When starting up a new business it’s easy to believe that doing everything yourself will carry your funding through the teething stages until the new enterprise fully cuts its financial teeth and starts bringing in more than it spends. But when that DIY approach includes trying to take care of the financial operations without the professional assistance of accounting and bookkeeping services in Dubai, or at the very least, a workable accounting checklist to keep it on track, you could end up losing more than you save.
Finances are at the heart of any business, controlling its lifeblood, its health and, very often, its lifespan. This makes it one of the most demanding business operations. But there are other core operations that govern how much of this lifeblood continues to flow, particularly in start-ups. And trying to give sufficient attention to finances can shift your focus off these other core operations, such as establishment, positioning, and marketing the new business. And you could end up highly stressed, with a startup that just won’t start, is unable to take on the competition from existing companies, and which may not adhere to UAE accounting rules.
Bookkeeping and Accounting Checklist for Startups
Bookkeeping and accounting differ in the areas they cover, both of which are vital with regard to the company’s financial health status. Bookkeeping, as the name suggests, focuses on keeping the records of transactions and cash flow up to date. Accounting, on the other hand, tends to devote itself to interpreting the financial picture the bookkeepers create and shaping that into final representative documents like profit and loss statements and balance sheets, and year to year comparisons which provide the overall picture of where the company stands financially and can give an indication of its future outlook.
A complete and comprehensive cash sheet is the best way to provide a solid and effective base for any bookkeeping and accounting system in Dubai. This involves recording the incoming and outgoing flow of cash in terms of sales made and expenses incurred, after carefully reconciling it against receipts and transactions.
Take the recorded daily information a step further with more intensive reconciliations using the week’s cash sheets to refresh financial data, record payments received and categorize the expenses incurred, as well as keeping your inventory list up to date. It’s also time to deposit cash received, issue invoices, schedule any bills for payment and, if you are using accounting or bookkeeping software, to be sure to back up your data.
Every 2 Weeks
Follow up on customer invoices that are unpaid, apply any deposits they have made to their invoices, and follow up on any proposals you have made which have not yet had a reaction.
Payroll management has to be handled every month. Leaving this for another day, week or month could see you facing a nightmare at the end of the fiscal year. You will also want to send checks to your retailers, reconcile your bank accounts and track your cash to make sure there are no irrelevant transactions and possible incidents of fraud. It’s also a good time to analyze the spending over the previous month and determine whether or not there are ways to cut back.
In addition to the daily, weekly, and fortnightly operations, the need for more comprehensive reports and records increases. These include income statements, balance sheets, and reports on accounts receivable and payable.
What Bookkeeping and Accounting Services Can Do
Depending on whether or not you choose to outsource only the accounting, or bookkeeping services in Dubai, or choose to enlist help in both areas with the same or two different companies, these professionals can take some or all of the weight off your shoulders when it comes to keeping track of your finances.
However, choosing the right professionals to handle these pivotal areas of your business is vital. Before making a choice, careful research and investigation are needed to determine that you are hiring the right person to take care of your finances and maintain regular contact with them throughout your contract so you don’t become disconnected from that sector of your startup.
In order to get an accounting service that best suits your business type, get in touch with Xcel accounting experts.