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ACCOUNTING AND BOOKKEEPING SERVICE IN DUBAI
Accounting and Bookkeeping services are crucial for all Dubai Companies. Every operating firm requires bookkeeping. It helps businesses in keeping track of their expenditures to ensure efficient financial management.
Additionally, the gradual implementation of financial accounting enables businesses to give stakeholders and potential investors better insights as well as quantitative data on financial assets to government organisations for audits.
DUBAI COMPANY ANNUAL COMPLIANCE REQUIREMENTS
In Dubai, companies are required to comply with various annual compliance requirements in order to maintain their legal standing and operate smoothly. Some of the most common requirements include:
Annual Audit
All Companies are required to have their financial statements audited by a licensed auditor and submitted to the Dubai Financial Services Authority (DFSA) or the Dubai Department of Economic Development (DED).
Renewal of Trade License
The trade licence of a company must be renewed annually and the company must submit a set of documents, including the audited financial statements, to the DED or DFSA.
You can refer to our Dubai Trade License guide for more details.
VAT Filing
Companies must register for Value Added Tax (VAT) and submit VAT returns to the Federal Tax Authority (FTA) on a quarterly basis.
WPS Compliance
Companies are required to comply with the UAE’s Wage Protection System (WPS) and make timely payments to employees through the system.
Labor Law Compliance
Companies must comply with the UAE Labor Law and provide a safe and fair working environment for employees, including insurance coverage and annual leave entitlements.
Financial Statement Filing
Companies must file their financial statements with the DED or DFSA in a timely manner. Do note that companies incorporated in certain free zones are not required to submit the financial statements annually.
It is important for companies to be aware of these compliance requirements and to ensure that they are met in a timely and accurate manner.
Non-compliance can result in fines, legal penalties, and even the closure of the company. It is always best to seek advice from a professional consultant to ensure that you are meeting all compliance requirements and to avoid any potential issues.
WHAT ARE THE ACCOUNTING STANDARDS FOLLOWED IN DUBAI?
In Dubai, the International Financial Reporting Standards (IFRS) is adopted for preparing and presenting financial statements. IFRS is a set of globally recognized accounting standards developed by the International Accounting Standards Board (IASB).
The UAE Ministry of Economy requires all companies listed on the Dubai Financial Market and Abu Dhabi Securities Exchange to prepare their financial statements in accordance with IFRS.
Although it is not compulsory for small and medium businesses, many others in Dubai also choose to follow IFRS for their financial reporting purposes.
ACCOUNTING IN DUBAI: WORKFLOW & TIMELINE SCHEDULE
The workflow and timeline for accounting in Dubai can vary depending on the size and complexity of the business, but typically follows these steps.
Data Collection
Gathering financial transaction data from various sources, such as invoices, bank statements, and expense reports.
Bookkeeping
Recording of financial transactions in the company’s accounting system.
Reconciliation
Verification of the accuracy of financial records by comparing them with bank statements and other records.
Financial Reporting
Preparation of financial statements, such as balance sheets, income statements, and cash flow statements.
Tax Compliance
Filing of tax returns and payment of taxes in compliance with the local tax laws.
Audit
An independent examination of the financial statements by a qualified auditor to ensure their accuracy and compliance with accounting standards.
The timeline for each step can vary, but the accounting cycle is typically completed on a monthly or quarterly basis, with the financial statements being prepared annually. The tax filing deadline in Dubai is typically in December of the following year.
THINGS YOU MUST CONSIDER WHILE HIRING BOOKKEEPING AND ACCOUNTING SERVICES IN DUBAI
Here are some key factors to consider when hiring bookkeeping services in Dubai.
Qualifications and Experience
Look for a firm with qualified and experienced professionals who have a good understanding of accounting standards and tax laws in Dubai.
Reputation and Reliability
Check for references and reviews from previous clients to assess the firm’s reputation and reliability.
Technology and Processes
Look for a firm that uses the latest technology and has efficient processes in place to ensure timely and accurate financial records.
Flexibility and Customization
Ensure that the firm can provide services tailored to your specific business needs and is flexible enough to adapt to changes.
Communication and Availability
Choose a firm that has good communication skills and is easily accessible for any questions or concerns you may have.
Pricing
Compare the fees of different bookkeeping services and choose one that offers a good balance of quality and affordability.
Data Security
Ensure that the firm has appropriate data security measures in place to protect sensitive financial information.
BENEFITS FROM OUR ACCOUNTING AND BOOKKEEPING FIRM IN DUBAI
Expertise and Experience
Relin Consultants has a team of qualified and experienced professionals who provide accurate and efficient accounting and bookkeeping services.
Customizable Solutions
Our team of Consultants provides tailored solutions that meet the specific needs of each client.
Timely and Accurate Financial Information
We provide timely and accurate financial information, which helps clients make informed business decisions.
Cost-effective
Relin Consultants provides cost-effective solutions that help clients reduce their accounting and bookkeeping expenses.
Technology and Processes
Our team at Relin Consultants uses the latest technology and has efficient processes in place to provide reliable and efficient services.
