Bookkeeping Services in Dubai
Updated on Tuesday 04th January 2022
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Accounting and bookkeeping services in Dubai are needed by all companies, no matter if big or small. Each business needs trustworthy, correct, and up-to-date financial data in order to track its performance and make the proper decisions. We invite you to get in touch with our team of accountants in Dubai and solicit complete information about the accounting services, including bookkeeping, we can offer for your company in Dubai. Look no further for bookkeeping and accounting firms in Dubai. We are here to help your business.
What is bookkeeping?
Bookkeeping is the procedure that involves consistently recording daily transactions and is a major aspect in order to maintain a sturdy business foundation. It functions as a platform for the accounting procedure, being the essential level of it. Bookkeeping is a foundation for accounting, hence if the first is maintained correctly, the second will be flawless and the other way around. Looking for bookkeeping and accounting firms in Dubai? Get in touch with us and find out more.
What does bookkeeping involve?
Bookkeeping services in Dubai include the following tasks:
- records of the financial transactions of the company;
- posting debits and credits;
- issuing invoices;
- sustaining and balancing subsidiaries, general ledgers, and historical accounts;
- effecting payroll.
Types of bookkeeping in Dubai
In general, there are two types of bookkeeping services:
- the manual bookkeeping - applied for small businesses; it utilizes manual clerking;
- the computed bookkeeping - suitable for midsize to large businesses, being more appropriate in a computerized manner in order to avoid any mistakes.
A successful combination of accounting and bookkeeping services in Dubai will lead to long-term financial benefit for your firm in this safe haven. Updated and systematized financial records and accurately balanced finances provided by bookkeeping and accounting are crucial factors for the success of your business endeavors. A lot of business owners select professionals who can take care of these aspects for them, while they focus their efforts and attention on their core business. Investing time and money in your company’s financials will have a major impact on the growth of your business.
Bookkeeping in short steps
The process of bookkeeping involves the records of financial transactions whether manually (in the case of small companies) or with the help of computer systems, special software, and applications. Each kind of transaction is concluded by a document in this sense, meaning that all the sales and purchases have receipts and invoices. Daybooks or books of first entry are multi-column journals involved in company bookkeeping. For instance, a sales journal comprises all credit sales, cash payments, with the mention that each journal column corresponds with an account. It is good to know that each transaction is recorded only once in a single-entry system. Moreover, each journal gives a summary for a specific period of time, in most cases each month. The following matters are important parts in a bookkeeping process:
- The journal summaries are then transferred to the respective accounts in the account book (the posting process).
- A document called unadjusted trial balance is created at the time the posting process is done.
- The unadjusted trial balance comprises three columns – the name of the accounts, the debit columns, the credit column.
- An accountant can make several adjustments and changes.
We invite you to ask our team of accountants in Dubai and find out more about the bookkeeping services you can receive for your company.
Drawing the financial statements
It is good to know that the income statement or the P&L (profit and loss), the balance sheet, the statement of changes in equity, and the cash flow statement are the necessary financial statements which are obtained from the trial balance. Feel free to ask any questions about the financial statements which need to be submitted with the help of our accountants.
What is a daybook?
A daybook or the book of original entry records the daily financial transactions and comprises the sales invoices, the sales credit daybook necessary for sales credit notes recording, the cash daybook, the general journal daybook and the purchases debits daybook.
What is a petty cash book?
A petty cash book records the small value purchases before they are transferred to the final accounts. It is good to know that a specific sum of money is provided to the petty cashier which is needed for minor expenses. Let our Dubai accountants tell you more about the daybook and the petty cash book that are needed in the company.
Journals and ledgers
The journal daybook records the journals comprising all the financial transactions before the values are accounted as credits and debits for the general ledger. It is good to know that companies in Dubai can keep one journal for all the transactions involved or they can have more than just one journal for the same activities. As for the record of the accounts, these are kept in a ledger which is a permanent summary of all the amounts entered. In other words, a ledger keeps every financial transaction from the journal and records it into the equivalent account for each listed transaction. Moreover, the total of every account is summed up by a ledger and then transferred into the balance sheet. There are two types of ledgers, the purchase ledger that records all the purchased transactions in the company, and the sales ledger consisting of the records of the financial transactions of the company.
