How to outsource bank reconciliation process

How to outsource bank reconciliation process

The process of checking the integrity of data between bank records and a company’s financial records is known as bank reconciliation. It starts with verifying a cash account’s balances in an entity’s accounting records to the information on a bank statement. As a result, it is a required process that can become tedious and time-consuming at times.

Why should you outsource the bank reconciliation process?

  • Do you find it difficult to reconcile your bank and credit card balances at the end of each month in Dubai, UAE? 
  • Is reconciling your bank and credit card statements getting more difficult, time-consuming, and complicated? 
  • Are you looking for a trustworthy and knowledgeable partner to manage your bank and credit card reconciliation? You’ve come to the right location if that’s the case.

Bank Reconciliation Process

This process consists of 4 steps as mentioned below. 

  1. Equate the Deposits

Highly experienced experts have the talent to equate the deposits properly on time.  

For example, the business records’ deposits should be matched with those in the bank statements, and the amounts should be compared thoroughly.

  1. Adjust the Bank Statements

You must keep an eye on your bank statements and balance the bank statements to the corrected balance. To cover up this process, you have to have a better understanding of the process and balance the statements on time. 

  1. Adjust the Cash Account

Adjusting the cash accounts is not an easy task. You must adjust the cash balances by adding interests or deducting monthly charges and overdraft fees. 

Accounting firms that have the necessary certifications have the knowledge and proper plan to help you adjust the cash accounts. 

  1. Equate the Balances

The reconciliation process will have to be repeated if the adjusted balances and the adjusted amounts are unequal. 

Therefore, it is wiser to communicate with an expert and equate these balances. 

It is always better to outsource the bank reconciliation process to an expert’s hand so that you do not have to tackle all your business work and also manage these processes. Outsourcing will help you to focus on your main objectives rather than setting yourself in trouble trying to balance all the tasks at once. 

Benefits of Outsourcing bank reconciliation process

  1. Ability to detect fraudulent activities

An organization’s distributed cheques can be matched with the amount reflected in bank statements using bank reconciliation outsourcing services. 

Their continuous re-evaluation, which is based on suitable sheets and procedures, aids in the detection of fraudulent actions such as payments made to illegal businesses, payments given to illegitimate employees or vendors, and unrevised sanctioned check amounts and data.

  1. Ability to find errors

Bank employees can make accounting errors such as transferring the wrong amount, recording the wrong amount on a check, entering the wrong amount in the wrong bank account, entering a duplicate transaction, or omitting an entry from a company’s bank statement. 

Outsourcing bank account reconciliation allows businesses to report inaccuracies to the bank, which then investigates the discrepancy and corrects the error.

  1. Ability to avoid overdrafts

Payments sent to employees and vendors, as well as payments received from customers, can take a long time to process. 

This primarily impacts businesses with extremely minimal cash on hand. 

Regularly outsourcing bank reconciliations can help businesses manage or defer payments, which can protect them from unpaid bills, company overdrafts, additional interest, and insufficient money.

Why should you choose KLOUDAC to outsource your bank reconciliation process?

KLOUDAC has a team of experts who are excellent at handling these processes. We are well experienced and can find quick and reliable solutions for our clients in no time. We have provided the best solutions over the past 15 years and KLOUDAC has proven experience in managing bank and credit card reconciliations which is why you should choose KLOUDAC.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world’s leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping are more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more.

Best Accounting packages for Businesses in Dubai

Best Accounting packages for Businesses in Dubai

Bookkeeping and accounting are central prerequisites for each business, small or medium. You can’t work without dependable, exact, and opportune monetary data. It is vital to screen your organization’s presentation, and fundamental so you can settle on suitable business choices. Our expert, completely qualified bookkeepers comprehend the significance of this, so they work energetically to ensure this imperative data is accessible when you really want it.

Our accounting services are organized into numerous packages. This gives a wide range of service optimization options, depending on how much money you want to invest.

