Accounting is indeed one of the most important parts of a business as it functions as a lifeblood of a company. A business cannot simply operate without accounting in it. Although some aspects are all equally important for the success of your company, accounting can make or break you. This is why there are a lot of accounting services that are available in the country.
Even when asked, accounting firms in Dubai will tell you that knowing the numbers and dealing with them properly can help you to manage your business better. It is better than you know too much than to know nothing at all.
5 Points to Remember About Accounting as a Startup
Do not ignore your Financial side
If you are a fan of numbers and believe you can handle running your business as you do the accounting side as well, you are unfortunately wrong. A lot of businesses have spiraled down because the owner decides they can take in more than they should. However, you cannot merely dump it fully on someone else. Yes, you need to give it to a highly skilled bookkeeper/accountant, but you still need to be active because you need to know what your financial status is.
Find a good Bookkeeper or Accountant
If you are a certified public accountant (CPA) yourself, and you can set up your own accounting system, then you can do so. However, you still need someone to handle it for you since it will not help you to have a lot on your plate. Accounting services are available for you to take. You can also ask consultants from accounting firms in Dubai so you will know if you should hire a bookkeeper or an accountant for your accounting and bookkeeping services in Dubai, UAE.
Separate your business and personal costs
It might be easier for you to mix those two as you are the owner and your bookkeeper or accountant does not mind. However, this is not a good practice. This is the same as mixing your personal life and your professional life; it is not going to work out for your good.
Separating these two will save you from having a hard time going through your expenses, figuring out from which side an entry is a deductible of. With different bank accounts, you can be sure to save yourself a lot of time keeping tabs of which is which.
Take note of your Labor expenses
Yes, you need a helping hand. However, you must be aware of the standard and acceptable salary range that you should give to a candidate. Ensure first that you are following the rules as per the Labor law of the UAE, and make sure you are offering just enough wage and benefits so you will not over or underpay anyone.
Prepare enough budget
You might be thinking that it all ends when you have a steady bookkeeper/accountant; however, it does not stop there. As you go forward with your business, there will be a lot of miscellaneous things that you need to spend on like equipment replacement, computer upgrades, application costs, etc.