Irrespective of the business you hold, it is very important to have an organised structure. Even though, as an entrepreneur you would have started off in an organised manner, slowly with the growing clientele, you would be so engrossed in building businesses that you might forget to keep a clear accounts record.
Bookkeeping is extremely essential in a company as it is the sore foundation of the financial department. These are responsibilities that can never be avoided. For any company, the financial records of every client should be correct, complete and up to date. This can be helpful when you wish to find some vital information about the business you did with a specific client.
This article is going to briefly inform you of the different reasons for hiring a bookkeeping professional. You will have to hire a bookkeeper who has great knowledge of subjects like taxation and laws of the country. If you have just started a small business, you will already be aware of how frustrating it could be to handle these records accurately. Bookkeeping has to be done with great precision as you would not wish to get any penalties. Additionally, with such stringent laws in UAE, the records have to be updated time and again to ensure that no penalties are incurred by the company.
Another reason why bookkeeping is so essential is because this would not only help in evaluating the growth of the company but also increase revenues through certain factors. Even though bookkeeping is not rocket science, it is equally important to understand that if anything goes wrong, it can perhaps lead to a catastrophe or cause a downgrade in terms of business.
Besides paying your employees, you have to shell out money for taxes, investments, pay your vendors and other external units. If clean records are not kept, there is a chance that more money could be spent on things you might not be aware of. Hence, hiring a knowledgeable and professional bookkeeper can definitely help you save some money.
Thirdly, this will help you in save time. You do not have to do this by yourself which can be extremely time-consuming and stressful. Additionally, the bookkeeper will ensure that all the taxes and bills are paid within the allotted time. At times, you would be so busy with other responsibilities of the company that you might forget to pay bills and taxes on time. With a professional bookkeeper, this will be under control.
Lastly, the bookkeeper will be able to analyse the growth of the company. He will have a complete idea on the cash inflow and how it is regulated. Hence, you will have an organised feel to all your financial records. So, if you are looking out for an expert in bookkeeping, you can get in touch with our tax consultancy who provide great services. Our tax consultants have years of experience in the business industry and will ensure that the right corporate advice is given.
Bookkeeping is the process of keeping track of all your money coming in and out and flows within your business. Having a chronological record of all the transactions like credit/debit transactions, a record of the assets/liabilities held by your business, and reports of income, expenses, and sales all come under bookkeeping services.
Bookkeeping essentially helps in keeping all financial dealing records in a better way so that anyone requiring to access or audit the accounts will have a clear view of the same. Tax consulting firms usually provide bookkeeping services to companies to help them with their financials. So here are some tips to help your company do it the right way –
Using the Correct Accounting System
Any good business uses one of the two accounting methods commonly used. These are the cash based or accrual-based. The core difference between the two is the timing of transactions. When aggregated over time, the results obtained from both methods are approximately the same.
In cash-based accounting, revenue is recorded when cash is obtained from the customers and expenses are recorded when any of the cash is paid to the suppliers and employees. In the accrual-based method, the revenue is recorded when the company earns something and the expenses are recorded when the company consumes something.
Cash-based accounting is only possible if your company has no more than $5 million in sales per year. It is easy to account for transactions with this method as there are no complex accounting transactions involved. However, the random timing of cash receipts can show a report where the results fluctuate between high and low profits.
Accrual method is used by larger companies as it is required for tax reporting when the sales exceed $5 million. Accrual basis also helps in auditing a company’s financial statement. But unless a statement of cash flow is included in the financial statement, this approach doesn’t reveal the ability of the company to generate cash. Choose your accounting method depending upon the size of your company.
Maintaining daily financial records
One of the most important things to do with regards to your company’s financials is keeping a daily record of all your transactions. This will help you constantly analyze your company’s financial situation. Proper records help further accounting methods as well as audits.
Pay bills on time
This is one of the cardinal rules of maintaining a financial balance in your firm. Pay all your monthly bills on time so that you will not be charged with late charges.
Collecting your Bank statement
Although it might seem trivial, this is also another basic tip with big rewards. Collecting and keeping your Bank statement with other monthly records will help you track all your cost and expenses.
Choose a reliable bookkeeping organization
Availing the services of a bookkeeping service provider will help you keep up with your company’s financial situations and monetary needs on a daily basis. Also, outsourcing bookkeeping services will leave you with more time to do much more for your company’s primary business. Contact your tax consultancy in Dubai for more information on bookkeeping services today.
Bookkeeping is a real challenge for all types of business. From recording the economic activities of the company to summarizing the business transactions in an orderly manner all in which aid the survival of the organizational. Whether it is a start-up, small business or an established firm the main priority is always the growth of the organization. Therefore, focussing on the business growth and trying to manage money at the same time becomes too complicated, especially if a business has many different moving parts.
As a Business owner or a manager, one has three options for
Accounting and Bookkeeping:
• Do it yourself
• Hire an inside accountant
• Outsource an accounting and bookkeeping consultants
Each of the above options have different pros & cons, but outsourcing your bookkeeping process has been proven to be the most effective and efficient solution. Trusting a third party to handle this process gives the assurance that your finances are in safe hands. This is because when you hire bookkeeping & accounting firm in Dubai, they keep your financial activates as their top priority. However, it is not applicable to ensure the same results if the owner or the manager tried doing it by his own, because of the constant changes in the business that requires more attention.
To get a clear idea of why outsourcing your finances to bookkeeping professionals in Dubai is the best option, have a look at the below reasons –
• It Frees Up Your Time –
Time is the most valuable resource for anyone! As a business owner you have to create more time for the organization and your team to gain an instant competitive advantage. Therefore, it is better to assign financial and accounting tasks to consultants who are already experienced and can help you maintain the business requirements.
• Saves Your Money –
Instead of hiring a dedicated employee for this purpose, outsourcing the bookkeeping service will greatly help in cutting the costs. This is because, by outsourcing your bookkeeping, you only have to pay for exactly what is being done.
• Minimizing The Peril of Mistakes –
As you are assigning the work to the bookkeeping & accounting consultants with great experience, you can be assured that the errors are lessened or eradicated altogether. Experts know their way around & stay up-to-date with the information within their industry and from the Federal Tax Authority in UAE. As a result, they guarantee to follow the best practices that benefit their clients.
• Boosts Cash Flow –
A good bookkeeper helps you in staying updated about the cash spending habits & suggests beneficial ways to cut down the cost. You can easily make the necessary financial adjustments with their assistance. All to improve the cash flow within the organization.
At the end, it’s essential to recognize that to flourish your company and to survive the UAE new VAT law it is important to hire and use the service from a bookkeeping firm in Dubai. Therefore, it’s time to make the difference and choose the best accounting and tax consultancy provider to give your business the best opportunity to unlock new growth potentials.