When you run a business in the UAE, it is imperative that you remain careful about documentation and accounting related things. It is applicable for companies of all sizes and types-literally. After the introduction of Value added tax in 2028, it has become even more important! Even if you have a startup, ensure the bookkeeping and accounting work is done in the best possible way. Doing so makes things easier for both the business owner and the customers and it brings many benefits.
Read on to find out why and how updating and marinating your business accounting records can be beneficial:
- It Minimizes Risk Of Legal Woes – No business owner wants to get embroiled in a legal mess! So, you have to update the company accounts all through the year with accuracy. When the books are updated, the scope of getting mired in legal tangles with vendors and customers will be minimized. By showing updated account details, you can eliminate any dispute fast. Your account details will be your savior if there is any legal suit involved.
- Better Relationship With Customers And Vendors – Your UAE based company may have a huge customer base. It may have to work with a number of third-party vendors as well. Unless the accounts are updated and maintained well, working relationships with both the vendors and customers can be hampered. Everyone is human and so sometimes, payment-related disputes may crop up. When your business account records are up to date, the specific invoice can be fetched soon and the dispute can get resolved. Otherwise, the dispute can get elevated and strain the relationship.
- Better Strategy Planning Or Decision Making – As the owner of a UAE based company, you need to know the balance sheet and account updates. This is possible when the company accounts are maintained in a proper manner. Unless you know the revenue for a fiscal or surplus amount in funds, you cannot develop strategy well. So, without updated accounts, your business strategy making can get affected. Once you know the available funds accurately, you can allocate the amounts for various tasks like marketing and promotions etc.
- Accuracy In Tax Filing – Your company accounts must be updated and maintained correctly to file tax returns without woes. Every single transaction should be invoiced and recorded for accuracy. If this is not maintained, the tax department may revert asking your company for checking records. This not only involves delay but your company may have to pay fines or lose the chance to claim rebates.
- Locating The Defaulters – Another big advantage of maintaining the company accounts is tracking the defaulters. Both the vendors and customers (a section of them) may make a delay in clearing payments. Unless the account records are up to date, you will not be able to figure out the defaulters and knock them accordingly!
Overall, for any UAE based company, maintaining as well as updating the accounts is absolutely important. It brings relief from tax woes, payment disputes and helps the company save money in the long run. If you think the company employees are not skilled enough to manage the accounts, it can be worthwhile to seek the services of a reputed financial consultant or agency. Besides, you will also need to use a suitable accounting software solution for the company.