In today’s competitive arena, a company needs to generate profitable results in order to be successful. Whether you’re running a small or a large business, it becomes essential to determine if the revenue earned by the company is more than the expenditure incurred by the entity or not. This is where the need for accounting firms in Dubai arises.
Though managing the financial side of the business could be a daunting task. However, a well thought-out plan and perfectly maintained accounts and other financial records will make the process easier.
Therefore, hiring a professional accounting firm in Dubai helps in gaining a better understanding about various accounting functions and processes. Thus, it will in turn assists in formulating a better financial strategy while streamlining tax preparation and compliance issues. The below checklist illustrates the requirements that need to be considered while formulating an all rounded accounting strategy:
- Proper documentation of business invoices –
This holds key importance in every business. It is necessary to ensure that all business invoices & bills are properly documented and available for showing whenever needed.
- Maintaining record of daily business transactions –
Keeping a record of daily business transactions helps in maintaining the expenditure & revenue of the business. Make sure that all the functions/ transactions (vendor payment, customer billing, etc.) are processed and recorded on a daily basis or on a weekly basis.
- File monthly/quarterly VAT returns and payments –
It is always good to prepare & file VAT returns on time to minimize the risk of being penalized. The best way to do this is to hire professional tax consultants in Dubai, as they review the tax figures to ensure accuracy of the information that needs to be filed in the tax returns.
- Keep a close eye on business’s liquidity –
For all types of businesses, cash liquidity is an important thing to consider as it is integral for the execution of daily operational tasks. Thus, by checking business payments and receipts on a daily basis, it becomes much easier to keep good control over business expenses.
- Check the projected cash flow –
In order to manage the finances effectively and efficiently over a long-period of time, it is important to prepare a projected cash flow on a monthly basis. Doing this not only helps in knowing how much cash will be generated over the next coming months, but also assist in making better-informed business decisions.
Contrary to the expectations, managing the financial end of your business is not as frightening as most people presume. By creating a realistic plan and diligently maintaining records correctly, one can ensure a solid financial growth of the business.