Top Red Flags that Indicate you must Outsource Accounting Firms in Dubai
Entrepreneurs juggling multiple tasks in their startups or SMEs may fail to detect whether their accounting is at risk. Hiring an in-house accountant may not be challenging for small businesses considering the costs and the difficulty in finding a qualified professional with the right skills. A viable solution is to outsource your accounting requirements to experienced accounting firms in Dubai.
However, most entrepreneurs avail of accounting services in Dubai when adversity knocks at their doors. They could have avoided the last-minute rude awakening with some foresight. Since it is not easy for everyone to anticipate potential risks in their accounting system, we have created a list of red flags that indicate it’s high time to outsource your requirements to accounting companies in Dubai. Check out:
Your company is not corporate-tax ready
The UAE corporate tax took effect from June 1st 2023, which requires the companies in the country to assess their taxability. Companies will be required to maintain financial reports, accounting books, and financial statements for ensuring corporate tax compliance in the UAE. Moreover, the books of accounts should be complete and with no undisclosed income or expenses.
If you have not maintained your books of accounts, it means you are not ready for corporate tax. Your in-house accountant may struggle to prepare you for the new taxation regime in the UAE.
You have no time to grow your business, as you are busy with accounting tasks
This happens with most individual entrepreneurs who run their businesses single-handedly. Even though multi-tasking is a good quality for an entrepreneur, it is not ideal for managing your finances. Accounting is a time-consuming task that requires meticulous attention and expertise. If you decide to manage it alone, you will have no time to work with your clients or improve your marketing strategy. Companies providing accounting services in Dubai can manage your books of accounts for you while you can focus on your core competencies.
Your company faces penalties from authorities
The UAE’s compliance landscape changed when the country introduced the Value Added Tax (VAT) in 2018. A host of regulatory reforms followed after the introduction of VAT such as Anti-Money Laundering (AML), Economic Substance Regulations (ESR) and Ultimate Beneficial Ownership (UBO). Companies that fail to comply with these regulations often incur huge penalties along with other consequences like reputation damage.
An in-house accounting professional may not be the right person to make your firm comply with the complex provisions of these regulations. Accounting companies also provide efficient advisory services as well. They can advise you on how to maintain your books of accounts, controls and procedures in compliance with the latest regulations. In this way, you can avoid penalties arising out of compliance failure. Accounting experts can also assist you with filing an appeal to the relevant authority in case your firm has been wrongly penalized or you expect a waiver from fines.
Your company struggles with accounting backlog
Companies without a proper accounting system will struggle with the issue of accounting backlog. Many companies leave bills, expenses and income to record later, resulting in a huge backlog. It will keep mounting and become hard to resolve unless it is dealt with systematically. If you experience accounting backlogs, it will be hard for you to assess your company’s accurate financial positions. You need to clear your accounting backlogs before it affects the smooth functioning of your business. You can hire the best accounting & bookkeeping firms in Dubai to clear your backlogs fast.
You have a poor record-keeping system in place
If your record-keeping system is messy, you have to panic and go through a last-minute rush while filing reports and conducting financial year-end closing. The inability to track documents and lost or misplaced documents are the other risks associated with a poor record-keeping system. This may give you a hard time during the annual financial audits. However, accounting companies in Dubai can save you from this risk by efficiently managing the accounting system.
Hire the Leading Accounting Companies in Dubai
Outsourcing your requirements to accounting firms in Dubai such as Jitendra Chartered Accountants (JCA) is the best solution for any of the red flags stated in this blog. JCA provides reliable accounting services in Dubai that can create a big difference in your business. We have over 20 years of experience and expertise in the field of accounting & auditing. JCA can add value to your business as we have served companies of all sizes engaged in different industries. Apart from providing the best accounting & bookkeeping services in Dubai, JCA helps companies meet key compliance requirements related to the UAE corporate tax, VAT, ESR, Liquidation, AML and UBO. Hire us and elevate your company to greater heights.