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For judging the importance of bookkeeping in business you need to have a full understanding of
what is bookkeeping? Bookkeeping is an accounting service in UAE and is thus the process of
recording day-to-day financial transactions of a particular business. Bookkeeping is also
sometimes referred to as the method of recording transactions which involves preparing
documents of all transactions, operations and all other events of a business.
Moving forward, the method of bookkeeping has existed from the earliest times in human life in
different cities. Earlier records were made for temporary use only and the accounting service in
UAE was done on a regular basis until the century where technology had taken over manual
recording system of accounting.
Moving forward to the importance of bookkeeping, the following points will make the topic clear:
1. Maintaining accurate financial records: The first and the foremost reason to use the
bookkeeping as an accounting service in Dubai is that it helps to maintain accuracy in the
accounting of a business. In the current scenario, where businesses are flourishing with leaps
and bounds, there are a number of transactions to be recorded on a daily basis. Having the right
accounts maintained properly will help in determining the cash flow in a business and this will
further make the process simpler while making the balance sheet. Once you have recorded
small expenses efficiently, it becomes easy for analyzing the exact expenditure over the income
being received.
2. Preparation of Tax: Any tax consultant in Dubai encourages your business to file a tax
return every year. There are businessmen who are scrambling through their desks in search of
missing paper works. I case it is a condition that you have also faced then you must remember
to make the accounts more efficient so that while preparing tax in UAE, it becomes easy for you
and you do not have to pay any extra amount from your end. This process of preparing tax in
UAE can be made easy by simply having an efficient bookkeeping function within your
company.
5. Efficient decision making: One of the major areas of any business organization is to take
some quick decisions which will be right for the business. It is believed with analyses, comes
better decision making. If you need access to the relevant information, it is important for your
business to use the best accounting services in UAE. In this scenario, bookkeeping is one of the
best ways to get the right information at the right time. This further enables you to take relevant
decisions with respect to the working of a business firm. To take all the profitable decisions, it is
important for you to access the information related to the finances of a firm.
6. Making development plans: Every business organization is established with the motive to
grow and develop in the near future and it is important to do planning for this purpose.
Bookkeeping displays the past performance of a business entity. In order to make plans for the
future, it is important to understand the past and accounting services in UAE will give you the
clear image of what exactly works and what doesn’t work for an organization. Bookkeeping not
only helps to make strategies but it also plays a vital role in planning tax in UAE.
9. The necessity for audit firms in UAE: In a country like Dubai, it is really important for a
business organization to pay tax in UAE and file a return for the taxes your business is paying to
the government. Auditing companies in Dubai encourage you to maintain proper records of all
the financial inflow and outflow transactions. Depending on the legal structure, audit firms in Abu
Dhabi require you to keep financial records separate from your personal expenses. In case you
fail to do so and try to include all your personal expenses during filing a tax return, you will have
to face consequences. This might also lead to termination of your business.
10. Conduct self- audit: Every individual aim at keeping a daily record f all the financial
transactions which will help in analyzing the health of a business. It will help an individual to take
relevant decisions related to the business activities. For example: there are decisions to be
taken regarding risk management or losses and in the case where all the actions fail, taking and
planning decisions and strategies becomes an important aspect for a business person. There
are times when corrective measures are required to be taken in an organization therefore, if all
the financial do’s and don’ts are clear to self, it becomes easy to take the right decision at the
right time. In the case of internal audits also it becomes easy to display all the financial
requirements of the auditing firms in Dubai and get the finances audited efficiently.
11. Making sure all the deductions are covered: Even one penny can make a difference in
the accounting books and in order to balance the sheets efficiently, all the transactions related
to expenditures and incomes are important to be noted down starting from the bookkeeping
process. Making and maintaining proper records acts as proof while you present your incomes
and expenditures while filing a tax in UAE return or while presenting your transactions to the
auditing firms in Dubai.
So now that you know the importance of bookkeeping. It can help you save your time, efforts
and money and give you less stress in terms of managing the business transactions. In case
you are not aware of the bookkeeping process then you can also hire an accountant from any of
the accounting firms in Dubai and get started as soon as possible. Once you start implementing
bookkeeping in your business daily, you will be able to classify the relevant transactions and
give it to the Dubai tax authority or audit firms in Dubai whenever required.
Start managing your accounting transactions efficiently so that you are able to focus on the
strategies and do not waste time in gathering minor transactions on a daily basis.