Compliance with Regulations
Relin Consultants ensures compliance with accounting standards and tax laws, providing clients with peace of mind.
WHY CHOOSE RELIN CONSULTANTS’ ACCOUNTING AND BOOKKEEPING SERVICES IN DUBAI?
Relin Consultants is your trusted partner for comprehensive and reliable accounting services in Dubai. Our team of highly qualified and experienced professionals is dedicated to delivering accurate and efficient services that meet your specific business needs.
With a thorough understanding of accounting standards and local tax laws, our professionals use cutting-edge technology and streamlined processes to ensure that your financial reporting is accurate and up-to-date. Our aim is to simplify the accounting process for you, so that you can focus on running and growing your business.
As a leading provider of global business set up services, we are committed to delivering the highest quality accounting services to our clients. Our team is available to answer any questions and provide personalized support to help you achieve your business goals.
Don’t let accounting and tax compliance stress you out. Reach out to Relin Consultants today and experience the difference that comes with working with a team of experts for company registration in Dubai. Get in touch with us to learn more about our accounting services and how we can support your business.
FAQs
What accounting standards are used in Dubai?
The International Financial Reporting Standards (IFRS) are the accounting standards used in Dubai. IFRS is a set of globally recognized accounting principles, standards, and guidelines that companies are required to follow in order to produce financial statements that are comparable, transparent, and reliable.
In addition, Dubai also follows International Accounting Standards (IAS) for certain specific areas.
What services can a bookkeeper in Dubai provide?
A bookkeeper in Dubai can provide a variety of services, including:
- Record Keeping: Keeping accurate records of financial transactions, including sales, purchases, and expenses.
- Bank Reconciliation: Comparing bank statements with records to ensure accuracy and identify any discrepancies.
- Accounts Payable and Receivable: Managing the process of paying bills and receiving payments from customers.
- Payroll Processing: Keeping track of employee salaries and taxes, and preparing paychecks.
- Invoicing: Generating invoices for customers and tracking payment status.
- Financial Reporting: Preparing financial statements, such as balance sheets, income statements, and cash flow statements.
- Budgeting and Forecasting: Creating budgets and financial projections for the future.
- Tax Preparation: Preparing and filing tax returns, ensuring compliance with local tax laws.
- Financial Analysis: Analysing financial information to help make informed business decisions.
- Advisory Services: Providing advice on financial management, tax planning, and other areas.
Why outsource accounting and bookkeeping services in Dubai?
Outsourced accounting services in Dubai can provide several benefits, including:
- Cost-effective solution
- Access to expertise and experience
- Time and resources saved
- Improved accuracy and efficiency
- Compliance with regulations
- Focus on core business activities
- Access to the latest technology and processes
- Flexibility and scalability
- Personalised service
How are monthly bookkeeping services priced?
Typically, monthly bookkeeping services can range from a few hundred to several thousand dollars per month, depending on the factors such as volume of transactions, type of services, industry, size of the business, and location.
How can Accounting Services in Dubai help my business?
Accounting firms in Dubai can help a business by improving financial management, cash flow, decision-making, compliance, tax planning, efficiency, cost savings, and peace of mind.
Is Financial Audit Mandatory for SME Companies registered in Dubai?
Financial audits are mandatory for some SME companies registered in Dubai, but not all. The requirements for financial audits depend on the size and type of the business, and the regulations set by Dubai’s Department of Economic Development (DED).
In general, smaller businesses with lower revenue and simpler financial structures may not be required to undergo a financial audit. However, larger or more complex businesses may be required to undergo an annual financial audit. It is advisable to consult with a local accounting firm or the DED to determine the specific requirements for your business.
What are the mandatory accounting standards in Dubai UAE?
In Dubai, UAE, the mandatory accounting standards in Dubai are based on International Financial Reporting Standards (IFRS). The Dubai Financial Services Authority (DFSA) and the Dubai International Financial Centre (DIFC) have both adopted IFRS as the basis for financial reporting.
Additionally, the Ministry of Finance has also announced its intention to adopt IFRS for entities listed on the Dubai Financial Market. Therefore, most companies operating in Dubai, including SMEs, must comply with IFRS when preparing their financial statements.
What is the accounting year in Dubai?
In Dubai, the accounting year is typically based on the calendar year, running from January 1st to December 31st. However, companies can choose a different accounting year-end if it aligns better with their business operations.
For example, if a business has a peak season in the summer, it may choose to end its accounting year on June 30th to reflect its financial performance during that period.
It is important to note that companies are required to file their financial statements within 9 months after the end of their accounting year, so it is essential to choose an accounting year-end that allows enough time to prepare and file financial statements accurately.
What are the accounting regulatory authorities in Dubai?
In Dubai, the primary accounting regulatory authorities are the Dubai Financial Services Authority (DFSA), Dubai Department of Economic Development (DED), Dubai International Financial Centre Authority (DIFCA), and the Ministry of Economy. They regulate compliance with accounting standards and enforce penalties for non-compliance.
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