Six Accounting Tips for Small Businesses to Kickstart the New Year
It’s not a small feat to run a small business in a competitive market like Dubai. There can be many ups and downs just like a roller coaster ride and you may need sound advice from accounting firms in Dubai to keep your business going. The New Year is the right time to reflect on your strategies and establish your priorities for the year ahead.
In 2023, it is important for small business owners to have a sound business plan, know their numbers, ensure regulatory compliance and celebrate their achievements throughout their journey. However, they may find it tough to materialise their strategies without the assistance of an independent professional. Accounting companies in Dubai can help you execute your plans and visions for 2023. Here are our top six tips for small businesses to kickstart the New Year:
1. Define What Success Is, for you
If you want to achieve your goals, you need to know what you are aiming for with your revenue and ultimate profitability. This can vary for each entrepreneur. Business owners need to set realistic financial KPIs in 2023 and ensure that their goals are feasible in accordance with time, resources, capability and the economy. You can start by setting sales targets by month and year.
2. Know Your Numbers
You need to start taking care of your accounts receivables. Revenue becomes revenue only when it is in the form of money in the bank. Therefore, you need to make sure that you have a robust process to get what’s owed to you, deposited on time. To successfully chase payments, you may include an email reminder for your customer a few days before the date of payment.
When it comes to your company’s cash flow, there should be a no-surprises policy. Make sure that you have an accurate sense of cash position always. You can have a cash flow forecast but it is also important to have a comprehensive view of what your company’s expected cash movements are. Accounting firms in Dubai can help you have a clear grasp of your cash flow every time.
3. Prioritise Your Tasks
Making a conscious effort to prioritise tasks is essential for your business. It should be in the order of urgency and you must differentiate the ‘must-do’s’ from the ‘to-dos. For instance, consider setting aside time to analyse your true profit margin by product vs simply spending more on your monthly advertising. You can make a physical plan to focus on those urgent tasks that will help you inch closer to your vision and objectives sooner. It is advisable to avail of accounting services in Dubai for creating a robust financial action plan for your business.
4. Celebrate the Achievements
No matter how little your achievement is you must take time to celebrate it with your business partners, employees or family. You should also congratulate yourself no matter how small or big the achievement is. Entrepreneurs often fall into financial stress by overestimating how much they can achieve in a day and underestimating how much they can achieve in a year. Have a realistic plan for your goals so that you can wholeheartedly celebrate each of your wins.
5. Seek Independent Advice
No one has succeeded in life or business without getting help from others. Hire someone from the outside to ‘stress test’ your vision, business strategy, capability, reports and analysis. You can avail the help of accounting companies in Dubai to analyse your vision and business strategy. In 2023, it can be tougher for any business owner to do it alone and asking for help is not a sign of weakness.
6. Be Strong on your Compliance
2023 is a critical year for businesses when it comes to taxes and regulatory compliance. You need to take care of the UAE corporate tax and the new amendments to the Valued Added Tax (VAT) Law. You should also keep an eye on your compliance status with regulations such as Economic Substance Regulations (ESR), Ultimate Beneficial Ownership (UBO) and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT). Complying with these regulations will keep you from incurring hefty penalties and experiencing reputation damage. If compliance seems tough for you, consult with the best accounting firms in Dubai.
Hire the Leading Accounting Firms in Dubai, UAE
It is an achievement if you have successfully completed the last year without any unforeseen events. You can follow the tips listed in this blog to repeat the success in 2023 as well. Accounting companies in Dubai such as Jitendra Chartered Accountants (JCA) can help you devise a sound strategy for the year ahead.
JCA is one of the leading providers of accounting services in Dubai with more than 21 years of experience in the market. We provide bespoke services such as accounting & bookkeeping, VAT registration and return filing, UAE corporate tax advisory, UBO, ESR, AML-CFT compliance assistance etc. Connect with us today for advice on your business growth.