Establishment of a business is very exciting for an investor but keeping a record of all the financial activities performed and the performing all the other duties as an owner can be a little difficult to handle. As your business grows, the responsibilities become more complex and time-consuming. The owners who think that they can manage the financial aspects of a company and do not give much importance to accounting and bookkeeping can end up in much trouble.
Accounting and bookkeeping are significant for business. It helps in keeping track of all the business activities conducted by the company and to properly allocate the resources to the proper segment of the industry. With an increase in the number of companies in Oman, this service is highly required in the country.
To know more about the about services of accounting and bookkeeping, keep reading the article.
The Need for Accounting and Bookkeeping Services
Bookkeeping and accounting are used interchangeably, which is a wrong practice. These both have distinct identities and complement each other but are not the same. Bookkeeping is the process by which you keep track of all the financial activities your company does whereas accounting is the process of analysing and summarizing the data received by bookkeeping. One would need these services for the following reasons:
Clear Financial Picture
A clear financial picture helps the business stakeholders to a great extent. Availing for accounting and bookkeeping services will give you a clear picture regarding the company’s financial transactions, and stability. It ultimately helps in understanding the way cash flows into the organisation.
Allocation of Budget
Now, a clear financial report will help you to understand the allocation of your estimated budget. It provides data which will help the company to grow at a faster pace and allows flexibility to increase or decrease the budget at any point of time.
Acts as a Time-Saver
Accounting and bookkeeping help business investors to save time and allows the chance to focus on the critical agenda of the business. Proper arrangement of the book of accounts will help to minimize the effort in finding essential information, ultimately acting as a time saver.
Secure the Entity’s Future
With proper accounting and bookkeeping service, we can monitor our books daily which will in turn help check for any fraud or suspicious activity and stop any harm from happening to our business.
Improved Decision Making
With all the data quickly available and easily understandable, it will be easier for you to take business decisions.
Major Changes in Omani Tax
The tax laws of Oman saw significant changes from the previous laws when the Royal Decree 9/2017, issued on 19 February 2017 and as then published in the Official Gazette on 26 February 2017. The significant changes that that were published are given below:
- According to the decree, there was an increase in the tax rate of 3%. The rate increased from 12% to 15% for the financial year.
- Micro businesses now had to pay taxes at a flat rate of 3%.
- The standard benchmark of OMR 30,000 which was previously considered tax free was removed.
- If any foreign person or entity was paid any interest or any dividends on the shares, they are taxable under withholding taxes at a rate of 10%.
- The definition of income now includes fees for services and such fees is also included under withholding taxes at a rate of 10%.
- This orders the ministries and the other bodies of the government to start paying taxes.
- Tax exemptions have been removed medical care, education, fishing, agriculture, hotels, tourist villages etc.
- The limitation of 5 years has been placed for the various manufacturing companies.
- The government has introduced “Tax Cards” which must be used for all the contract, invoice and correspondence by the companies.
- The clause of self-assessment has been added in the decree. All the individuals or companies must first assess themselves and then file for the tax accordingly.
The publication and the amendment to the tax law will fetch more revenues from non-oil sources but would require a keen eye on all the business activities of the company. One miscalculation or a missed transaction can cause a lot of harm to your business.
So if you have already set up a business in Oman or are have plans to establish one, bookkeeping and accounting is an essential step for you. You can tackle the bookkeeping and accounting of your business all by yourself, but it’s a very time taking a process and needs a lot of focus. It would be recommended that you let the professionals take over the work so that you have enough time on your hands to focus your energy on the other parts of the business.
We at Business Setup Worldwide can you by providing you with the accounting and bookkeeping services and save your time and energy. We also provide other assorted services such as corporate secretarial services, intellectual property services, tax services, etc. which would help you and your business in the future. For any help or assistance do contact us, we will be happy to help.