So if someone asks you what should be key to a successful business, what would your answer be? Let me give you a heads up, it is by all means, financial administration. For any business to go well, you need money and with money comes great responsibility of handling it well. You need to keep tabs on all your expenditures and maintain a daily logbook recording all your day to day transactions, be it for a major business deal or 500 grams of sugar for the office. If you do have the proper records, you will not be able to present the proper documents when your company is being audited.
So before your company fails to flourish successfully, take the reins of accounting and bookkeeping and hold them tight. This is because they are the stairways to success.
Types of accounting:
Financial accounting is making the company’s information public to stockholders, customers, creditors and regulatory bodies while managerial accounting involves keeping company information like salaries, profits, and the cost of goods, etc. shielded from the public knowledge. The not-so-big companies out there usually adopt managerial accounting for their businesses. Well known accounting firms in Dubai like Xcel Accounting are well versed with all kinds of accounting and bookkeeping.
What all you need to do to ensure smooth running of your company:
- First of all, get a good accountant for the office (if you do not have one). You can also outsource the accounting and bookkeeping for your company to accounting firms like Xcel Accounting. In fact, among the accounting companies in Dubai, it is one of the best.
- Make sure the customers and clients get regular invoices for any kind of transactions taking place. Each of these invoices should remain with the company as copies for future reference.
- Each of these invoices should be supported by vouchers issued and authenticated by authorizing manager of the company.
- A cash flow report should be maintained regularly.
- The company should receive financial reviews from the accountant or the bookkeeper on a regular basis.
- “Statements” should be generated and sent out to the customers and clients of the company.
- Finally, all records of all transactions, big or small must enter the company ledger which is the ultimate answer to all financial interrogations (if done, by an auditor of the company). There should be however no discrepancy in the ledger itself. And the bookkeeper has the responsibility of maintaining this ‘book’ spic and span. You can rest assured that if you seek assistance of Xcel Accounting, you are seeking help from one of the best accounting firms in UAE and thus all the aforementioned terms will be gladly met.