Interesting Facts To Know About Accounting In Dubai
The whole of UAE, especially Dubai, has become a hub for all kinds of businesses. The economy of Dubai has seen a serious surge in the last decade, which is also why thousands of investors and businesses are pouring in over here, looking to establish their roots in one of the best business places in the world. The flourishing economy of Dubai has allowed businesses to earn amazing profits. This is why businesses coming here or even those that have been present for some time are choosing to expand their area of operations.
To ensure the success of your business, you as the owner must oversee all the functions and departments to know that everything is being done the way it should be. There’s no doubt that all the various functions in an organization like marketing, sales, human resources, research, advertising, and supply chain play a vital role in shaping up business, but another most important area that needs serious consideration is finances. The flow of money is a constant thing in any business, and all cash flow needs to be recorded to make future decisions easy. This is when companies or businesses need the services of professional and experienced auditors.
Importance Of Accounting For Any Business
Businesses have a huge number of transactions happening on a daily basis in the form of payments, discounts, invoices, receipts, sales, purchases, and many more. All of these payments are to be recorded in a systematic manner, and this is simple accounting. Accounting is the process of systematically organizing, recording, and processing the complete financial data to make reports on it. Bookkeepers also perform a similar task. The reports made by these accountants are of utmost importance as they provide a complete picture of the company’s financial state. On the basis of these financial reports, auditors are able to provide suggestions and advice on how to save money, which areas need more spending, and which department of the business requires special attention. Apart from being important for the company, these financial reports are also given to regulators, investors, stakeholders, auditors, tax collectors, and etc.
It would become almost impossible to keep track of all the finances and subsequently make the right decisions regarding savings, payment allocations, investments, taxes, and other things if a reputable accountant is not on the job. Furthermore, it becomes very difficult to implement all the strategies without funding, and the work of accountants only help in deciding how much money can be given to all the departments.
All You Need To Know About Company Auditors in DMCC
Now that we’ve established the importance of accounting for any business, and how businesses belonging to all types of industries in Dubai require accounting and auditing, let’s now shed light on DMCC.
Dubai Multi Commodities Centre (DMCC) is one of the biggest free zones in the UAE, situated in Jumeirah Lake Towers (JLT). This global trading and financial hub have a large community along with some amazing properties that are a great addition to the experience of setting up a business in DMCC.
DMCC free zone is a stunning place to set up a company as it enjoys a suitable location and provides easy access to all the Middle East markets. Ever since the Government has shifted its focus from the Oil and Hydrocarbon sector, there has been a huge influx of companies that are registering in the UAE.
Is Auditing Mandatory For a Company In DMCC?
It is highly important for any company to conduct an Audit. All companies in the DMCC free zone are expected to maintain the audited financial reports. If a certain business does not submit their required documents to the free zone authority, they can face a penalty of up to AED 5,000, and sometimes they might even be rejected the trade license renewal.
Records Needed For Auditing
If you want to audit your company in DMCC, the auditor looking after your business will need the following documents. All these documents should be in accordance with the period in which the audit is being done:
- Bank Statements
- Credit and Debit confirmation slips for all the transactions
- Copies of invoices, receipts, purchase slips, and bills
- Statement of deposits from the DMCC portal
- Memorandum of Association (MoA)
- Articles of Association (AoA)
Approved Auditors In DMCC
We at BSA Auditing & Consultancy will help you with all the accounting and auditing-related needs in DMCC. As approved DMCC auditors, we have been assisting companies with their audits in the DMCC free zone for a long time. We have a team of experienced and highly professional chartered accountants and auditors in DMCC who will always go above and beyond the conventional fundamentals and add tangible value to your work. They will make sure that auditing is done with the best strategic and productive approach in today’s business environment. Not just this, but we will also identify all areas that need improvement to help you achieve great success.