Chartered accountants in Dubai and the rest of the emirates are trusted business advisors. In this article, we’ll tackle everything you need to know about a chartered financial accountant, especially how they help businesses run operations.
Duties of Chartered Accountants in UAE
The roles that a chartered accountant takes on are crucial for ensuring a business continues its operations. Regardless of where it is in the world, the duties of chartered accountants are as follows:
Ascertain the liquidity, profitability, and solvency of a business
Through the company's financial statements prepared by chartered accountants, the company's financial position can be ascertained easily. There have to be complete records kept for all business transactions. The records will be used in determining the financial position and performance of a company. They will convey critical information to the company administration, shareholders, government regulators, creditors, and suppliers.
Determine profit/loss
A chartered accountant also plans an important role in identifying the profits earned and losses sustained by an enterprise within an accounting period. Take note: this is only possible with proper record-keeping of business transactions.
Facilitate a rational decision-making process
Another important duty of chartered accountants in Dubai is communicating the performance of a company. This is to aid a rational decision-making process for the interested parties.
Running a business in UAE requires accurate data with respect to the assets, profits, liabilities, and cash flow. Only an accountant can provide this set of information.
Help ensure legal compliance
The financial statements of a business have to be prepared according to regulatory standards. The records must also be in full compliance with local and federal legislation. Businesses are mandated to comply with the government regulations, as well as pay the appropriate tax amounts. Chartered accountants in UAE make sure filings are done accurately and submitted on time. Even the most inconsequential error made with filings can result in hefty fines and penalties.
Protection of assets
A chartered accountant in Dubai, in particular, won’t just keep records of the business assets. The professional will also help ensure there is no unauthorized use of an asset or property that belongs to an enterprise.
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Is it costly to hire a chartered accountant in Dubai?
Yes, it can cost money to hire a competitive, highly qualified chartered accountant in Dubai. Also, not all businesses can enjoy the luxury of hiring one. But, the value that an accounting professional can add will pay for the specialist’s fees. Some of the reasons why the cost to hire a chartered accountant in the UAE is justified are as follows:
- Accountants help ensure compliance with local and federal regulations. They save you thousands from potential fines and penalties.
- Chartered accountants in Dubai can drive up the profit of businesses. This is because they provide real-time data and insight on how efficiency can be improved with a company's existing processes.
- Accountants provide expert advice following a full analysis of financial data. This results in reliable and better decision-making.
Are fees of a chartered accountant deductible from tax returns?
According to the Federal Tax Authority in UAE, businesses can claim back the amount paid for retaining an accountant as the professional service rendered is a business expense. However, the bill’s tax deductibility will depend on whether or not a service provided was ‘wholly and exclusively’ supplied for trading purposes.
What are the different kinds of accounting?
The roles of accountants can vary. Chartered accountants in UAE specialize in several different areas, including the following:
- Management accounting – this is the type of accounting wherein records are prepared by a chartered accountant to better a company's operational performance. Management accounts are to be prepared properly and preferably according to international standards to better the company's performance. This kind of accounting monitors, documents, and assists an organization with financial planning. Documentation is usually meant for the internal stakeholders instead of the general public. Management accountants are often careful when communicating sensitive or confidential information, most especially to whom. They help create budgets that meet the goals of an organization.
- Financial accounting – this usually breaks down into two: bookkeeping and preparation and submission of annual statutory accounts. Financial reports are usually compiled for external use. A chartered accountant works with managers and their colleagues in strategizing how a business can be a lot more profitable.
- Tax accounting –it includes the implementation of the necessary accounting and bookkeeping work according to relevant taxation laws. Chartered accountants specializing in tax accounting g assist businesses with the planning of tax returns and avoiding certain tax charges and burdens.
- Auditing - this is where an accountant performs processes that determine the effectiveness of a company's internal accounting processes. It is also where employee department responsibilities and management policies are reviewed.
