Profitable Budget & Forecasting Tips for Small Businesses in Dubai
As economic headwinds like COVID-19 create uncertainties in the form of new variants, businesses, especially SMEs and startups, need to be more cautious than ever. We have seen many small businesses biting the dust due to cash flow and credit controls issues in the wake of the pandemic. Many of them could have stayed afloat in the thick of the business if they implemented robust budgeting and forecasting practices with the help of accounting firms in Dubai.
Budgeting and financial forecasting are vital for small firms to achieve their business goals. Forecasting is a future prediction of the business finances unlike statements, which provide details of actual results or progress. It enables you to assess a company’s current financial state and predict how it is going to perform in the future. Budgeting and forecasting is not a cakewalk for small businesses but can be easily fixed with the help of accounting & bookkeeping firms in Dubai.
Let us discuss in this article the basics of financial forecasting and some Budget and financial forecasting tips to take your business to newer heights.
Be in the present and know your risks
All businesses including startups and big corporate groups have to face some form of financial fluctuations every other day. You need to prepare your company to deal with all kinds of potential risks. The risk could strike your firm any time in the form of a pandemic, a natural disaster or an economic recession. With help of accounting companies in Dubai, you can prepare a risks analysis and strategise how to overcome such an unforeseen situation if it occurs.
Magnify the outlays
If you are running a startup, chances are high that your business is project-based. When every project is new and unique, you may turn turtle while budgeting. Remember that not every project should follow a similar forecasting model. A better solution will be forecasting an expense that is more than the actual estimated rate. It will lead you to confident budgeting and prepare you if the estimation upswings.
Be prepared always
It will be unrealistic to expect the same number of sales from every business month. Depending on the nature of the business, you may have seasoned sales with some high-rewarding months and other months will be dull. You need to prepare adequate capital for your low months as well. There should be a recovery stock to pay your bills and monthly payments. Also, it is advisable to spend your low-performing months planning business marketing and accounting. Furthermore, try for a favourable budget and forecasting method to nullify the loss.
Double-check your big investments
Businesses can be unpredictable, which most entrepreneurs might have come to realise after the pandemic. A serious expense may pop up out of nowhere, shattering your plans. It could be an equipment breakdown or the sudden crashing of your website design, demanding a revamp. It’s ideal if you assign some renovation or repairing costs to compensate for unexpected expenses like these.
Save, don’t Spend
When the business is good, you would be overwhelmed as the money keeps coming in. You can afford to be excited but don’t let it get into your head. You should not fall for the temptation of spending your hard-earned money immediately. Save a portion of your profit for the future. It will come to your rescue in adverse financial situations.
Adjust your budgeting plans now and then
Many entrepreneurs fall under the illusion that everything is going well as per their curated plan. Even if the business is running smoothly, don t forget to review your budgeting plan periodically. Assess the situation well and make the necessary decisions with the help of the best accounting firms in Dubai.
Seek Advice of the Best Accounting Firms in Dubai
You must create a strong budget and financial forecast model irrespective of the size of your business. Accurate forecasting will help you foresee the financial problems that may arise in the future. However, as a beginner, you may not be in a strong position to make an accurate budget and forecasting models. Here is the help of the best accounting firms in Dubai such as Jitendra Chartered Accountants (JCA) come in handy for your small business.
JCA’s highly qualified team of accountants will help you implement a robust budget forecasting method. With JCA’s assistance, you can crack the predictions regularly and stage a successful business ahead. Apart from providing the best accounting services in Dubai, JCA offers assistance in audit, tax return filing, VAT registration and compliance services related to Economic Substance Regulation (ESR) and Anti-Money Laundering (AML) laws.