The Ultimate Guide to Business Accounting Services in Dubai

How accurate are your business financial records and statements? Are your accounting practices compliant with UAE accounting standards? Do you file your VAT and other taxes correctly?

Many companies in Dubai struggle with accounting and bookkeeping. Poor accounting and bookkeeping practices are a financial and legal liability. It could cost you hefty penalties or even lead to the suspension of your business license.

How do you avoid that?

Outsourcing accounting and bookkeeping services has become an ultimate solution for many. It involves hiring an external accounting firm to perform accounting and bookkeeping services for your business. Keep reading to learn more about outsourced business accounting services in Dubai.

Accounting and Bookkeeping Policies in Dubai

The UAE has its own set of GAAP accounting principles, regulated by the International Federation of Accountants (IFAC). These principles apply to all UAE government entities and state-owned companies.

UAE accounting standards are based on the following principles:

• Income is recognised when it is realised or realisable. Expenses are recognised when incurred. Revenue is recognised when earned.
• Assets and liabilities should be measured at fair value, except for financial instruments and leases, which are measured at amortised cost using effective interest rates.

Running your own business in Dubai is a rewarding challenge, but accounting and bookkeeping can be complex. Here are five policies you need to follow:

Record Keeping Policy
Under UAE Federal Law, financial records must be maintained for at least five years. The Ministry of Finance recommends keeping records for ten years to ensure tax compliance.

Cash Receipts
Transactions up to AED 1,000 must be supported by a receipt, including the date, signature, amount, and nature of the transaction. These details improve accounting accuracy.

Bank Transactions
Bank transactions must be backed by a statement with the date, name, address of the business, and details of the transaction. Companies can store these records electronically.

VAT Returns
Businesses in the UAE must comply with the Value Added Tax (VAT) regime that started on January 1st, 2018. If eligible, your business must register for VAT and adopt a VAT Return Policy aligned with best practices.

Other Supporting Documents
Supporting documents such as invoices, credit notes, and contracts must be kept in original form.

How to Keep Your Business Accounting Records in Order in Dubai

Many small businesses attempt to manage their books in-house, but this often leads to stress and inefficiency. Accounting is a full-time job, and if you’re running a business, you likely already have enough on your plate.

Instead of handling everything yourself, consider these options:

Hiring Accounting Staff
This involves hiring permanent accounting employees, either individually or as a team, to manage your accounting operations.

Outsourcing Accounting Services
Outsourcing involves transferring accounting functions to third-party firms. This includes services such as bookkeeping, tax preparation, and financial statement preparation. You can outsource some or all of your accounting tasks.

Popular outsourced accounting services include:

• Payroll: Managing employee salaries and related taxes.
• Accounts Payable: Ensuring that your bills are paid accurately and on time.
• Accounts Receivable: Managing payments and collections from customers.
• Bookkeeping: Recording financial transactions manually or electronically.
• Budgeting: Planning finances and determining income and expenditure.
• Tax Accounting: Preparing tax returns and ensuring compliance with tax laws.

Benefits of Outsourcing Business Accounting Services in Dubai

Outsourcing your accounting services offers several key benefits:

Cost-Effective
Outsourcing is more cost-effective than hiring permanent accounting staff. It eliminates overhead costs such as salaries, benefits, hiring, and training.

Expertise and Professionalism
Outsourcing allows you to work with experienced accountants who stay updated with the latest financial regulations. They help you with financial modeling, operational improvements, and tax and legal consulting.

Focus on Your Business
By outsourcing accounting functions, you free up time to focus on critical business operations, improving efficiency and reducing workload.

Meet Statutory Requirements and Regulations
Outsourcing ensures compliance with UAE tax regulations and helps you avoid penalties and legal issues. It keeps your business in line with the country’s accounting laws, including VAT and corporate tax.

Address Labor Shortage Problems
Outsourcing solves labor shortages by giving you access to skilled accountants beyond Dubai, ensuring your business operates smoothly.

Reap the Benefits of the Latest Technology
Outsourcing allows you to use cutting-edge accounting technologies, such as cloud computing and automation, improving efficiency and accuracy.

Work With the Best Accounting Outsourcing Company

SH Typing offers reliable business support services to help your business realise its full potential. Our team can assist with accounting, bookkeeping, payroll, and VAT services, allowing you to focus on what matters most: your business.

Book a free consultation with one of our specialists today to get started!

This version reflects SH Typing’s involvement in business accounting services, making it a comprehensive guide for businesses in Dubai.