Bookkeeping
Bookkeeping is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. Typically, organizations present this information in financial statements, such as the balance sheet, income statement, and statement of cash flows. Bookkeeping is an essential part of any organization, as it allows managers and stakeholders to track the organization’s financial performance and make informed decisions about its future. The goal of bookkeeping is to provide accurate and up-to-date information about an organization’s financial health. Consequently, this information can help it operate more efficiently and effectively. Many businesses seek a Bookkeeping Service in Dubai to ensure their financial records are maintained accurately.
Bookkeeping steps
(i) Regular bookkeeping practices including documentation of invoices, and bills.
(ii) Preparation of journal entries chronologically either manually or by the client-supported accounting software or Enterprise Resource Planning (ERPs).
(iii) Preparation of books of accounts in accordance with International Financial Reporting Standards (IFRS) requirements.
(iv)Preparation of ledger accounts and grouping them in the correct heads.
(v) Preparation of Statement of Accounts for trade receivables and payables.
(vi) Monthly reconciliation of bank accounts with statements of the respective bank accounts.
(vii) Preparation of Ageing of Trade Receivables and Payables to locate long-overdue balances.
(viii) Preparation of final accounts such as Trial Balance, Profit and Loss, and Balance Sheet thereof.
For businesses looking for reliable bookkeeping service in Dubai, following these steps ensures compliance and accuracy in financial reporting.
Why is Bookkeeping required?
Bookkeeping is required for a variety of reasons. First and foremost, it provides accurate and up-to-date information about an organization’s financial health. This information can be used by managers and stakeholders to make informed decisions about the organization’s future. In addition, bookkeeping is essential for compliance with relevant laws and regulations. Most organizations must maintain accurate financial records and produce regular financial statements, such as the balance sheet and income statement. Bookkeeping is essential for financial statements and meeting legal and regulatory obligations. It is used for financing and attracting investors, as it provides evidence of the organization’s financial performance and stability. Engaging a bookkeeping firm in Dubai can help ensure that these requirements are met efficiently.
Bookkeeping service
Bookkeeping services are provided by accountants and other professionals to maintain an organization’s financial records. It involves recording financial transactions, preparing financial statements, reconciling accounts, and providing other support to ensure that an organization’s financial records are accurate and up-to-date.
This service can be provided on an ongoing basis, such as on a monthly or quarterly basis, or on an as-needed basis. The organization’s staff, an external bookkeeper, an accountant, or a specialized bookkeeping firm in Dubai can perform these services.
The bookkeeper will review the organization’s financial records and ensure that they are in accordance with applicable accounting standards and regulations. Additionally, the bookkeeper may prepare financial statements and reconcile accounts to ensure their accuracy. This can help organizations maintain accurate and reliable financial records and comply with tax and other legal requirements. They can also provide important information and insights that can help organizations manage their finances and make informed business decisions.
A bookkeeping service is a professional service that helps organizations manage their financial records. This process typically involves recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. The organization typically presents this information in the form of financial statements:
- Balance Sheet
- Income Statement
- Statement of cash flows
Therefore, accounting firms provide bookkeeping services for organizations lacking the resources or expertise to manage financial records. Choosing a reputable bookkeeping service in Dubai ensures businesses stay compliant and financially healthy.
Average price of bookkeeping services
The average cost of bookkeeping services in Dubai varies depending on the complexity of transactions and the service provider. Generally, prices can range as follows:
- For businesses with up to 25 transactions per month, the cost is around AED 800 per month.
- For businesses with 25 to 50 transactions per month, the cost is about AED 1,110 per month.
- For businesses with 50 to 100 transactions per month, the cost is approximately AED 1,450 per month
These costs can increase based on additional services such as VAT compliance, payroll services, and financial reporting. Opting for a reliable bookkeeping firm in Dubai can ensure these services are delivered efficiently and accurately.