Bookkeeping is the process of recording and documenting all financial transactions of the company. Whereas, accounting is a broader term in which all the financial transactions are recorded, maintained, and communicated.
Any business becomes successful when all the employees of the company are doing their best work while co-operating with each other to accomplish the common goals of the business. There are many operations working together to achieve the goals of the company, but for all this operations functioning, the business requires a good amount of money and it is very much important to manage the money and here comes the role of accounting & bookkeeping, it is very much important to maintain proper accounting and bookkeeping in the business to know the proper utilization of funds in your company.
In this blog, we will let you know some simple tips for efficient Accounting & Bookkeeping in UAE.
- Maintaining Records: The main thing in the Bookkeeping is as the word suggests keeping the records. Companies in the UAE have to mandatory maintain all the records of the company and failure of it may result in penalties. And even if it is not mandatory, every business should maintain its records as it is very necessary for the company and can be useful in the future. The main records that a business should maintain are invoices, income & expense records, and accounting records. You have to keep these records for a minimum duration of five years.
- Implementing a proper system: The goal of bookkeeping is not only maintaining records in fact it is much more than that. The key objectives of maintaining all these records are to help you in managing your business and enable the authorities of the government to evaluate your business activities. So, you should implement such a system that satisfies these goals.
- Develop a habit: You should start maintaining and tracking all your records. Dedicate certain time in the day or week entirely for bookkeeping. You should develop a habit of doing it and it will be really very much useful to you. Thus, give proper attention to bookkeeping in your business.
- Invest in a good accounting software: Digitalization is changing the process of accounting & bookkeeping in UAE nowadays so you should also use good accounting software like tally that can ease your work and make the thing efficient for your business.
- Hire professional services: Many businesses do not have time to pay attention to this and also sometimes when they do they cannot do properly and make errors as they want to finish the task of bookkeeping early as possible but it is not the right way to do because it will invite a lot of problems in future for you. Thus it is very much advisable that you hire a professional firm for it as they will save your time also and do their work very efficiently and professionally. So it is very good to hire a professional firm for bookkeeping services.
So, these are the tips for efficient accounting and bookkeeping for your business and by following these tips you can really make your business efficient and make accounting and bookkeeping a smooth process.
We at NUF Chartered accountants, based in Dubai, UAE can help you in any accountancy needs of your business, so feel free to Contact Us. We are helping businesses all around the world by providing our expert services.