Accounting Services in Dubai, UAE – Accounting Firm in Dubai
Accounting is an important integral part of any UAE business. They cannot function without dealing with accounting, especially after the implementation of new regulations and laws related to the UAE economy. The VAT came into the act at the beginning of 2018 which has also increased the importance of business accounting services in Dubai.
Companies operating in Dubai require accounting services for multiple reasons. They face trouble dealing with bookkeeping and accounting. They need to file their taxes including VAT properly without errors. They also need to ensure that their accounting practices are matching with the accounting standards of the Emirates. Also, their business financial statements and records should be perfect.
To make their lives easy, they tend to outsource these services to a top-notch business accounting and bookkeeping service provider like RIZ & MONA CONSULTANCY. It saves them a lot of time and lets them spend their time in productive activities.
Here is everything you need to know about outsourced business accounting services in Dubai, UAE.
Table of Contents
Bookkeeping Principles in Dubai
It has been noted that there is some confusion among individuals in the Emirates regarding the recent changes made to the format and design of financial record management. Certain accounting standards are utilized on a global scale. It is important to familiarize ourselves with the recommended standards for creating financial statements and managing bookkeeping journals.
Companies use various regulations and formats to handle their accounting records. In this regard, two commonly utilized principles for bookkeeping are International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).
Let us talk about them in detail:
International Financial Reporting Standards (IFRS)
The International Accounting Standards Board (IASB) has introduced International Financial Reporting Standards (IFRS) as the global standard for carrying out financial management activities and tasks. It provides a comprehensive framework for accountants to maintain their financial records. These principles are designed to establish a common language that can be well comprehended by accounting firms and business professionals in Dubai and around the world. IFRS specifically addresses various types of transactions and events related to financial reporting.
Accepted Accounting Principles (GAAP)
GAAP serves as the fundamental basis for accounting methods, used and approved by the Financial Accounting Standards Board (FASB). It encompasses all the necessary rules and principles for handling the legal aspects, intricacies, and complexities of corporate accounting. Implementing GAAP requires extensive accounting services as it is employed in managing revenue recognition, balance sheets, and proper classification of outstanding things and shared estimations for public disclosure.
IFRS are the Mandatory Accounting Standards in Dubai UAE
The Central Bank of the UAE has mandated that businesses comply with International Financial Reporting Standards (IFRS), as set forth by the Securities and Commodities Authority (SCA). Therefore, all companies listed on NASDAQ Dubai (old name is DIFX), Abu Dhabi Securities Exchange (ADX), or Dubai Financial Market (DFM) are required to maintain their accounting records in accordance with IFRS. Consequently, all companies that have been legally listed on the Abu Dhabi Securities Exchange since 2003 must provide IFRS financial statements.
While it is not obligatory for businesses not listed on the aforementioned exchanges, it is recommended to instantly implement IFRS to ensure transparency and avoid complications. Previously, the UAE lacked predefined standards for businesses. However, the state has recently advised business professionals to adopt IFRS for their accounting activities and tasks. Sometimes, individuals doing business may find it challenging to determine the most suitable financial regulations for compliance.
Accounting is crucial for all organizations, regardless of their location, including the United Arab Emirates. It involves measuring, classifying, recording, and verifying financial information. Accounting also enables companies to track the utilization of funds, and the nature of their liabilities, and understand their value. Every business operating in the UAE is expected to use the IFRS method.
Accounting and Bookkeeping Policies in Dubai
The UAE has established its own set of accounting principles in the form of GAAP accounting principles. They are applicable to all government entities and state-owned companies in the UAE. These standards are maintained by the International Federation of Accountants (IFAC).
The following principles define the accounting standards in the UAE:
- Recognition of revenue takes place when it is earned.
- Recognition of income occurs when it is realizable or realized.
- Recognition of expenses happens when they are incurred.
Regarding the measurement of assets and liabilities, it is important to value them at fair value, except for finance leases and instruments, which are calculated using the effective interest rates at amortized cost.
Doing your own business in Dubai can be an exciting challenge. However, it can also present difficulties when we talk about bookkeeping and accounting. To ensure smooth operations, here are five policies you need to adhere to:
Additional supporting documents are bank statements, invoices, contracts, and credit notes for businesses not registered for VAT. Copies of the documents are not acceptable so it is crucial that the aforementioned documents are maintained in their original form.
All businesses in the UAE are obligated to adhere to the Value Added Tax (VAT) system, which was implemented on January 1st, 2018. This tax is applicable to all companies operating in the UAE, regardless of whether their services are local or international.
