Accounting and bookkeeping are an integral business element that gets implemented internationally. The performance of a business entity can be easily traced with the business books appropriately maintained. As a fledgeling business owner, it is essential to keep a track on the accounting move. However, letting it pile up can lead to cash crunch it results in a business missing a critical window in controlling. On the other hand, appropriately maintaining the same helps to ensure that the company will run more effectively daily.
Over the years, the company formation services in Bahrain has been continuously increasing, which has proportionately increased the demand for accounting and bookkeeping service. This guide focuses on outlining the basics of accounting and bookkeeping service, and how to utilize it in the best possible way to drive your business.
What is Accounting and Bookkeeping Service?
In business terms, the recording of business transactions is referred to as the bookkeeping process. Whereas, analyzing these transactions and figuring out the respective insights is accounting. However, numerous micro-tasks need to be taken care while dealing with the accounting and bookkeeping records which hold:
- Maintaining the correct data
- Preparation of income statement, Profit and Loss account
- Having a continuous check on the cash flow statements
- Keeping a check on the statement of retained earnings
- Verifying and tallying the Balance Sheet at the end of the financial year
- Maintain precise records to ease the audit process
- Reconcile the business accounts
- Maintain a clear record of the Tax/ VAT paid
Why to Avail Accounting and Bookkeeping Services?
By now, you must have got an idea regarding the different aspects that need to be looked into while preparing the business accounts. Starting a business in Bahrain mandates the implementation of the accounting process. Now, proceeding ahead, let’s have a look at the benefits of implementing the same in the office premise.
Accounting and bookkeeping records will help you to get a clear picture of your business financial performance. Tracking this growth will help you to foresee the business future and make the necessary investments on time.
2.Facilitation of Decision Making
Once you are well-versed with the insights of accounting and bookkeeping records, you can take the business decisions accordingly. Being aware of the capital that your business hold will help you to make decisions on purchasing inventory or hiring workforce.
3.Safeguard Against the Financial Malpractice
If your financial books are maintained daily, fraudulent charges and illegal practices can be checked and caught quickly. Also, the cheques can be prevented from bouncing, and it can be ascertained whether you have sufficient capital for making payments.
4.Monitor Business Growth
Monitoring the business growth turns out to be an easy process with the help of transparent accounting and bookkeeping records. Business owners can initiate the plan of either expansion based on the performance highlighted in the business books.
What is the Process of Accounting and Bookkeeping in Bahrain?
The Kingdom of Bahrain follows the International Financial Reporting Standards (IFRS) while preparing the accounting and bookkeeping records. The Bahraini Government mandates the business entities to make the financial statements, which are set by the Ministry of Industry and Commerce (MOIC) and is regulated by the Company Affairs Directorate of Bahrain.
The process of implementing the accounting and bookkeeping service in Bahrain involves minimal steps. At Business Setup Worldwide, we make the process transparent and straightforward for you.
- Provide the relevant documents
- An assigned bookkeeper at Business Setup reviews the documents and carries out the required procedures
- You can access your financial documents, reports etc. anytime, anywhere.
VAT Implementation in Bahrain
Being a part of the GCC forum, the Bahraini government has implemented the Value Added Tax (VAT) at a standard rate of 5%.
- Companies operating within the oil, petroleum exploration, extraction or refining are set free of taxes.
- The municipality tax for Bahrain stands at 10%. This gets levied on the commercial and residential properties held the expatriates.
- A charge of 2% stamp duty gets levied on all sales and registration of the real estate
- With imported goods, a customs duty charge of 5% gets implied
- The following taxes are exempted as per the Government Authorities:
- Capital Gains Tax
- Payroll Tax
- Withholding Tax
Why to Avail Professional Services?
Accounting is a crucial task to deal with. At the same time, it is essential that the data has to be accurate for the business to understand the gravity of profit and loss faced. Having a word with accounting consultant in Bahrain can ease the process, as the accounting firms in Bahrain can help you in the following ways:
- Keep a track on the daily business transactions
- The business books will be updated on time
- Any errors present in the existing books will be rectified
- Aid with relevant business strategies
- Error-free records help the business stakeholders to invest
- Enhances the business goodwill
Here’s a guide that explains why bookkeeping and accounting is crucial in Bahrain.
How Can We Help?
Business Setup Worldwide is well-versed with the company establishment process, and the pre and post requite of a business entity. Since inception, we have been helping numerous business owners to start their business across various locations, and we stand as one of the top business consultants in the UAE. Accounting practice in Bahrain is one of the mandatory tasks, and our experts are well-versed with the process. In case you want to have a word, do contact us today-we’d be glad to assist.