When you have a business based in the UAE, it is necessary that you maintain and update the accounts for the same with diligence and precision. This is required not only for taxation and related reimbursement needs. Overlooking the bookkeeping aspect can land any business owner in trouble. It can also make you or your UAE based venture get mired in lawsuits, at times. This is the reason why it makes sense that you should get in touch with a reliable bookkeeping services Dubai provider.
Listed below are the ways in which bookkeeping and accounting errors can prove to be troublesome for your company:
- Brand image – Any professional and reliable business in the UAE should maintain its accounts and records an inaccurate manner. Any sloppiness in this matter is deemed as a sign of being unreliable. This not only lowers credibility to the govt and tax dept but also lowers credibility in the eyes of the customers.
- Penalty – If your company’s accounts are not maintained well, at the time of filing the taxes, there can be problems. It can actually lead to twofold problems for the venture. You may have to pay penalty for error in tax filing and amount mismatch. On top of that, your company loses the chance to get any tax rebate-if applicable.
- Stress and anxiety – If the company accounts are not updated and maintained, taxation woes will crop up. This can lead to significant tension and stress on company management. You will not be able to focus on ongoing work and projects if the tax-related woes keep brewing inside the mind.
- Impact on business strategy- Whether your UAE based venture makes mobile accessories or sells perfumes, it needs to take strategic decisions for the future. If you are not sure about the revenue and funds available, making a strategic decision can be tough. If the accounts are not updated, you can never be sure of the funds you have at any given point of time. In fact, you will end up making plans that will be far removed from reality.
- Risk of conflict – Unless the company accounts are well maintained, there can be disputes with vendors and clients from time to time. This may hamper working relationships.
Ways to ensure your UAE business accounting is done in the best way
There are a few steps you can take to ensure the accounting records are maintained and updated without errors.
- Using a suitable software application – There are several applications that you can use to maintain company accounting records. Choose a suitable application that has required features and customization possibilities. The software should have the feature to take backups periodically, without human intervention. It should also have enough security features to thwart the risk of data tampering and theft.
- The assistance of an expert – Sometimes, you may find deploying your existing company staff for maintaining accounts is not enough. You may seek the services of a third-party agency or freelance finance consultant who can do a better job in this regard.
It is not so tough to maintain your UAE business accounts properly. You need to adopt a professional approach and services of professional consultants can be of use.