To determine whether registration for VAT is necessary, businesses must meet the eligibility criteria. Taxes can be a work of high-level difficulty in Dubai. Therefore, it is essential for your business to adopt a VAT Return Policy that aligns with industry best practices and provides a logical approach to handling VAT obligations.
It is necessary to have a bank statement as supporting evidence for all bank transactions. The statement should contain the amount and nature of the transaction. Additionally, the name and address of the business receiving the funds along with the transaction date should be included.
Companies have the option to keep electronic copies of these statements. Maintaining such records assists in the accurate preparation of profit and loss accounts and annual budgets.
Record Keeping Policy
In accordance with the UAE Federal Law, it is required to maintain your financial statements and records. These records must be preserved for a minimum of five years. However, the Ministry of Finance recommends retaining them for ten years to show tax compliance.
Receipts are required as evidence for transactions valued up to AED 1,000. They should include the date of issuance, the signature of the person issuing the receipt, and the recipient’s details. The receipts must be issued in the name of the business. It is also essential to mention the nature and amount of the transaction on the receipt. These details enhance accounting accuracy and serve as proof of transactions.
Required Documents for Accounting in Dubai
The following documents are required to commence the accounting process:
- Invoice for purchase of any company asset
- Company’s legal documents:
- Trade license
- Memorandum and Article of Association
- Certificate of incorporation
- Share certificate
- Petty Cash sheet if maintained
- Office Rental Invoice and Contract
- Credit card statements if any
- Deposit slips if any paid to Rent, DEWA, or more
- Bank statements
- Sales and purchase invoices
- Invoices for expenses related to the company like office expenses, utilities, telephone, and more
- Invoices of expense for Company incorporation
Tip for Keeping Your Dubai Business Accounting Records in Order
A lot of small businesses often attempt to handle their own bookkeeping to avoid expenses associated with accounting firms. Business owners may believe that keeping the accounting tasks “in-house” is a more viable option. However, this approach frequently results in increased stress and wasted time.
Accounting is a complicated endeavor that requires full-time attention. As a business owner, you likely have numerous responsibilities to manage already. Instead of shouldering everything alone, it is advisable to consider hiring dedicated accounting staff. This means you can explore the option of outsourced accounting services in the UAE.
Alternatively, you can go for recruiting a permanent accounting employee to work in-house, though it is not recommended for obvious reasons. Depending on the size of your company, you can hire either one accountant or a team of accountants. The hiring process involves advertising the job opening on your company website or job portals.
You will then conduct interviews with potential candidates until you find the best fit for the job. When assessing applicants, it is important to consider qualifications such as experience in reconciliation, monitoring and recording accounts payable and accounts receivable transactions, basic bookkeeping, and financial reporting. If you are fortunate enough to find a reliable accounting staff member, they can handle all of your accounting operations.
Outsourcing Accounting Work in Dubai, UAE
Accounting outsourcing refers to the delegation of accounting functions to external accounting service providers. This involves services such as financial statement preparation, bookkeeping, and tax preparation. These services can be outsourced to specialized professional firms that focus on specific industry requirements.
At RIZ & MONA CONSULTANCY, we offer all kinds of accounting services. The scope of all accounting engagements is agreed upon with our clients and is determined based on the required level of cooperation. We offer our accounting services to both, big, medium, and small-sized businesses.
We highly recommend our clients utilize cloud-based online accounting services, as it is a common practice among accounting companies in Dubai. We are proficient in working with various accounting software options, although we prefer to use Sage, QuickBooks Online, Zoho Books, Xero, and Wave. Our commitment is to maintain a supervisory mechanism to ensure the delivery of high-quality work and allocate sufficient resources for all of our clients.
The general accounting outsourcing arrangement with a client can take various forms, such as:
Collaborative Accounting Services in Dubai
Our collaborative accounting services in Dubai involve providing the client and us with access to top accounting software. Certain tasks are performed by the client, including payroll processing, invoicing, payment receipt, and uploading bills, receipts, and other relevant documents into the accounting software.
Additionally, the client may handle activities such as creating new customers, suppliers, and accounts in the chart of accounts, as well as issuing checks. We also prepare periodic reports that are sent to the client. In this collaborative approach, our role encompasses managing open invoices, handling VAT returns, reviewing the client’s work, making journal entries and adjustments, reconciling payments and receipts, conducting bank reconciliations, and addressing complex accounting matters such as fixed assets, loans, and inventory.
