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The UAE has a stringent regulatory framework when it comes to financial reporting. Accurate and timely reporting can provide insights into the financial performance of the business. This critically impacts the growth and profitability of entrepreneurs, aspiring to thrive in the ecosystem. Subsequently, this has increased the demand for bookkeeping service in UAE.
Let us take you through the essentials of bookkeeping and auditing in the UAE and find out how it can assist in keeping your financial records transparent and accurate.
Prioritizing bookkeeping and auditing in UAE
The UAE business landscape is so vast and diverse that it offers an abundance of growth opportunities to entrepreneurs. Amidst the business hustle, entrepreneurs often neglect timely bookkeeping and auditing, leading to a huge negative impact on their financial well-being.
Here are the top reasons to prioritise auditing in UAE:
- Legal compliance: In the UAE, it is significant to maintain accurate records or undergo required audits to avoid hefty fines.
- Financial insights: Timely reporting and bookkeeping help in understanding the business’s performance, identify areas of improvement, and make informed decisions.
- Access to funding: Whether you’re looking for bank loans or investment from venture capital, clear and audited financial statements are the real game-changers.
Key Types of Audits in the UAE
To maintain financial stability, entrepreneurs need to adopt several approaches of auditing in UAE. The major types of audits include:
Internal Auditing:
This type of auditing is conducted by the company’s in-house team for internal auditing in Dubai. It helps improve operational efficiency and risk management for businesses. Undoubtedly, it’s a good practice for businesses seeking to enhance their internal controls.
External Auditing:
This is the most common type of auditing in UAE, performed by third-party bookkeeping companies in Dubai. External auditors review the company’s financial statements to ensure accuracy and compliance with International Financial Reporting Standards (IFRS).
VAT Audit:
With the introduction of VAT in the UAE, businesses have to be particular about their VAT audits as prescribed by the Federal Tax Authority. Accuracy in bookkeeping is essential to carry out a VAT audit and meeting its regulatory requirements smoothly.
Steps to Get Started with Bookkeeping and Auditing
For entrepreneurs in UAE, it is essential to adopt a strategic approach to simplify their accounting auditing procedures. Here’s our step-by-step guide that can help you get started:
Choose the right accounting team: Whenever you plan to hire accounting professionals or have an in-house team, make sure they are aligned with business needs. Assess their qualification, expertise and experience in helping you keep track of transactions, VAT, and expenses.
Hire or outsource professionals: If you are planning to outsource your financial reporting to bookkeeping companies in Dubai, ensure that your books are maintained by experienced professionals. Our team of experts at A&A Associate, one of the leading business advisory and accounting firms in UAE can take charge of your bookkeeping responsibilities without a miss.
Schedule regular audits: Don’t wait until the financial year ends to progress with auditing your records. Ensure that your team does regular internal checks to spot and resolve issues at early stages.
Stay VAT-compliant: If your company is eligible for VAT filing, always keep track of your VAT returns and deadlines. A good team for internal auditing in Dubai can help you do so which can ultimately eliminate the risk of penalties from the FTA.
Work with a registered audit firm: The UAE has a multitude of companies offering accounting-related services. However, you must choose an audit firm that’s approved and registered by the UAE authorities to ensure compliance.
Conclusion
Timely accounting service and auditing are essential for businesses in Dubai for a plethora of reasons. You can always ensure financial compliance, make informed decisions, and protect your business from penalties. A&A Associate is the perfect one-stop solution, catering to businesses of all sizes and types.
Get in touch with us today to have more insights on making your business financially strong:
Email: info@aaconsultancy.ae
Phone: +971 50 483 6190