Mentioned below are the types of Accounting Packages available from us:

1st Package:  Cloud Accounting

Generally utilized by small and medium businesses (SMEs). Monetary data can be seen from any place all over the world with access to internet. You can email, courier, or even normal mail the archives to us and our bookkeepers will update your books on the web. The electronic assortment is by a long shot the simplest, quickest, and most prudent strategy.

2nd Package: Onsite Accountant

If you require basically everything to be finished on your own premises, our bookkeeper will visit your office, gather the monetary data, and complete the bookkeeping. Companies of all sizes utilize this service on a regular basis.

3rd Package: Back office Financial Support

One of the broadly utilized choices is Back Office support. This is one of the most affordable packages out of all. And hence it has become famous. This can be customized according to your requirements. 

4th Package: Project Accounting

Many clients request project accounting services on a regular basis. Therefore, we have customized our packages according to the most demanded requests. An undertaking bookkeeper works explicitly on a given project for example review bookkeeping, bank reconciliation, financial data migration, and many more.

5th Package: Receivables and Payables Management

Accounts receivables and payables administration are widespread in large corporations. Tasks that are covered: 

  • 3-way check of purchase/sales invoices prior to recording them in the bookkeeping software
  • VAT compliance
  • To ensure that business cashflow is appropriately managed, pay supplier bills only when they are due and track customer receivables before due dates.
  • Overdue receivables are being pushed to debt collectors and then to the judicial system.
  • Management receives a report on the status of debtors and creditors.

6th Package: Account Reconciliations

Due to the large number of transactions, reconciliation is a prevalent difficulty in large businesses. Account reconciliation services are typically requested clients to provide the following coverage:

  • Reconciliation of bank and cash accounts
  • Reconciliation of stock
  • Reconciliation of debtors and/or creditors is appropriately managed.

7th Package: Accounting Review

Accounts are ready by the client’s in-house finance group and afterward checked on by our expert bookkeepers. We also use top accounting software to increase the accuracy of your finances, track changes, and enrich your business in no time. Our thorough audit of books guarantees that monetary information is precise, finished, and solid for direction.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

Bookkeeping tasks for small and medium businesses

Bookkeeping tasks for small and medium businesses

What is Bookkeeping?

Bookkeeping is one of the most important attributes to learn if you want to run a successful business since it allows you to keep track of your money on a daily and long-term basis.

Bookkeeping Tasks

Bookkeeping tasks must be completed on a daily, weekly, and monthly basis. Making simple modifications to your routines to remain on top of weekly bookkeeping responsibilities may be as easy as devising a method that fits for your work style and schedule.

Weekly Bookkeeping Tasks

Bookkeeping duties offer the records and analysis required to comprehend a company’s financials.

1. Bills to Enter and Pay

Small company expenditures may rapidly mount up due to utilities, rent, and invoicing from vendors. Vendors appreciate immediate payment and staying on top of your bills is a certain way to maintain a good reputation and manage your money.

While many bills are due on a monthly basis, others may be due as soon as they are received. As a result, it’s critical to check invoices regularly for inaccuracies, note the due date, and arrange payment accordingly. Paying early not only avoids late fines, but it also allows you to take advantage of early payment discounts. 

It’s also easy to ensure that accounts have enough money when bills are recorded as a weekly bookkeeping activity.

Bill entry may be part of the everyday routine for larger firms.

2. Make your deposit

Small firms should make weekly contributions at the very least. Deposits can be done on a daily basis for firms that receive the majority of their payments in cash or paper checks. 

It’s important to make timely deposits in order to keep your cash on hand and your records up to date.

Mobile deposits may be sufficient to handle the inflow of paper checks and avoid a trip to the bank for firms that predominantly accept electronic payments.

3. Invoices should be sent

Consumers and clients paying on time are critical to cash flow. To help reduce the amount and frequency of late payments, create and submit invoices every week rather than at the end of the month. Include a due date and payment terms to ensure that customers know how and when to pay you; this will help if you have clients that are known for being late with payments.

