UAE’s policies and systems greatly support the growth of companies and industrial sectors. So, the abundance of business opportunities in the UAE has an enormous impact on the corporate environment. You can start bookkeeping and accounting business in Dubai to help these companies in auditing and tax reporting in 2024.
Business setup in Dubai has become extremely easy thanks to the improvement in the functioning of the government departments. Whether it is a manufacturing business, or just a simple shop that you want to own and operate. Every type of business has certain requirements which they have to fulfill.
Accordingly, many ancillary firms have sprung up to meet the demands of these companies, for services they require to operate. For example, banks, logistic companies, event managers, insurers, and accounting firms have been in great demand. After all, these are basic necessities that businesses require to operate and survive in today’s world.
Requirements for bookkeeping and accounting business
These are some requirements that you need to fulfill to start a bookkeeping and accounting business during 2024.
- Degree in Accounting
- Professional license
Now, we briefly look upon these requirements.
Degree in Accounting
It is important that you hold a degree in accounting or relevant fields to own an accounting firm in Dubai. Also, you must have a certificate that is proof that you are a professional accountant. Your degree and certificate must come from well-known institutions.
The United Arab Emirates regulates the services as per your knowledge and experience. Subsequently, the more expertise you have in your domain, the more work you get. This is one of the reasons why UAE has become such an attractive place for businesses.
You have to apply for a professional license in Dubai to establish an accounting firm. Keep in mind that Dubai Economic Department (DED) is the authority that issues this license. So, get your license and begin providing accountancy services.
Think about owning or renting an office in a commercial area which has a large population. As chances are you will have more clients than you can get in other areas. Because numerous businesses want to get things done quickly.
If you are close by and more accessible, businesses are more likely to come to you for your services. Moreover, your office will provide the investors with a sense of security. As a professional service has to look professional as well.
Steps to launch a bookkeeping and accounting business
In case, you want to obtain your professional license from the DED for your bookkeeping firm in Dubai. You need to submit a number of important documents, proofs, certificates, and various government forms. So that it helps the government determine your eligibility to own an accounting business.
Likewise, this makes it easier for different regulators to keep records about your business. It is an important part of how Dubai is run. Here is the process to start the accounting and bookkeeping business in Dubai through 2024.
- Register a trading name for your company.
- Decide on the company structure you want. (Sole proprietorship, joint-stock company, or others)
- Obtain an initial approval from the DED, stating that the regulator doesn’t have any problem with you starting a business.
- Register your business by submitting all the necessary and required documents
- Rent an office space for your business as per the regulation
- Acquire a professional license from the relevant regulator
Congratulations, you can legally run your accounting and bookkeeping business.
Why businesses need accounting and bookkeeping services?
Sometimes, owning a company in Dubai and running its main business become two different things. Yes, you may have huge capitals and a lengthy list of loyal customers. But if you can not effectively manage your accounting and bookkeeping functions, your company can not thrive.
Bookkeeping is one of the essential responsibilities that a business needs to carry out with the utmost care. Hiring, training, and providing infrastructure/equipment to in-house accounting and bookkeeping department is not the only way to go. Outsourcing these services to organizations in Dubai having expertise and knowledge of the rules/regulations to follow is the safer option.
It is suitable for entrepreneurs who are just starting a business in the UAE. Also, availing of accounting and Bookkeeping services from third-party accountancy companies is more reliable. These are some advantages of outsourcing accounting and bookkeeping services in Dubai amid 2024.
- Unbiased financial opinion
- Growth and sustenance
- No overhead payments
- Data confidentiality
- Avoid conflict of interest
- Better service
- No sudden loss of employees
- Increased firm’s valuation
- New services for clients
Let’s take a look on these benefits in depth.
Unbiased financial opinion
One of the limitations of having in-house bookkeepers/accountants is that they may emotionally entangle in your company’s daily tasks. Personal liking/bias can lead them to making wrong decisions. Whereas, an outsourced service provider would give an unbiased and honest evaluation of your company’s financial position.
They have no personal stake in the business and can’t attach emotions to it. Therefore, they will not pat on your back to say everything is OK when it is very clearly not. It brings the best outcome for your business as you will know where you stand.
Growth and sustenance
Outsourcing of accounting and bookkeeping services spares you valuable time. You can utilize to concentrate on sharpening key competencies, improving your efficiency, and increasing the company’s operations. In turn, you can maximize return on investment (ROI) of the business.
Delegation of accounting and bookkeeping needs to third-parties has another benefit. So, it helps you reduce around thirty percent to fifty percent of your costs annually. You will save not just money but also your precious time.
Don’t do investment on recruitment, salaries, benefits, and office space for your accounting department. Rather, divert this funding towards efficient running of the principal business processes. Consequently, you can save a huge amount on operational costs without compromising on productivity.
No overhead payments
Your company do not have to spend on overhead expenses. These are expenditures that you have to manage if have an in-house accounting department handling all of these tasks. For instance, training, payroll taxes, sick leaves, vacation, etc.
Outsourcing is also advantageous because you pay only for the work you get from them. So, you can expect a notable increase in your profit margins for your business. As it will allow you to get more work done at any point of time.
Remember that data confidentiality is the need of the day. Thus, no business whether big or small wants the leakage of its confidential records and financial details. An organization rendering service for your corporation through outsourcing promises your company’s data privacy.
