According to Federal Tax Authority, As a tax registered person, businesses and individuals are compelled to accurately record all taxable supplies and purchases subject to the Legislation which also sets out requirements to keep all transactional information and documentation supporting your returns for 5 years.
Naturally, this can be a complex task without using any software and comply with the full regulations. The automation of sales and purchase-related transactions in accounting software in Dubai is a more accurate and reliable method to manage your obligations. As a result, this can:
- Reduce the cost of compliance
- Speed the process of filing returns
- Keep the necessary information if requested by the Federal Tax Authority. A strong byproduct from the accounting software is an improved financial reporting model to provide greater insight into your business’ performance. Understanding your business’ profitability and cash flow considerations are a major benefit to manage cash demands and manage liquidity. Most businesses focus on sales and expenses, however, the cash demands and provisions can be more complex if you have many suppliers and vendors with a VAT payment to budget for.
Key Questions To Assist Your Approach
When your business seeks to adopt an accounting software platform, you should seek to plan and adopt some framework for your implementation. Our expertise suggests many businesses face important challenges in implementation that can be better avoided. Consideration of these key points will considerably reduce your cost at the time of implementation.
Cloud or On-Premise Platform?
This entirely depends on your requirements.
If your business doesn’t have any special needs for customizations such as user rights, specific workflow processes, integrations, or non-standardized reporting; the cloud is a more cost-effective solution to speed up implementation and provided on-demand reporting from any device.
The total cost of ownership is lower for the cloud and you can avoid the need for capital costs and special skills or support for your accounting software. Your business would need to adapt to the software, however, many cloud systems have form workflows that can help your business if you lack any best practice models.
As a counter, on-premise systems can be more flexible and support customizations delivered by professional accounting software development providers. However, you will need to be specific with your requirements to ensure projects are delivered on time and within budget.
Does the Federal Tax Authority Certified software matter?
Accounting software in Dubai certification will permit your business to extract a predefined file (Federal Tax Authority Audit File) detailing your taxable transactions underpinning your VAT submission. This file provides more assurance to the Federal tax authority of your VAT filing (required under Federal Tax Authority Audit) and hence is a preferred option.
Have you defined your financial reporting requirements?
This may seem an obvious question however it is a common oversight that can complicate your implementation if addressed at a later stage. Most software will support and reporting for a number of areas such as products, expenses, projects, etc.
Your business and financial reporting needs to play a key role in the approach for your accounting set up particularly your chart of account model and reports.
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