In this article, we will describe five advantages of starting a business in Dubai within the accounting and bookkeeping sector. The growth in new companies and the introduction of VAT in the UAE has created an opportunity for one sector in particular – accountants and bookkeepers. Bookkeeping and taxes present some of the biggest challenges that rookie and established entrepreneurs face.
One of the critical aspects to keep in mind is that the line between accounting and bookkeeping is diminishing. With the advent of accounting and bookkeeping software, some parts of accounting are now absorbed into the bookkeeping process. At the same time, bookkeeping software is now capable of generating financial statements which were earlier part of the accounting process. While we appreciated that the two fields are different, the basic principle of this article is that both are an integral part of any business in Dubai, and they both present an excellent opportunity for entrepreneurs in Dubai
Regulatory Changes Lead to a Surge in Demand
In the past, many jurisdictions in the UAE required no formal set of accounts or financial reporting of any kind. Naturally, many entrepreneurs did not feel that they needed to keep a precise set of accounts and did business mainly in an informal manner. This lack of proper accounts as per international standards is now posing to be a significant problem.
Thanks to increased commitments by the UAE in the fields of anti-money laundry or due to the imposition of VAT, most jurisdictions have shifted to requiring businesses to routinely submit a set of accounts as well as external audits. This has been a massive boon to accountants and bookkeepers.
VAT Presents a Huge Opportunity for Accounting Bookkeeping Business
The VAT is a relatively new concept for the region and the country, since 2018, people who are not familiar with it have turned to external bookkeeping and accountants for advice. Many businesses require their returns to be submitted every three months. Thousands of small businesses don’t have the internal resources to maintain their accounts as per international standards; this is where external professional business services can step in to assist them.
As business incorporation specialists, we often encounter entrepreneurs who are specialists in their respective fields but have no clue how to run the software needed to report things such as turnover to the VAT authorities. Instead of delving into an area they have no interest in, they instead use the services of a professional.
Costs for Starting a Service Firm have Reached All-Time Lows
With the growth of free zone jurisdictions in the UAE, the increased competition has dropped the prices of starting a new professional services business. Since accounting and bookkeeping can be done without the necessity of a formal office, the initial setup costs are minuscule in comparison to the past.
Many professionals who provided the same services within multinational firms, instead choose to take advantage of low start-up costs and go into business on their own. Lower upfront costs mean that you can achieve profitability quicker while focusing on marketing and other aspects to grow your business.
Access to a Talented Workforce
With local and regional universities churning out graduates at record levels, it has never been easier to access a skilled workforce at a reasonable cost. Similarly, the Dubai lifestyle attracts some of the best accountants and bookkeepers from around the world. With many companies conducting business across subsidiaries in various jurisdictions, you may need seasoned professionals who are accustomed to a variety of accounting practices, and it is easy to find such professionals in Dubai.
Economic Growth and Development Linked with Accounting and Bookkeeping
Between now and 2030, Dubai is set for an unprecedented level of growth driven by an increase in domestic consumer and governmental spending along with foreign investments. The growth and development of every economy hinge on how resources are prudently managed and increased.
Accounting can play an important role in cost savings, and this is the backbone of economic development and growth. Knowledge acquired from cost accounting is the most potent tool that external firms can give the management of a firm.
In summary, businesses of all sizes are set to make use of external services companies in the accounting and bookkeeping sector in ever-increasing numbers over the next decade. Please speak to one of our consultants for free on how we can help you achieve your dreams by launching your business today!
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