Bookkeeping is one of the essential responsibilities of a business that needs to be given the utmost consideration. Without effective accounting management and bookkeeping functions, a company cannot thrive. That is why most businesses prefer to outsource these tasks to agencies that have expertise and knowledge of the rules and protocols that need to be followed. Hence, availing accounting and bookkeeping services in Dubai seems like a more reliable and safer option for companies.
Most companies avoid hiring a full-time accountant to curtail their costs. Hence, starting bookkeeping services in UAE could be one of the best and most lucrative business ideas for accountants.
Reasons to start a bookkeeping and accounting firm in the UAE
Accounting businesses tend to be a success in the UAE for the following reasons: –
- Regulatory environment
Businesses operating in the UAE are compelled to maintain accurate financial records and submit annual audits. This creates a high demand for bookkeeping services in the UAE.
- Growing economy
With the growing economy, the intricacy of financial transactions also grows, leading to an increased demand for professional accounting services.
- Diversity
The United Arab Emirates inhabits a diverse range of enterprises. From multinational corporations and family-owned businesses to small and medium enterprises (SMEs) and startups, all these entities require professional accounting support. This need eventually creates a broad market for accounting services in the UAE.
- Tax-friendly atmosphere
The tax regime in the UAE is much more favorable compared to other developed countries. However, navigating the tax compliance requirements of the UAE can be a complex task, that ultimately leads businesses to seek professional assistance.
- International hub
As more and more multinational corporations and international firms are setting up their regional branches in the UAE, the demand for accounting services is also increasing, especially the ones who can understand and work through both local regulations and international accounting standards.
- Government initiatives
Various business and investment-supporting initiatives launched by the UAE government have led to an increase in the number of startups and SMEs. These businesses often require professional accounting services that can manage their finances competently.
Need for bookkeeping services in Dubai
There are several advantages of outsourcing accounting and bookkeeping services in UAE.
- Unbiased financial opinion – Emotional entanglement of in-house accountants in the company’s daily tasks could lead them to make wrong decisions. However, outsourced service providers would be honest in their evaluation and give an unbiased conclusion of the company’s financial position.
- Growth and sustenance – By outsourcing accounting and bookkeeping services, companies can save valuable time and utilize it to refine their key competencies, improve efficiency, and increase operations. This would eventually help in maximizing the return on investment (ROI) of the business.
- Cost-effectiveness – Another benefit of delegating accounting tasks to third parties is the reduction in costs. Rather than investing in recruitment, salaries, benefits, and office space, if businesses divert their funds toward efficient bookkeeping services in Dubai, they can save a huge amount on operational costs without compromising on output.
- No overhead payments – For an in-house accounting department, companies will have to spend on overhead expenses, such as training, payroll taxes, sick leaves, vacation, etc. However, when outsourcing, the company has to pay only for the work they get from the external parties.
- Data Confidentiality – Data confidentiality is a necessity. No company wants its confidential records and financial details disclosed. Bookkeeping services in Dubai promise data privacy. They take extra care to safeguard the data of their clients from cyber threats and keep them up to date with evolving technological advances.
- Avoid conflict of interest – Handing over the accounting department to company partners can be risky oftentimes. The speculative accusations and misconduct can damage professional relations. However, outsourcing these services to an external agency can avoid such conflicts.
- Better service – Bookkeeping services in Dubai work for a broad range of companies. Hence, they have distinct and in-depth knowledge of their field of work. Having Certified Public Accountants (CPAs) to complete the company’s financial assignments can contribute significantly to its success.
- No sudden loss of employees – Companies often face loss of employees due to industry transition and financial downturn. During such incidents, small and medium-scale enterprises cannot afford to hire immediately and equip more staff at work. However, with outsourcing, companies do not have to worry about such issues. They usually have a backup for any shortage of resources.
- Increase in the valuation of the company – Outsourcing the accounting and bookkeeping services can cut down on staffing costs, helping with the growth of the company’s valuation.
- New services for clients – When companies outsource the services for accounting and bookkeeping requirements, they have less burden on themselves. Consequently, they get more time on their hands to design and administer innovative ideas for their business.
Major requirements to start bookkeeping services in UAE
With the introduction of new rules in the audit and accounting system of the UAE, the demand for bookkeeping services is growing vehemently. However, to set up a firm in Dubai, there are certain requirements that one needs to fulfill:
- Academic qualification in accounting – To start an accounting firm in Dubai, you must have a degree in accounting or relevant fields from well-known institutions that prove that you are a professional accountant. Moreover, taking local exams such as the ECPA Exam can increase your chances of being approved as a professional accountant.
- Professional license – A professional license issued by the Department of Economic Development (DED) is mandatory to start an accounting firm in Dubai.
- Office space – When you have a professional office space for your bookkeeping services in Dubai, you have better chances of getting more clients. This builds trust and confidence in your clients, thereby increasing the business prospects for your accounting firm.
Documentation requirement to start a bookkeeping business in Dubai
Entrepreneurs planning to set up an accounting firm in the UAE must meet all the conditions required by the authorities, including the documentation requirements. The general requisites are as follows: –
- Relevant degree/certificate proving the qualification in accounting
- Shareholder’s passport and visa copy
- Business Plan
- Lease Agreement
- Trade Name Certificate
- First Approval Certificate
Step-by-step procedure to start an accounting firm in Dubai, UAE
Here’s how you can set up you’re accounting and bookkeeping business in the UAE: –
- Finalize the business trade name as per the legalities of the UAE government
- Decide on the company structure – Sole Proprietorship, Joint Stock Company, LLC, etc.
- Obtain initial approval from the Department of Economic Development (DED) stating their consent for setting up the business
- Register your business by submitting all the documents
- Rent a suitable office space and prepare the required agreements
- Receive a professional license from the concerned authorities
- Get started with your bookkeeping services in Dubai and across the UAE.
Here’s how Shuraa can help
The accounting and bookkeeping industry is one of the fastest growing industries in the Emirate. However, setting up a business in such a dynamic setting can be very complicated, which is why you would need professional assistance to get started with your business plan.
Shuraa Tax and Accounting Consultants is a top audit and accounting firm in Dubai. Their highly skilled and knowledgeable finance professionals offer basic to complex financial services based on the client’s vitality and diversity. Their broad range of services includes company formation and license registration which makes it easy to launch any kind of business in the UAE.
Contact Shuraa Tax to book a free consultation session with their finance advisors.
