How to organize your bookkeeping at Tax time in Dubai?
Bookkeeping is the course of recording all business transactions to produce a set of accounting records. Bookkeeping services in Dubai allows the owners of the business to maintain useful accounting information about the business’ sales, expenses, assets, liabilities, and equity. The role of a bookkeeper in SME’s depends on the nature of the business. For a small business, the duties of a bookkeeper are all-embracing and the expert is responsible for all paperwork dispensation for transactions of the company and getting information documented in general ledger accounts.
As per UAE law, the tax time is on a quarterly basis. And this is a cumbersome process for many business owners as they have to go scrambling through their documents to find the bills, invoices, for filing. Maintaining a systematic record of all paperwork is the only solution for this. Bookkeeping services in Dubai are important for VAT filing. We need to know what the business earned before considering the financial position of the firm. Well documentation and bookkeeping services in Dubai, make the financial data available at tax time and to claim VAT return.
Identify and Organize Financial Records
If you get stacks of unopened bills, it's high time to organize them or else you will stress out at tax time. Gather all the available bills, invoices, documents available. Check your mail system and make online track of these files. For tax filing, you need supporting documents for very often. Invoices are very necessary for claiming VAT return. Track of financial records helps to identify the sources of income and claims outstanding expenses. Original cost can be verified and helps for comparison. Bookkeeping services in Dubai, organizes the records through:
- Up to date recording and collection of documents and maintain them in the system.
- Categorizing documents based on their nature
- Giving separate names to the folders and grouping them, e.g. Bill folders, investment folders
- Maintaining the records for five years as per the suggestion of law.
- Maintain a liaison among the client and bookkeeper.
File for Extension
Filing a tax extension request to the Federal Tax Authority provides additional time to file your tax return. An extension gives extra time for one to file and not to pay tax. Sometimes you may miss some tax documents, so this extra time helps to find a solution for that and you can also make additional organization to your documents. Without an extension request to FTA, you may ask for paying penalties for the tax due, so it is necessary to charge extension because:
- Preserves your tax refunds at times.
- Professional advice can be taken on certain deductions and credit.
- It reduces the audit risk due to high materiality.
- Enhance the accuracy of tax return
- Tax preparation fees and software setup cost can be reduced.
Review of Expenses
When you plan to review the expenses as per the documents, you must train your team regarding the expense policy of the client. It must be made in compliance with the standards. Team must be aware of the categories and specifications for each type of expense. A couple of things to be considered while making the review:
- Ensure that the date of expenses recorded correlates with the documents.
- Attach the receipts and payment slips of various expenses to prevent fraud.
- Check for any policy violations expenditure occurred.
- Vouch the supporting documents of reimbursed expenses to the employees.
- Discover any deficit pending.
- Communicate with the client if any differences are found.
Analyze Credits and Deductions
Tax credits are deducted from a company’s VAT liability amount. Credits are assigned with the value that a company can claim, if needed. Tax payers claim for some deductions in addition to the standard deduction or itemized deductions. These deductions are adjustments to revenue earned. In case of VAT, there are zero-rated deductions, standard rated and exempted deductions.
Maintain clear communication with the Accountant
Everyone is aware of how a client and accountant relationship is going on. Clients send accountants a pack of receipts, the accountant documents it at the right time, and both parties work on it. Accountants help clients with financial goal setting for their business for VAT planning. For maintaining real-time communication regarding sensational financial statements there must be a good liaison among them. As per the bookkeeping services in Dubai, effective communication occurs when:
- Disclosure of all material facts regarding the financial statements occurs.
- Foster a well systematic documentation system.
- Frequent updating and submission of reports along with review points.
- Providing suggestions to improve expenditures and cash flow.
- Regular feedback to be obtained from clients for performance improvement.
- Provide training and development programs for the clients to keep in track with the accounting software and documentation
- Use technology tools that facilitate group conversation and to maintain clientele.
Why choose CDA for Bookkeeping Services in Dubai?
VAT was introduced in the UAE from 1 January 2018 onwards, all VAT registered companies maintain systematic documentation. Federal tax authorities can ask you to submit these documents at any time. For this, you should maintain a clear track record so that you can avoid delay. CDA uses up to date Accounting Software approved by the FTA to produce invoices, to reconcile bank transactions, to manage expenses, to track inventory and to generate reports for your business in an unproblematic and timely-manner.
CDA works as one of the best Bookkeeping services in Dubai and all over UAE. Our expert business advisors are proficient with business insights and will help you in managing your business very effectively and smoothly. CDA analyses the market and your business as well, and guide you in your business to take you undefeated.
CDA Accounting & Bookkeeping Services LLC also efficiently handle CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and Tax Filing & VAT Consultancy services on time according to the convenience of our good clients.
Feel free to contact us. Our experts will give you one-hour Free Consultation to drive away your reservations!