By Julia | January 17th, 2018 | Bookkeeping
If you have just begun your operations as a small or medium scale business (which is often termed as a start-up) owner in UAE or any other country in the world, you must be facing a number of challenges given the fact that you have so many responsibilities to carry out. Well, in order to be a successful businessman, it is almost compulsory to go through the grind and ensure every responsibility is carried out diligently with precision. However, there are certain responsibilities that are ignored by most of the start-up owners as they don’t find them significant enough to pursue.
Bookkeeping, which is often confused with accounting, is a profession which focuses on keeping records of the financial matters of a particular business. For larger businesses, it ensures that each record of an individual transaction is correct, comprehensive and up-to-date. Since most of the start-ups do not encounter a massive number of financial transactions on a daily basis, it is often presumed by the start-up owners that their business operations won’t require any bookkeeping assistance.
Furthermore, it is difficult for most of the start-ups to afford a team of professional bookkeepers in the initial days given the fact that their income is stunted and the funds are limited. However, financial experts suggest that the small businesses, as well as the start-ups, should have a bookkeeping professional in their team as it often helps them in the longer run. If you fail to see the advantages of hiring a bookkeeper for your start-up venture, the following points will help you get a better understanding of the whole matter.
Even though there are certain responsibilities that can be handled without any professional assistance, tax season is one of the exceptions that require the professional help from a bookkeeper. If your startup is a few months old, you must have a decent idea how frustrating tax season can be. The complication of the matter is one of the primary reasons why small businesses feel the need to hire a bookkeeper. Besides, the penalties for tax evasion in the UAE are quite strict which is why it is wiser to leave the tax related matters in the hands of a professional.
It is crucial to note that the bookkeeping needs of a business vary depending on the three significant factors: the type of business that is in focus, the budget of the business and its financial estimation, and lastly, the type of startup structure the owner plans to run with the particular business. As per the VAT experts, if you are running a startup, it is better to hire a bookkeeper who can look into the tax related matters according to the specific needs of your business.
As mentioned before, hiring a professional bookkeeper may seem expensive for a start-up that hasn’t yet started generating a considerable amount profit. However, the popular belief about bookkeeping is that it can help you save more in the longer run if it’s employed properly. Well, you can most certainly do all the bookkeeping tasks by yourself if you wish to; but if you aren’t trained in bookkeeping, it can lead your business to a major catastrophe which can be difficult to recover from. Instead of making an unpardonable mistake, trying to save a few bucks, it is wiser to hire a professional who can not only keep you from taking any impulsive financial decision, but also ensure the growth of the company in the most subtle way.
Managing a business is no joke, whether it’s a large one or a small start-up. Every business is run by its employees and if you fail to pay their salaries on time, it can not only demoralize the employees but also harm the credibility of your start-up, which is never a good thing for a business. Hiring a professional bookkeeper helps you monitor the cash flow very minutely. Besides paying the employees, you are also obligated to pay the vendors, the taxes, bills and lots of other significant accounts in order to continue your operations without any hiccups. Missing a single payment can cause a lot of trouble. So, it is always better to hire a bookkeeper who has professional experience in handling the cash flow records and other related issues.
As you might have been told, “time is money”. And since you are in the field of business, this should be your mantra for success. While there are tons of responsibilities to perform, you can always use an extra pair of hands to make time for something that requires your attention more than any other sections. As mentioned previously, bookkeeping isn’t something that you should do your own. So instead of spending your time fruitlessly on bookkeeping, it is better to hire a professional who can give better results as a bookkeeper. You, on the other hand, can use that free time to focus more on the business and work on the other aspects of the business which you are good at, such as developing a business strategy, implementing a marketing plan, looking over managerial disputes, etc.
The first stage of your business venture is quite crucial as it often determines how far the start-up can go. And in order to turn the vision into reality, you require the guidance of a professional whether you believe it or not. Hiring a bookkeeper, who has professional experience in managing the financial records, can contribute as a guide in providing a better perspective on aspects relating to your business. He/she can help you understand whether your business is making progress as expected or not, whether the funds are flowing in the right way, if everything is working out according to the strategy or not, etc. You can always hear out what he/she has to say about the business operation as he/she may have some interesting thing to add.
With the implementation of the VAT and other significant tax regulations, the government of UAE has also announced a list of fines and penalties for tax evasion and other violation of the implemented law, where some of the penalties can go up to AED 50,000. So, if you don’t want to exhaust all your funds in the first stage of your start-up, it is wiser to leave the task of bookkeeping and accounting to the professional. You may never know; a small decision can make a huge difference in your business.
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Uaevatexpert.ae is one of the top-tier VAT consultation agencies in the UAE that are helping the businesses and individuals get familiar with the latest tax regulations and related issues in the most prompt and effective way. Apart from the VAT consultation and tax advisory, we also provide professional assistance on bookkeeping, auditing and accounting for your business, whether it’s a startup, small or medium scale business or a large enterprise. We also provide adequate support for forming your own company in the UAE with our company incorporation services. At large, we provide all kinds of support that are required to sustain a business in the land of United Arab Emirates.
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