Owning and running a small business in the UAE, and Dubai specifically, has its own set of challenges. And one of the most important tasks that you should take into consideration is bookkeeping. You see, maintaining proper financial records is crucial if you want to ensure VAT compliance and a clear vision of how your company is financially doing. That’s why today, we’re gonna go over some important bookkeeping tips for small businesses! So, let’s dive into all the ways you can keep your business on track and avoid mistakes!
Bookkeeping Tips for Small Businesses
Separate Personal and Business Finances
It’s easy to mix up the money if your business is just starting up. But this is not good especially if you wanna maintain accurate transaction recordings and financial reports. So, to avoid all that hassle, you should set up an independent business account from the get-go! This will save you all the mixups, errors, and confusion.
Consistent Record Keeping
As a small business, you can easily record your transactions in the beginning. So, we recommend you keep regular records, ideally weekly! The longer you wait to update your records, the more likely for errors to happen. You know, from missed entries or expenses or inaccurate reporting, this all can happen!
Transaction Tracking
As we already talked about record keeping, this is the natural follow up. Tracking your transactions, including cash flow is one of the most important bookkeeping tips for small businesses. Doing that ensures that you keep errors to a minimum, as well as avoiding liquidity issues in the future! This is also important if you wanna make sure your business complies with VAT regulations.
Use Accounting Software
Keeping up with everything might feel like such a hard task if you don’t have an extensive accounting background. So, if you wanna make your life easier, you might wanna use an accounting software program. There are many user-friendly options that you can choose from like Zoho Books, QuickBooks, Xero, etc… They are exactly what small businesses need to make their accounting smoother.
Monthly Reconciliation
Reconciliation is the act of comparing your records with bank statements to ensure all the finances match. Doing this monthly checkup ensures that any errors are caught early on to avoid any problems down the road.
VAT Compliance
If your business must abide by VAT regulations in the UAE, accurate record keeping is a must. And this is one of the crucial bookkeeping tips for small businesses! Missing filing deadlines can result in penalties and even problems with the law. So make sure you know all about corporate tax in UAE if you’re a business owner!
Growth Plans
Bookkeeping isn’t just about keeping an eye on past transactions, but about ensuring your finances are good for the future. You see, having your company be in good financial health is key for sustainability, and even better, for growth!
And Now, For the Golden Tip… Hire Professionals!
Doing your own accounting might be feasible at the beginning, but it’s not a long-term solution. That is especially true if you plan on exponentially growing your business! And that’s exactly where we come in. At Noraal, we can handle all your accounting needs so you can focus on growth and business plans. So, contact us today for a free consultation and to check out our vast range of services aimed at SMEs just like yours!