4. Organize your transactions into categories

Knowing where your company’s money is going is essential to budgeting. Organizing each cost into categories is a good approach to keep track of your spending. The categories used are determined by the sort of small business and its requirements. The following are some examples of potential categories:

Payroll

Employee advantages

Utilities

Payments for rent or a mortgage

Insurance

Weekly transaction categorization will aid in maintaining accurate records and highlighting any problems or red flags; it is more convenient if you can maintain them daily.

5. Make Entries in the Journal

Any financial transaction done by a firm should be accompanied by a diary entry in the general journal. This keeps track of a company’s transactions in a chronological order.

In most cases, business journal entries use the double-entry accounting system, which includes balancing debits and credits across accounts. Assets, liabilities, shareholder’s equity, costs, and income are the five categories of accounting in this system.

6. Examine your inventory

Small firms that sell things must keep track of their inventory and register it. A weekly inventory assessment will help you figure out when extra goods are needed. Having up-to-date stock information is also essential for detecting theft and informing staff when an item is back in stock, so they don’t lose out on possible sales.

Certain components of inventory management should be done more regularly than once a week to maintain stock information up to date. For firms with larger sales volume or perishable commodities, tracking inventory receipt and sale should be daily bookkeeping activities. Inventory management software that links with your bookkeeping software can help keep things simple.

7. Produce Reports

Creating financial reports should be on a small business’s must-do list when it comes to bookkeeping. Some reports benefit from being conducted daily, weekly, while others might be run monthly.

Daily

Daily transactions for both customer and internal accounts should be maintained on a daily basis. Sales, costs, and payments are examples of such transactions. It will be important to keep track of transactions.

Records and files should be maintained daily. Receipts, invoices, and reports should be filed daily so that your documents are well organized. 

Weekly

Accounts Receivable: This report shows how much money a small business owes them, such as unpaid bills. Following up on late payments in a timely manner can be aided by keeping track of accounts receivable on a weekly basis.

Examining how much of each product you’re selling is essential for making short-term decisions.

Monthly

Cash Flow Statement: This document assesses a company’s cash flow management, which may be defined as its capacity to create cash to pay debts and meet operational expenditures. It’s beneficial.

Accounts Payable: This statement summarizes a company’s assets, liabilities, and equity in order to provide a snapshot of its financial position at a given point in time. A balance sheet may illustrate a company’s debt-to-asset ratio and net value at a glance.
The profit and loss statement:  indicates how much money a company has made after all expenditures have been deducted. Because many costs, such as electricity and rent, are paid monthly, a profit and loss statement prepared once a month will provide a more realistic view of a company’s bottom line.

8. Examine the timesheets

Small businesses with employees must incorporate payroll in their bookkeeping. Employee timesheets are checked once a week to keep track of their hours worked, which makes payroll calculations for compensation, tax deductions, and accrual of benefits like vacation and sick days much easier.

Payroll management software may be quite beneficial in this regard, and the majority of the major solutions link with popular accounting software like QuickBooks and Xero. There are even free payroll applications available to assist you with simple chores. The more processes you automate, the easier it will be to maintain track of your finances on a weekly basis. 

9. Bank Accounts Should Be Reconciled Daily and Weekly

Businesses may balance their bank accounts daily or weekly rather than waiting for a monthly bank statement. Businesses may compare their bank account balance to their book balance as often as they desire by simply connecting into an online bank interface. Weekly auditing allows organizations to quickly rectify any irregularities and discover fraud before it becomes a bigger problem.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

UAE Corporate tax

UAE to launch first federal corporate tax of 9% from profits on business

UAE - Corporate Tax – Key Insights

The UAE Ministry of Finance announced on January 31 the implementation of a federal corporate tax regime with a standard rate of 9%, which will apply to eligible enterprises starting in June 1st,  2023.

The tax-free current system, which includes no personal income tax, has mostly been preserved. The Finance Ministry, on the other hand, stated that it was introducing a corporate tax to coordinate worldwide efforts to combat tax evasion and to meet challenges posed by the global economy’s digitalization.

Except for the “extraction of natural resources,” which will continue to be taxed at the emirate level, the new tax will be imposed on all enterprises and commercial operations in the country.

