If you have a company, you are fully aware of the importance of managing your finances well to ensure the long-term success of your company in Dubai. In this article, we will explore together some essential tips that will help you optimize your accounts and ensure the prosperity of your business in this dynamic and volatile market that is the Emirates.
By understanding these financial secrets and putting them into practice, you will be better equipped to succeed in this demanding business environment.
The requirement for accounting for a company in Dubai
Maintaining accounting records is not only essential but also mandatory for any entrepreneur with a company in Dubai, even though it may not be automatically requested by authorities and some registries. It involves meticulous management of income, expenses, and cash flows, as well as the preparation of financial statements at the end of the accounting period. By adopting a proactive approach to accounting, you will be better equipped to make informed decisions and ensure the sustainable growth of your business.
According to the commercial laws of the United Arab Emirates (Federal Law No. 2 of 2015), every company must maintain accurate accounting records to demonstrate its financial position at any time. Additionally, these records must be kept at the company’s registered office for at least five years after the end of the fiscal year, as stipulated in Article 26 of the said law. This requirement is also echoed in Article 78 of Federal Decree-Law No. 8 of 2017 on VAT, which mandates the retention of all accounting elements for five years.
In addition to the balance sheet and income statement, other documents such as payroll records, fixed assets registers, and inventory statements must be maintained in connection with accounting. Therefore, it is crucial to maintain comprehensive documentation to ensure regulatory compliance and financial transparency.
Furthermore, in the event of the company’s liquidation, the liquidator will require your financial statements and company balance sheets to prepare their report.
To ensure the integrity of your accounts, it is recommended to undergo an annual audit by a third-party accountant. This will verify the accuracy and reliability of your financial information, thereby enhancing stakeholder confidence and ensuring compliance with international accounting standards.
The power of audit in financial management
To ensure the integrity of your accounts, it is recommended to conduct an annual audit by an accounting firm. This will verify the accuracy and reliability of your financial information, thereby enhancing stakeholder confidence and ensuring compliance with international accounting standards. At Ares Accounting, we have partnered with an auditor to provide you with quality service at preferential rates.
Financial audit provides valuable insight into the financial health of your company. By engaging audit professionals, you benefit from an impartial evaluation of your financial practices, identifying potential areas for improvement and strengthening stakeholder confidence.
According to Article 27 of the “UAE Commercial Companies Law” (Federal Law No. 2 of 2015), every company in the Emirates is required to undergo an annual audit of its accounts. This process, conducted by an auditor (equivalent to a “Commissaire aux comptes” in France), aims to verify the accuracy of the company’s annual accounts (Dubai financial statements) prepared by our firm.
Beyond its mandatory aspect, a professional audit provides valuable assurance regarding the reliability of your financial information, thereby enhancing your company’s credibility. Additionally, it helps identify potential risks and implement corrective measures, contributing to sustainable growth and financial resilience of your business.
Why choose Ares Accounting?
To optimize the accounting management of your business in the UAE, it is crucial to rely on the expertise of a qualified accountant. At Ares Accounting, we specialize in providing high-quality accounting services for businesses operating in the Emirates. By engaging our firm, you benefit from the assistance of a team of experienced professionals who can address all your accounting needs.
We utilize modern financial management tools to ensure the efficiency and accuracy of our services. Our proactive approach enables us to stay updated with local tax and regulatory obligations, ensuring optimal compliance for your business. Additionally, our team of tax experts is available to advise and guide you on the tax aspects of your operations, helping you minimize risks and maximize tax benefits.
By choosing Ares Accounting as your partner for accounting needs in the UAE, you can rest assured that your business is in good hands. We are here to support you at every step of your entrepreneurial journey, providing the advice and assistance necessary to ensure the financial success of your company.
In conclusion, by adopting a proactive approach to accounting and auditing, you can maximize the growth potential and profitability of your business in the UAE. To review your legal obligations, our firm offers online or in-person consultations at our offices in JLT, Dubai. Contact us today to schedule a consultation and ensure that your business is on the path to success: support@ares-accounting.com.