Having money is great, but managing it can be a pain, especially if it concerns your business. A lot of business owners can testify on how hard it is to manage their business money – from their cash flow to their profit. At times, money mismanagement can cause the downfall of businesses.
To ensure that you are on the right track toward better business finances, here are some tips from top companies that are providing accounting and audit services in Dubai:
- Keep your personal and business account separate
One of the most common and also the biggest mistakes of business owners is mixing business with their personal life, especially when it comes to finances. Having separate accounts for these two entities will help you to maintain organization of your finances and keep track of your expenses. Combining them into a single account will cause confusion. And the worst thing that can happen is unexpectedly spending your business money for personal needs.
- Be diligent in keeping receipts
Business receipts may seem like just a piece of paper that serve as proof of purchase for buyers. But these receipts are also important in terms of accounting. For one, it serves as record of business expenditures that you can check should there be a discrepancy or mismanagement in your business cash flow. And some auditing firms are also asking receipts as part of legal and financial documents for investigating your books and finances. Be sure to keep every single proof of purchase in one drawer. If you can, make a daily recording of these receipts so you can keep track.
- Keep your books updated
Managing your accounting books can be a headache and overwhelming, especially if you are not adept in the system. However, you need to do this regularly, along with your bookkeeping task. Making sure that your books are updated would make it easy for you to track the flow of money and if your company is making profit in a specific duration. If you are not keen on doing this job, it would be best to have someone, a full time employee or an outsourced professional, to do it for you.
- Do spot checks and balances
Some business owners prefer to do checks and balances quarterly, semi-annual, or annually. But it wouldn’t hurt to do some spot checking from time to time, especially when it concerns your finances. This can help you to see if there are discrepancies and you can make an action plan to resolve such issues at an early stage.
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