6 Accounting Mistakes Small Business Must Avoid | IBG

6 Accounting Mistakes Small Business Must Avoid

September 15, 2019by admin

The role of accounting in any institution is significant for the business endeavors, and it is never easy, or as simple as adding, and subtracting numbers. In Dubai for example, Owners of small and medium businesses often think of doing their own accounting to save money. However, it is not the best, nor the most sufficient to do that!
Accounting procedures are not to be underestimated, and the lack of proper practices could and would mess up the company’s numbers impeding the growth of the business, profitability, and development. Meaning, a simple error could have a great unfortunate impact!

Small businesses are usually the most ambitious and optimistic. Nevertheless, they must avoid these 6 mistakes to safeguard their operations and avoid saddening consequences that could extend to a great loss:

  1. Entrepreneuring is not a one-man show!
    Entrepreneurs are energized and excited about doing everything themselves. When they begin from scratch, the launching phase, they may have been independently handling everything. The monetary or financing problems arise then, for lacking the expertise of the practice. Even with the proper educational/ work experience, accounting requires time-consuming effort.
    A business owner needs to invest his time and effort in his business solely and avoid distractions. It makes sense to hire an accounting professional, rather than experimenting.
  2. Cheap is budget friendly, but never growth friendly!
    Pursuing cheap methods to save business expenses could cost you a lot of money on the long run. Hiring an accountant for a low rate may seem like a great decision to go with. However, what if they make multiple mistakes you could end up doubling the expenses, an in paying them and then paying someone to fix their mistake and make up for the losses they may cost you. Pursuing the best accounting services in Dubai does not necessarily mean the most expensive!
  3. Already have a bookkeeper! Still need an accountant!
    It is like saying cash flow and profit are the same thing, they are not! Bookkeeping is daily monetary transactional administration of a business’ books and records. Accounting is all about taking the information produced by bookkeeping and producing insights and forecasts about the business. The best bookkeeping services provider in Dubai would not substitute an accountant. One can be Jack-Of-All-Trades but he would still be king of none!
  4. Business finance and personal finance are water and oil!
    This is the fastest way to put your business’s finances out of order. The first step when you open a business is to open a bank account immediately. Whether it is a local account in the country where you register your business or it is an international account, it is advisable to run all income and expenditures through this business bank account. Never use your personal account for business banking.
  5. Classic is not the most efficient anymore!
    With the advancement of technology and the use of software, all your bookkeeping could be done automatically. Many accountants and CPAs rely greatly on the efficiency of good accounting software. Taking advantage of state of the art technology is one of the modern times gifts to run the business swiftly and smoothly making the best out of it.
  6. Regular financing backups
    Aside from instances like computer crashing, it is always both safe and smart to be prepared for extreme circumstances. Having multiple backups for maximum security is indispensable for businesses. The backups can be taken through encrypted format data storage online.

Hiring the Best Accounting Service in Dubai for your company is the first step in setting yourself up for success. At IBG, we strive to add value to clients saving you time and securing your business. We keeping an eagle eye on your finances. Should you have any enquiries, speak to one of our consultants today!

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