The United Arab Emirates has long marketed itself as a destination where international investors are encouraged, and income is tax-free. Low taxes and a business-friendly climate have helped to change the 50-year-old country over time.

Scope of UAE corporate tax regime

UAE Businesses are subject to pay corporate tax. Except for companies engaged in the extraction of natural resources such as oil and gas, all UAE enterprises will be subject to corporation tax.

According to the initial MoF guidelines, the UAE corporate tax regime would be residence-based, with the international income of UAE resident enterprises subject to taxation. Nonresidents would be taxed on business revenue earned in the UAE.

Under certain scenarios, which have yet to be stated in the law, the corporate tax base would exclude dividends and capital gains made by UAE enterprises.

Finally, under the UAE corporate tax structure, UAE withholding tax will not apply to any domestic or cross-border payments of any kind, including dividends, interest, and royalties.

When will the UAE's new corporate tax structure go into effect?

For financial years beginning on or after June 1, 2023, the new corporate tax structure will take effect.

Non-compliance will result in penalties, just like other taxes in the UAE. The penalty regime will be made public in the future.

Despite the fact that there is plenty of time to prepare, the evaluation, implementation, and post-implementation of corporate tax processes and procedures is a time-consuming and challenging task, depending on the size and operations of the organization. It’s best to start planning as soon as you can.

What Next?

Companies need to implement a proper Accounting System to record all their transactions Calculate their net profit in accordance with the international accounting standards (IFRS) Arrive their adjusted net profit to have their taxable net profit
What are financial reports?

What are financial reports?

What are financial reports?

Financial reporting is a common accounting practice in which financial statements are used to display a company’s financial information and performance over a certain period of time, usually annually or quarterly. 

In simple terms, a financial report is necessary for understanding how much money you have, where it comes from, and where it needs to go. 

Financial reporting enables managers to make informed business decisions based on the company’s financial health. 

Potential investors and banks will look at your company’s financial reports to see whether they want to invest or lend you money.

What is the reason for keeping organized financial records?

Financial reports are used by businesses to compile accounting data and provide information about their current financial situation. 

Many financial reports are accessible for public review, and they are used to forecast future profitability, industry position, and growth.

Financial reports are important since they fulfill several key objectives such as 

-tracking cash flow

-evaluating assets and liabilities

-analyzing shareholder equity

-measuring profitability

Types of Financial Reports

Balance Sheet

A balance sheet shows the assets, liabilities, and shareholders’ equity of a corporation at a specific point in time.

A simple look at the balance sheet will reveal total assets minus equity and liabilities. Balance sheets are often tracked quarterly, and data from balance sheets may be included in annual reports. 

Your present asset liquidity and debt coverage are also assessed in real time using balance sheets.

Example:

Balance sheet displays the total assets, liabilities, and equity of the organization.

Shown below is an example. 

Main use of the balance sheet is to indicate a company’s financial situation at a given moment in time. When the balance sheets for multiple consecutive periods are brought together, patterns in the various line items can be seen, this information becomes even more useful.

Income Statement

While a balance sheet examines current operations, an income statement examines them over a longer period of time. Some companies keep quarterly income statements and use them to track financial activities throughout the year.

The income statement shows sales, net income, expenses, and earnings per capital share when a firm issues stock on the stock exchange.

The income statement and the profit-and-loss statement are the same document for reporting earnings and losses.

Example:

Income statement displays the sales, revenue, expenses, and losses of the organization.

The income statement is used by research analysts to analyze year-over-year and quarter-over-quarter performance. One can determine if an organization’s efforts to lower the cost of deals benefited it in further growing benefits over time, or whether the administration worked out how to keep tabs on working expenses without sacrificing productivity.

Cash flow Statement

The cash flow statement is useful for determining how efficiently businesses earn cash to pay off debts. 

Cash flow documentation also includes how successfully organizations fund operations and investments, as well as the continuing activities that create income to cover costs. 

Understanding the efficiency of present procedures, spending activities, and income generation requires accurate cash flow statements.

