The term bookkeeping services refers to the task of preparing financial reports, including income statements and balance sheets, and maintaining accurate records of financial transactions. In general, bookkeeping services in Dubai consists of preparing bank transactions and maintaining accurate inventories of goods and services offered by a business. In addition, it also includes other core responsibilities such as creating policies for tax filing and developing internal controls related to cash management. Therefore, if you are planning to get your own bookkeeping service, it is important that you learn the basics of how it works. In this article, we will go into more detail on bookkeeping and accounting services so that you can decide whether you need to employ a professional for bookkeeping and VAT consultancy in Dubai or can manage them on your own.
Most bookkeeping services tasks relate to preparing and maintaining accurate financial statements at the end of the year. These financial statements show the operation and progress of the business, including expenses, sales, income, and payments. The preparation of these statements is usually based on the information recorded in the income statement along with the bank reconciliation data, invoices and receipts. Invoices are the expenses incurred during the course of a year, while receipts are the purchases made by the company and payments made to customers.
One of the primary responsibilities of a bookkeeper is to maintain accurate ledgers of financial transactions. In order to do this, he must be capable of generating reports from the various financial transactions he monitors, such as credit card bills, bank deposits, inventory purchases, sales revenues, and payroll payments among others. Because bookkeeping services involve the generation of reports, the bookkeeper must be highly organized, accurate, and thorough in his daily task. As the name indicates, the bookkeeper is in charge of tracking all financial transactions and maintaining accurate records; therefore, he needs to be very skillful in his job.
The scope of bookkeeping services involves a wide range of activities. The most common is recording financial transactions, which includes recording salaries paid, debit and credits created, and bank deposits, among others. Some companies use the services of an accountant, who is responsible for developing accounting procedures and reports pertinent to the company’s business. Bookkeepers also record the purchases, sales, receipts, and expenses of the company’s employees and its clients. In addition, they create reports pertaining to the operations of the company and prepare reports for management.