A few quick tips which will help you thrive in accounting your startup company.
1) Set up Banking
• Avoid using cash for general expenses, because you tend to forget where you spent your money.
• Keep a distinct account from your personal account, so that you can keep track of your business revenues and savings.
• It’s better to go with banks that have advanced online banking; they will easily assist you when you want to retrieve bank statements. For example, you might need it for bank reconciliation purpose.
2) Track your Expenses
• Scan all receipts and expenses to maintain up-to-date bookkeeping records and also for back-up. Do not forget this! It is a very basic, yet a very significant step for accurate accounts and successful startups.
• Use Expensify App, which is a great application that we suggest our startup clients. It provides expense report management, receipt tracking and more. All you have to do is snap a photo of your bills. Tax compliance is also simplified in this app.
3) Cloud-based Applications are highly recommended for startups!
• Use Dropbox or Google Drive.
• This allows you to enjoy flexibility in terms of updating income or expense records from wherever you want to, and whatever time you wish to (Flexibility in Time and Location).
• You avoid the risks of physical theft or loss and hard drive failure.
• The problems of overlaps on data could also be evaded.
• Cloud apps allow you to store bank statements, credit card statements, and receipts.
• This enables startup owners to save time, and allows them to make quick and informed business decisions.
4) Develop a Bookkeeping System
• You may want to use the most efficient and popular accounting software in Dubai, such as Tally, QuickBooks, Zoho and Xero.
• Use a suitable payroll system to record payments/salaries to your employees.
• Determine how you will get paid, maintain proper records.
• Identify your VAT Obligations. You will have to register on FTA website, and file your VAT returns on a quarterly basis.
• Calculate Gross margins and Net Profits. This will show if you can continue doing business in the future.
However, doing all this, while also executing your business plan, can severely overload you (the startup owner). Thus, it is recommended youhire an Outsource Accountant, to help you with all this at the initial stage of your business. So that you can do the fundamental work, while all your finances are well managed and up-to-date.
Outsourcing your Accounting can allow you to devote more energy into your core business. As a result, you can experience growth at faster rates. However, it is crucial that you hire an outsourced accountant who has an experience with startup companies in UAE.
We are widely experienced in providing accounting and bookkeeping services for startups. We will help you boost your business confidence, because you can rely on our projections and cash budgets. On the whole, you are not the Jack of all Trades; therefore, let us handle your accounting services for your startup!