+9714250025197142500251+     WhatsApp

VAT Demands Proper Bookkeeping

What is Bookkeeping?

Bookkeeping is one of the oldest things that a business needs. It dates back to the era wherein technology was still nowhere to be found and everybody did everything manually. Bookkeeping was literally done by being written in books and kept for references and ensuring that everything was meticulously made.

Financial transactions, purchases or sales, of a business, recorded every day and that called bookkeeping services. It is a task that ensures that all records that recorded are all correct. Aside from that, each one should have up-to-date and accurate data. The information that it has helps in preparing accounts.

It was and still is the basis of a business’ accounting system. It is an essential part of a company. The number of people that you need for bookkeeping depends on the size of your firm. A small business usually setups their own system or hires someone else to do it. A self-employed person does it on his own. If the organization is growing, more and more people need to handle the side of accounting because more work is expected in the coming months.

Tasks of Bookkeepers

The ones who are responsible in doing the above-mentioned job are the bookkeepers. These people should be knowledgeable and efficient about the many objectives, information, details, procedures, and processes that involve accounting because they record and categorize the data or transactions. They also take note of the techniques they have used in recording the transactions.

The work of a bookkeeper usually supervised by an accountant or the owner himself if it’s a small firm. These transactions ideally organized for the benefit of the people who are going to use it.

The bookkeepers are recording the following details, including but not limited to:

  • Asset depreciation monitoring
  • Payments for loans
  • Expense payments to suppliers
  • Customer payments for invoices
  • Financial report making

The Reasons Why You Need an Effective Bookkeeping Now More Than Ever

There are a lot of reasons why proper bookkeeping should be implemented in a company. Organizations need bookkeeping because of the business finance advantages that it gives the business owners.

  • Knowledge in Accounting—Your business’ future is in the hands of people who are handling your accounting and bookkeeping. This why these people are knowledgeable when it comes to their field. Their expertise can use by your business to further find out the things that you should know about the financial side of your company and also what you need to do to have better decision-making that involves your accounts.
  • Forecasting—The information that recorded by the bookkeepers are important in making forecasts. These forecasts are used in budgeting as well as finding out what the company’s cash flow is for the business owners to make decisions with regard to generating more revenue and where they should cut back and which aspect should they ad when it comes to their budget to produce more in flows.
  • Financial Reporting—The financial statements are an integral part of a company. These are the documents that shown to the authorities, auditors, banks, investors, etc. whenever the company asked involved in some events, looking to win the trust of some people to get the loan that needed, wanting to impress people to have more investors. The professional bookkeepers can help in making this happen as their accurate recording can aid in the accurate financial statement. This will make things convenient for the business owners and for other people who would ask for it.
  • VAT Requirements—There are certain requirements that the government and the Federal Tax Authority (FTA) has mandated for the business owners to comply. When a company fails or has a delay in doing so, penalties should be expected. This is why records should maintained properly and accurately for at least five years as there can instances that the FTA will ask for copies of the records. This is why bookkeeping is an important aspect of accounting since it ensures that each record is correct and up-to-date.

Leading accounting firms in Dubai

Farahat & Co. has been offering accounting and bookkeeping services in Dubai as we are one of the leading accounting firms in Dubai for more than 30 years now. There are a lot of things that one should know about bookkeeping and accounting and the things that it relates to. It is essential that the people running a business know what exactly each department does and how it’s going to affect everything. With this, the bookkeeping services in Dubai that Farahat & Co. offers can help you understand more and grasp the idea of bookkeeping and accounting that you don’t know about.

Aside from that, all questions that you have about it will be answered by our highly specialized consultants. You can contact us to book a consultation now.

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions.