- Mr. Wasim Firoz
Accounting Checklist For Startups In UAE.
Every business small or big needs a bookkeeper/accountant who will manage its finances. Business owners today realize more than ever before that if they are not careful about their finances, they soon won’t be in business. It can be costlier for smaller businesses to appoint a full-time bookkeeper or accountant, outsourcing this function has become very attractive to business owners and a great opportunity for bookkeepers or accountants to start up their own bookkeeping or accounting business in Dubai.
Get the Free accounting consultation.
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.
Accounting is not an activity which you can perform at the end of the month, and everything will be good. It requires regular attention and maintenance to avoid loss at the end of the month. Here are some important accounting activities you need to check on a daily basis.
a. Check Financial Data
b. Reconcile Cash against Receipts
c. Review and Reconcile All Transactions
d. Record All Received Payments
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.
a. Manage Record of Transactions
b. Review Outstanding Bills
c. Prepare All the Invoices
d. Project your Cash Flow Analysis
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.
Not every day and week is the same for any business organization. Every day brings new challenges and opportunities specifically for startups. Therefore, you need to follow this monthly accounting checklist to track your performance.
a. Balance Your Business Checkbook
b. Analyze Past and Aged Receivables
c. Check Inventory Status
d. Review Profit and Loss Accounts
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.
Benefits of Starting an Accounting & Bookkeeping Firm in Dubai.
If you have characteristics of outsourcing bookkeeping accounting in UAE, here are the benefits you must know.
- The start-up cost for Accounting and Bookkeeping business is minimal.
- You can become a specialist in one accounting application for increased marketability.
- Its consistent work that typically takes place on a regular schedule.
- You can also work virtually and broaden your target market.
Starting an Accounting & Bookkeeping Services in Dubai.
Accounting and Bookkeeping consulting firms are one of the most popular business services to start and they’re almost always in demand. The introduction of new levies and fine-tuning of the existing taxation systems has led to unprecedented demand for accounting firms, especially those that offer integrated solutions to their clients and the scope of accounting and bookkeeping business start-ups in Dubai is increasing with every passing day. Before getting into the procedure of registering your business with the authorities, here are a few things you need to know.
Requirements to Set Up an Accounting and Bookkeeping Firm in Dubai.
1.Degree in Accounting - As a consultant, you will be engaged in providing services for businesses rather than private individuals. As an entrepreneur/professional you need to possess a degree in accounting or a related area for business setup in Dubai. It also means that you need to have an authentic certificate that proves you are a veritable accountant. However, before opening an accounting firm in Dubai, entrepreneurs need to ascertain the legality of the degree they hold. You can also take local exams to enhance the chance of approval.
2. Professional License - To start any business in Dubai, you will need a license. When it comes to starting an accounting firm, you must have a valid professional license which is typically issued by the Department of Economic Development (DED) in Dubai.
3.Office Space - In the UAE, it is mandatory to have office space while setting up a company. Also having an office in a commercial district helps fetch clients easily. A physical working space also generates lots of confidence amongst the clients as they feel assured and comfortable dealing with an accounting firm that boasts a team of dedicated CPA’s. As a bookkeeping business start-up in Dubai, you can rent a space of your choice.
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.