On-Demand Accounting Software Support
Although the client manages the accounting software, certain processes or transactions require our accounting services. Our duties could involve addressing complex accounting areas, cleaning the records or books, handling VAT returns, or advising accounting treatment.
experienced accountants who have high experience in the field and are well-equipped to handle all challenges perform and oversee our client-focused accounting services. While maintaining a high level of service, our accounting and bookkeeping service delivers significant cost and time savings. As accountants, we are accountable for the reliability and correctness of the accounting records that we have created.
100% Outsourced Accounting and Bookkeeping Services
With completely outsourced accounting and bookkeeping services, we are granted access to the accounting software, and all transactions are entered and managed by our team. In this arrangement, we assume full responsibility for maintaining the client’s books of accounts. The client provides cashbook records, bank statements, and supporting documents such as sales and purchases invoices and expense bills. Ad hoc and periodic reports are delivered to the client as agreed upon in the engagement letter.
Outsourced Accounting Services that are Available
Outsourced accounting services are the responsibility of the accounting department as their day-to-day tasks. You have the option to outsource all accounting operations or select specific tasks that are time-consuming. Here are some of the most commonly outsourced accounting services:
Tax accounting involves the preparation of tax returns for your business, including the calculation of income taxes payable. It is distinct from financial accounting, making it beneficial to have an expert proficient in both areas. Outsourcing accounting functions can be a cost-effective solution, particularly when businesses lack the necessary staff to handle these tasks.
Many companies choose to outsource their accounting for the primary reason of managing payroll. Payroll processes are complex and require specialized knowledge and expertise to ensure accurate and compliant execution.
Budgeting is the process of planning your financial resources, including the determination of anticipated earnings and expenditures. Effective budgeting plays a vital role in financial management.
The accounts payable department handles the payment of bills. Managing accounts payable necessitates attention to detail and a comprehensive understanding of tax regulations and laws.
Bookkeeping involves the recording of financial transactions. This process can be carried out either electronically or manually. Electronic bookkeeping is typically required when collaborating with virtual accounting companies.
The accounts receivable department is responsible for collecting payments from customers, especially for businesses that offer credit terms. Efficient management of accounts receivable is crucial to avoid potential bankruptcy and financial instability.
Outsourcing these accounting functions to specialized firms can streamline operations, enhance accuracy, and enable businesses to focus on their core competencies.
Scope of Our Business Accounting Services
The extent of accounting services may vary depending on the nature of their business activities and the specific needs of each client. However, it typically includes the following areas:
Monthly Management Reports
In addition to the standard accounting reports available in the software (such as balance sheet and profit and loss statement), we can customize reports to suit specific needs. Examples of available reports include:
- Balance sheet (providing the financial position of the business).
- Profit and loss statement (highlighting financial performance).
- Accounts payable and accounts receivable aging (providing insights into outstanding payments).
- Prepayment and accruals schedules.
Periodically Updating Accounting Records
The following information will be incorporated into the accounting system:
- Performing any other activities necessary for the preparation of accurate financial reports.
- Creating and maintaining customer and supplier records in the accounting software.
- Preparing necessary working papers for accounting adjustments and making journal entries.
- Recording sales invoices and tracking payments received.
- Accounting for prepayments and accruals.
- Recording supplier invoices and expenses and managing payments made.
- Reconciling credit card, PayPal, and Stripe sales with corresponding reports and amounts received in the bank.
- Recording any transactions related to petty cash, if applicable.
- Reconciling bank statements with the accounting records.
VAT Accounting and Return Filing
We will handle the filing of the company’s quarterly VAT return. We will also ensure proper accounting practices are followed to meet VAT requirements.
Reviewing or Setting Up Books of Account
This initial activity involves establishing the accounting system for new businesses or reviewing existing systems for established businesses. We will examine the Chart of Accounts to ensure compliance with industry practices and reporting requirements.
General Guidance on Issues Relating to Accounts and Finances
In addition to the aforementioned, we are prepared to offer general guidance on finance, accounting, and corporation tax matters as needed. Guidance on corporate tax planning and an assessment of its impact on the business is also provided. Additionally, we will offer tax planning recommendations and evaluate the effects on the company.
Our goal is to provide comprehensive accounting services while offering expert advice tailored to each client’s specific needs in a professional and efficient manner.
Benefits of Outsourcing Business Accounting Services in Dubai
The financial operations of your enterprises can be made more efficient with the aid of accounting and bookkeeping services. With businesses trying to cut costs and concentrate on sales and marketing activities to increase revenues and profits, outsourcing Dubai’s accounting services is becoming more and more popular.
Choosing the right accounting service provider is an important initial step when considering outsourcing business accounting services in Dubai. These firms offer the expertise of skilled accountants who can assist with various financial accounting and reporting requirements.
Online bookkeeping and accounting services are simple to outsource.
