When launching a new business, it’s tempting to imagine that doing it yourself will get you through the early stages of funding before the new venture has completely developed its financial teeth and takes in more money than it invests. However, if the DIY solution involves attempting to manage financial activities without the help of competent accounting and bookkeeping services in UAE, or at the very least, a workable accounting checklist to keep things on track, you can lose more money than you save.
Finances are at the core of every business, determining its health and, in many cases, longevity. As a result, it is one of the most challenging company processes. However, other core operations, especially in startups, dictate how much this lifeblood continues to flow. Trying to pay enough attention to finances will divert your attention away from other essential tasks, such as creating, positioning, and promoting your new company. And you could find yourself in a stressful situation with a startup that won’t launch, is unable to compete with existing businesses, and does not meet UAE accounting laws.
Bookkeeping and Accounting Checklist for Startups
Bookkeeping and accounting are distinct in the fields they serve, but all are critical to a company’s financial stability. As the name implies, bookkeeping is concerned with keeping track of transactions and cash flow. Accounting, on the other hand, focuses on translating the financial image created by bookkeepers and shaping it into final representative records such as benefit and loss accounts and balance sheets, as well as year-to-year comparisons, which offer an overall picture of the company’s financial position and can provide insight into its potential prospects.
Here are the checklists you must keep in mind:
The only way to establish a stable and reliable foundation for every bookkeeping and accounting service in UAE is to create a complete and detailed cash sheet. This means systematically tracking the incoming and outgoing cash balance in terms of revenue and costs incurred, as well as reconciling it against receipts and transactions.
Take the daily details a little forward with more in-depth reconciliations using the previous week’s cash sheets to refresh financial data, record payments collected, categorize costs reported, and keep the inventory list current. It’s also a bright idea to deposit any cash you’ve got, issue invoices, schedule your bills for reimbursement, and back up the details if you’re using accounting or bookkeeping tools.
Catch up on any outstanding consumer invoices, add any payments they’ve made to their invoices, and follow up on any plans that haven’t gotten a response.
Payroll accounting needs to be done every month. Leaving this for another day, week or month could leave you to face a nightmare at the end of the fiscal year. You can also send checks to the retailers, reconcile your bank balances, and watch your cash to ensure no unnecessary purchases or future theft accidents. It’s also a good idea to review your expenses from the previous month to see if there are any areas where you can save money.
In addition to regular, weekly, and fortnightly activities, there is a growing need for more detailed reports and documents. Financial statements, balance sheets, and accounts receivable and payable records are among them.
What Bookkeeping and Accounting Services Can Do
If you want to outsource either accounting or bookkeeping services in UAE, or if you wish to enlist assistance in both fields from the same or two different firms, these experts will lift any or all of the burden of keeping track of your finances off your shoulders.
Choosing the best professionals to manage these critical areas of your business, on the other hand, is crucial. Before making a decision, do thorough research and review to ensure that you are recruiting the right person to manage your finances, and keep in touch with them regularly during your contract to avoid being detached from that aspect of your company.
Why AM Audit?
As a professional Accounting, Auditing & VAT firm, AM Audit has associated with various clients offering extensive services in UAE for businesses in numerous business verticals. This has rendered us one of the most reliable Consultancy firms in the industry that can meet all your requirements. As we have the most experienced, trained and academically qualified team to render the services on time, we can meet all your needs professionally.
If you are trying to find the best Consultancy firm, we can provide you value for your money and top-notch services. We offer services all over UAE, GCC and Middle-East
If you need more details on our services, talk to our client relations team.
Phone: 04 323 1738