Accounting For Tobacco And Cigarette Manufacturing Industry in Dubai

Broadly speaking, the term "tobacco industry" covers companies that manufacture cigarettes, cigars, snuff, chewing tobacco, and pipe tobacco.

A significant array of both domestic and international cigarette companies is based in the United Arab Emirates. Manufacturing cigarettes is a quick and highly automated procedure.

However, it’s difficult to run a tobacco and cigarette manufacturing business and keep track of the accounting at the same time. This is where outsourcing accounting and bookkeeping comes to the rescue.
 

Accounting and Bookkeeping

Although the basics of accounting and bookkeeping are the same, accounting has a wider range of applications than bookkeeping. However, both are crucial activities that every company must carry out. They establish the framework for assessment, act as the basis for managerial decisions, provide shareholders and the government with key financial data, and ensure compliance with UAE tax laws.

With the transforming scenarios in UAE, bookkeeping and accounting are now more essential than ever. In accordance with the provisions of the UAE Commercial Companies Law, Federal Law No. 2 of 2015, every business must maintain accurate books of accounts and engage a registered auditor to have those books of accounts examined annually. The new tax system, the implementation of VAT, and many other compliances that raise the standard for maintaining financial data and compliance.
 

How Accounting can be enhanced in a Manufacturing Business?

The second-largest contributor to economic growth is the manufacturing industry. The necessity for close monitoring in the manufacturing sector is ongoing because of the dynamic business environment.

Comprehensive, effective, reliable, and timely accounting and bookkeeping can help the manufacturing business in many ways. It can be better enhanced if we follow:

• Keep separate accounts for personal and professional use
• Keep accurate records of each expenditure
• Keep a database of the funds spent on promotional/marketing activities
• Employing an internal accounting staff
• Seeking to outsource services
• Make use of cutting-edge manufacturing accounting software
• Elimination of bottlenecks and excess inventory using a perpetual inventory system
• Uses internal control methods to prevent fraud and mistakes
   

How Bookkeeping and Accounting services are an aid to tobacco and cigarette manufacturing companies in UAE?

Tobacco and cigarette manufacturing companies in UAE are working constructively to meet all regulatory requirements and establish a robust foundation for growth.

Meeting the law of the land, the interest of the company, and other users and prospective users of the financial statements of the company with respect to accounting and bookkeeping.

These services help you maintain compliance with the law in all aspects. A group of skilled individuals with years of experience, who are well-versed with Dubai and UAE’s accounting and bookkeeping laws as well as IFRS and other worldwide accounting standards is of great help to businesses.

They prepare structured accounting records that are comprehensible, effective, and reliable, helping to determine compliance.

A strong accounting and financial system are the foundation of every business. In order to give business owners real-time data for informed choices, a sound accounting system makes sure that an organization's commercial transactions are accurately recorded, reliable, and efficient.
 

Rules and regulations governing the tobacco industry in the UAE

In 2017, the UAE imposed excise taxes on a number of products that are considered bad for the environment or human health.

Schedule 24 of the GCC Common Customs Tariff lists tobacco and tobacco-related products among them.

Federal Law No. 15 of 2009 for Tobacco Control further prohibits and punishes the sale of sweets that resemble tobacco products, automatic vending machines, and devices for tobacco distribution within the sovereign country, tobacco advertising, and smoking in closed public spaces.

Smoking in personal transport when a child under the age of 12 is present.
 

What are the benefits to tobacco and cigarette manufacturing companies when they outsource bookkeeping and accounting services in UAE?

Cost accounting is heavily incorporated into the manufacturing industry. The purpose of cost accounting is primarily to facilitate different types of internal analysis.

It is more difficult to grasp how changes in your operations affect your manufacturing bottom line when accounting is not customized for manufacturing tobacco processes. Some of the benefits of outsourcing are:

• Reduces the administrative burden
• Cost savings
• Accuracy
• Compliance with the law
• Time and resource savings
• Adherence to IFRS
• Professional expertise
• Expert’s opinion
• Custom-tailored services
• Aids in decision making
   

Since accounting enables you to determine what your manufacturing costs are, optimizing the operation is crucial to cost reduction.

Technology-driven specialists endeavor to comprehend the intricacies of your firm. The outsourced organization provides tailored solutions to your demands and comfort level.

Accounting and bookkeeping services in Dubai, United Arab Emirates are of high quality/expert.

The outsourced organization not only provides a wide range of bookkeeping and accounting services throughout the UAE but also customizes solutions based on the relevant regulations.