The following are important advantages of Dubai’s outsourced accounting services:
One of the key reasons to opt for outsourced accounting services in Dubai is the opportunity to leverage the latest technology. To maintain a competitive edge, it is crucial to embrace the latest technologies. By partnering with a virtual team of accountants, you can take advantage of cloud computing and advanced software programs, which can significantly enhance operational efficiency.
Accounting agencies invest in emerging technologies to streamline processes, but implementing these technologies individually can be expensive. Through outsourcing, you can access cutting-edge technologies without the need for additional investment.
Utilizing specialized accounting software enables the automation of tasks, such as calculations, invoicing, and inventory management, ensuring that your accounting remains organized.
The field of accounting and bookkeeping has undergone significant transformation in recent years. Many companies now rely on cloud-based services to manage their finances and store client data.
Address Labor Shortage Problems
Addressing the labor shortage problem is another compelling reason to consider outsourcing accounting services. Skilled professionals are vital for the success of any business, yet the UAE has been suffering from a shortage of such talent for some time. Specifically, Dubai is experiencing a scarcity of accounting staff due to increased competition among employers.
Finding and retaining qualified candidates has become a challenge, despite government efforts to facilitate retention through policies such as requiring accountants to work for a minimum of two years before resigning. Outsourcing provides a solution to overcome labor shortage and retention issues by granting access to competent accountants beyond Dubai.
Time-saving is a significant advantage of outsourcing accounting services. Accounting tasks consume a substantial amount of time, yet they are fundamental to SMEs or LLC companies in UAE. By outsourcing, a company can redirect its focus toward strengthening core activities while entrusting highly qualified certified accountants with the rest.
Focus on Your Business
Maintaining focus on your business is crucial, and bookkeeping plays a pivotal role in organizational operations. It involves the documentation of financial transactions and records. However, accounting and bookkeeping can be complicated and laborious tasks.
Several factors contribute to this complexity. Accountants bear multiple responsibilities, ensuring the comprehensive documentation and recording of all transactions. This can be overwhelming when dealing with a high volume of activities. Additionally, various types of documents, such as cheque stubs, cash receipts, and bank statements, must be meticulously maintained and securely stored for easy access.
Managing accounting functions independently can demand over 60 hours per week, diverting attention from other vital business operations like customer service and partnerships.
By outsourcing accounting operations, you liberate valuable time for focusing on these critical business aspects, allowing you to allocate resources and attention more effectively.
Complying with accounting standards is not merely driven by tax filing requirements in the UAE but is primarily a legal obligation mandated by corporate law. Failure to adhere to these accounting standards can carry serious legal consequences within the UAE.
Get Professionals and Experts
Outsourcing accounting services to a professional accounting agency provides the opportunity to collaborate with experts in the field. Every business requires the expertise of an accounting professional. Successful companies typically have dedicated individual who stays informed and knowledgeable about their financial figures.
Understanding your revenue and expenses is crucial for effective business management. Accounting experts offer valuable assistance in various areas, including:
- Aligning your accounts with business objectives
- Conducting research and developing financial models
- Implementing business process reengineering tools
- Providing consultation on operational enhancements
A professional accountant possesses the skills to facilitate informed decision-making, support your business growth, and optimize costs. They also offer expertise in managing legal and tax matters.
When selecting an accounting company, it is important to choose a reputable and competent firm. You can verify their credibility by checking their offshore company licenses.
Health Check of the Company
Accounting plays a crucial role in providing essential information for the efficient operation of your company. By effectively tracking corporate finances, both long-term and short-term, you gain valuable insights into estimated payroll, income sources, and outstanding bills.
Meet Statutory Requirements and Regulations
Receiving a letter from the tax authority due to non-compliance with tax filing obligations is an experience no business owner wants to encounter. With the introduction of VAT in 2018 and the upcoming implementation of corporate tax in 2023, it is crucial to ensure that your company’s financial records are organized and up to date. This proactive approach enables you to prepare for potential tax audits or reporting requirements, ensuring compliance with the UAE’s tax regulations and other corporate obligations.
Outsourcing your accounting provides several legal benefits, including:
- Meeting statutory and regulatory requirements: By engaging an accounting outsourcing company, you can ensure that your business adheres to the necessary legal obligations and standards.
- Avoiding penalties and interest charges: Timely payment of bills helps you avoid incurring penalties and interest charges, safeguarding your financial standing.
- Facilitating compliance with filing deadlines: With professional assistance, you can more easily meet all filing deadlines, reducing the risk of non-compliance.
- Minimizing the risk of legal action: Outsourcing your accounting tasks to experienced professionals helps mitigate the risk of lawsuits resulting from non-compliance with laws and regulations.
