According to UAE’s Federal Law No. 2 of 2015 bookkeeping is certainly one of the most vital things to be considered and maintained. Each commercial company must maintain accounting record. They are bound to show transactions and reveal the accurate financial; status of the firm, as and when asked for.Each commercial company must maintain its books of accounting in its head office for a period of at least 5 years from the end of its financial year. It is to be confirmed by the shareholders or the partners of the company that the book of accounts are maintained according to the provisions of the law.

As per the UAE VAT Law, according to the clarifications stated for the draft Law, it is compulsory to maintain books of account for every taxable person. It is to be noted that the authority can also ask for additional documents like purchase day, general ledger, invoices issued and received, VAT ledger, annual accounts and more. As per the law, the books of accounting records are to be maintained for five years.

Significance of maintaining books of accounting in UAE in a nutshell

Here’s something to watch out for. For people wondering about the purpose of bookkeeping, here’s what you need to know.

• Bookkeeping is essential for proper control and management of business operations.
• This practice will help in the matter of coming up with accurate receipt and cash payment, including other transactions registered by the company as well.
• Since it is mandatory under the UAE Company Law and VAT law, violation of the rule might land the firm in legal hassles.

Thus, it might prove to be an act of utter foolishness if an individual decides to overlook the significance of maintaining books of account. Immediate consultation in case of any potential confusion is always recommended.

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Managing accounts, keeping records and maintaining accounting records may at times prove to be a hassle for a firm that has its directors or proprietor handling every vital aspect of the company single-handedly. This is where management consultants and corporate advisors come into play. We at Uaevatexpert.ae offer amenable auditing, risk management, company liquidation, accounting outsourcing, accounts reconciliation services and more.

With years of technical knowledge and experience in this domain, your business priorities will certainly be in safe hands. It is our motto to offer every business house in and around UAE business strategies that are effective enough to make your company reach the epitome of success. We offer strategic planning and ideas based on the best practices that have fetched satisfactory result in the past. Since bookkeeping is undoubtedly one of the most crucial points of concern for every commercial house, we would recommend working with our company for instant solutions coming from the best industry practitioners across UAE.