A business book is a scorecard of your business that defines how you are doing. Being a good business, it’s your responsibility to stay one step ahead in the industry. Having accurate and up-to-date accounting records is the sign that shows the business is on track of success.

Small Business Bookkeeping Tips

Tips will help you to be skill full to manage the business process and increase the ability and knowledge to operate your business skill.

1. Separate Personal And Business Bank Account:- The business owner must have separate accounting for their business and personal account so that we can separate the business fund from the personal amount. Recording personal expenses transactions is a waste of time and energy. It becomes worse when you outsource for bookkeeping and get mixed with personal expenses. Always use the separate account and only record the business account transaction so that you can track your business cash flow easily. If you want money in your personal account then make the bulk transaction from your business to your personal account on a monthly and weekly basis.
   
   
2. Identify The Personal And Business Expenses - The business owner withdraws the money from the business account to the personal account to fulfill their needs, wants, and desires. The best practice is to choose the one fixed amount to transfer from the business account to the personal account on a weekly or monthly basis.  By doing this business account will be clean and tidy with only business transactions. It will avoid confusion between personal and business transactions.
   
   
   To reduce tax business owners should know and recognize what types of expense transactions can be claimed against the profit. 
   1. Those expenses that directly related to the business operation and producing income.
   2. Owner personal Expenses and etc.
   
   To know more about these types of transactions contact risians accounting and auditing firms.
    
3. Make Automate As Much As Possible.
   Use accounting software to save time and money. With software, you can goodbye the putting data into spreadsheets and manually action. The software records the transaction automatically in the right manner. While selecting the software, look at the storage, accessibility, and security. you must make a list of things that software must-have for your business. Don’t rush to buy the software and first perform your homework to find what software should be fit for my business.
   Applying automation in business means you are saving your time and energy by automation process. After automation, you will have time to focus on the business. Putting data into a spreadsheet and crunching numbers manually is an old and time taken method.
   
   
4. A Regular Check of Business Books -  Business owners should check the business book on a regular basis such as weekly and monthly in order to confirm that transaction is recorded accurately and timely.  Up to date information on accounts defines the business health, how business is going and etc.
   
   
5. Reminder for Deadlines - It’s possible for business owners to miss the due and last date of tax filing.   To avoid this, the business owner should set the reminder, can use the google digital calendar and any other preferred calendar, and fill the tax return on time. A business owner also uses reminders also for other important works. Complete work on time it’s a sign of success.
   
   
6. Track Business Expenses - We can forecast some expenses but it’s very difficult to predict unexpected expenses. But if you plan and plan for the expected and unexpected expenses then it will be beneficial for the business’s health. With the help of bookkeeping records, such as supplies, inventory, insurance, and utilities. We can easily predict the expenses that will happen in the future and prepare ourselves for them.
   
   
7. Give Priority To Your Accounting Books - As business owners, we have lots of tasks to do for running the business and forget to update the business books. To keep business on the success road we should give top priority to maintain the books.
   
   From day one we should record each and every transaction and organize the books in a proper manner.  If we avoid maintaining records timely and accurately then we push our business towards failure.  We should give priority to business accounts to keep them updated and keep reviewing the transaction for accuracy and transparency.
   
   
8. Ask From Accountant - Take assistance from your accountant to figure out this. Your accountant gives you advice on how to do it and also helps in setting up software and customize software as per your business needs.

If you have any doubt and query feel free to contact Risians Accounting. We will help you to set up a cost effective tailor made business accounting system for your business from which you can record each and every transaction systematically and focus on the business.

The European Union (EU) has blacklisted those countries that don’t have criteria to meet with EU fair taxation, tax transparency, and measurement of the (BEPS)   base erosion of profit shifting.