Single-entry bookkeeping in Dubai
Single-entry bookkeeping is a fairly easy process of making a record for every transaction in the records of the company you own. Such transactions are normally kept in a cash book to keep track of the company's revenue and expenses.
Although it seems that there is no need for formal training in accounting for the single entry system, in reality, it is essential to have the services of an accountant at hand. The single entry method is suitable for small and medium-sized companies, but also for individual companies that have little or no physical assets, do not buy or sell on credit, and have a small stock of products to sell. If you are looking for bookkeeping and accounting firms in Dubai, turn your attention to our company and we will help you.
What does double-entry bookkeeping in Dubai mean?
Double-entry bookkeeping is based on the principle of transactions involving two accounts, called debits and credits. In other words, this system means that the total loans must be equal to the debts for balanced books in the firm. Usually, double-entry bookkeeping is aimed at large companies, either private or public. This type of bookkeeping system is also intended for companies that buy and sell on credit, which guarantees the elimination of errors that may involve certain transactions.
To better understand double-entry bookkeeping in Dubai, trust our specialists. You can find out more about how bookkeeping firms in Dubai work.
Cash registers for companies in Dubai
The registration and calculation of cash transactions are done with the help of cash registers. This kind of device is found in all stores that deal with the sale of products, and the mechanism is simple: the seller collects the money from the buyer, and offers change where appropriate. Thus, both actions are registered by the cash register, as well as the store receipts.
This cash-based bookkeeping system in Dubai uses single-entry bookkeeping and is aimed at small and medium-sized businesses. As for large companies, they can use more advanced systems for recording financial transactions and issuing invoices. We invite you to talk to us and find out more about accounting and bookkeeping services in Dubai.
Trial balance, help for bookkeeping in Dubai
The balance sheet is compiled using arranged and summarized accounting records. This procedure also acts as a test to see if the company's books are balanced. Thus, the company's accounts involving assets, liabilities, equity, income, and expenses are listed, with the balance of the company's final account. The procedure may seem complete, but an accountant knows how to generate a balance sheet to check how your company is doing in terms of accounting and how well your books are balanced.
The registers and journals are then checked, and if there are certain imbalances between debits and credits, they will be easily observed with the help of the checking balance. We would like to point out that any log entry that is incorrectly transcribed in the registry can cause an incorrect check balance in company records. In this case, it is advisable to keep track of errors promptly and correct them in the registry instead and make sure that the balance of the tax check at the end of the year will be in order.
When is bank reconciliation necessary for a company
Accounting and bookkeeping services in Dubai involve many aspects of company accounts. This is where bank reconciliation comes into play, a normal procedure for finding compatibility between the company's bookkeeping records and the transactions recorded in the bank account.
Reconciling bank accounts in companies is an extremely important step for bookkeeping and accounting firms in Dubai. With the help of this essential procedure, any discrepancy between the accounts of the company and the company journals will be discovered. This ensures that the finances of the company you own are in order from an accounting point of view. Are you looking for bookkeeping firms in Dubai? We can provide you with details about our services that are addressed to any type of company. We are here to guide your steps financially, to be able to ensure the accuracy of such information in the company.
Asking for bookkeeping for your company in Dubai
It is important to consider the importance of accounting services for your company in Dubai. Bookkeeping is an important part of the accounting services we can provide for your business in Dubai because once having operations on the market, these need to be properly recorded, with respect to the applicable laws in the UAE.
Short facts about the taxes in Dubai
Dubai has an appealing tax system very much appreciated by many international investors looking for business in this city. There is no withholding tax imposed for companies, there is no capital gains tax for registered companies in special free trade zones and there are no social security taxes imposed for foreigners in Dubai. However, the VAT and the excise tax entered into force in January 2018, at a rate of 5%.
Our accounting services in Dubai address to small, medium and large companies with establishments in this city, so do not hesitate to solicit a personalized offer and request all the necessary information about the needed bookkeeping for your firm.