Accounting outsourcing firms possess the expertise to guide your business and help you avoid legal complications. They stay updated on UAE bookkeeping standards, ensuring that your records are maintained in accordance with the prescribed legal requirements. Moreover, they provide valuable advice on minimizing legal risks, enabling your business to operate within a legally sound framework.
Failsafe Against Embezzlement and Fraud
If you keep daily records of your finances, you can catch fraudulent charges and stop payments from defaulting.
By outsourcing your accounting and finance operations, you can achieve cost-effectiveness without the need for full-time employees. It’s important to note that managing accounts typically require multiple employees, leading to increased salary costs. However, outsourcing eliminates these overhead expenses, enhancing your business’s profitability.
Employing a full-time accountant could cost up to AED 293,638 per year, considering expenses such as hiring costs, pensions, health insurance, and professional development and training.
Outsourced accounting services can be provided on a contractual basis, offering a cost-effective solution in today’s challenging economy. Savings on operating financial expenses might be used to pay for essential business operations.
Facilitation of Financial Decision Making
Making financial decisions would be straightforward for you if you were familiar with your accounting and bookkeeping records. Knowing how much capital you have available might help you make decisions about things like hiring workers or buying inventory.
Why Choose RIZ & MONA CONSULTANCY for Accounting and Bookkeeping Services in Dubai
Our core value revolves around the idea of tailoring our services to perfectly match each client’s specific business requirements. By achieving this, we bring several advantages or perks to our clients such as:
We keep You Updated
We believe in maintaining regular communication with our clients and often schedule meetings over a cup of tea. These regular interactions ensure that our client’s financial records are accurately maintained and in order. Moreover, these meetings serve as an opportunity to discuss tax-saving opportunities before the end of the financial year, helping our client’s businesses to flourish.
Access to Expert Knowledge
We provide access to a team of professionally qualified accountants who have extensive experience across various sectors and industries. Additionally, we may offer the services of a dedicated accounting partner who can provide technical support whenever needed. This means that our clients gain access to a wealth of exceptional accounting knowledge accompanied by an unmatched level of expertise at affordable rates.
We Never Miss Deadlines
At our accounting firm in Dubai, we take pride in ensuring that our clients meet all their filing deadlines and avoid any late submission or payment penalties. In order to keep our clients on track, we proactively send reminders that prompt them to fulfill their obligations in a compliant and timely manner.
Long Term Affiliation
We are committed to establishing a long-term affiliation with its valued clients. Throughout our business relationship, we prioritize the security, accuracy, and privacy of all client records that are shared with us. We are keen on building an enduring partnership to deliver seamless accounting services throughout the UAE.
We Keep Ourselves Updated
Our accounting team stays constantly updated with the latest developments in tax, business, and financial regulations, enabling us to help its clients remain compliant. With our extensive experience, our involvement goes beyond traditional accountancy services, including a broader range of support.
We take pride in offering result-oriented services for outsourcing accounting services in the region. Our dedication to client satisfaction has resulted in an outstanding client retention record, making us the market leader. We invite you to visit our office, have a cup of coffee, and allow us to present our diverse range of services, including our unique selection of key elements that set us apart from others.
we aim to become our client’s trusted business partners rather than seeing ourselves as outsiders. We become someone they can rely on to help them achieve their goals. We believe in developing strong relationships with our clients, starting with an in-depth understanding of their requirements and the specific services they need. Based on these requirements for accounting and bookkeeping services in Dubai, we offer tailor-made solutions to meet our client’s business needs effectively.
Experience the Best Accounting Services in Dubai with RIZ & MONA
Outsourcing your accounting services in Dubai is very beneficial for businesses. Doing so will let you streamline your business growth. It will also enhance your company’s performance by focusing on core risk areas with increased flexibility to meet requirements. While outsourcing business accounting services in Dubai brings numerous benefits, it is crucial to work with the best service provider to fully enjoy these advantages.
At RIZ & MONA CONSULTANCY, we offer reliable business support services that help your business reach its full potential. Our accounting services prioritize accurate financial record maintenance, reducing administrative burden and unnecessary financial costs. We have a team of experts dedicated to assisting entrepreneurs in setting up their accounting functions in Dubai and across the UAE.
Our comprehensive services cover VAT, accounting, payroll, bookkeeping, and more. Our primary goal is to provide advisory services that allow you to concentrate on your core business operations. Whether you are considering opening a business in Dubai or simply seeking friendly advice, feel free to contact us. We invite you to book a free consultation with one of our company specialists who will be happy to assist you.