A Guide to Best Accounting Practices to Sustain Your Startup in Dubai?

Entrepreneurs must devise strategies for financial planning & management to sustain their startups in Dubai, which is a highly competitive and dynamic market. Lack of robust financial strategies will push you into significant monetary losses and eventual winding up of the company. Seeking advice from accounting firms in Dubai can help you mitigate such risks and keep the startup on the growth path.

When faced with a crisis, entrepreneurs must be ready with a backup plan and an exit strategy to cover the losses. Therefore, robust accounting strategies and financial management planning are critical for startups to sustain and succeed in the long run. Listed below are some of the best accounting and financial management practices startups must follow to survive in the long run:

1. Establish Financial Goals

Entrepreneurs should break their financial goals into reachable and measurable ones. They can set quarterly, monthly, weekly, monthly, or even daily revenue goals. This will help the business owners to stay on track and make necessary adjustments to sustain and grow. If setting up financial goals seem to be a hard task, you can seek the help of accounting and bookkeeping firms in Dubai.

2. Efficient Cash Flow Management

In this age of economic uncertainty, it is essential for every entrepreneur to be capable of forecasting the startup costs and cash flow requirements. Most of the time upfront payments become vital to facilitate business for the startup. As an entrepreneur owning a startup, you should keep a track of all transactions related to the cash flow.

In essence, you should know where the cash is coming from and where it is going. Try to maintain an expense that covers all expenses related to office facilities, employee salaries, manufacturing, logistics, marketing expenses, partner channels, supplier relations etc. If accounting is your weak point, outsource it to leading accounting & bookkeeping firms in Dubai, UAE.

3. Monitoring Daily Spend

Expenses will be coming up from all directions for a startup, which means you need to constantly track the spending and monitor your expenses. However, rookie entrepreneurs may find it tough at the startup. Installing robust accounting and budgeting software with the help of accounting firms in Dubai is the best solution for this issue.

4. Minimizing Fixed Expenses

Your journey toward success should begin right from the start. To achieve this goal, you must limit and minimise the expenses at the initial stages to sustain the startup in the long run. Cut down unnecessary expenses and operate lean to achieve financial independence. Apart from that, develop strategies to generate revenue instead of spending money on purchasing fancy items at the start. Accounting companies in Dubai can advise you on how to minimise fixed expenses.

5. Preparing a Contingency Plan

The startup founders should create a robust contingency plan for debt recovery or cut down unexpected business shocks or losses. Startups with a robust business continuity plan can sustain even when adversity knocks at their doors. A contingency plan helps you to strategize business processes and optimise resources so that the startup can generate profit at all stages of its operation.

6. Customer Acquisition & Engagement

Startups established in the UAE should focus on acquiring new customers and retaining the existing ones. You must come up with various strategies for customer acquisition. Try to engage with customers by providing an exceptional customer experience. From an accounting perspective, it’s advisable to offer discounts to customers who pay on time. Satisfied customers will eventually turn out to be the brand ambassadors of your startup.

7. Mitigating the Risk

Startups may incur losses from business transactions when the market condition is unpredictable or fluctuating. Such situations warrant additional effort on the part of entrepreneurs to keep the startup afloat. You can mitigate the risk and minimise liabilities from the startup by keeping personal and company finances in distinct accounts. Separating the two accounts is a sure-shot solution to save money, diversify investments, and safeguard your personal life in adverse conditions. You must also hold financial reserves- both personal and business – in an emergency savings account.

How can the Best Accounting Firms in Dubai Help You?

Robust accounting practices and financial planning are critical for sustaining startups in Dubai. However, most entrepreneurs forget this recipe for success while hunting for investors and customers. They spend more time on marketing and ignore the basic accounting and financial management requirements. Busy entrepreneurs can, instead, outsource their accounting requirements to accounting firms in Dubai such as Jitendra Chartered Accountants (JCA).

JCA has helped thousands of startups and SMEs to develop and implement robust financial management strategies based on the best accounting practices. SMEs, startups, individual entrepreneurs and big corporate groups have leveraged our expertise and over 20 years of industry experience. Our accounting services in Dubai are in great demand as we provide a wide range of services such as audit, VAT compliance, ICV certification assistance, corporate finance, ESR, UBO & AML-CFT compliance etc.