BOOK KEEPING SERVICES
Bookkeeping is the fundamental process to help the organizations maintain the financial records. As a matter of fact, “inadequate accounting” is one of the main reasons start up organizations collapse. And it is legally mandatory that every single business who have registered for VAT in UAE needs to maintain proper books of accounts, update their accounting records time-to-time in order to file their taxes.
The UAE VAT Law states all the SME’s to keep books of accounts for a minimum of 5 years.
A business without bookkeeping is just like a blind chauffeur driving a car to reach its destination. Accurate bookkeeping postulates a clear picture of the organization’s financial well-being and avoids any potential penalties and impending unnecessary costs.
In common man terms bookkeeping is just arranging the numbers in a special and sensible way:
- Organizing receipts and payments into discrete accounting categories such as; expenses, income, assets and liabilities to improve probabilities of making profits and understanding the net worth of the business.
- Verify the numbers and maintain the balances for filing the tax returns.
- Formulate reports based on the above numbers and the statutory needs to know in detail about your company’s progress in monetary terms such as monthly profit, quarterly sales and annual profits.
- If the business is owned by partners and to know what is the share of profit of each of the partners at the end of each month/ quarter/ year and also to see what the share of each partner from the net worth of the business.
Spectrum helps its clients in keeping all the financial transaction related documents in a systematic manner and easy to access whenever needed for any kind of businesses.
Top 6 Reasons – Why Bookkeeping is important?
Bookkeeping helps in budgeting
In analyzing financial statements
Knowing the receivables amount by customer and payable by supplier
Better decision-making power
Effortless generation of Reports
Focus on Business Strategy