Welcome to DhanGuard. Can I help you?
/ Accounting And Bookkeeping

ACCOUNTING AND
BOOKKEEPING SERVICES IN UAE

Bookkeeping and accounting are two services that are critical for any business. Simply put, bookkeeping is in charge of documenting financial transactions, whereas accounting is in charge of evaluating, classifying, analyzing, reporting, and summarizing financial data. To the uneducated eye, bookkeeping and accounting may appear to be the same job. This is because both accounting and bookkeeping deal with financial data, necessitate basic accounting knowledge, and use financial transactions to classify and generate reports. At the same time, both of these techniques are fundamentally different and offer distinct benefits.

To learn more about the fundamental differences between bookkeeping and accounting, read the following data which has been carefully curated by our Experts. When most people consider the differences between bookkeeping and accounting, they find it difficult to make a clear distinction. While bookkeepers and accountants have similar objectives, they provide assistance to your company at various points of the financial cycle.

Simply speaking, bookkeeping is concerned with recording financial transactions and is more transactional and administrative in nature. Accounting is more subjective, providing you with insights into the financial health of your company based on accounting data. However, rest assured that our team of experts will make this process simple and straightforward for you. As a result, Dhanguard is a trailblazer in providing you with superior accounting and bookkeeping services and assistance. Please take a few seconds to read the following material, which has been painstakingly produced by our professionals to provide you with the most up-to-date services.

Shape Shape

Free Consultant For More Banking Services

Difference between
Accounting and Bookkeeping

ACCOUNTING

Accounting is the process of a company's financial transactions being interpreted, analyzed, summarized, and reported. Accounting financial statements are a precise overview of financial activities throughout a given accounting period. The financial status, operations, and cash flows of a corporation are summarized in these statements. Accounting combines financial data to make it more understandable and transparent to all parties involved. It aids firms in keeping up-to-date and accurate financial records.

The accountant keeps track of a company's daily transactions and aggregates them into financial statements like the income statement, cash flow statement, and balance sheet. All stakeholders can use financial statements to evaluate a company's success.

BOOKKEEPING

The process of managing and recording all financial transactions in a business's original books of entry is known as bookkeeping. The bookkeeping process entails systematically summarizing and organizing all of the company's financial transactions in a chronological order. Bookkeeping is concerned with a company's day-to-day financial activities and transactions. The books of accounts are maintained and recorded by bookkeepers. All financial activities are recorded in the original books of accounts, including tax payments, sales revenue, loans, interest income, wages and other operational expenses, investments, and so on. The books of account must be current because they serve as the foundation for accounting. The correctness of a business's accounting process is determined by the precision of its bookkeeping.

ACCOUNTING

BOOKKEEPING

Accounting prepares financial reports and statements based on the information provided by bookkeeping.

Accounting's foundation/base is bookkeeping.

Accounting differs from bookkeeping in that it begins where bookkeeping stops and has a greater scope.

Bookkeeping is a component of the accounting system as a whole.

Accounting produces financial statements, which are used to make educated decisions and judgments.

The end outcome of the bookkeeping procedure is accounting input.

Accounting's goal is to disclose a company's financial strength and to obtain the results of its operations.

The goal of bookkeeping is to preserve a chronological record of all financial activity and transactions.

Accounting's goal is to assess and analyze financial data so that informed decisions may be made.

The goal of bookkeeping is to summarize the impact of all a company's financial transactions over a specified time period.

An accountant is a person who is in charge of accounting.

A bookkeeper is a person who is in charge of bookkeeping.

Accounting necessitates accountant abilities as well as understanding of numerous accounting practices and policies.

Bookkeeping is a clerical job. No special expertise or skill is required of bookkeepers.

The accounting procedure is used to create financial reports and statements.

The bookkeeping process does not include financial statements.

Accounting procedures and methods for understanding and analyzing financial reports differ by entity.

The accounting norms and concepts are followed during the bookkeeping procedure.

Questions to clear your doubts regarding accounting or bookkeeping

  • What is the size of your inventory?
  • How many people work for you?
  • What do you do for a living?
  1. Accountants are needed in industries that deal with sophisticated financial systems and high-volume transactions, such as government agencies, colleges, and hospitals.

  2. When it comes to expertise, a seasoned bookkeeper with years of experience is likely to be more suited to manage your company's finances than a fresh-out-of-college CPA.

