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Accounting is an integral part of any business. In simple words we can say that accounting decides the success of your business. We offer a wide range of accounting related services that include Auditing, Taxation, Bookkeeping, VAT Registration
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Guidelines for keeping accounting records in Dubai According to Federal Law No. 2 of 2015 on Commercial Companies, the Dubai VAT law, and the regulations governing Dubai’s free zone, companies are required to keep accurate books of accounts for at least the previous five years of their operations. accounting and taxation dubai Businesses in Dubai are required to maintain accurate books of accounts, and anyone found in breach of this rule faces consequences. Businesses must employ skilled and experienced accountants to assist them in keeping their books of accounts updated in compliance with the accounting principles required by the International Financial Reporting Standards (IFRS). Businesses that don’t employ accountants for this task typically contract out their bookkeeping to Dubai-based accounting and bookkeeping firms. By doing it
in this manner, they complete their task and avoid paying the additional costs associated with hiring an accountant. advantages of preserving papers for records The accounts that are kept on file by businesses in Dubai are not only useful for the government but also for the management in understanding the changes that have occurred in the firm over time as a result of various protocols and business strategies.accounting and auditing dubai The benefits of keeping records for the business include the ones listed below: effective company management To examine the business’s performance in light of the prior plans that were implemented and to allow room for potential future business trends Better employee management is needed.
To look into the fraudulent business practices that have taken place According to Dubai Federal Law, how should firms preserve their books of accounts? In Dubai, businesses must keep accurate accounting records of all company activities in order to accurately depict their financial condition at any given time. The records should make it possible for partners or investors to vouch that the organization’s books are being properly maintained in accordance with legal requirements. As per UAE Federal Law’s Article 26 on Accounting Records, After the end of the company’s fiscal year, the firm must maintain its books of accounts for at least five years. These documents must be kept at the organization’s headquarters.
The businesses might also keep electronic copies of the account records and archives of the companies that abide by the criteria and guidelines established by the ministerial decree. The firms must make sure that the records are made in accordance with International Accounting Standards and must comply with the commonly used accounting practices when preparing the periodic and annual account reports in order to provide an accurate and precise picture of the profit and loss status of the company. The manager of the business is in charge of keeping the books of accounts up to date. A report on the annual budget, profit, and loss, as well as the number of employees, is required by article 87 of the UAE Federal Law №2 of 2015 on Commercial Companies. The manager of the company must create the company’s loss statement. Within three months after the end of the fiscal year, the management
must also put together an annual report on the company’s financial situation and offer some recommendations for allocating the benefits of the General Assembly. upkeep of books of accounts in accordance with Dubai VAT law According to the Cabinet Decision 36 of 2017 on the Executive Register of Federal Law No. (7) of 2017 on Tax Processes, organizations are obligated to maintain the accounting and commercial book records of the business. The bookkeeping records and the accounts must contain the following financial scripts and records: Balance Sheet Profit and loss record statements Records of salaries and wages Fixed asset reports
Records of the inventory statements at the completion of the relevant tax periods The first-time penalty of AED 10,000 will be assessed if a business owner fails to furnish the necessary accounting records. If the individual is determined to have broken the Law upkeep of the books of accounts in accordance with tax laws and other laws All taxpayers in the nation are required to keep a record of their accounts for at least the last five years starting from the end of the tax period, according to Cabinet Decision 36 of 2017 on the Executive Register of Federal Law №7 of 2017 on Tax Systems. Companies involved in the real estate industry are required to keep track of their accounts and other financial statements for fifteen years following the conclusion of the tax year.
Every free zone in Dubai mandates that registered businesses keep their books of accounts and records up to local and necessary international standards. regulations and norms. However, the larger free zones have ordered the businesses to conduct accurate audits of their finances and to produce the records upon request. penalties for breaking the rules of keeping financial records According to Federal Law №2 of 2015’s article 348, businesses that neglect to keep track of their financial transactions are subject to fines ranging from AED 50,000 to AED 500,000. Federal Law №2 of 2015’s article 349 imposes fines of AED 20,000 to AED 100,000 on businesses that fail to keep records for at least five years at their head office.
