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Accounting & Bookkeeping Services in Dubai

As UAE in general and Dubai, in particular, assumes increasing importance as the preferred destination of investments and trade from all over the world, it becomes imperative that focused systems are in place for a seamless experience for traders and investors. With increasing trade and investment traffic, instances of non-compliances and malpractices also increase. Such, authorities periodically enhance compliance requirements to ensure fund security, both for local and foreign investors to curb and discourage attempts to commit fraud and illegal activity in the financial landscape. Consequently, hefty fines are imposed to curb such activities. The responsibility lies on business owners to remain aligned with government compliance requirements to avoid fines.

See what we offer in Accounting & Bookkeeping Service for your business

Accounting & Bookkeeping

Sales invoices Posting
Purchase Invoices Posting
Expense Invoices Posting
Bank and Credit Card reconciliation
Journals Posting
Month-end Entries Posting

Monthly Reporting

Monthly Flash Report
Profit and loss Report
Balance Sheet Report
Cashflow Report
VAT Report
Schedules to Balance Sheet

Compliance

VAT returns submission
Corporate Tax filing

Support

Phone and Online support
Ongoing Support and advice
Meetings on request
Free setup and Implementation for new Business (Chart of Accounts, Software Training)

Backlog Accounting & Reconciliation service In Dubai

To ensure success in the financial arena, the key lies in astute business management. Entrepreneurs must deal with the fact that they will need the help of consultants to assist them in tackling challenges that influence the growth of a company. It is noticed that SMEs in the UAE find it burdening to manage and operate their account books. As a result, they are not able to maintain their books from the date of inception and as a result, lag in recording details in a timely manner. When the authorities and commercial law in the UAE mandate that books need to be in order and up to date, backlogging becomes a crucial need for startups and SMEs.

These stringent changing requirements of the UAE authorities have already made maintaining the old books difficult in old-fashioned ways, extremely cumbersome. Using Excel to record entries is rife with human error as well. The idea is to concentrate on backlog accounts and make up for a lost time while ensuring compliances at the same time. Ebdaye has the requisite capabilities to offer backlog accounting services in the UAE by maintaining and preparing these accounts from the day of incorporation till the present date. It is impingent upon the client to provide all that is required.

What do you mean by Updating Backlog Accounts?

When a company documents all its transactions from the date of inception of the company till the present day, such that they reflect the true state of the company’s health. Since there is a general tendency of startup companies to hesitate to record their accounts from day one, either due to laziness or sheer lack of knowledge or interest, they potentially face unexpected financial challenges and repercussions. So, it is important for companies to indulge in this practice to ensure smooth sales and future profits

Which reports are available while Updating Backlog Accounts?

Once the clients request our services, a team of our experts will immediately initiate work on the necessary documents while updating records in any software that the company has deployed for the purpose. Following financial reports are generated.

Income statement | Balance sheet | Cash flow statement | Accounts receivable | Accounts payable

What are the benefits of Backlog Accounting?

In the present modern times, companies realize the importance of accurately maintaining their financial and accounting books. Certain benefits are as below.

Maintaining a complete record of transactions – In order for businessmen to collect the relative accounting information of the company, it is important to keep track of all transactions and address any gap areas.

Business Analysis – All stakeholders can benefit from data and can summon any type of record that reflects business progress. With updated accounts, it is ensured that potential future business opportunities are not missed by business owners and especially investors.

Time-saving – When software is employed to record all transactions, it becomes very convenient to trace older transactions when needed for reporting or decision-making purposes.

Management of Cash-Flows – Maintaining the records of expenses and income becomes easier when backlog accounting services are deployed. It provides the management with a deep insight into how a company is progressing and helps them keep an eye on the financial position of the company.

Quick Audit procedure – If the records are maintained properly, performing time-based financial audits becomes a breeze. They can easily benchmark the present performance of the company with older data and make trends out of them while making forecasts for the future.

Quick decision making – Time-based reporting allows entrepreneurs to concentrate on strategic decisions ensuring smooth business functioning.

Comply with legal requirements – With updated backlog accounts in place, it is way easier to alter and update the books to fulfill compliance issues when and if they arise.

What are the methods used in Backlog Accounting Services?

Management engagement- It is always advisable to start a detailed dialogue with the top management to get a grip on the nature of the business before the backlog accounting starts.

