Accounting Firms in Dubai: When should Startups Consider Getting Expert Assistance?
Dubai has created a robust ecosystem for startups from various industries to set up, grow and thrive. However, not all startups manage to scale the mountain of success successfully. When it comes to accounting, a startup must make the necessary transformation during the course of its growth trajectory. Most entrepreneurs will be managing the accounting function without taking help from accounting firms in Dubai at the beginning phase.
Due to the availability of limited resources, the accounting department of most early-stage startups consists of the owner, a bookkeeping professional, and QuickBooks software. Such startups consider the accounting function merely as a process to track financial data such as expenses, invoices, revenue and payments and also to ensure bills and taxes are paid on time. However, entrepreneurs must understand that accounting & bookkeeping play a significant role in laying the foundations of your startup’s future success.
Doing just the basics may be adequate for startups in the early stage. However, as the company grows, it should reflect in the accounting function within your organisation. You will need to get external assistance once you come out of your startup cocoon. We will guide you with some critical scenarios where you should make the big decision to outsource the best accounting companies in Dubai. Read ahead.
1. You are not getting the Insights you need
If you are scaling up your business, you may feel that your current financial data is not offering you the insights you need. Getting accurate and timely financial insights is critical to making better business decisions. Greater knowledge of your revenue-generating activities, costs & margins can help you better allocate operational and intellectual resources.
Similarly, having a deeper understanding of the product or services that make more profits will provide you with ideas such as where to invest or what to abandon. For all this to happen, you need to have access to some actionable insights which you can translate into real-time trends. You can gain this access only when you consider outsourcing to accounting & bookkeeping firms in Dubai.
2. It’s time for you to attract investors or apply for a business loan
Entrepreneurs who have applied for a loan know how difficult it is to gather the startup financial data or how burdensome it is to locate and report on the transaction data. Banks in Dubai will ask you to present all the major financial information before giving you the green signal. Furthermore, the lenders will want your financial reporting to be clear, accurate and in line with accepted accounting standards (both local & international).
Hiring accounting companies in Dubai is the best way to ensure that your financial data is organised and complete. Outsourcing can help you share the data in the specific format requested by the banks or other lenders. Furthermore, having complete and up-to-date data will come to your aid if you are hoping for mergers & acquisitions in the future.
3. Your customer base is growing
Startups need not languish in ‘early stage hell’ all the time. A good startup will happen to see that its products or services are gaining more demand in the market. As a result, their customer base may grow. However, if you are still relying on a single accounting professional and QuickBooks, you may not be able to handle a growing client base. Processes like invoice tracking, payments and inventory will become more challenging with a burgeoning customer base.
Inaccurate invoices or your inability to deliver up-to-date statements to clients may drive them away from your competitors. You need the assistance of experienced accounting firms to have access to well-organised and easy-to-navigate invoicing and payment tracking systems. Accounting & bookkeeping companies in Dubai can help you gain the confidence of your customers by providing you with accurate tracking of inventory, orders, sales and payments etc.
4. You want to recruit more employees
A startup will need to hire more employees to handle its growing array of products, services and customers. As you hire more employees, you will be tasked with requirements such as payroll, expense reimbursements etc. These are not easy tasks to single-handedly manage as they warrant more of your time and attention. As a busy entrepreneur, you can’t afford to divert your attention to such processes, and you must turn to outsourcing at this juncture.
The assistance of experts from outside can make a big difference to your company as they will help you with hassle-free expense reimbursements and payroll, which can, in turn, lead to higher employee satisfaction. Furthermore, you can make better decisions on matters like compensation and incentives once you have access to better financial information provided by accounting firms in Dubai.
5. You are now within the scope of compliance requirements
Unlike in the past, you need to consider the various compliance requirements while running a startup in Dubai. You will need accounting assistance to assess whether you fall within the scope of compliance requirements such as Audit, Economic Substance Regulation (ESR), VAT registration, Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT), and Ultimate Beneficial Ownership (UBO) etc. doing just basic accounting will not help you comply with these regulations. Accounting firms in Dubai can help you make the assessments and do the relevant documentation, return filing etc.
Jitendra Chartered Accountants can Drive your Startup to Success
Outsourcing helps your startup by enabling you to spend less time on tasks such as compiling, tracking and reporting on financial information. Outsourcing to accounting & bookkeeping firms in Dubai will provide you with more time to gain actionable insights from your company’s financial data. Furthermore, you can utilise those insights to make better decisions and improve your business.
When it comes to accounting companies in Dubai, Jitendra Chartered Accountants (JCA) may pop up on top of your list as we have been in the industry for over 20 years. JCA’s accounting services in Dubai for startups are not limited to keeping books or filing tax returns. We offer a wide range of critical compliance services such as VAT services, audits, due diligence for mergers & acquisitions, ESR, UBO, AML-CFT etc. JCA can be your reliable partner as your business matures from a startup to a major company.