Importance of Bookkeeping in Business

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• Importance of Bookkeeping in Business
• For judging the importance of bookkeeping in
  business you need to have a full understanding of
  what is bookkeeping? Bookkeeping is an
  accounting service in UAE and is thus the process
  of recording day-to-day financial transactions
  of a particular business. Bookkeeping is also
  sometimes referred to as the method of recording
  transactions which involves preparing documents
  of all transactions, operations and all other
  events of a business.
• Bookkeeping is an accounting service in Dubai
  that is used in accounting which includes
  recording transactions related to purchases done
  by a company, its sales, payments made and last
  but not the receipts. This accounting service in
  Dubai can be used by an individual or a firm or
  an organization regardless of the size of the
  business.
• Moving forward, the method of bookkeeping has
  existed from the earliest times in human life in
  different cities. Earlier records were made for
  temporary use only and the accounting service in
  UAE was done on a regular basis until the century
  where technology had taken over manual recording
  system of accounting.
• Why is Bookkeeping important?
• Financial records, if organized well will help
  any firm or an individual to analyze the incomes
  and expenditures that he is getting and doing
  from a particular business. Bookkeeping as an
  accounting service in UAE is thus important as it
  helps with business analysis in a systematic and
  organized manner. It also acts as a tool for
  management in order to analyze the performance
  of the business which in return helps to identify
  the strengths and weaknesses of a business. It
  is important to study bookkeeping especially
  after understanding the money and tax in the
  UAE.
• Moving forward to the importance of bookkeeping,
  the following points will make the topic clear
• Maintaining accurate financial records The first
  and the foremost reason to use the bookkeeping
  as an accounting service in Dubai is that it
  helps to maintain accuracy in the accounting of
  a business. In the current scenario, where
  businesses are flourishing with leaps and
  bounds, there are a number of transactions to be
  recorded on a daily basis. Having the right
  accounts maintained properly will help in
  determining the cash flow in a business and this
  will further make the process simpler while
  making the balance sheet. Once you have recorded
  small expenses efficiently, it becomes easy for
  analyzing the exact expenditure over the income
  being received.
• Preparation of Tax Any tax consultant in Dubai
  encourages your business to file a tax return
  every year. There are businessmen who are
  scrambling through their desks in search of
  missing paper works. I case it is a condition
  that you have also faced then you must remember
  to make the accounts more efficient so that while
  preparing tax in UAE, it becomes easy for you
  and you do not have to pay any extra amount from
  your end. This process of preparing tax in

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• UAE can be made easy by simply having an
  efficient bookkeeping function within your
  company.
• Organized business activities To be organized is
  a skill that every accounting firm in Dubai
  should have. It is good to be able to find
  information regarding business at any time.
  There are auditors in Dubai who might be
  interested in your companys financial records
  and well in such a case if you have been able to
  manage all your accounting transactions
  efficiently then there will be no problem as to
  display your books to the audit firms in Dubai.
  Bookkeeping is a process of maintaining the
  records efficiently and therefore when auditors
  in Dubai will request you for displaying the
  books, you must be able to do the same in an
  easier and well organized manner.
• Accounting Analysis Coming forward to the
  analysis of a business, bookkeeping helps to
  analyze the business transactions. It acts as a
  tool of accounting services in Dubai to identify
  the performance of a business organization. Every
  bit spent in business if recorded systematically
  will yield better results while analyzing the
  exact income and expenditures to further know if
  your business is doing well or not. Auditing
  companies in Dubai suggest the businesses
  maintain proper records in the form of financial
  statements so that the right inflow and outflow
  of money can be analyzed. Through the right
  guidance of audit firms in Dubai, you can get
  the information on which business line is working
  efficiently and which business line needs
  amendments.
• Efficient decision making One of the major areas
  of any business organization is to take some
  quick decisions which will be right for the
  business. It is believed with analyses, comes
  better decision making. If you need access to the
  relevant information, it is important for your
  business to use the best accounting services in
  UAE. In this scenario, bookkeeping is one of the
  best ways to get the right information at the
  right time. This further enables you to take
  relevant decisions with respect to the working
  of a business firm. To take all the profitable
  decisions, it is important for you to access the
  information related to the finances of a firm.
• Making development plans Every business
  organization is established with the motive to
  grow and develop in the near future and it is
  important to do planning for this purpose.
  Bookkeeping displays the past performance of a
  business entity. In order to make plans for the
  future, it is important to understand the past
  and accounting services in UAE will give you the
  clear image of what exactly works and what
  doesnt work for an organization. Bookkeeping not
  only helps to make strategies but it also plays
  a vital role in planning tax in UAE.
• Attracting Investors Another major part of the
  organization is an investor. An investor wants
  to know the financial performance of a business
  in order to make the relevant investment with
  the motive of earning profits. Financial
  statements if managed efficiently make it easy to
  display the right information to the investors.
  The value of a business is presented through
  cash- flow statements, balance sheet and income
  statements. Accounting service in UAE will help
  the investors to have accessible and up-to-date
  information right away. The bookkeeping is done
  not only for the current investors but it is also
  done for future investors. Provide the right
  information for the betterment of your business.

