Why accounting software is needed in UAE post VAT?
Since introduction of VAT in January 2018, businesses in UAE and Saudi Arabia, are being compliant and keeping their accounting and financial systems up—to-date. In case, companies fail to do so, they are subjected to penalties, under Section 25 of Federal Law No.7.
Government has clearly stated that a business owner is solely responsible for adhering to all VAT requirements. To be VAT compliant in UAE:
- Businesses need to configure necessary changes to their financial management processes
- Book-keeping software and accounting staff of their company needs to fulfill all the requirements so that FTA can have better understanding of the business activities and can review the transactions
- All tax paying businesses must file VAT returns on a regular basis
- Important records to be kept include invoices, credit notes, debit notes
If you are fulfilling all the above requirements, you are VAT compliant! Now, here comes an interesting question!
What tools will help a business stay VAT Compliant?
For this, we need to, at a bare minimum have a basic accounting software that is specifically designed to assist with VAT filling!
Certainly, staying VAT compliant is not an easy thing, especially when your processes are separately managed with no integration between them. For instance, your inventory management, order fulfillment and accounting are running as separate programs, there are more risk of manual errors and tax penalties.
The best solution is a cloud-based accounting application that can be subscribed on a monthly / quarterly / yearly basis (“SaaS” model) without incurring any major hardware or infrastructure investment. This truly is your benefactor!
It is a comprehensive accounting software, which can manage accounting and inventory needs, irrespective of the size and nature of business.
- Financial Workflows are highly configurable, flexible and adaptive to any business environment
- Developed on platforms that are robust and scalable
- Calculates VAT automatically by adding 5% VAT (or any other tax calculated) in your invoices
- In-built advanced bookkeeping feature that takes care of all your accounting related VAT requirements
- Streamlining your invoices by sending customizable statements to clients
- Helps you keep track of all your sales tax across all sales channels (from retail stores to ecommerce platforms)
- Keep a track of all your inventory in real-time, fulfills your orders automatically and integrates seamlessly with all your business applications.
Understandable, affordable and intelligent accounting software that fulfills all your business accounting needs. Liberates you from the stress of VAT issues, helps you discover newer and better opportunities to improve your revenue.
Whether you are a big or a small company, you can easily choose a cloud-based accounting software to make your accounting more organized and fully VAT equipped. Technoid can help you get there! We have in-house technical and financial expertise to implement highly productive, highly efficient accounting software that streamlines every process and help your business prosper. We are efficient in implementing low cost accounting software applications such as Quick Books Online (QBO), Sage One and Tally. We extend our niche to also configuring and customizing high end ERP financial systems such as Dynamics 365, Sage X3 and Epicor ERP.
Technoid basically help you simplify your processes, so you can focus on the running of your business!