  3. When sifting applications, keep this in mind: don't assess an applicant solely since their schooling.

Accounting & Bookkeeping Services in Dubai/ United Arab Emirates

Many regular accountants or an inexperienced accounting business to whom you have outsourced your bookkeeping and accounting services in Dubai or any other Emirate of the UAE cannot substitute the job of a well-paid expert accountant. You can never be sure of the decisions you make based on the accounting records kept by a regular bookkeeper. Intelligent businessmen do not cut corners when it comes to the quality of their accountants, just as they do not cut corners when it comes to their own lifestyle. They want to ensure that the data they're using to make critical business choices is "exact, complete, and trustworthy."

  • Compliance regulations in the UAE are becoming more stringent by the day, and no business owner wants to be saddled with huge fines for failing to comply.
  • The way great accounting firms or Smart Accountants build accounting records has a big impact on how well they defend themselves from non-compliance with the law in today's complex world of constantly changing rules and regulations.
  • Consider the recent improvements brought about by the UAE Government, as a member of the OECD Inclusive Framework, by enforcing the UAE's Economic Substance Regulations.
  • If a corporation based in the UAE engages in any of the relevant activities listed in these regulations, it must notify the government authorities.
  • The flow of accounting transactions of the Company with third parties, connected parties inside UAE or overseas connected parties, will play a vital role in the ESR Compliance Assessment to determine if a Company is undertaking the required activities of "Distribution and Service Centre Business."
  • Only a Smart Accountant understands how to handle and record the flow of transactions, as well as how to properly format the accounts for such a critical review.
  • A poor compliance evaluation here might land the Entity in serious danger, with significant fines and penalties.

UBO Predomination

The UBO proclamation is in the same boat. How would a typical accountant realize that a single-owner business is likewise subject to the Ultimate Beneficial Owner declaration? Except for government-owned enterprises and financial free zones, this declaration applies to all organizations registered in the UAE mainland and free zones (Dubai International Financial Center and Abu Dhabi Global Markets).

It doesn't stop there. As a business owner, how would you verify that your accountant is meticulously logging business activities in order to maintain VAT compliance? Can you avoid VAT penalties if your bookkeeping and accounting are incorrect? It is not uncommon for many businesses in the UAE to face fines in the millions of dirhams simply because their accounts team was unaware of the voluntary and mandatory VAT registration thresholds.

Why Dubai?

Due to its strategic location, varied economy ranging from oil to real estate to tourism, and home to a large number of big-scale international enterprises, Dubai has earned a reputation for creating vast amounts of wealth and drastically growing businesses. Dubai is a city where citizens live in luxury, have a lot of money, and have a tendency of spending a lot of money every day. Dubai has recently become a haven for entrepreneurs and SMEs, thanks to the opening of the Nasdaq Dubai Growth Market. Businesses always expand and prosper swiftly in such a trend in any city or country, and the same is true for enterprises doing business in Dubai.

  1. Due to its strategic location, varied economy ranging from oil to real estate to tourism, and home to a large number of big-scale international enterprises, Dubai has earned a reputation for creating vast amounts of wealth and drastically growing businesses.

  2. Dubai is a city where citizens live in luxury, have a lot of money, and have a tendency of spending a lot of money every day. Dubai has recently become a haven for entrepreneurs and SMEs, thanks to the opening of the Nasdaq Dubai Growth Market. Businesses always expand and prosper swiftly in such a trend in any city or country, and the same is true for enterprises doing business in Dubai.

  3. Your company's growth is constantly hampered by the amount of time you spend on operations. You're the expert when it comes to understanding the needs that drive your firm, yet monitoring every function is impractical unless it's a tiny operation.

  4. Entrepreneurs like you are extremely creative individuals with a wealth of brilliant ideas, but they are less concerned with the day-to-day operations of their businesses. They openly admit that, even if they are capable of doing the work themselves, their time is better spent growing the firm.

  5. To that aim, they hire specialists and then assign work to them. Accounting and bookkeeping services are one of those duties, and there is no better firm to outsource this process to than Dhanguard's Accountants, which has been named one of the finest bookkeeping and accounting firms in Dubai by Entrepreneur.

Account Packages Explained

Accounting and bookkeeping are essential functions for any company, big or small. Without dependable, accurate, and timely financial data, you can't function.

  • It is critical to keep track of your company's performance in order to make informed business decisions. Our fully qualified, professional accountants recognize the value of this, and they work relentlessly to ensure that this critical information is available when you need it.

  • We hire carefully to ensure that we have the best additions to our team; you can rest assured that they are talented, knowledgeable about the newest legislation, and always entirely correct. When it comes to our clients' financial and accounting management, nothing is more crucial.

  • We have diversified our financial services into distinct packages in order to achieve maximum client pleasure for every dollar spent. This provides a wide range of service optimization options, depending on how much money you want to invest.

