Bookkeeping suggests the process of keeping track of all the expenses and income record of/ for a business or company. The reason why bookkeeping is focused so much on is that if you skip this step it is nearly impossible to do any kind of accounting and financing for the company as no one would know what kind of record they used to have. In order to have a clear understanding of accounting and bookkeeping services in Dubai let’s take a look at the two methods widely used:
- Double entry system
Double entry system is not used as much as the single entry because people believe that it is not as accurate as the single entry system. The main reason behind this is that it is very difficult for the upcoming generation to understand and when they are not able to understand then there are surely going to be many mistakes in the finances which no firm can afford. Other than that, double entry system is costly than single one as it requires more people and efforts to maintaining record of every single transaction. There are some benefits as well because when one understands this system thoroughly, they are able to easily monitor it with great accuracy.
- Single entry system
As suggested above, single entry system is highly preferred by most organizations and businesses for bookkeeping because it is not complicated or difficult to understand but instead you can simply manage it with the right knowledge. It also does not consume time like double entry system would because transactions need to be recorded in only one sided manner. Now that this skill is easy, you also don’t need hire such bookkeeping person or firm which will be very expensive. But just like every coin has two sides so does the advantages of single entry system. Because it is easy it does not mean that it is going to be error free. Other than that, it will be hard to understand the true profits and gains because there is no proper record of transactions on both sides. And when there is no proper record, there is a high chance of fraud and gambling as there would be nothing to double check the records with.
Don’t forget to hire VAT consultants in Dubai as well for your firm if you want the finances and records of your company to go out smoothly.