The United Arab Emirates (UAE) is one of the best business hubs around the globe. The best thing about UAE is that it attract bundles of investors and entrepreneurs. What makes it best include its location, infrastructure as well as strategic business policies. All these aspects makes it ideal for the business activities. There are several things which contribute in the growth and expansion of business. One of such things is accounting and bookkeeping. That is why, this article aims to discuss the reasons that why accounting and bookkeeping is important in UAE.
What are the reasons which makes accounting and bookkeeping important in UAE?
In United Arab Emirates (UAE), every business is supposed to deal with the laws and regulations related to accounting and bookkeeping. All the relevant laws are required to fulfil to hold the financial record of company. It cover all the expenses of company including inflow, outflow and other assets. Let’s discuss some of the reasons that why accounting and bookkeeping is necessary in United Arab Emirates (UAE).
Legal Obligations in UAE
For accounting and bookkeeping UAE have proper legal requirements. If you go through the UAE’s Federal Law No. 2 of 2015, it is clear that all the businesses are supposed to keep their precise accounting record. If any company fails to comply with the laws and regulations, it have to deal with fines and penalties. As per the law of UAE, the legal actions can also be taken against the company. That is why, it is important to record and then submit the annual financial statement. This financial statement is required to submit to the Department of Economic Development (DED). One more important thing to note is that the statement needs to be audited by a registered auditor.
Systematic Control of Financial Records
In United Arab Emirates (UAE), the most essential thing is to make informed decisions. When the financial statement is accurate, it become easy to balance the revenue. The performance of company play a crucial role in its profitability. Furthermore, the expenses of company can be managed in a defined way. If the financial record is not dead on target, it does not remain easy to plan things. Also, the business investment plans can be made in an easy go.
Rational & Calculated Decision Making
The right decision keep the business healthy in all circumstances. You can get the best accounting and bookkeeping service UAE to keep the accounting record. This is how you can get the financial statement which makes wonder in decisions. With wrong record it is not possible to get the best end result. So, it is better to stay conscious about it.
Adhering to Tax Regulations
If you do accounting and bookkeeping task by yourself, or you hire someone, the best end results are only possible when it meet all the tax compliance regulations in UAE. In UAE, you can find the value-added tax (VAT) system, and your business is supposed to comply with it. If you have accurate financial record, then you get better and correct amount of VAT owed. In the result, you can get rid of errors, which can cause trouble.
Expansion of Business
The business owners in United Arab Emirates (UAE) always aims to expand their business around the globe. This is not easy to fulfill the dream of diversification. You have to work on multiple areas while business diversification. It include dealing with investors as well as secured loan techniques. Furthermore, you need to see how to go for partnership. The very first thing you need to work on is the financial record. You cannot attract any investor or lender with weak financial record. So, you can see how important is accounting bookkeeping in United Arab Emirates (UAE).
Both of the accounting and bookkeeping are critical components of a healthy business. First of all, you need to ensure that your business comply with UAE’s accounting and bookkeeping laws. In case of any discrepancy, you cannot end up with accurate financial record, which results in lots of issues. In case of any difficulty, it is better to go for experts of accounting and bookkeeping. By availing the service of accounting and bookkeeping, you can save lots of time and efforts. In this way, you can get more in short duration of time.