Accounting is the act of keeping, sorting, and recording financial transactions. With the introduction of VAT in the UAE, it is crucial now more than ever to have a reliable accounting and bookkeeping department that will help you keep your business and its finances in check.

Maintaining the books in-house can be a laborious and costly affair, which explains why start-ups tend to ignore this requirement early on and only scramble to put their accounts together after raising funding or being acquired.

However, maintaining books of accounts from the beginning would result in several benefits – first, it would relieve you and your employees significantly of the pains involved with complying with regulatory requirements; provide a reliable source of data that promoters and shareholders can use to understand how the business is performing; lend to your credibility for loans in later years; and even satisfy investors.

10 Zone is home to highly skilled Professional Accountants who keep themselves well-informed about the latest financial affairs and have years of professional experience to back them up.

Five Reasons Why You Need an Accountant

Why do you need to hire an accountant for your start-up?

As a new business owner, it is very important to maintain records of all your financial transactions, no matter how small. An accountant can take control of all tax obligations, identify profits and help you grow your business. It is necessary to keep track because the authorities demand a strict record of VAT payments on a regular basis.

What will happen if you don’t update your accounting in a daily basis?

This may result in a big struggle at the end of the year because of possibilities that you may have misplaced bills and confusing records. Regular maintenance of records must be accomplished to achieve clear and concise tax calculations, expenses, assets and liabilities. Only an experienced accountant can help you get this done, even if there is a software today to do much of the work.

Is it still important to maintain financial records even though the company makes losses?

Yes, it is a requirement to maintain books and records even if your company is incurring losses. All financial transactions made for business such as purchase of goods, selling payments and more needs to be updated and submitted at the end of the year for filing income tax. If you engage an accountant to keep records at the start of the year, they can also come up with a strategy of reducing the amount of tax you have to pay to get more income in your business.

Why do you need an accountant?

One needs to ensure that all aspects of business is accurately classified so there is no confusion in the future. An accountant will prepare your financial statements, identify and keep track of your expenses, prepare and support items reported in your tax returns and complete all the necessary accounting requirements of your business. Since they maintain and monitor a good record of your transactions, they can help you figure the gain and loss of your company.

Do you need to maintain accounts even if you are not liable for VAT?

Yes. Even if your revenue is lower than the VAT threshold, maintaining accounts should be a regular part of your business routine. It is the source of accurate financial statements of your business and mandatory proof to show at the end of the year.

Here’s a quick glimpse of the services we offer:

• Accounting systems implementation
• Senior Accounting
• Finance Management
• Junior-level Accounts Management
• Executive Assistance
• Books Cleanup
• Monthly, Quarterly, and Year-End Reviews
• Financial Statements
• VAT accounting and reporting

Why are accounting & bookkeeping services critical for a business in the UAE?

Proper accounting and bookkeeping can help you get a holistic financial picture of your business. If you do not record all of your expenses, incomes, payments, and receipts as per the accounting principles, you may not be getting everything on the vital business numbers. If sales are not recorded on a timely basis, for example, then this can misrepresent your Accounts Receivables, which then affects your cash budgets.

In addition to this, the introduction of five per cent value-added tax (VAT) means that you need proper accounting records to prove your VAT-admissible transactions. It is very important for all businesses to have a formal accounting system that records all the related transactions. An improper VAT Accounting recorded can lose you your VAT claim, and you may even incur penalties and fines for incorrect reporting.

Do I need to outsource accounting?

Depending on where your business is right now, outsourcing your accounting could be a crucial step towards success. You can trust that your accounts are being handled by experienced professionals, saving time and money you would have otherwise spent on looking for candidates and hiring top talent.

What are the reports that I need to maintain?

You will need to maintain reports on revenue details, sorting them between how much is taxed the standard 5%, how much is Zero-Rated, and how much is exempted. You will also need to keep records of your sale expenses.

What accounting software do I use?

There are several affordable Business Intelligence software solutions available in the market. Our 10 Zone accountants use Zoho Books for accounting.

How can 10 Zone help in with company formation in DAFZ?

10 Zone has:

• been setting up businesses in Dubai since 2004
• experts in consultancy and company formation
• a team of highly qualified Lawyers, Chartered Accountants and Relationship Managers
• capabilities to assist you in English, Arabic, French, German, Turkish, Hindi, Afrikaans & Tagalog.

Our Services

• Assistance in company formation
• Visa processing
• VAT registration
• HR & Payroll
• Contracts and Agreementsf
• Secretarial and Annual Compliances
• Marketing and branding

ALL SERVICES