Example:

Cash Flow statement shows the current operations, spending/ investing activities, and financing activities of the organization. Show below is an example statement of cash flow.

Cash flow statement is used to manage finances by tracking the cash flow for an organization. Cash Flow statements are extremely useful for the management to take informed decisions for regulating business operations.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

What is an income statement?

What is an income statement?

An income statement depicts a company’s profitability over a period of time. In other words, it summarizes revenues and expenses resulting from operating and non-operating activities. It also shows the company’s net profit or loss. It is one of the most important documents in a business’s financial reporting.

Alternative names for income statement

-Profit and loss statement

-Statement of revenue and expenses

Understanding Income Statement

The income statement is a crucial component of a company’s performance reports that must be filed with the Securities and Exchange Commission (SEC). The income statement reports income over a specific time period, whereas the balance sheet provides a snapshot of a company’s financials as of a specific date.

Key Terms that the income statement focuses on:

Operating revenue

Operating revenue is a term used to describe revenue generated by primary activities. 

The money earned from the sale of a product by a manufacturer, wholesaler, distributor, or retailer is referred to as revenue from main activities. Similarly, revenue from services refers to the fees a company in the service industry receives for providing particular services.

Non-operating revenue

Revenues realized through secondary, non-core business activities are often referred to as non-operating recurring revenues. These include income from interest earned on business capital lying in the bank, rental income from business property, strategic partnerships, or royalty payment receipts.

Gain

Gains, also known as other income, are the net proceeds from other operations such as the sale of long-term assets. Net income from one-time non-business operations, such as a company selling an outdated transportation van, abandoned land, or a subsidiary company, is included in this category.

Expenses

Also known as operating expenses. These expenses include rent, bank and ATM fees, equipment costs, marketing and advertising costs, merchant fees, and any other costs necessary to keep your business running.

Losses

All costs associated with a loss-making sale of long-term assets, one-time or other unusual costs, or expenses towards lawsuits.

Structure of the Income Statement

For the income statement, the net income is calculated as below:

Net Income = (Revenue + Gain) – (Expenses + Loss)

For example, assume that:

Total Revenue = USD 25,000

Total Expenses = USD 10,500 

Gains = USD 2,000

Losses = USD 800

Therefore, the Net Income will be:

Net Income = (Revenue + Gain) – (Expenses + Loss)

      = USD (25,000 + 2,000) – USD (10,500 +800)

      = USD 15,700

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

Common Accounting Terms

Common Accounting Terms

There are some business key terms that you should know well if you are an entrepreneur or even an experienced businessman. If you are planning to manage your business and your finances properly, it is very important to clearly understand the meaning of each of these key terms. 

Out of dozens of business key terms, mentioned below are a few important terms along with their meaning.

Accounting

A systematic way of recording and reporting financial transactions for a business or organization.

Assets

Anything the company owns that has monetary value. 

Current assets (CA) are those that will be converted to cash in the next 12 months. This could be cash, inventory, or accounts receivable in most cases.

Fixed assets, such as real estate, land, and major machinery, are long-term investments that will likely benefit a company for more than a year.

Balance Sheet

Balance Sheet is a financial report that summarizes a company’s assets, liabilities and owner or shareholder equity, at a given time.

Cash Flow

Cash flow refers to the net balance of cash moving into and out of a business at a specific point in time. Cash flow can be positive or negative. Positive cash flow indicates that a company has more money moving into it than out of it

Cost of Goods Sold

The total cost of producing the goods sold by a business.

Double entry bookkeeping

Double-entry bookkeeping is a system of documenting transactions in which each company transaction is entered as a debit or credit in at least two accounts. The amounts entered as debits must equal the amounts recorded as credits in a double-entry system.

Expenses

Expenses refer to the costs of conducting business. 

The types of expenses include fixed, variable, accrued, and operation expenses.

Fixed Expenses: Rent, salary, and insurance payments are all fixed expenses that do not change month to month.

Variable Expenses: Expenses that may fluctuate over time, such as labor costs.