Economic Substance Regulations: In 2019, the UAE government has introduced the Economic Substance Regulation (Cabinet of Ministers Resolution No. 31 of 2019), in UAE for un-blacklisted from the list of EU.  After implementation of the Economic Substance Regulation (ESR) system, UAE has been removed from the list of blacklisted countries by the EU. On 10 August 2020, UAE cabinet Minister issued Cabinet Resolution No. 57 of 2020 Concerning Economic Substance Requirements. Which gives the revision set of  Economic Substance Regulations. For the implementation of the provisions of the economic substance requirement and Ministerial Decision No. 100 of 2020 on the Issuance of Directives was introduced on 19 August 2020. This decision also repeals and replaces Cabinet of Ministers Resolution No. 31 of 2019 and Cabinet of Ministers Resolution No. 58 of 2019. 

UAE Regulation Authorities 

VAT Deregistration means to cancel their VAT registration with FTA.  I noticed in the market there is a lot of confusion going on related to vat registration. Let’s understand about Deregistration. Suppose Business is registered under the VAT but businesses stop making taxable transactions. Then it’s mandatory for a business to cancel their registration with FTA (Federal Tax Authority). The business has to submit the application for deregistration  With the required documents to FTA, then FTA will cancel the registration. 

Deregistration is important as VAT registration and businesses should have a good understanding of which circumstances they should apply for deregistration otherwise they will get heavy plenty from FTA for late application for VAT deregistration. Businesses must apply for VAT deregistration within 20 business days of becoming eligible for  VAT deregistration. If a business gets late then has to pay AED10,000 plenty that is charged by the FTA.

The Tax payable business must know all the procedures of the  Deregistration. The expert advice of the best VAT consultancy services should be taken to know how to register or deregister. On time deregistration and in the right way prevents the plenties.

VAT Deregistration Eligibility

It is an online process. Businesses and individuals who are registered can apply for deregistration in two situations.

1. After registering with VAT If the business annual turnover is not above AED 187,500, They can apply for the Deregistration.
2. If a business is no longer dealing with the taxable supplies then they have to apply for the deregistration.

Under FTA guidelines Deregistration there are two norms for deregistration.

1. Compulsory VAT-Deregistration
2. Voluntary VAT Deregistration

Compulsory VAT-Deregistration

The business tax payable transactions are below the voluntary registration threshold limit. In this condition, the registered business and individuals become eligible for the Compulsory VAT-Deregistration. Businesses must apply for the deregistration to avoid the plenties.

Voluntary VAT Deregistration

The business applied for the Voluntary registration on 1st April after 12 months on 31st March business not made tax payable transaction equal to AED 187,000, The business and individuals shall analyze and evaluate the tax payable transaction for the next 30 days if the taxable supplies will exceed then they can apply for VAT Deregistration in the next 20 days.

Guide To Apply For VAT Deregistration

It’s an online process and easily accessible with the FTA portal. To apply for the VAT deregistration, Companies and individuals have to submit the application form to FTA along with required documents and the valid reason then FTA will verify the reason and documents and If the reason is valid then FTA will approve the Deregistration. FTA approves the status of the return, Outstanding tax Payment, and any plenty that is pending. If FTA found any outstanding and plenty then you have to clear them otherwise FTA will not approve the deregistration.

Deregistration For VAT Group

The Group vat deregistration is similar to the individual’s deregistration. There only Criteria apply for it.

1. VAT Deregistration approves when the group is no longer meets the considered conditions.
2. The tax status of the group may lead to tax evasion then the FTA approves the Deregistration 
3. If the constituent member of the company is no longer financially associated with the group.

Procedure of the VAT Deregistration

Step 1- You have to login into your FTA account. On the homepage, you can see the option of Deregistration.

Step 2 - Click on the Deregistration button then the form will open. Fill the form correctly and send it for review and approval.

Now you have applied for the  VAT Deregistration successfully. FTA will review the application and then confirm it. When FTA approves the Deregistration, you can check the status there will be pre-approved status at the place of the VAT Deregistration. Now you have to submit the final return, after that, you have to clear all the outstanding liabilities in order to complete the VAT Deregistration process. 

Hope this short guide helps you. If you have any questions and doubt feel free to reach risians accounting. Risians accounting is a certified and FTA-approved accounting firm in dubai. Allow us to take care of your business accounting, VAT registration and deregistration, auditing, and other accounting work.