Throughout the world, more and more people are shifting towards business in an attempt to make both ends meet. Job culture is getting overshadowed by an era of entrepreneurship. So, more and more people require guidance to manage their finances as they are new to the business world. The importance of services provided by accounting firms has increased more than ever especially the accounting services in Dubai because of the new tax laws.
What are accounting services?
accounting services are the group of services provided by professionals in the field of finance to measure, process, and communicate financial information about different sectors of economics. These sectors mainly include management accounting, taxation services, auditing services, etc.
These accounting services play a vital role in successfully carrying out business activities. It helps us to track our business growth through income and expenditures management.
What are the most common types of accounting services in Dubai?
There are lots of different types of accounting services in UAE specially there are various kinds of accounting services provided in Dubai but the most common ones are explained below:
Bookkeeping
Bookkeeping is the most basic and essential of the account services provided by accounting firms. It is necessary for small to medium businesses as they have to keep track of their accounts and financial expenditures. This service is provided in most parts of Ajman, Dubai, and other states of UAE as the most basic one.
Financial systems are set up by the bookkeepers with the help of financial software. As your business gets expanded, EPR automated financial software proves to be very beneficial for keeping an eye on your finances.
Tax accounting
As the name suggests, accounting firms also provide their expertise to manage tax returns and filing procedures. Tax accountants provide their services in helping us to avoid unnecessary tax deductions and paying unnecessary taxes. The recent announcement of corporate tax in the UAE will make this field of accounting more important as people will surely need guidance on this matter. So, accounting services in Dubai specially must be acquired in order to avoid unnecessary taxing and secure your business financially.
Accounting audit
Audits are an important part of accounting as they make sure of the accuracy and validity of your financial records and statements. Audits provide us with an in-depth analysis of the financial status of our business.
Auditors play an important role in managing our financial records and save us from any penalties during internal financial audits.
Payroll related services
This is a specialized service provided by accounting firms at the request of the employer. Service providers are requested to manage the payroll of your company by preparing payroll and analyzing the employee’s salary and benefits.
Forensic accounting
Forensic accounting is a specialized field that involves tracking any inaccuracies, frauds, and missing funds present in the financial reports and statements. This service helps you to catch the culprit in case of tax fraud or any other discrepancies.
Signs you need to hire the accounting services in Dubai for your business
If you are a business owner having some background knowledge of accounting and tax laws and you know how to operate accounting software then you can handle the finances of your business. But it is a very tiresome task and can divert your focus. You will not be able to dedicate your time to the growth of your business. So if you see the following signs then it is most appropriate that you hire an accounting firm to carry out accounting services for your business:
1. Bookkeeping distracts you from other operations
It is easy to manage books and keep a financial record during the starting phase of business setup. You can manage it with Excel sheets or any other accounting software. But when the business start to grow you need to shift your focus to other operations like management, marketing, sales, etc so you need to expand your team as well.
It is the best time to hire an accountant or take services from an accounting firm to manage your finances without getting any kind of burden.
2. Rapid Business Growth
Every business owner has only one goal, which is to expand his business rapidly and take it to new heights with passing time. But when the business expands, its responsibility with it grows as well. The owner needs to find more staff and better inventory because of which the financial burden increases rapidly as well. So it is a clear indication for hiring someone with expertise to lessen your financial burden and manage your finances properly.
3. Net profit not increasing
When you are generating a hefty amount of gross profit and your revenue is getting bigger and bigger but your net profit is not increasing proportionally, it is a sign you need accounting services to manage your expenditures. A skilled accountant will help you find loopholes in your business structure and will help you devise a plan to better manage your expenditure according to your income.
4. At the time of large purchases
Dubai is a business hub and large purchases happen there on regular bases. It is always better to seek professional help when you are about to spend big on some project. Just to be extra sure before investing in any project or making a large purchase, it is advisable to procure help from accounting professionals and accounting services in Dubai are very helpful in this regard. They will assess the financial stature of your company to make sure your company is ready to make such a large purchase. They also manage all the legal and financial aspects of the purchase to avoid any kind of fraud or hidden charges.
5. Tax audit is around the corner
General business owners don’t have proper knowledge of tax laws and this can get them in trouble when the time for a tax audit arrives. Tax audits are very tiresome and require lots of paperwork and financial record keeping.
A full-time accountant or accounting services from a firm are a must to tackle this situation as they can help you organize your financial record and have the required legal knowledge to satisfy IRS inquiries.
6. When you need to lessen tax deductions
Many business expenses can help you wave off tax deductions you owe to the government. Business owners do not include some expenditures like an online subscription or phone bills that can help them lower the tax owed.
accounting services in Dubai are required in this matter as they have proper knowledge of all tax-related matters and laws. So, they can help you wave off a hefty amount of tax deductions. New corporate taxes announced will raise the needs of accounting services in Dubai.
7. Keep an eye on cash flow
Business owners generally face the problem that at the end of the month they don’t have any cash to cover their expenses due to reasons like late payments, insufficient clients, or any unexpected expenses. This cash flow problem can be prevented by keeping a proper track of your expenditures and income.
Accounting firms help you to manage the cash flow through proper bookkeeping software and skilled professionals. This will help us to manage our loses and keep us prepared for any emergency purchase.
8. Concerned about Fraud
A business or any company has lots of people working together. So, there is always a risk of fraud or any negligence that can cast a big dent in the financial structure of the company.
Forensic accountants help us in this regard to catch the culprit in case of any fraud and in this way help us to avoid any negligence in future.
9. Professional financial reporting
When you are looking for investors or loans, you need to have proper records of your financial history. An investor requires professional records and reports of your financial data before giving you any kind of investment.
So accounting services can help you make a professional financial report that will clear all the doubts of the investor and will help you secure the much-needed investment.
The business world is growing day by day so the financial industry is getting more complex with it. So, the accountants are specializing in a particular field of accounting and provide services in the area of their expertise to help grow different businesses. The importance of accounting services in Dubai is increasing rapidly and so are accounting firms in Dubai. So, we should study the market and choose the best accounting services according to the need of our business.