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Advantages of Using Accounting and Bookkeeping Services in Bahrain

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Accounting and bookkeeping are two very integral processes in business strategy. The performance and subsequently the reputation of a company can be negatively impacted if business books are not managed appropriately. As a new business owner, it is imperative to keep a track of the financing and accounting operations of your company. In this area, finance and accounting outsourcing can help an upcoming company to establish its processes properly. Since businesses and enterprises have been continuously increasing in Bahrain over the years, the need for accounting and bookkeeping services in Bahrain has also seen a rise.

Advantages of Accounting and Bookkeeping Services in Bahrain

Whether one is looking for support in a specific accounting area, need someone to manage payroll or provide VAT consulting, want assistance in producing better management accounts, or find accuracy in budgeting and bookkeeping, there are a lot of accounting companies in Bahrain that can help in streamlining your business. Accounting experts can provide business executives with the right guidance and advice that they will need to keep their company in compliance with all the new regulations that are implemented in the Kingdom of Bahrain and how the changes will affect the management.

Why Avail Outsourced Accounting and Bookkeeping Services?

Outsourced bookkeeping services are of particular value for small and medium-sized organisations. Finance and accounting outsourcing allows the management to ease their calculative burden and focus on the development and expansion of the company. Having an updated and accurate record of all financial transactions brings clarity to the business operations and lets us make a precise roadmap of which area of the organisation needs more attention.

Moreover, according to Article 286 of the 2001 Bahrain Commercial Law, all companies and businesses in Bahrain have to maintain proper books of their accounts. It is necessary to maintain proper account books and annual financial statements according to the rules set by the Ministry of Industry and Commerce (MOCI). The financial records need to clearly specify the company’s balance sheet, its profit and loss account, the profit distribution, etc. All of this would reflect the financial position of the company.

Since there are specific and exacting rules for almost all foreign companies, including limited liability companies and corporations, it is always advantageous to utilise the expertise of outsourced bookkeeping services that provide industry experience and insight as well as act as VAT advisors if necessary. Depending on the type of industry a company deals in, its annual financial statements can be audited by different regulatory agencies such as the Ministry of Commerce’s Directorate of Commerce and Company Affairs, the Bahrain Monetary Agency (BMA), or the Bahrain Stock Exchange.

High Accounting Standards in Bahrain

In the Kingdom of Bahrain, high quality global accounting standards are followed, and businesses have to conform to the International Financial Reporting Standards (IFS). As part of this commitment, the Bahraini government has passed Article 219 of the Commercial Companies Law of the Kingdom of Bahrain (Decree-Law No 21 of 2001) which requires the auditor to mention that the financial details and balance sheet furnished by the company conforms to all the rules and regulations laid out by the government. To ensure that all the regulations, rules and customs are followed on time, it is a good idea to choose accounting and bookkeeping services in Bahrain as they keep up with the market standards and are reliable.