If you are an Amazon seller and your business is booming, we understand that you feel both excited and overwhelmed. As you sustain the success of your business, you find yourself with more and more financial tasks and obligations. This is when the question of giving accounting obligations to outsourced specialists arises. To help you make an informed decision on whether or not your eCommerce business should outsource its accounting and bookkeeping in UAE, we’ve made a quick guide for you. Our goal is to provide you with the reasons why outsourced accounting in UAE is important for a successful Amazon seller such as yourself. Let’s start!
Every great business journey starts with a roadmap. As you are planning the growth of your company, it is essential that you set goals. Do you know what your profits will look like in a year? What about in the next five years?
Financial statements will let you assess how quickly and easily your Amazon business will or is developing. If you don’t have accurate financial statements that are prepared by certified accountants, then you can be tempted in falling back on metrics like the growth of sales which don’t provide a full financial picture. Has the cost of your products sold increased? Have your margins become thinner? Have growth goals of the business become more reasonable? If you don’t have expertly prepared financial statements, then you won’t be able to have an answer that’s objective.
Updated financial statements present where a business stands. They are essential whenever you want more funding for your business. For instance, you’re in need of a bank loan in order to maintain your business operations. You will need to provide bank officers at least three years’ worth of financial statements, as well as a cash flow projection for the next year. It is virtually impossible for you to deliver these if you do not have a reliable team of outsourced accountants to help you.
You may not have any plans on selling your Amazon business or courting investors right now. However, it is always a great idea if you keep your options open. The best way in doing so is by putting a proper system for accounting in place. Potential buyers or investors will expect accurate accounting records which provide evidence your Amazon business is profitable. You have to be in possession of documents of your business’ history, so buyers or investors know the business is on track for more growth.
When a client owes your business money, it’s going to add on your balance sheet’s Accounts Receivable. The balance sheet will tell you how much money you have already pocketed for the entire month and the amount that is still outstanding. By referring to the balance sheet, you’re tracking how you are collecting payment effectively. Then, you’ll put processes in place. You can follow up better with clients or be harder on deadlines for balances. Essentially, you’ll be able to make sure that you get your money as you have earned it.
As your Amazon business grows, it’s just natural that you find it very hard to keep track and updated on your tax reporting obligations. Also, when there are errors in the financial reports, you’re running the risk of providing an erroneous number to the tax authorities. A mistake can easily land you in very hot waters with the FTA.
Solid accounting provides you with accurate and complete financial records. You will be able to reduce your risk of violating taxation legislation. When you have a team of outsourced accounting specialists that helps you with your tax obligations, you can be sure they will be taken care of on time and accurately.
A skilled accountant in UAE is going to save you a lot of time as the professional can communicate with you the current financial state of your company in a language that is free from jargon. An accountant can also anticipate your business’ financial needs. You will be provided with insight and knowledge that’s simply inaccessible if you don’t have an accountant. This includes aspects like tax deductions which you may not know you are qualified for. Not to mention tax rules which you did not know you’re already breaking and financial recording best practices that can only be picked up as professional works for other companies that are in the same industry as you.
The best thing about outsourcing accounting and bookkeeping in UAE is the fact that any business can do it! If you want to know more about outsourced accounting in UAE, call us here in Farahat & Co.