Accounting Services For Small Business
June 18, 2023
Accounting Services For Your Small Business - What You Need To Know?
Even before you kick-start your small business, it is essential to know how the accounting services in dubai process for a small business works and what you need to know to have a smooth accounting process.
According Services in Dubai to the experts, a streamlined and workable accounting process is essential for any business to understand all the resources’ inflow and outflow. This helps them allocate resources in a better manner and prioritize the tasks.
A small business typically is a privately owned corporation or partnership or a sole partnership that has fewer employees or less revenue than a regular-sized business.
Today, we will be speaking about the very topic and touch base with some of the vital details.
What do you need to know?
Accounting Services in Dubai for Small businesses essentially focuses on keeping a record of all the transactions and extracting accurate financial information from these transactions. And hence, Accounting and Bookkeeping are the go-to topics for any new entrepreneur.
Though often used interchangeably, Accounting and Bookkeeping have different meanings and purposes.
Accounting: It uses the financial information that you get from Bookkeeping. It involves the various financial statements, tax filings, and analysis of the different costs and their effect on the business.
Bookkeeping: It is the base for accounting and involves tasks like record keeping, account reconciliation, tracking daily expenses, and even processing payroll, managing invoices, and the many payments to various suppliers/vendors involved in the business.
Tips Before You Start Accounting For Your Business:
- Opening a business bank account: Many owners keep a single bank account for their business and personal use while starting a business. However, experts suggest the creation of a Multiple bank account for the company, as this helps to track the business expenses in a much better way.
- Understand basic accounting concepts: Accounting services in dubai can be a little overwhelming, especially for entrepreneurs from a non-accounting background. Hence, it is advised to know at least the basic concepts like: Revenue or income, expenses or expenditures, accounts payable, accounts receivable, assets, liabilities, equity, general ledger, chart of accounts, journal entry, trial balance.
- Choose an accounting method: Setting up an accounting system is crucial for any business. The selection of this accounting method solely depends upon the entrepreneur. There are two types of approach that a business can select from: a) Cash method: With this system, a business records transactions only once the payment for the good and services is received. b) Accrual method: This involves recording transactions for the exchange of goods and services irrespective of the fact whether the payment is received or not.
- Deciding to outsource accounting: It is understandable new businesses are short of funds, and outsourcing accountants can be difficult. However, it is advisable to outsource accounting to the experts since this lets you focus on running your business and gets an idea of raising funding from different ways possible.
- Invest in accounting software: If you want to complete the accounting and bookkeeping task yourself, investing in good accounting software is a must. Manual entry can be risky, as there is a high chance of errors, and a lot of time is involved. To cut the time consumed, you can use one of the software available in the market.
Timelines for the accounting and bookkeeping tasks:
Dividing your tasks is a sure way to streamline the process and make your life a little easy while working on the accounts and bookkeeping aspects.
Daily or weekly accounting tasks
- Enter transactions into your bookkeeping system
- File or digitize business receipts
- Prepare and send invoices
- Categorize business transactions
Monthly accounting tasks
- Reconcile your accounts
- Pay bills and vendors and record payments
- Review and run payroll
- Review overdue customer payments
- Record the value of your purchases and inventory sold
- Analyze your financial standing using reports
Quarterly accounting tasks
- Estimate quarterly taxes
- Report and remit sales tax
- Record depreciation or amortization
- Assess and write off bad debt
Yearly accounting tasks
- File year-end income taxes, payroll taxes, etc.
- Review aged receivables
- Analyze year-end inventory
- Create full-year financial reports
We are sure these extensive details must have cleared some of your doubts about Accounting Services in Dubai for your small business. And we are sure you are more than ready to earn profits by starting your small business.
If you want to let, the experts take care of your accounting and bookkeeping tasks so that you can focus on running and growing the business. Do book an appointment with RSN Consultancy, one of the best Accounting Consultants in Dubai, to take the burden off you! So what are you waiting for? Contact us now!
Have Any Questions?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
- +971 4 342 3373
- +971 55 975 9746