They take extra care and effort to safeguard your users’ data from cyber-threats. Also, they equip you with the latest technology imaginable for cyber-security to make you up-to-date with the evolving technological advances. You can sign a non-disclosure agreement (NDA) for this purpose.
Avoid conflict of interest
This is risky to entrust one of your company partners to handle the company’s accounting department. A situation arising from wild and unfounded accusations and misconduct can possibly ruin your business. Also, it can damage your professional relations even if it is an involuntary mishap. Outsourcing the services from an external agency in accordance with all the partner’s compliance can become rewarding for your business.
Outsourcing firms have a very diverse background as they are working for a broad range of companies at any time. Thus, you can expect distinct and in-depth knowledge of expertise working on your company’s accounting and bookkeeping capacities. Having a Certified Public Accountant (CPA) brain sweating for your company’s assignments can become a differentiating determinant for its success.
No sudden loss of employees
Industry transition and financial downturn can result in a sudden departure of valuable employees. Most of the small and medium-scale enterprises cannot afford to have buffer staff, or to hire immediately in such incidents. However, if you outsource these services, you don’t have to worry about these hiccups.
Any experienced, dedicated, and qualified team makes sure they have a backup for any such resources (if any). So, you can rely on these services, because a service provider double-checks all accounting tasks. You only get reports for the bookkeeping activities that the outsourcing firm has done already.
Increased firm’s valuation
While acquiring or selling a business, both parties thoughtfully determine the marketability and profitability of it. Outsourcing the accounting and bookkeeping services, instead of having an in-house department, cuts your staffing costs. Thus, it grows your company’s valuation as people deem it more profitable than your counterparts that do not outsource.
New services for clients
You can introduce the additional services you invariably desire to provide to your clients now. As you outsource the services for your accounting and bookkeeping requirements, you have less burden on yourself. So, you get more time on your hands to design and administer innovative ideas for your business setup in Dubai. Therefore, you may select the best consultancy firms to help you with the accomplishment of such plans.
Why outsource accounting & bookkeeping services in Dubai?
Accounting and bookkeeping is the part and parcel of any successful business. Those who do not acknowledge its significance bear the brunt sooner or later. Especially, the introduction of VAT is affecting the entire tax calculation system in the UAE.
It is pushing the companies to change the way they operate and conduct business. So, the UAE enterprises are choosing to outsource their accounting and bookkeeping services. They do so not only to save money, but to add value to gain more control of company’s cash flow.
By understanding the nitty-gritty of all this, you can make more informed decisions. For both small or big multinational firms, accounting and bookkeeping services in Dubai are need of the hour. We dig deeper to unleash the importance of the accounting and bookkeeping services within 2024.
- File the VAT returns in the UAE
- Follow compliance with FTA
- Limit accounting errors
- Focus on your core business
- Use latest technology
- Stay up-to-date with accounting status
Next, we have a look on the value of the accounting and bookkeeping services.
File the VAT returns in the UAE
According to the new tax regime, companies have to register with the Federal Tax Authority (FTA) in Dubai or UAE. Also, they need to file tax or VAT returns on monthly or quarterly basis, depending upon the nature of business. UAE companies have to upgrade their accounting system for VAT compliance.
Improvement of the accounting system requires hefty budgets. So, spending on hiring accountants who have knowledge of the system or training employees about the new structure is costly. It is much better option to outsource these services to accounting professionals who will look after your business accounts.
Follow compliance with FTA
Bookkeeping and accounting companies make sure to incorporate new tax laws in your accounting system. It means compliance with all FTA regulations by updating accounting structure. For example, operations, sales, accounting methods, business procedures, expense management, etc.
Limit accounting errors
According to the new UAE tax law, any error or non-compliance can lead to serious consequences for companies. Besides, there are severe penalties which certainly no business wants to face. Expert accountants have knowledge and experience about payments, tax obligations, due dates, etc.
So, they can reduce human bookkeeping errors and accountancy blunders. Besides, a skillful accountant can give you information to stay out of legal troubles. Acting upon their advice leads you to saving more time and money.
Focus on your core business
Accounting and bookkeeping services in UAE require full time attention and monitoring. So, outsourcing these services enables you to put more emphasis on your main business. That too without having to worry about the new taxation system.
Use latest technology
Market in the United Arab Emirates is continuously progressing due to the technological advancements. UAE companies can now take advantage of new accounting systems with third-party bookkeeping service providers. So, bear in mind that accountancy systems are tapping into the new technologies like FinTech and cloud computing.
Stay up-to-date with accounting status
You can regularly fetch all information about bookkeeping and payroll from your accounting service providers. Also, they give you personalized reports that save your time while making key financial decisions. Practically, outsourcing accounting and bookkeeping services delivers you to a win-win situation.
The rewards you get simply outweigh your incurred costs. Henceforth, outsource your financial tasks to an affordable and reliable accountancy service provider in the UAE. That’s why entrepreneurs desire to start bookkeeping and accounting business in Dubai to cash on the growing demand.
Foreign entrepreneurs may consider the task of company formation in Dubai overwhelming. Nevertheless, this task is not that tough for people who are new to this corporate destination. A business consultancy provide you end-to-end company registration services for your bookkeeping firm in the UAE.
The offerings of business consultants include PRO support services to get all regulatory approvals. Furthermore, you can avail their bank account opening services to onboard financial partners. This way, you can focus on more important tasks like running your business in Dubai.
For technical service, you can get expert advice from KWS Middle East. We are available to take care of your accountancy and business support needs. So, call us now or shoot us an email.
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