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Bookkeeping and accounting records are mandatory in the UAE.

As per International Financial Reporting Standards, businesses in the UAE will maintain accurate bookkeeping and accounting records. Federal Law No. 2 of 2015 states this in business practices relating to bookkeeping, accounting, auditing, and record-keeping. Proper record-keeping is not only required by law it is also a useful tool for making decisions, keeping an eye on performance, and keeping track of progress.

How long should we keep accounting and bookkeeping records?

  • Every company will keep its accounting and bookkeeping records in its head office for at least five (5) years after the end of its financial year, according to Federal Law No. 2 of 2015 of Commercial Companies.
  • This contains every document, account, and receipt required to demonstrate the business’s accurate and fair financial situation. However, it is best to keep these records for a longer period of time in case a legal issue or audit arises.
  • In line with the Ministerial Decision Rules, the company can keep cloud accounting, and the original papers and records are kept and placed.

What is the legal framework of account records and bookkeeping?

The Federal Law No. 2 of 2015 on Commercial Companies (CCL) is the main law that says how records must be kept in the UAE. The CCL refers to all businesses that are set up in the UAE. This includes limited liability companies, joint-stock companies, and partnerships. The law says that all commercial businesses must keep accurate and up-to-date records of their financial transactions, accounting books, and other related documents.

Record-Keeping Requirements:

The CCL sets out the following record-keeping requirements for commercial companies in the UAE:

Accounting Records: All businesses need to keep accurate accounting records, such as books of accounts, invoices, receipts, and other papers. These records must be correct, complete, and up-to-date, and they must show the company’s financial situation, performance, and cash flows.

2. Financial Statements: Every year, commercial businesses must make and keep a balance sheet, an income statement, and a cash flow statement. These statements must be made according to the International Financial Reporting Standards (IFRS) and reviewed by a qualified auditor.

Board Meeting Minutes: Commercial companies must keep a record of all board meetings, including votes and decisions.

Shareholders Meeting Minutes: All resolutions and decisions taken at board meetings must be written down in the company’s minutes.

Contracts and Agreements: Businesses must record all lease, service, and hiring agreements.

 Tax Records: Businesses must keep records of all tax-related activities, such as tax returns, tax invoices, and payment of tax receipts.

Employee Records: Businesses are required to keep records of their workers, such as contracts, salaries, and benefits. These files need to be kept secret and safe.

What are  penalties for breaching UAE record-keeping laws?

  • If you don’t keep your records as required in the UAE, you could face
  • Fines.
  • Jail time.
  • Suspension or loss of your company’s license.
  • Also, not having the records required can hurt the company’s reputation and make it harder for them to do business in the UAE.

 As per law, all businesses need to maintain records in the UAE.

if you don’t keep records as required, you could face serious penalties. Because of this, it’s important for companies to make record-keeping a top priority in their business processes.

What advantages do accounting and bookkeeping records offer?

  • Take charge of the business and keep full control of it.
  • Maintaining accounting records helps with managing and analyzing money better.
  • Keeping records will help you communicate with business partners, banks, and possible funders.
  • It makes it easy to do your taxes.
  • It helps you better control your cash flow.
  • The process of planning your business is easier when you keep the books.
  • Keeping accounting records lowers the chance of losing money.

Why Highmark Accountants for bookkeeping and accounting records?

  • Don’t worry if you’re undecided about how to start or take your finances more seriously. The Highmark team realizes how to best help you.
  • Our experienced bookkeepers in the U.A.E. provide comprehensive accounting outsourcing services.
  • Team Highmark’s goal is to provide a smooth and easy process for our clients.
  • The business owners will feel confident and comfortable with Highmark
  • Having an accountant in the UAE is not enjoyable.
  • Hiring Highmark accountants to do your accounting will provide you with multiple benefits, including.
  • Focus your time on extremely important work tasks.
  • We offer affordable accounting prices.
  • Highmark’s experienced chartered accountants are well aware of the rules and laws of international financial reporting standards (IFRS).
  • Keeping books using cloud methods

For your queries, approach us at +971557309266 or +971524286632

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