Consolidating documents – All the relevant records required for the backlog audit are collected and may include cheques, bank statements, transaction documents, vouchers, bills, payment slips, and other important inputs.

Transactions account – The various records shared are updated based on information provided by the client. This update is necessary to ensure an effective backlog accounting activity

Generation of reports- Ebdaye team of experts then review reports, like accounts receivable, accounts payable, income statement, balance sheet, cash flow statement, sales performance report, financial ratio analysis, break-even analysis, and analysis of working capital, etc. All this is done after the experts have finished reviewing the accounting transaction.

Report discussion – Finally, the prepared documents are discussed with the management to highlight the business performance and identify the areas for improvement or in which the companies can invest.

Why do you need backlog Accounting Services in Dubai?

Provide good reliable data for informed decision-making by the management Availability of Real-time data that reflects the financial position of the company

Help in benchmarking business revenue with market cost estimates

Ensure compliances with laws and regulations

Easy rationalization of overhead cost by enhancing the net profitability.

Why Ebdaye Accounting & Bookkeeping?

We at Ebdaye facilitate startups and Small & Medium entrepreneurs to scale up their potential to new heights by offering a plethora of accounting services. Backlog accounting being one of the most relevant ones. Our team of experienced professionals, adept in modern softwarebased accounting practices, ensure that while creating backlog accounts all, statutory requirements are fulfilled and that the accounts are properly closed.

Backlog accounting in Dubai allows proper tracking and helps you to build the future by managing cash flow and increasing productivity.

VAT Registration

Vat registration is referring to a process whereby an individual gets registered with the Federal Tax Authority (FTA). If certain conditions are met, any individual, natural or foreigner can apply for Excise Tax Registration or VAT registration. Only those people holding a valid FTA issued, TRN (Tax Registration Number) have the right to collect and remit tax in the UAE.

Who should get VAT registration in the UAE?

UAE law classifies the registration of VAT services into 2 types, one is Mandatory Registration, and one is Voluntary Registration.

Mandatory VAT Registration

A Non-Resident shall mandatorily get VAT registration in UAE if he supplies any commodity in UAE irrespective of his Turnover. This registration will only be mandatory if no one else holds the responsibility to pay VAT on his behalf against such supplies. This rule applies to both natural and judicial persons.

i. Any person, natural or otherwise, who supplied goods/sales of more than 375,000 AED over the previous 12 months shall mandatorily do his VAT registration in UAE

ii. Moreover, if any person who estimates, on reasonable grounds, that his estimate will exceed 375,000 AED, in the next 30 days will also have to apply for VAT registration.

Voluntary VAT registration

A person can voluntarily opt for VAT registration if value of his supplies over a period of previous 12 months exceeds AED 187,500, but less than the mandatory limit of AED 375,000

i. A person can also voluntarily opt for VAT registration if value of his supplies over a period of coming 30 days will exceed AED 187,500, but will remain less than the mandatory limit of AED 375,000

ii. A person can voluntarily opt for VAT registration if he expects the value of his taxable expenses over a period of previous 12 months exceeds AED 187,500

iii. A person can also voluntarily opt for VAT registration if value of his taxable expenses over a period of coming 30 days will exceed AED 187,500

Exceptions for VAT registration in UAE

As per the clarification of the FTA, any person providing 100%, zero-rated supplies/sales as per the law, can apply for a VAT registration exemption. All they must do is notify FTA about their decision filling the VAT registration form. Based on the reasonability of the application, the Authority will make an informed decision whether to grant the exemption or not.

Why Ebdaye?

While numerous steps have been taken by the UAE Authorities to simplify the VAT registration process, it still has its own set of challenges when it comes to applying and filing for a number or getting registered. The plethora of documents required, and the meticulous filling requires accuracy, and acumen could baffle many an individual. Also, FTA asks for details and minute clarifications that can be overwhelming for an untrained mind.

UAE Corporate Tax Registration

UAE corporate tax has been effective from June 1, 2023. It is very crucial to understand UAE corporate tax registration process and the requirements for corporate tax registration. It is important also to understand the administrative requirements like deregistration, tax registration, filing of corporate tax returns, and payment.

The UAE has started early corporate tax registration for some categories of companies operating in the country. All the chosen companies will get invitations from the Federal Tax Authority to register for digital services using the EmaraTax platform.

