Tips for New Businesses to Start a Robust Accounting System
An international market such as the UAE offers unparalleled opportunities to entrepreneurs to start a business and make it successful. However, lacking a strong grip over the company’s accounting function may stifle your business to premature death. Setting up a robust accounting system should be your first goal while starting a business in Dubai, UAE. You can seek the help of accounting firms in Dubai to achieve this crucial objective.
Having a strong accounting system within the organisation is essential to building a robust foundation for your business. Apart from your employees, a robust accounting system is the backbone of your business. A proper accounting system helps you to have all the financial information handy and is critical to making decisions. Failing to set up a definitive accounting system will prevent the companies from keeping a track of what it owns, to whom it owes money and any outstanding accounts from their customers. Read ahead to understand what it takes to build a strong accounting system within your organisation:
Open a bank account for the business
Opening a bank account is critical for receiving payments and paying your creditors. Companies with employees must have a separate payroll account for the staff. You must open a business account with an online facility to track your cash flow and streamline your accounting procedures. It is also important to ensure that the bank account seamlessly syncs with your accounting software. Consult with accounting companies in Dubai for more advice in this regard.
Make a list of creditors
A list of creditors will become the company’s liability accounts in the accounting system. The list should comprise every person to whom you owe money including vendors, credit card companies, mortgage companies, banks and finance companies. You must also include the amount of money owed to each of the creditors.
Create a list of Assets
Creating a list of items and materials owned by your company will become your assets in the accounting system. It includes cash, office equipment, buildings, vehicles and office supplies. You are also required to include the value of the assets while making the list. You can seek the help of accounting & bookkeeping firms in Dubai to clear the air on this requirement.
Determine the number of discounts you will offer
Entrepreneurs planning to extend credit to their customers must decide if they will offer a discount to customers who make prompt payments. For instance, you can provide your good customers with a 3% discount if they pay off their accounts within ten days of purchase. Discounts are critical to ensure customers pay on time, which will eventually ensure a smooth cash flow.
Choose a Robust Accounting Software
Businesses must choose robust accounting software to make their accounting system more efficient and seamless. Some of the best accounting software include Tally, Peachtree, Quicken and QuickBooks. Choose accounting software that best fits your business requirements. Choose accounting software that matches the level of your experience. For instance, QuickBooks can be used by users with limited accounting experience. Accounting & bookkeeping firms in Dubai can help you choose the right accounting software.
Safely Keep and File your Documents
All of your business-related documents concerning the company must be kept safe. The critical documents include bank statements, invoices, bills, receipts, tax papers, as well as legal and governmental documents. A robust filing system should be in place with individual files for each type of financial document. The files can be kept safe physically, virtually or both ways at the same time. You can engage the services of accounting companies in Dubai to determine the documents that you need to permanently keep on file and the documents you can dispose of after a certain time.
Determine your accounting needs
You have to determine your accounting needs based on the complexities of your company’s financials and your comfort level. You must also decide who will oversee your accounting needs. Even though you can appoint an accounting professional, it’s better to outsource the entire gamut of accounting activities to the best accounting firms in Dubai.
Record all of your transactions
Your company will have a reliable accounting system in place only when you can provide your customers with receipts for each transaction. A robust accounting system will help you reconcile your accounts using the monthly bank and credit card statements. Seek the advice of accounting companies in Dubai to seamlessly record all of your transactions.
Hire the Best Accounting & Bookkeeping Firms in Dubai, UAE
Setting up a robust accounting system is essential to create a commercial entity strong enough to thrive and withstand the economic storms that come its way. Entrepreneurs need expert assistance from accounting firms in Dubai such as Jitendra Chartered Accountants (JCA) to design and build an effective accounting system. JCA is a full-service Audit & Accounting firm in Dubai with over 20 years of experience.
Irrespective of what type of business industry you are in, we can prepare your financial statement accordingly and maintain your books of accounts as per international standards. Apart from offering accounting services in Dubai and across the UAE, we provide other services such as VAT, AML-CFT compliance, Economic Substance Regulations (ESR) filing Ultimate Beneficial Ownership (UBO) filing etc.