Essential Tax Tips for Individuals & Businesses in the UAE
The tax environment in the UAE has been evolving in recent years with the introduction of value-added tax (VAT) and selective taxes on goods and services. Staying compliant and up-to-date with the latest tax rules is essential for individuals and businesses operating in the UAE.
Here are some key tax tips:
VAT Tips
- Register for VAT if your turnover exceeds the AED 375,000 threshold
- Understand VAT rules for your industry – some sectors have special VAT treatments
- Issue valid tax invoices for VAT-registered businesses you deal with
- File VAT returns on time – by the 28th day after the end of each tax period
- Maintain accurate VAT records for 5 years
Corporate Income Tax
- CIT is only levied on oil, gas and petrochemical companies, and branches of foreign banks
- If one of the above, ensure proper bookkeeping and have financial statements audited
- File the CIT return within 9 months of year-end and settle payable tax
Customs Duty
- Be aware of customs duty for import/export of goods – usually 5% of value
- Maintain invoices, customs documentation for imports/exports
- Consider customs duty when costing imported goods or materials
Our Accounting Services Cover: Bazaar Accounting VAT registration services, Bazaar Accounting VAT return filing services, Bazaar Accounting VAT advisory services.
What are the Daily and Weekly Tasks of a Bookkeeper?
- Recording day-to-day financial transactions
- Invoicing customers and reconciling customer accounts
- Tracking payments from customers
- Paying suppliers and reconciling supplier accounts
- Updating petty cash records
- Filing paid invoices, bills and receipts
Bookkeeping is an integral cog in the financial wheel of every company. By maintaining accurate and up-to-date financial records, bookkeepers provide critical support to management decision-making. This requires consistent work throughout the week and month.
To efficiently handle these tasks, bookkeepers use bookkeeping software like Bazaar Accounting xero services and Bazaar Accounting QuickBooks services. This automates many routine transactions.
Weekly Bookkeeping Tasks
| Reconcile bank and credit card accounts | Prepare payroll figures and finalize payroll payments |
| Review debtors and follow up outstanding invoices | Analyze costs and measure against budgets |
| Check for unpaid bills and process urgent payments | Discuss pain points or inconsistencies with management |
Our bookkeepers also provide customized bookkeeping services in dubai on weekly, monthly or annual contracts to maintain the health of client finances all year round.
The 6 Important Steps in the Accounting Cycle
The accounting cycle is a series of procedures bookkeepers and accountants follow to prepare financial statements at the end of a reporting period. This structured approach ensures consistency and accuracy.
Here are the key steps:
Collect and Analyze Transactions
This involves collating all documentation of financial transactions, from invoices to purchase orders and reconciling them with bank statements.
Record Journal Entries
Each transaction is recorded using double entry bookkeeping and designated within a relevant account. This provides a paper trail for the auditing process.
Post to General Ledger
Figures from journalized transactions are aggregated and organized within general ledger accounts – for example, accounts receivable or revenue streams.
Prepare Unadjusted Trial Balance
This involves collating all documentation of financial transactions, from invoices to purchase orders and reconciling them with bank statements.
Adjust Trial Balance
Adjustments are made for any accruals, prepayments, depreciation etc. to adhere to the matching principle tying revenue and expenses to the correct fiscal period.
7 Reasons Why Bookkeeping Is Important for Your Business
Maintaining accurate and timely bookkeeping has a tangible impact on the health and growth prospects of any company. Here are seven key reasons why perfectionist bookkeeping practices matter:
- Gauge Business Performance
Meticulous bookkeeping provides real-time visibility over what is happening inside your company. By tracking every expense, sale, cash inflow and outflow; management can measure performance versus operational budgets and overall strategy.
- Fulfill Legal Financial Reporting Obligations
Financial accounts, reporting documents and tax returns need to be filed each year with authorities under corporate law. Impeccable bookkeeping facilitates efficient completion of these mandatory submissions.
- Secure External Finance More Easily
When approaching banks/investors for funding, they will request financial statements to assess business viability. Bookkeeping helps build these investor-friendly statements.
- Optimize Tax Planning Strategies
Tax liabilities are significantly affected by how finances are recorded and categorized. Bookkeeping can identify problem areas for tax minimization plans.
- Implement Internal Controls and Prevent Fraud
Bookkeeping serves as an internal control system, with transaction documentation allowing detection of errors or fraud. Segregation of duties also reduces fraud risk.
- Drive Data-Led Management Choices
Trend analysis of bookkeeping data helps managers rework budgets, reduce overhead costs and drive efficiency. Key performance indicators derived from records also assist decision-making.
- Build Operational Agility & Scalability
As a business grows, complexity escalates. However, reliable bookkeeping procedures will adapt to support expansion, acquisitions or diversifications.
Bazaar Accounting bookkeeping services in dubai deliver all these benefits. Connect with us for diligent back-office support.
