The first few years of running a business will always keep you on your toes. As the owner of a startup, you are responsible for running the business successfully. Every area of the business calls for your undivided attention.
Managing all of them simultaneously will negatively affect the quality of the work and performance of the company. In all of these situations, you may end up overlooking the importance of accounting.
If reading numbers is not your forte, you need a team of expert and skilled accountants to do the job for you. Mismanagement of financial records can affect your business adversely.
No matter how adept you are at running the business, you cannot keep it afloat when your pockets are empty. Whether you believe it or not, accounting is crucial for the success and survival of your business.
Essential Accounting Tips for Startups in Dubai
Here’s a list of essential accounting tips for your startup in Dubai:
- Know the Law
The first step towards running a business successfully is to know the law that applies to your area of business. You will never acquire requisite skills for accounting, until and unless you don’t understand its importance. Some of the questions that should be answered by you are:
- When do you need to file your taxes?
- How can you record your revenue, profits, and expenditures?
- Whether you need copies of invoices or not?
- Why do you need the copies of invoices?
It’s always better to play safe by preparing beforehand than to regret your actions when tax season is approaching.
- Put Personal and Business Expenses Apart
You do know the importance of separating personal life from professional life. Same applies to expenditure in personal and professional life. Startups are usually short on cash in the first few years.
Hence, you need to tread carefully. If you use money from a single account, it can be disastrous. It would help if you tried to maintain separate bank accounts for both. It will help you in keeping track of all your business and personal expenses separately.
- Keep a Watchful Eye on Expenses
If you do not wish to run out of funds, keep a watchful eye on your business expenses. Most of the time, simple tasks of treating employees for lunch, purchasing expensive office stationery, etc.
Can put a strain on your pockets. Use a credit card to pay as and when needed. You can review the expense sheet at the end of the month and avoid the hectic task of sorting through many receipts.
- Hire a Professional
As you spend more time learning the intricacies of running a business, you will become good at accounting. But you cannot rely upon yourself solely to look after the financial aspect of your business.
It’s so because many other aspects of your business will also demand your attention now and then. Moreover, when you start expanding your business, you won’t have the time to deal with finances. If you don’t wish your finances to suffer, it would be best if you hired a professional.
A professional may not need to work every day of the month. He can contribute a few hours every week, and your job will be done.
These are some of the bits of advice that you should follow if you wish to run your business successfully. The list is not complete.
There’s more to it. Some other essential accounting tips are – set future goals, manage inventory records effectively, automate manual tasks, create budgeting and forecasting scenarios, use accounting software, have cash on hand, create and stick with a budget, learn the basics of accounting, know what you do not need, find a balance, etc.
How outsourced accountants can help startups in Dubai
If you still have trouble dealing with finances, there’s a way out. It would be best if you considered outsourcing accounting services in Dubai. It’s time and money consuming to hire accountants. You may not even be able to afford the skilled and experienced ones due to the tight budget.
On the other hand, you can always go to outsourced accountants in Dubai. Some of the reasons for considering accounting services for startups in Dubai are as follows:
Outsourced accountants deal with a considerable number of clients day in day out. They tackle different challenges every single day. It makes them more experienced than in house counsel. Their level of expertise is bound to benefit you in the longer run.
Outsourced accountants are very particular about their reputation in the market. They know that spoiling relations with one client can affect their relationship with existing and prospective clients.
Hence, they are meticulous while preparing the client’s financial record. You wouldn’t have to worry about silly mistakes or any such thing because that’s what they will get paid for.
Hiring an in house counsel can be expensive. They may not be properly trained, they may not have the requisite qualification or experience, and they are more likely to commit mistakes while preparing your financial record.
But hiring an outsourced accountant can help you in cutting costs on unnecessary expenditures. You have to pay him/her only for the task that he/she performs, not a penny more, not a penny less.
- Sound Advice-
Outsourced accountants can warn you about the impending financial crisis. An in house counsel may not be so astute. But outsourced accountants can guide you through the financial crisis and help you cut down on losses.
They can also play a pivotal role in the growth of your business. They can help you in creating future financial goals and find ways to make you achieve them.
If you are convinced that it’s best to outsource accounting services for startups in Dubai, you should reach out to CDA Accounting and Bookkeeping Services LLC.
They are a pioneer in the field of accounting. They are known all over Dubai for their team of skilled and experienced accountants. Most of the startups contact CDA Accounting for outsourced accountants in Dubai.
If you wish to take your business to newer heights without worrying about its financial aspects, reach out to CDA Accounting.
They will never disappoint you with their work. You will keep coming to them with more volume of work. So, do not think twice about this and make use of this golden opportunity. Good luck!