Not maintaining proper accounts? Let’s get set to go with corporate tax hassle-free!
The small size businesses and business owners may have the following questions like do we need to maintain full books of accounts or it is fine to have only limited set of accounts? Should we have the right opening balances of the assets and liabilities and how does it make any difference at all? To find out the answers for your questions, keep reading this article.
Keeping proper accounting records is essential for any company when it comes to preparing for the smooth transition into the corporate tax era. Since net profits are going to be the base for calculating the corporate tax that the business is liable to pay, it is important to ensure the accuracy and maintain proper books of account.
Even the open balances relating to assets, liabilities in the balance sheet also influence taxes to some extent. Lower assets than they were supposed to be or higher amount of the liabilities than they are supposed to be may increase your tax amount once you get into the UAE Corporate era. In order to have the right opening balances of the assets and liabilities, one should work on the old balances and come up with the right balances from now onwards.
If you don’t keep proper records, you’ll have no idea on where you stand when it comes to tax time. You may find it difficult to determine the tax you owe, and you might not be able to claim any deductions as you don’t have a good idea of your entire financial picture.
Make sure that you keep proper accounting records as it will help the company stay organized and you’ll have a clearer picture of the company’s progress.
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Reach out to Spectrum Auditing for any details pertaining to UAE Corporate Tax. Call us today for any kind of assistance at +971 4 2699329 or email [email protected] to get all your queries addressed. Spectrum is your partner in your success.