Accounting assumes a vital role in maintaining a business because it assists you track income and expenditures, ensure statutory compliance, and provide management, investors, and government with quantitative financial information which can be utilized in making business decisions. As one of the best accounting firm in Dubai our accounting experts can provide you great assistance for your accounting service needs. During the accounting process, various aspects must be examined and analyzed from a business perspective. While the company’s earning, or incoming funds, must be tracked just as they are for the individuals, there is an additional level of complexity regarding any outgoing funds directed towards certain business obligations. This may include both funds earmarked for particular company expenditures and funds earmarked for shareholders. It is recommended that businesses must have a tax accountant to perform these duties, due to the complexity of the records involved.
In the United Arab Emirates, accounting is more of a corporate law requirement than a tax filing requirement. In contrast to countries that levy tax, the UAE has no federal income or wage tax, resulting in less government-mandated accounting standards.
The authorities in the UAE have imposed the procedure for audited financial statements as well as the filing requirements. The company's license renewal provisions include audited financial statements. As a result, the company's management must be responsible for maintaining records that provide an undeniably true and reasonable image of the company to its shareholders.
Any entity in the UAE with regulated activities is required to file their accounts with the authority on a regular basis, which can be done quarterly or annually.
What does an Accountant do?
An accountant's primary duty is to review the financial details reported by the bookkeeper. Similarly, an accountant offers valuable business insights and financial guidance to the business owner, which is largely focused on the financial data that have been registered.
Aside from the duties mentioned above, they are also responsible for the following accountancy tasks:
- Checking and maintaining the financial statements' accuracy
- Verifying that the company is adhering to the applicable accounting laws and regulations
- Preparing reports, audits, and financial reporting documents such as tax returns, income statements, and balance sheets
- Ensuring that taxes are paid accurately and on time
- Assisting the company in its competent activity by recognizing existing problems and offering the best solution possible
- Providing data for forecasting, industry patterns, and growth opportunities
- Adjusting the entries
Advantages of Accounting
- Explains the financial condition of the company: Accounting thoroughly describes the financial condition of the company, enabling the business owners to compare the past and current company’s financial. It may also assist business owners in contrasting their company's financial situation to that of other businesses.
- Helps in decision-making: Through accounting, and seeing the current financial position of the company, the business owner can use this knowledge to devise plans for preserving the company's good reputation, strengthening its status, or fixing the company's "not-so-good" financial situation.
- Measures tax commitments: The profit and loss account displays the profit for the financial year, helping the business owners to quickly measure the tax liability.
- Maintains a systematic record of the transaction: Accounting allows a company to maintain a systematic record of all business transactions, which can come in handy in the future if the data is needed.
How may we be of service?
With almost a decade of experience here in the UAE, AMCA’s experts can provide you great assistance for your accounting needs. Our accountants are equipped with knowledge and experiences which enables them to help your organization to maintain accurate financial statements, while adhering to the UAE’s accounting laws and regulations.
With AMCA, expect to always be updated with the standing of your company in the market by looking at your company’s financial position and to maintain a systematic record of the company’s transactions.