Why Bookkeeping Is Essential For Companies in The UAE
The UAE has long been a hub for international trade, attracting business from across the globe as a result of a regulated trading environment and favorable tax laws. Over the last few years, there have been several measures implemented that make accounting and bookkeeping critical for all businesses operating in the UAE.
Bookkeeping is the foundation of your company’s financial statements. When running your business it’s imperative to have a solid financial system in place to understand how your business is performing. Accurate bookkeeping is the first step in this process and enables business owners to make effective decisions and run a successful operation.
4 reasons bookkeeping is critical for UAE Businesses
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Statutory Compliance with FTA Regulations
Federal law no.2 of 2015 concerning commercial companies and the commercial companies regulations state that all businesses operating in the UAE are required to maintain accurate financial records and submit regular financial statements to the government.
Statements can only be produced accurately if there’s a record of all transactions. Good bookkeeping will help a business to avoid heavy penalties.
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Facilitation of Audits
Financial audits are mandatory for businesses in the UAE. The audit process takes place to ensure businesses are compliant with local laws and regulations.
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Cash Flow Management
Good bookkeeping allows the business to effectively monitor cash flow. Monitoring cash flow allows the business to ensure they have sufficient funds to cover expenses. Poor cash flow management and forecasting are some of the primary reasons that businesses fail. Read more about cash flow forecasting, including a free forecasting template here.
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Optimising Business Performance
Having accurate business records through bookkeeping enables an accurate picture of a company’s financial position through clear business performance reporting. This vital information provides a business with the visibility needed to identify areas of opportunity to maximise profits, set budgets, and make informed business decisions.
Go Figure Accountancy in the UAE provides an efficient, affordable, and insightful professional bookkeeping and accountancy service. We offer a wide range of packages to suit all budgets, and with our years of expertise, you can be confident we’ll keep you ahead of FTA deadlines, provide you with accurate financial records, and help you grow your business.
Book a free 30-minute business finance clinic to find out how we can help you today