Why Bookkeeping is Essential for SME Success in the UAE
"It's not about how much money you make, it's about how much you keep."
Bookkeeping is an essential part of managing any business' finance, regardless of its size. In the UAE, bookkeeping helps SMEs stay compliant with local regulations and make informed financial decisions. Some of the top benefits of proper bookkeeping are:
Maintaining compliance with local regulations
The UAE has maintained strict regulations when it comes to financial reporting and bookkeeping. Small businesses are required to keep accurate records of their financial transactions and file regular tax returns to stay compliant with the law. If small businesses do not follow the laws, it may result in costly penalties and fines imposed - which, let's face it - nobody wants to have.
Budgeting and Financial Planning
Bookkeeping helps SMEs keep track of their finances and provides them with valuables information about their business' financial performance. By tracking income and expenses, small business owners can develop a well-informed budget and plan ahead for future expenses. Thus, maintaining your books can help you make informed financial decisions, avoid overspending and allocate resources accordingly.
Simplified Tax Preparation
With VAT already in existence since 1 January 2018 and Corporate Tax coming into effect on 1 June 2023 (just a few weeks away), it is more important than ever for SMEs to keep on top of their Tax Return Filing. Maintaining accurate bookkeeping records through a proper system simplifies tax preparation, as all the necessary financial information is readily available. This allows SME owners to save time and money, and direct their focus on growing their business.
Simply put, bookkeeping is an essential part of managing the finances of SMEs in the UAE. It helps businesses to stay compliant with local regulations, plan for the future, manage cash flow, make better decisions, and prepare for busy tax seasons. SMEs that invest in bookkeeping will be better equipped to grow and succeed in the competitive business environment of the UAE.
As a business owner, do you wish you had the superpower to manage and resolve all your bookkeeping needs? If yes, we recommend getting in touch with us or checking out our Bookkeeping Services
