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When we come back home after spending a vacation or after doing shopping from the supermarket, we check the bills and our wallet and calculate how much money did we took there, how much was spent, what balance money should we have and then check are we having the exact amount in our wallet as we calculated it to be.
Why you do so? You do so to keep the record of your expenditure, to check whether or not you have lost or kept your money somewhere. Well, bookkeeping is also just like this, where this noting down of expenditure in done more officially and properly.
Bookkeeping is the legitimate process of recording your company or business’s financial transactions. From purchases of the small stationery to purchases of the raw materials required for the business, sales, income tax returns, receipts of payments done to employees, or other organizations, all are recorded in this process of bookkeeping.
What is the use of the data recorded in bookkeeping?
While running any business in the UAE, you cannot just make decisions according to your gut feeling, on the contrary, you have to think of decisions only after proper planning and discussion of facts and maybe also considering the present situation of your company. This analysis is possible only if you have information and data about your company in the UAE, which may include the ledgers, bank statements, income tax returns, the records of the financial transactions of your company.
This data empowers you to make decisions for the company’s betterment and also tells you whether the company is strong enough to support your decision. Companies in Dubai nowadays hire analysts who analyze this data and finds out the trend in them and helps you understand your company well. You can just keep thinking that your company runs in profit, but somewhere down there your employee might be hiding some issues or might be doing something wrong, then again it is these records and data which will tell you the reality and would become the whistleblower and warn you about the mishappening. Moreover, bookkeeping in Dubai is the first step required to complete your company’s accounting process.
Relevant skills required for the bookkeeper in UAE
Even though you do not require a person with an extremely high degree or a much highly educated person for this job, still there are some requirements, which include the following: –
- Data entry skills
- Highly attentive to details
- Proficiency in using Microsoft Excel
- Basic knowledge of accounting
- Organizational skills
- Knowledge of software required for bookkeeping
Apart from this, you can even hire the services of a company giving bookkeeping and accounting aid and advice.
Why you need a bookkeeper in UAE?
Seems to be an easy job but actually, it is not considering the tasks which a bookkeeper needs to perform: –
- Maintain records daily
The bookkeeper needs to add all transactions to the book daily with proper dates to prevent loss of data.
- Management of bank accounts
It is his or her job to flag any inconsistency between the book’s record and the bank’s records and then overcome this.
- Keep the books aligned with law
Audits happen both internally and externally, which can cause a lot of loss to the company if the books are not accurate and according to the rules.
- Keep you ready for tax
Tax is calculated on the basis of the company’s turnover and other financial transactions, and it so happens that you are paying a tax less than that you are supposed to because your books are not correct, then be ready to get a penalty and notice from the income tax authorities.
- Sending out Invoices
It is the bookkeeper who prepares the invoices and sends them to
your client to receive the payment on time and also looks upon the book and chases the late payers.
- Keeping Invoices
To maintain proper functioning, the invoices which your company has paid must be kept safely for future use.
- Deal with foreign currency transactions
Bookkeepers also make sure that they maintain accurate foreign currency accounts within the boundary of law and order.
- Maintain proper cash flow
One of the important tasks a bookkeeper performs is to make sure that the company doesn’t run out of day-to-day money, thus keeping an eye on the balance of expenses and that of revenues and also to inform the company if it requires to have more cash in hand to operate.
- Prepare financial statements
They not only keep books, but they also prepare some other significant financial statements, which include profit and loss statements, balance sheets, and cash flow statements.
- Getting the books ready for the accountant
It is the bookkeeper who sees that the books are ready and accurate so that the accountant in UAE can continue with his work.
These are the jobs that a bookkeeper in Dubai does, and none of the things mentioned above can be neglected to maintain the smooth functioning of your company, and moreover, bookkeeping can save your company from probable financial danger.
Services offered by organizations giving bookkeeping facilities
Nowadays, instead of hiring multiple employees, companies have started availing services offered by various companies offering bookkeeping and accounting services in Dubai. Following are the services offered by such professional bookkeeping services in Dubai: –
- Data entry and its organization
They ensure proper entry of data and transactions into the record books of the company with complete efficiency.
- Preparation of charts
They review the company financially and creates charts and graphs for better understanding.
- Online Services
They maintain the accounting records of the company using cloud-based platforms so that the data becomes easily accessible to the company as and when required.
- Prediction and Projections
They help the company identify the sudden requirements of cash beforehand, so that adequate arrangements can be made.
These agencies have highly educated and experienced professionals who can help your company to understand your financial position more accurately.
The importance of bookkeeping as a function of your company is extremely crucial. So, you must dedicate proper time and resources to ensure timely and accurate recording of the data.