A tax accountant's assistance is always sought during tax season. It is however uncommon for people to realize that accountants are capable of much more than simply recording financial transactions in a systematic and detailed manner. Accounting services in Dubai can help SMEs grow into thriving, compliant companies in a variety of ways. Essentially, accountants are strategists, leaders, advisors, business specialists, and technologists. Accounting is necessary for every business entity, regardless of its size. Whenever you embark on a business endeavor, you may have several questions, one of which is the importance of accounting. The purpose of accounting is to keep track of all financial transactions in a business, including income and expenses. For that, you have to seek assistance from an accounting services company.
10 Ways Accountants Elevate Your Business Performance
The following are some ways account anting services in Dubai add value beyond crunching numbers:
1. Staying on Top of Deadlines and Avoiding Penalties
By hiring an accountant, you can ensure you don't miss the deadline for filing your tax returns and avoid penalties. Moreover, keeping your accounting systems and processes up-to-date will help you remain compliant with laws and regulations. A few of the liabilities that are handled by the accounting services in Dubai are sales tax, VAT, income tax, and pension funds.
2. Tax Bill Minimization
Minimizing your tax bill and keeping your financial information updated are two ways accounting firms in Dubai can help. By doing so, they allow you to take advantage of tax breaks and incentives, and also make sure you receive the best advice at all times.
3. Establishing a Business Structure
Growing your business may require a different legal structure than what worked for you previously. Accountants will examine the advantages and disadvantages of each business structure and advise you on whether to start a sole proprietorship, partnership, or limited liability company based on tax savings and non-financial considerations. Despite being the easiest to run, a sole proprietorship lacks protection or support for a business owner against losses, debts, and liabilities. You can get advice on this from your accountant.
4. Making a Vat Registration
If your earnings exceed a certain threshold amount, you need to register as a VAT vendor once you've determined which company structure works best for you. It is important to stay informed of any changes in this threshold by talking to your accountant. Registration for VAT is optional if your business earns less than the threshold amount, but you can save money in the long run if you voluntarily register.
5. Profitable Growth
In order to increase profitability and save money, accountants analyze expenses and look for ways to reduce debt, negotiate with suppliers, control costs, forecast, maximize pricing, plan for profit, and report information in a better way to help you make better decisions.
6. Performance evaluation
An accountant can provide insight into your business's financial position and results. Financial records provide data about operations and the financial position of your business. A certified public accountant can help your business grow in line with its projections by developing performance evaluations.
Evaluations of this type can save you time and money by providing insight into how your operations and people are performing. They will assist you in cleaning up and updating your records, as well as keeping track of expenses and debts. Additionally, your accountant can help you allocate your budget appropriately by comparing your current data with previous records.
7. Reporting Integration
An integrated reporting approach offers better value creation than traditional financial reporting. A greater sense of accountability, better communication, and greater transparency are provided by it. Additionally, the business will be able to better communicate the added value. The use of integrated reporting allows a company to think and perform in an integrated manner, eliminating silos of information that inhibit executive decision-making.
As integrated thinking is ingrained in a business's daily activities, information is better integrated and flows into analysis, management reporting, and decision-making. For an accountant to make a difference in a business, they need essential knowledge and insight. Thus, integrated thinking urges the business to move from balance sheet accounting to accounting for business wellbeing.
8. Projections for the Future
Business success depends on the accuracy of budgets and forecasts. Financial statements projected for the future take into account past financial trends, market conditions, and anticipated changes. Your future plans will be aided by projected financial statements.
The accuracy of financial information is essential to the success of these plans. In order to ensure your operations are profitable, well-structured accounting processes serve as a source of historical financial data.
9. Financial Statements Filing
In order for businesses to be legally incorporated, they need to file their financial statements with the Registrar of Companies. Those listed on the Johannesburg Stock Exchange (JSE) are required to file them with the stock exchange for the purpose of filing direct and indirect taxes. It is imperative that these financial statements be prepared by accounting firms in Dubai.
10. Using Technology to Its Full Potential
Are you using cloud-based software or SaaS in your company? In such a case, an accounting service company can aid you in data interpretation and the provision of valuable insights to help your business flourish. By leveraging your software's functionality, accountants can help your business get the most value from technology and data.
The role of accountants extends well beyond number crunching; they help businesses maintain their long-term success through knowledge, resources, and agility.
An accountant with business savvy and commercial awareness can be a great asset for your growing company. By seeking their advice, you can improve cash flow, forecast financial performance, and determine the levers you can pull in your organization to increase profitability, all of which increase shareholder value.
Read More : Accounting and Financial Reporting in UAE
Principles of Accounting One Should Be Aware of
It is important to understand the basics of accounting in order to run a company successfully. How does accounting work? What are the principles that govern accounting and so on? In accounting, there are mainly five principles, and they are as follows:
Revenue Recognition Principle
An organization's income statement can be used to recognize revenues through the revenue recognition principle. It says "a business earns and records revenue at the time of sale," meaning the revenue is generated at the point when the consumer has possession of the product or service, not at the time of exchange.
This principle clearly states that “an expense is recorded when the business accepts services or goods from another entity”. In accounting, that's when an expense is recorded.
It is essential that every item on the expense list matches an item on the revenue list. When entering accounts, every organization should follow this crucial accounting principle.
As a rule, the cost principle states that when calculating an item's cost, one must take into account the item's historical cost rather than its current market value.
Accounting adheres to the objectivity principle and requires supporting evidence, such as vouchers, receipts, and invoices, and there is no place for personal opinions.
In general, these are the major accounting principles. Having knowledge of these topics is not a necessity for everyone, but it will certainly help you to stay informed. Accountants are capable of performing accounting procedures, but nowadays people prefer outsourcing accounting procedures since they will ensure that the records are free of personal interests and will lead to accurate results.
When outsourcing matters such as accounting, it is also imperative to maintain the confidentiality of the data. The accounting process is an internal activity, which is why it is important to choose a reputable accounting firm in Dubai.
Top Accounting Firm in Dubai
Farahat and Co. is a leading accounting firm in Dubai offering a wide range of accounting services, including web-based accounting, cloud-based accounting, onsite accounting, accounting system setup training, and accounting secondment. Providing you with the best quality services is our primary objective, our expert team offers cost-efficient and streamlined solutions that meet your specific needs.