Are you thinking of establishing a new business in Dubai? Has a brilliant idea for a start-up made you restless? Have you begun the activities for setting up your business firm? Is there any possibility of commencing a business venture anytime in the future? If your answer is “yes” for any of the above questions, this article is for you. This article will elaborate on the aspect of paramount importance for any start-up or business firm, accounting.
Every business must have a dedicated team for accounting irrespective of the size of the business. Else, you may use accounting services for bookkeeping, audit, accounting, tax audit, VAT services, and CFO services. Accounting is the mainstay of any business. A business cannot be successful without a proper accounting system in place. Behind the growth of every business organisation, is a team of accounting professionals, who have analysed, calculated, and ascertained the financial conditions. And strategized the business accordingly.
Being a new entrant into the business world, you may be confused about the basic tips for accounting. The steps towards ensuring proper accounting are discussed in the succeeding paragraphs.
Transactions through bank only
All your transactions must be routed through the bank. Open a dedicated bank account for your business. Use the credit/ debit card of the account for all the business transactions. As the transactions are recorded, you will get an idea about the expenses on a single click.
You can use the bank statement for recording the money outflow and inflow. This will aid in calculating tax and filing tax returns. Being at the helm of the firm and monitoring every activity for setting up, you may miss out to make note of all the expenditures. The bank statement is the answer to all those issues.
Commence proper bookkeeping
Bookkeeping is an unavoidable activity for the growth of any business organisation. Open proper records, registers, and ledgers for maintaining records of payables, receivables, etc. This is essential for monitoring the financial health of the organisation. In fact, you must begin bookkeeping even before you start business operations. Thereby, you can calculate the expenditure for the establishment of the start-up too.
Use the latest software/ cloud-based applications for ascertaining financial statistics
There are advanced software technologies available for accounting, monitoring, and following up on financial deals. You and your accounting team can make use of cloud-based applications and software. Thus, the information about your company’s financial statistics will be handy. And you will be able to access it from anywhere.
The latest technology software comes with additional features. Those are aimed at reducing human efforts for accounting. Use technology to advance your business accounting to the next level.
Formulate a timetable
Prepare a timetable for undertaking tax audits and calculations. This will help you in filing tax returns in time without fail. Further, a team may be selected for conducting tax audits and inspecting all the original documents/ bills and certificates. The FTA team can arrive at your doorstep anytime, without any prior intimation. You must be prepared to submit the tax returns and requisite documents to them.
On the other hand, it is advisable to conduct a financial inspection without any prior notice. Thereby, you can examine the financial transactions and ensure that no fraudulent acts are going on in the company. The team selected for financial inspection must credible and reliable.
Outsource Accounting, auditing and bookkeeping
It is better to outsource all the audit, accounting, bookkeeping, tax audit activities to an accounting and auditing firm in UAE. Since you are a start-up or new business, the inexperience can cause you a lot. The outsourced firm, with professionals from the accounting field, will be of great help.
They will undertake all the inspections, tax audits, and accounting of your firm. Analysing your business model, financial management, and business strategy, the outsourced firm will be able to guide you regarding the best way ahead.
As the professional accounting firm has several years of experience, they will be instrumental in augmenting the growth of your business. Their insightful tips will be of great advantage for the expansion of your firm.
Ascertain future requirements and act accordingly
Business is a game with its risks. Any unforeseen circumstance can jeopardize your firm. That may include changing business trends around the world, the introduction of better technology than you provide, widespread of a pandemic and subsequent slowdown in sales, and many more.
You need to be prepared for such circumstances. Always calculate the risk before entering a new field or thinking of expanding into new areas. Rather than pumping in all the profit from the business for new projects and taking sumptuous loans from banks, better to keep some amount in savings. Never be overconfident about your decisions and capabilities.
With perfect accounting tools and support from professionals, you can be a winner in the world of business. A proper accounting of financial dealings is compulsory. A firm idea about your financial health only enables you to make confident decisions.