If you’re a freelancer working in the UAE, understanding the regulations and importance of bookkeeping is crucial. By creating a financial roadmap and maintaining accurate records, you can achieve your financial goals and ensure smooth operations. Hiring a professional bookkeeping and accounting firm is the best solution to simplify these tasks. They can handle your records, track expenses, invoices, purchases, payroll, and more.
With an accounting professional, you’ll minimize mistakes, track your financial health, and stay compliant with UAE regulations. It’s important to note that freelancers earning over Dh375,000 per year must apply for VAT, while those earning between Dh187,500 and Dh375,000 have the option to register. Freelancers earning less than Dh187,500 cannot register under current laws.
Although VAT registration may seem burdensome, it offers significant advantages. Many UAE businesses prefer to work with VAT-registered freelancers, and some may not collaborate with unregistered ones at all.
To streamline your accounting process, start early and seek advice from a certified bookkeeper. Using online/cloud-based accounting software makes data sharing efficient and secure from anywhere. Schedule regular time to reconcile your books, as falling behind can be challenging to catch up on. If necessary, consider hiring a suitable bookkeeper.
Maintain records of essential aspects of your business, such as hours spent working for each client, business expenses, payments made and received (including bank transfers), and other key elements. Modern accounting software uses this information to generate accurate invoices, income reports, and identify your best and worst clients.
By taking help from a professional and qualified accountant in the UAE, you can avoid common pitfalls and keep your company on track towards profitability and compliance.
