Considered one of the fastest-growing business destinations in the world, Dubai offers lucrative opportunities to companies spanning diverse sectors. As a huge influx of companies is continuing to establish in the region, it is giving rise to reliable accounting companies in UAE in order to maintain financial accuracy and transparency of the business.Â
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While operating in UAE, companies need to keep track of their financial transactions and expenses. This also includes maintaining accounting records and adhering to the standard accounting guidelines. Usually, most of the authorities in the UAE are required to review financial statements while renewing the trade license of companies. That’s why accounting firms in the UAE are leveraged for account audits and creating performance reports.Â
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When it comes to adhering to international accounting standards, International Financial Reporting Standards (IFRS) play an instrumental role.Â
Understanding IFRS
The most widely used set of accounting rules is the IFRS that are prescribed for financial statements of public companies. These standards are focused on making the accounting and financial reporting of companies more consistent, transparent, accurate and easily acceptable worldwide. In fact, IFRS is the only accounting standard accepted in the UAE for corporate tax-related purposes.Â
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In addition, all companies that are listed on the Dubai Financial Market and NASDAQ (formerly known as Dubai International Financial Exchange i.e. DIFX) are required to provide IFRS financial statements. Apart from this, the Central Bank of UAE also requires all banks to publish IFRS financial statements. Though it is not required for non-listed companies, this particular accounting standard is considered one of the best practices to adopt in maintaining financial integrity and stability.Â
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Accounting method for Bookkeeping in UAE
There are various methods of bookkeeping that are followed by the top accounting companies in the UAE. The key methods are mentioned below:
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The UAE government imposes VAT on tax-registered businesses on taxable goods and services supply, at each stage of supply chain including production, sourcing, sale, and other processes.Â
Accrual accounting:
Cash accounting remains hassle-free and best suited for small and medium-scale companies. Under this method, the revenue and expenses are recorded only when they are received or paid in cash. Considering the simplified practice, it is easier for bookkeeping companies in Dubai to manage financial records and help companies with clear financial operations. Since the method provides a clear picture of cash flow, it is significant for small-scale companies with limited financial resources.Â
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The UAE’s business landscape is ever-evolving. The selection of appropriate accounting methods becomes essential for maintaining transparency and ensuring accountability in the regulatory landscape. We, at A&A Associate, recognised as the leading internal audit firms dubai, assist businesses with professional bookkeeping services in Dubai.Â
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Our practices are aligned with IFRS to help you achieve your business goals and make financially viable decisions. To know more, get in touch with us today:Â
Cash accounting
Cash accounting remains hassle-free and best suited for small and medium-scale companies. Under this method, the revenue and expenses are recorded only when they are received or paid in cash. Considering the simplified practice, it is easier for bookkeeping companies in Dubai to manage financial records and help companies with clear financial operations. Since the method provides a clear picture of cash flow, it is significant for small-scale companies with limited financial resources.
The UAE’s business landscape is ever-evolving. The selection of appropriate accounting methods becomes essential for maintaining transparency and ensuring accountability in the regulatory landscape. We, at A&A Associate, recognised as the leading internal audit firms dubai, assist businesses with professional bookkeeping services in Dubai.
Our practices are aligned with IFRS to help you achieve your business goals and make financially viable decisions. To know more, get in touch with us today:
