5 Accounting Myths Small Businesses Need to be Aware of
As an entrepreneur, you cannot downplay the role played by accountants in enhancing the growth of your business. If your business is witnessing success, a good part of the credit goes for the accountants as well no matter whether you are having an in-house accountant or outsourcing to reputed accounting firms in Dubai. Most entrepreneurs focus merely on how much money they make or the number of products moving out the door. In doing so, they ignore the basic financials such as tax rates, financial regulations, and the cost of new growth opportunities.
If you are ignoring the basic financial, it means you lack the knowledge of accounting practices and possess some misconceptions about both the accounting practices as well as accounting professionals. Here is an earnest attempt to enlighten the entrepreneurs on the value of accounting by debunking some common misconceptions associated with the practice:
Myth No 1: Accountant Fixes all Financial Woes
Even though hiring an accountant for your small business is a good idea, it won’t serve as a miracle remedy for all your financial woes. It all depends on the efficiency of the professional you hire for your requirements. A bad accountant can inflict serious damage to your business more than you can imagine. Before hiring an accountant in Dubai, you must consult with multiple resources including other businesses in your industry or experts who can guide you in this. Outsourcing the accounting process to reputed accounting firms in Dubai is also a viable solution.
Myth No 2: Accountants Have Narrow Range of Skills
It is a common misconception that an accountant’s area of work is limited to analysing the financial statement of your company. Instead, an accountant is proficient in various other financial aspects including Excise Tax compliance, VAT return filing, small-business planning etc. A highly skilled accounting professional may help you in assessing your tax obligations and guide you in ensuring VAT compliance. Accountants in Dubai help you assess how much cash flow you will need for business expansion, or they may even advise you on which legal structures might make your business thrive.
Myth No 3: Accounting is Unimportant
A serious myth that can harm your business is considering the process of accounting as unimportant. Accounting isn’t simply turning your taxes in on time and forgetting about them; it’s a whole discipline of financial considerations that can harm or help your business. Having sufficient knowledge about accounting practices and principles is essential to doing business legally and finding new opportunities, markets and practices that can increase your profit.
Myth No 4: Managing Accounting Records is Easy
Small businesses often have the misconception of thinking that managing books of accounts is relatively an easy process. You need to shed this misconception as even small businesses are required to comply with relevant accounting laws and regulations that govern the maintaining of books of accounts. Expert knowledge is vital in maintaining books of accounts as per the laws and standards and a lack of basic understanding about it may lead to errors that will negatively affect your business. It is therefore imperative that a highly qualified accounting professional with relevant industry experience should be entrusted with the duty of maintaining the books of accounts for your small business. Now, if you are convinced about this, consult with the best accounting firms in Dubai.
Myth No 5: Small Businesses don’t Need Accounting Software
The advent of technology has also transformed the process of accounting among other things. Various vendors are offering robust accounting software that can be customised for your various business requirements. The availability of different small accounting packages means you are in luck as it can improve the recording of day-to-day transactions apart from providing key insights about different areas of business.
Yet, most small business owners share a common myth that installing the latest accounting software is not worth the extra costs it incurs. However, the benefits of installing accounting software in your organisation always outweigh any extra money it may cost you. Modern-day accounting software makes use of the latest technologies such as Artificial Intelligence (AI) to interpret data. Such software provides relevant information that can enhance the business and in turn, benefit your customers.
Outsource Services of Best Accounting Firms in Dubai
Accountants play a key role in a business by successfully maintaining the books of accounts of the organisation. Even though that is the case, many myths persist related to the process of accounting and accounting professionals. Shattering such myths is important in enhancing the growth of the business. Outsourcing the accounting requirements to the best accounting firms in Dubai such as Jitendra Chartered Accountants (JCA) is a cost-effective way to ensure the business is complying with relevant local and international standards including the IFRS.
JCA is one of the most reputed accounting firms in Dubai with years of experience in assisting thousands of clients from a variety of sectors. JCA’s highly qualified Chartered Accountants assist the businesses by delivering reliable accounting & bookkeeping services in Dubai. JCA is a one-stop solution for accounting & bookkeeping, auditing, VAT filing, etc. By availing JCA’s accounting & bookkeeping services in Dubai entrepreneurs can ensure business growth.