How to Organise Your Bookkeeping for VAT Filing in the UAE
The UAE companies have been maintaining accounts as per the Commercial Companies Law and the regulations of some free zone authorities. However, after the introduction of VAT in January 2018, the taxable companies were required to maintain the records for VAT purposes also. The VAT Law has mandated that the VAT-registered companies should maintain their financial records properly for a minimum of 5 years and 15 years for real estate companies. This has made the companies organise their accounting & bookkeeping tasks efficiently to comply with the Federal Tax Authority (FTA) standards. Hiring the services of the best accounting & bookkeeping firm in Dubai, UAE is the best solution to maintain the proper records for the purposes of VAT filing.
The following are the best ways to organise the accounting & bookkeeping tasks at the time of VAT filing:
a) Identify and Organize Financial Records
Gathering all the supporting documents in time will save the business owners from having a tough time during tax time. Special care needs to be taken to gather all the bills, invoices and documents. The accounting & bookkeeping system must be checked to keep track of all the files. Keeping track of all the financial records is important for identifying sources of income and expenses. The best accounting & bookkeeping firms in Dubai, UAE helps the companies organise the financial records by ensuring that the recording and collection of documents are up to date. The accounting firms also ensure that the records are maintained as per the Commercial Companies Law or Free zone law and VAT Law.
b) Analyze Credits and Deductions
In a bid to clear additional burdens during the time of VAT filing, the companies need to analyse their tax credits and deductions. For VAT, the deductions are standard rated and other goods and services that are exempted and reverse charge mechanism.
c) Maintain clear communication with the Accounting Firm
The association between the company and the outsourced accounting firm should be based on clear communication. The accounting & bookkeeping firm helps its clients in setting financial goals for VAT. For the communication to be effective the companies should ensure that all the material facts regarding the financial statements are disclosed. Bookkeeping services should provide suggestions to improve expenditure and cash flow. The accounting firms in Dubai should assist the clients in having a robust documentation system for VAT.
d) Due to Care at the Time of Bookkeeping & Accounting
At the time of accounting of any transaction, due care needs to be taken regarding the applicability of VAT like proper accounting for VAT payable, VAT credit, and receipt of proper Tax Invoice from supplier with the company’s name and TRN. In reality, many accountants at the time of receipt of the invoice from the supplier fail to check minimum requirements like Tax Invoice name on the invoice, supplier’s TRN, company’s name, Company’s TRN, and date of tax invoice should not be too backwards etc. If due care is not taken at the time of accounting the VAT return becomes a time-consuming task and may be possible that the company may not take some VAT credits or delays in filing the VAT return and end up paying the penalties.
Why Choose Jitendra Chartered Accountants?
Efficiently organising the accounting & bookkeeping services has become more significant since the introduction of VAT in January 2018. Although most of the companies in the UAE have been maintaining accounts as stipulated by the Commercial Companies Law, the VAT has made it stricter to maintain the record for at least 5 years. In this circumstance, the taxable companies have felt the need to organise their accounting tasks in a more efficient way for VAT purposes. The task of organising all the documents including the invoices, credit and debit notes etc. usually becomes cumbersome as the time for VAT filing approaches. Under such situations, a reliable accounting & bookkeeping firm like the Jitendra Chartered Accountants (JCA) becomes a helpline for businesses. JCA is composed of highly qualified Chartered Accountants who can assist businesses with all the requirements of accounting and bookkeeping in line with VAT Law compliance.
JCA has years of experience in providing accounting, auditing and VAT-related services to thousands of clients belonging to a variety of industries. JCA provides high-quality financial recommendations to the companies thereby helping them set robust business goals. JCA is a one-stop shop for all the services including accounting, auditing, VAT filing etc. and is committed to bolstering the financial growth of the companies by providing top-notch business solutions.