Bookkeeping as well as accounting services share common goals. It is important to note that both are vital for building a strong business foundation, evaluating the business health as well as sustaining business growth. Maintaining accurate records is not only a legal requirement, it is crucial for the company’s sustainability. Bookkeeping helps in tracking how much funds you are spending and its ROI (return on investment).
And, further accurate bookkeeping helps in accounting for creating the financial reports to process tax filings timely and avoid compliance issues. For ensuring a smooth business operation, hiring outsourcing experts for accounting and bookkeeping in Dubai is an amazing solution. However, before you hire a professional, consider knowing about both in detail.
Bookkeeping refers to the practice of recording as well as keeping track of business financial transactions. The experts need to summarise the business activities in financial reports on a regular basis. Such reports present the business’s financial position and performance. Basically, it relates to the maintenance of daily financial records.
Hiring experts for bookkeeping Dubai could benefit your business in several ways such as quick invoicing, clear view of finances, compliance with statutory and regulatory laws, preparation for tax season, etc. The list of primary & secondary bookkeeping services that professionals provide includes
- Data Entry
It involves the recording of the financial transactions of a business. The accurate maintenance of financial data is essential for the preparation of financial statements. The accurate financial records would help you and other stakeholders get a fair view of business
- Accounts Payable and Accounts Receivable
The experts ensure that the customers receive invoices and you get paid on time. They also ensure that the bills of suppliers are paid timely so that there is no delay in deliveries.
Along with maintaining account receivable and payable, experts undertake the payroll service and bank reconciliation as well.
Accounting is a vital aspect of business as it ensures that all financial decisions made are right. Many business owners consider outsourcing accounting services an extra expense and hire full-time accountants. Outsourcing is a beneficial choice in case you run a small business and lack adequate accounting knowledge.
The reason behind this is that you would need to pay a salary to the accountant whereas outsourcing could be a cheaper choice. The services that an accounting firm could provide for the smooth operation of your business are
- Preparation of Financial Statements
Financial statement preparation is one of the key services that your business requires. Statements like cash flow statement, P&L account, etc. are crucial for making informed decisions.
- Tax Preparation
The accounting firm could free you from the stress of taxation. The professionals could prepare the tax returns. They could decrease the errors in the taxes. They could also provide the best tax solutions as well as file extensions in case required.
- Credit Management
It is crucial to keep the business credit isolated from personal credit. With the help of professionals, you could ensure that credit documents are settled as well as overseen. The expert monitors the credit factors such as debt ratios, on-time payment history, etc. This helps in better credit maintenance and leads to creating access to extra capital for growth.
Along with these, the accounting firms could also assist you with VAT compliance as well as filing. They could free up your time so that you could utilise that for the growth of the business.