but also help the owner to compare the strategies being used in running the business. Other than that, a company gets several other benefits by maintaining the documents for the records, and some of them are:
- Managing the business becomes easier and more effective
- You can clearly examine what your business has been up to for the past few years
- Following future trends is easier
- A depth understanding of how the employees are working and performing
- Getting rid of all fraudulent practices taking place in your company
Now, let’s take a look at some of the effective tips on maintaining books of accounts in Dubai:
Manage the Receivables Well
Earning profits is the most vital part of running a business as it shows if you’re successful at it or not. So, whenever you issue an invoice, you need to record a receivable. This helps you understand better that a customer owes you money, and if the balance is too much, you’ll be aware of it already.
Invoices are certainly a time-consuming aspect of the job, especially when you have a lot to handle. It’s often hard to keep up with each invoice as it comes in, especially if you’re juggling orders from different customers at once. When all is said and done, resolving customer payments is often left for another day because there never seem to be enough hours in the day to get through everything. These days quickly add up over time, leading to an already stressful process that appears even more arduous when it comes to tax season. And when the accountant asks if you want your deposits credited on new invoices or withdrawn again, they were never increased at all.
Keep an Eye on the Cash Flow
When you need to maintain the book of accounts of your company, the numbers must be at your fingertips. Even though many of the bookkeeping firms in the UAE can help you with that, the finances require a review every week or month. As you do that, you need to maintain a cash flow statement that helps you understand the cash movement taking place in and out of your company. Doing that will allow you to anticipate expenses and build financial trajectories. There are multiple sources of technology to be used in generating the cash flow of your company. You can use them to automate the bookkeeping services and get a clear idea of the cash movement of your company.
Don’t Mix Your Personal and Professional Bank Accounts
Mixing business and personal finances is never a good idea; it can lead to trouble later on. If you’ve never run a business before, you might think that opening up an account at the same bank where you have your personal and joint accounts is harmless, but the truth is that doing so will only complicate things for you. For starters, it’ll be more difficult for whoever handles your bookkeeping and accounting to stay organized if all of your transactions are jumbled together in one spot. It’s also difficult to keep track of how much money the business has versus how much money it spends. A separate bank account will make record keeping easier and help prevent problems later on down the line.
Let a Professional Handle the Accounting
You can hire a professional firm that provides accounting and bookkeeping services in Dubai. They know their job well and imply the best tactics to keep your business in the best financial situation. The professionals will also keep you up to date with the tax laws and prepare you for any tax hikes in the future so that your finances don’t have to suffer. Some business owners prefer to do the taxes themselves as they think of it as a money-saving idea. But, without any supervision, their business is most likely to face a huge loss, and not managing the taxes can even lead to severe penalties.
“House of Business City” is one of the best bookkeeping companies in Dubai that can be your choice if you need to outsource the accounting tasks of your business. We’ve been on top of our work and dedication as we always make sure that our clients get the best service without affecting their budget. With more than a decade of offering service in the industry of Dubai, we have maintained a good reputation through our clear vision and effective strategies that we put to work. Our services include chief financial officer services, PRO services, VAT services, business concierge, and more. Visit our website https://hbcs-uae.net to know about us in detail.