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• Financial management Bookkeeping plays a vital
  role as it allows you to take control of your
  business finances. Accounting services in UAE
  helps you analyze how you send money and it also
  helps you to identify the outstanding invoices
  owned by your customers or by you solely.
  Accounting services in Dubai help you analyze the
  outstanding bills that you need to pay through
  which you can pay them without any hustle. Also,
  in case you need to receive payments from your
  customers then you will have the relevant details
  and accordingly you can track the amount easily.
  This delicate inflow and outflow of cash will
  help your business grow efficiently.
• The necessity for audit firms in UAE In a
  country like Dubai, it is really important for a
  business organization to pay tax in UAE and file
  a return for the taxes your business is paying to
  the government. Auditing companies in Dubai
  encourage you to maintain proper records of all
  the financial inflow and outflow transactions.
  Depending on the legal structure, audit firms in
  Abu Dhabi require you to keep financial records
  separate from your personal expenses. In case you
  fail to do so and try to include all your
  personal expenses during filing a tax return, you
  will have to face consequences. This might also
  lead to termination of your business.
• Conduct self- audit Every individual aim at
  keeping a daily record f all the financial
  transactions which will help in analyzing the
  health of a business. It will help an individual
  to take relevant decisions related to the
  business activities. For example there are
  decisions to be taken regarding risk management
  or losses and in the case where all the actions
  fail, taking and planning decisions and
  strategies becomes an important aspect for a
  business person. There are times when corrective
  measures are required to be taken in an
  organization therefore, if all the financial
  dos and donts are clear to self, it becomes
  easy to take the right decision at the right
  time. In the case of internal audits also it
  becomes easy to display all the financial
  requirements of the auditing firms in Dubai and
  get the finances audited efficiently.
• Making sure all the deductions are covered Even
  one penny can make a difference in the
  accounting books and in order to balance the
  sheets efficiently, all the transactions related
  to expenditures and incomes are important to be
  noted down starting from the bookkeeping
  process. Making and maintaining proper records
  acts as proof while you present your incomes and
  expenditures while filing a tax in UAE return or
  while presenting your transactions to the
  auditing firms in Dubai.
• So now that you know the importance of
  bookkeeping. It can help you save your time,
  efforts and money and give you less stress in
  terms of managing the business transactions. In
  case you are not aware of the bookkeeping
  process then you can also hire an accountant from
  any of the accounting firms in Dubai and get
  started as soon as possible. Once you start
  implementing bookkeeping in your business daily,
  you will be able to classify the relevant
  transactions and give it to the Dubai tax
  authority or audit firms in Dubai whenever
  required.
• Start managing your accounting transactions
  efficiently so that you are able to focus on the
  strategies and do not waste time in gathering
  minor transactions on a daily basis.