  • Accounting and bookkeeping are essential functions for any company, big or small. Without dependable, accurate, and timely financial data, you can't function. It is critical to keep track of your company's performance in order to make informed business decisions.

  • Our fully qualified, professional accountants recognize the value of this, and they work relentlessly to ensure that this critical information is available when you need it. We hire carefully to ensure that we have the best additions to our team; you can rest assured that they are talented, knowledgeable about the newest legislation, and always entirely correct. When it comes to our clients' financial and accounting management, nothing is more crucial.

  • We have diversified our financial services into distinct packages in order to achieve maximum client pleasure for every dollar spent. This provides a wide range of service optimization options, depending on how much money you want to invest.

Cloud Accounting

SMEs and freelancers utilize it a lot. With internet connectivity, financial data may be examined from anywhere in the world. You can send the documents to us via e-mail, courier, or even regular mail, and our accountants will update your books online. By far the simplest, fastest, and most cost-effective technique is electronic collection.

Onsite Accounting

If you choose to perform all of the work on your own premises, our accountant will come to your workplace, gather financial data, and complete the accounting. Mid- to large-sized businesses frequently employ this service.

Back Office Assistance

Back Office assistance is one of the most popular solutions. Because of its affordability and access to the top talent at a fraction of the cost, this package is quite popular. Our back offices in Pakistan and the Philippines provide round-the-clock support to both domestic and international clients. They are also looking forward to meeting you and serving you.

Project Accounting

We started delivering project accountants to existing and new clients on a regular basis since a large number of our clients want project accounting services on a regular basis. A project accountant focuses on a single project, such as bank reconciliation, financial data migration, retrospective accounting, or general accounting for a set of data, for example.

Payables & Receivables Managements Accounting

Accounts receivables and payables administration are widespread in large corporations. In such a project, our team takes care of the following:

  • Before entering purchase/sales invoices into accounting software, they must be verified three times (Quote > PO > Invoice).
  • To ensure that business cashflow is appropriately managed, pay supplier bills only when they are due and chase customer receivables before due dates.
  • Overdue receivables are being pushed to debt collectors and then to the legal system.
  • Management receives a report on the status of debtors and creditors.

Reconciliation Accounts Assignments

Due to the large volume of transactions, reconciliation is a prevalent difficulty in large enterprises. Account reconciliation services are typically requested by our clients to include the following coverage:

  • Reconciliation of bank and cash accounts
  • Reconciliation of stock
  • Reconciliation of Debtors and/or Creditors

Accounts Reviewing

The client's in-house financial team prepares the accounts, which are subsequently evaluated by our specialist accountants. Our thorough bookkeeping ensures that financial information is accurate, full, and trustworthy for decision-making.

Accounting with a Personal Touch

Of course, we can combine any or all of the above in a way that is most beneficial to you. Whether you require our services on a daily, weekly, monthly, or month-to-month basis, we can tailor our services to meet your individual requirements. We are equally at ease addressing your part-time or full-time requirements. All you have to do is give us a call, suggest a timetable that would work for you, and we'll take care of the rest!

Our Experts will be delighted to pay you a visit, discuss the project, and gain a thorough understanding of your company so that we can tailor your service to your exact needs. You will not find a more dedicated bunch of people in all of Dubai who will make you feel like our top priority.

How can Dhanguard Help?

Because of our high level of coordination and devotion, our clients always have a high level of trust and confidence in our outsourced financial services. This is bolstered by our CEO's and Partners' involvement in the clients' operational accounting activities. Our customers come from many walks of life and work in a variety of industries, which is why they rely on our extensive accounting knowledge developed through years of experience in these fields.Finally, when you need expertise, experience, and economy all in one location, we are the only real option. Contact us today to get started on the path to better financial reporting.

Get Instant Advice

Accounting and Bookkeeping in UAE FAQs

  • What is Accounting?

    Accounting is the practice of keeping track of a company's financial activities. Summarizing, analyzing, and reporting these transactions to oversight authorities, regulators, and tax collection entities are all part of the accounting process.

  • What is Bookkeeping?

    Accounting is the practice of keeping track of a company's financial activities. Summarizing, analysing, and reporting these transactions to oversight authorities, regulators, and tax collection entities are all part of the accounting process.

  • What is the difference between accounting and bookkeeping?

    Accounting's foundation/base is bookkeeping. Accounting prepares financial reports and statements based on the information provided by bookkeeping. Bookkeeping is a component of the accounting system as a whole. Accounting differs from bookkeeping in that it begins where bookkeeping stops and has a greater scope.