Bookkeeping Service

Introduction of VAT in UAE has resulted in certain business practices that have been mandated by the government in order to make the tax law transparent and effective. Bookkeeping is also among them. Bookkeeping by definition is a system of recording the financial transactions of a business. It is the art and science of recording business transactions in the books of accounts systematically and scientifically. Although it is centuries old method, it is still the only globally used method used by the accountants to recording the financial transactions of businesses. Surprisingly, in this fast-paced and dynamic era bookkeeping has still not been replaced by a more sophisticated method. We have got the adequate expertise in the field with the help of a talented team to assist businesses and provide them bookkeeping services.

Bookkeeping in a business firm is the basis of the firm's accounting system. Bookkeepers are responsible for recording and classifying the accounting transactions of the business firm and techniques involving recording those transactions.

With the introduction of VAT in the Gulf nation, the new regime will lead to major changes for business account maintenance. Businesses that meet the minimum annual turnover requirement must register for VAT. Businesses not registered for VAT should maintain their financial records in any event, in case the government needs to establish whether they should be registered. 

Businesses are, from now on, required to maintain proper records of their tax information, including the receipts, invoices, credit and debit notes, account ledgers, annual account records, etc.

In addition to the above records, businesses will also be required to maintain proper books of the following information for minimum five years from the transaction date:

• Tax invoices and credit/debit notes
• Records of all imported/exported goods and services by/from the company
• VAT account management, including VAT paid, VAT due, penalty, recoverable tax, etc.
• Goods/services that are disposed of by the company

All the transactions performed by a taxable business must be accompanied by proper VAT invoices, which will be according to the following rules:

• It should be in Arabic
• The invoice currency should be UAE Dirham (Dh). If it is in another currency, it should be converted to Dirham before it’s processed.

The invoice must include :

1. The name, address and VAT registration number of the supplier
2. The issue date
3. The name and description of goods/services
4. The transaction amount and VAT applicable on it

This will, obviously, be an issue for businesses that never before had to issue a tax invoice or credit note for any of their supplies or had to maintain accounting records for the same. As per the VAT norms, businesses will be required to file their tax returns on quarterly basis online on the government’s portal.

If you are a small business owner, you either have to set up your own accounting system or you have to hire someone to set it up for you. If you are self-employed and it is a one-person business, you will do it yourself. If you are hiring staff and anticipate a lot of growth, you may hire a controller to handle your financial management and accounting. If your business is going to grow but you anticipate slow growth, you may simply hire an accountant or bookkeeper to handle the accounting system.

For instance, every business house will be required to present updated sheets and record statements of their transactions as and when asked by the government officials. Now in case you fail to come up with an updated document, then that might give rise to a lot of future complications, thus ruining a smooth flowing trade. This is the reason it is suggested that in addition to registering businesses under VAT and every other compliance requirement, one must also consider the importance of bookkeeping as well.

Our company has some of the best bookkeeping experts available, having years of knowledge, and well-acquired concepts on bookkeeping, tax advisory solutions, VAT consultation and more. One should consider maintaining three types of bookkeeping accounts in order to record transactions related to the Value Added Tax.