Why is bookkeeping important for freelancers in UAE?
Hey, are you a freelancer? That’s a very hectic job, especially with the finances involved. Being a freelancer, you are all over the place, and so are your financial records. Every time you look forward to onboarding a new client, the first thought that must come to your mind is, I hope they pay on time! But what if you forget to send the invoice on time or can’t keep track of which client owes you what amount of money, just because your finance books aren’t organised? Well, that’s something we never want to happen to you!
One of the biggest reasons that bookkeeping should be a vital part of your freelance business is that you’ll be able to plan your taxes in advance. In the UAE, a freelancer pays a tax called VAT. If you are late with this tax payment, you will be subjected to various penalties. Practicing bookkeeping in dubai can help you create a fund specifically for taxes so that you won’t miss the due date and also keep records of your expenses to calculate your due tax. Recently, the UAE came up with a freelance employment visa that is valid for about 3 years. The fee requirement of this visa is sky-scraping. If you are someone who is planning to apply for this visa, you should be thorough with your bookkeeping process.
Here are a few other obvious yet important benefits of bookkeeping as a freelancer:
- Saves Time: Every time you want to go over an earlier transaction, all you need to do is go through your books. Systematic bookkeeping can help you locate the exact transaction by date, name, or any other way you have classified your books. Although this might not create a huge difference at the beginning, it will definitely unfold positive signs in the long run.
- Save you from losses: Bookkeeping helps you keep record of all the financial transactions that take place while performing your freelance projects. It will help you track what your clients owe you and if there are any outstanding payments that need to be taken care of.
- Maintaining cash flow: Bookkeeping helps you record both inflows and outflows of cash. It can help you keep an eye out for opportunities that result in maximum cash flow. This can help you build strategies for future client onboarding. This will also help you figure out which clients have a poor pattern of delaying payments.
- Detailed records: Bookkeeping helps you keep track of each and every minute you spend working on a project for a client. You can then re-evaluate your pricing for the amount of work you are putting in, which might ultimately result in more income.
- Work-life balance: This seems a bit sceptical as to how bookkeeping can provide you with work-life balance, but it’s simple. When you are recording each and every detail of your time that you have spent working, you know exactly how much time you really need to dedicate to your work and save the rest for your life. It ain’t always about the money.
Bookkeeping isn’t an easy task in itself, but it will definitely make your life as a freelancer a lot less hectic. Who doesn’t want their work to be organised and easily accessible when required. Bookkeeping does it for you. Other than this, bookkeeping helps you track and separate your personal expenses from business expenses, which helps you keep clean records dedicated to your freelance projects only. There will definitely be many other positive aspects of this process. Why don’t you give bookkeeping a try and find out for yourself?
CDA at your service
CDA being the leading accounting and auditing firm in UAE provides diverse bookkeeping services to its clients in the most professional manner. The experts of CDA can help the freelancers with their bookkeeping activities and also provide them with the assistance required to meet the compliance requirements of the law, especially the VAT law. By hiring our team, freelancers can focus more on their projects, and they will also be protected from penalties for delayed tax returns. CDA will not only provide quality accounting services but will also aid you with a customer friendly approach and a transparent relationship. To discover more about CDA contact now.