Last January, according to the Federal Decree-Law No. 47, there will be corporate tax with a rate of 9% for the financial year starting on or after June 1, 2023.

The country issued the corporate tax law, bringing the income of businesses exceeding AED 375,000 within the taxable bracket. Taxable profits below that net worth or profit will pay 0% corporate tax.

UAE Corporate Tax Registration User Manual

If the entity has already registered for the VAT, then the process of corporate tax registration is much easier. You will find that most of the data is already filled in the form and the process of registration becomes easier and faster. Corporate tax registration is open now in the FTA portal.

Federal Tax Authority (FTA) has issued the corporate tax registration user manual. To fill out the corporate tax registration application, the following details, and information is required.

Entity details
Identification details
Authorized signatory
Contact details
Review and declaration

You can download the corporate tax registration user manual and complete your registration. All businesses such as free zones, individuals, and companies would be required to register even if they have taxable income below the fixed threshold of AED 375,000. Moreover, the businesses are not required to take any action on corporate tax registration unless they get an “invitation to register” during the January-May period. There are no penalties relating to registration if the businesses ensure to register at least before the due date for tax return submission

How And When to Register for Corporate Tax in UAE?

As businesses in UAE must register with the Federal Tax Authority and get a corporate tax registration number or ID.

The UAE corporate tax registration applies to all corporations or businesses whether they are subject to 0% corporate tax or 9% corporate tax.

The taxpayer will have to electronically register for UAE corporate tax through the website of the Federal Tax Authority

UAE Corporate Tax Deregistration and Tax Return Filing

If your business is a corporation and registered for corporate tax, then you can deregister it before it ceases to be subject to corporate tax. If you have filed corporate tax returns, then Federal Tax Authority will deregister your business. If you have settled all the corporate tax liabilities and any due penalties, then FTA will deregister your business.

The businesses are required to file a single consolidated tax return, rather than filing for multiple returns. Within nine months the consolidated return must be filed at the end of each relevant tax period.

Why Ebdaye?

If you are having any problems regarding corporate tax, then our tax experts are always ready to assist you and guide you through the Corporate Tax Registration process. Feel free to contact us and have a detailed discussion about corporate tax and its registration process without tax experts.

What is WPS in the UAE?

The United Arab Emirates saw a breakthrough in the wage system with the introduction of WPS, or Wage Protection System, in July 2009.

The Ministry of Human Resources and Emiratisation (MOHRE) teamed up with the Central Bank of the UAE to introduce an electronic salary transfer system - WPS. The motive of WPS was to eliminate inconsistent and unfair salary payments by enforcing fair payments made on time and in full. Ever since its launch, the governing authorities have been updating it to fit the needs of both employers and employees, keeping it valid and beneficial even today.

The Wage Protection System mandates safe, timely, and appropriate wage and salary payments to the private sector workforce. To enforce this, the system requires every private sector employee to get approval from MoHRE and The Central Bank of UAE and disburse funds from a registered financial institution.

Employers must submit their Salary Information Files, which MoHRE and The Central Bank of UAE investigate and confirm. The approved files are then sent to the salary distribution partner to disburse them. This is the process of WPS and a must for all private-sector employers.

WPS is not just pro-employees; it also helps employers in multiple ways. It gives them WPScompliant status, making them the desirable option for great talent. It also keeps employers compliant with labor laws governing the country. Not to forget about the operations perks it provides, such as streamlining, automating, and maintaining records of disbursals.

What are some best practices for the WPS SMEs?

Follow the below-mentioned tips or best practices to avoid the penalties of WPS and be compliant:

1. Establish transparent salary policies - maintain transparency in assigning salaries and follow the fair allocation of salary brackets to avoid disputes and disagreements.

2. Ensure accuracy in salary payments - stay abreast of the salary timelines and ensure all your employees receive their salaries on time. Work with them to ensure they have a bank account and everything else they need to successfully receive payments.

3. Maintain compliance with WPS regulations - draft your payroll process in line with WPS regulations. Ensure you meet all the requirements of the system to enjoy its benefits.

4. Use an accredited payment solution - a bank can handle the disbursal process, but expensive than some other service providers in the market.

How can Ebdaye help you?

But you don’t have to do it all by yourself. Save yourself the hassle of getting into the tiny details of WPS process we handle it all. We get you the service from best in market service provider to process your Employees Salary to comply with government authorities.