Choosing an experienced accountant in Dubai
Our team of accountants in Dubai can be solicited for your company in the city. The experience and professionalism stand at the base of our services that can be provided right away. It is important to choose an experienced accountant in Dubai for your company and make sure you receive proper services right from the start. An experienced accountant must prove he/she is a CPA or a Certified Public Accountant in the UAE. Besides bookkeeping, payroll services, and annual financial statements, an experienced accountant needs to know complete information about audits in Dubai and the way these can be performed. There are many business and financial decisions that must be made in a company, so an experienced accountant will propose the optimal solutions in front of business owners and company managers. We remind that payroll, bookkeeping services in Dubai, audits, preparation of financial statements, and management reporting enter the attention of our experienced accountants in Dubai. You can solicit our help and send your inquiries to our team of accountants right away.
Conditions for hiring an accountant in Dubai
An experienced accountant will know right from the start what are the main financial aspects to take care in the firm. The portfolio is quite important for an accountant because will speak on behalf of the expert when hiring his/her services. It is important to note that if you decide on hiring an internal accountant for your firm in Dubai you should provide the annual salary stipulated by the legislation. Accountants in Dubai know all the aspects of payroll, bookkeeping, preparation of annual financial statements, audits, and many more. If you are interested in the services of our accounting firm in Dubai and especially bookkeeping services in Dubai, please feel free to send your queries to us.
FAQ about bookkeeping
1. What is bookkeeping?
Bookkeeping is an important part of the accounting services that involve the record of the daily transactions in the firm. There are specific platforms accessed by a specialized accountant when handling bookkeeping services in Dubai.
2. Are specific tasks related to bookkeeping?
Yes, the records of daily financial transactions in a firm, invoice issuance, general ledgers, and effecting payroll are a few of the tasks included by bookkeeping services in Dubai.
3. Are specific types of bookkeeping in Dubai?
Computed and manual bookkeeping are available in Dubai, however, most companies receive computed bookkeeping as it is way much faster. There are specific online and offline platforms that can be used by an experienced accountant in Dubai.
4. Do small companies need bookkeeping services in Dubai?
Of course, small, medium, and large companies require bookkeeping in Dubai. We can explain more if you decide on hiring the services of our accounting firm in Dubai.
5. Are there special software for bookkeeping in Dubai?
Yes, particular applications and software are required for accurate bookkeeping. We remind that accounting rules in the UAE align with the International Financial and Reporting Standards (IFRS).
6. What is a sales journal?
A sales journal comprises complete information about cash payments and any kind of financial transaction in a firm. Our accountant in Dubai can tell you more about sales journals.
7. Is a daybook an important document?
Yes, a daybook comprises information about daily financial transactions. This is also known as the book of original entry records.
8. What are journals and ledgers?
Journals and ledgers comprise each financial transaction before the values are accounted for as credits or debits. You can discuss this with our accountants in Dubai if you need more details. Accounting and bookkeeping services in Dubai are at your disposal.
9. Should I hire an accounting firm in Dubai or create a department?
It is best to consider the services of bookkeeping and accounting firms in Dubai instead of creating a whole department. It might prove not only an excellent choice but also cost-effective.
10. Why hire our team of accountants in Dubai?
We have an experienced team of accountants in Dubai that can accurately handle each financial task in our company. You can rely on our professionalism.
Here are some facts and figures about the UAE economy and business:
- Around USD 154 billion was the total FDI stock registered in UAE in 2019.
- UAE ranks 16th out of 190 economies in the world according to the 2020 Doing Business report.
- Most of the FDIs in the UAE are directed to sectors like real estate, financial, and insurance.
- The UK, USA, Saudi Arabia, and India are the main investors in the UAE.
Why hire our accountants in Dubai?
As a business manager or owner of a small or large firm, you are an expert in your line of business, however, conducting every aspect of your business is not always probable in today’s hectic economy. And here is where our team of professional bookkeepers in Dubai comes to your help. We use a personalized bookkeeping approach and we employ systems that best fit your firm’s particular needs.
We offer a wide range of bookkeeping and accounting services in Dubai, payroll, and tax advice. Whether you represent a large or a small company, when you ask for our assistance, you’ll benefit from expert services delivered at a convenient price. If you wish to find out more about the services we offer, please do not hesitate to contact our accountants in Dubai.