Accrued Expenses: an unpaid expense that has been incurred.

Operation Expenses: Expenses incurred by a company that is not directly related to the production of goods or services. For example, advertising cost.

Inventory

The term Inventory refers to the assets that a business has purchased to sell to its clients but has yet to sell. The inventory account will decrease as these things are sold to customers.

Liabilities

Liability is when someone owes someone else money.

Current liabilities (CL) are those debts that are payable within a year, such as a debt to suppliers. 

Long-term liabilities (LTL) are typically payable over a period of time greater than one year. An example of a long-term liability would be a multi-year mortgage for office space.

Loss

A loss occurs when a service or product sells for less than what it cost to produce or create it, or when an asset’s expenses exceed its income.

Net Income

The amount earned in profits is referred to as net income. It is computed by deducting all the expenses in a given period, including COGS (Cost of Goods Sold), Overhead, Depreciation, and Taxes, from Revenue.

Profit

Profit is a term used to represent the financial gain made by a company when revenue exceeds costs and expenses.

Profit = total revenue – total expenses

Revenue

Revenue is any money earned by the business.

The gross income a company earns from normal business activities is referred to as revenue or sales. Multiply the sale price by the number of units sold to get the sales revenue. Revenue is calculated differently by accrual accounting and cash accounting. Accountants consider sales made on credit when utilizing the accrual accounting method to compute revenue. Cash accounting counts sales as revenue only after the company has been paid.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

What can help you avoid disputes and save money on unexpected payouts

What can help you avoid disputes and save money on unexpected payouts

Bills that arrive unexpectedly can throw your budget or savings plans off track. 

We all have monthly costs to pay, such as rent, electricity, insurance, and purchase expenditures and other expenses. So first we should plan a budget for  these essential expenses. And Unexpected payouts can be sudden accidents, disasters or even when environmental changes occur. So mentioned below are several strategies that will help you to avoid disputes and save money. 

Sell more Items

Entrepreneurs can turn to e-commerce websites and sell their items faster. You can also add your items to auction sites and earn money. You might even be able to sell anything using the new hyperlocal community applications, which are replacing the message board at the local grocery store.

Earn extra income

Companies can work a bit more extra hours to cover up their tasks/projects so that they can get paid as soon as they complete them. You also can take more short projects and complete faster. Whenever you receive unexpected payouts, always try being ahead in your project work so that you will be paid well. In that way you will be free from extra deductions e.g.: Failure to provide goods or items on time. 

Take Short-term money loans

Taking out a short-term money loan from a bank can help with the one-time cost of unexpected expenses. Instead of paying for an expense all at once, you can spread the cost out over several months with these loans. Examine the fine print of any loan agreement carefully, especially the fees and interest rates you may be charged, which, depending on the lender, might be substantial.

Re-Plan your Budget by removing sunk costs

Sunk costs are irrelevant costs that would not directly affect the process of the company. They can be things like buying newly released machineries, equipment when you already have fully functioning machinery right in your office.  But certain expenses cannot be avoided, as previously mentioned, there can be expenses for the utility bills, rental payments so such expenses should be added to the budget and sunk costs should be removed from the budget you have already allocated.  

During incidents where you suddenly prepare yourself for unexpected payments it’s always wiser to replan your normal budget by prioritizing and spending money on the most important and urgent expenses. For example, you can make products instead of purchasing from a supplier as well.

Make sure you are prepared for next Time

The time you will have to be prepared for unexpected payouts is unpredictable therefore you should always be ready for such instances when you are running your own company. One or more strategies mentioned above will help you to get rid of such expenses or else to plan yourself for such instances. 

You can also consider Saving money in a high yield savings account. In that way even a smaller amount that you saved will help you a lot when it comes to the burden of your next unexpected expense.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

Significance of a CFO

Significance of a CFO

Chief Financial Officer (CFO)

The title chief financial officer (CFO) refers to a senior executive who is in charge of a company’s financial operations. A CFO’s responsibilities are similar to those of a treasurer or controller in that they are in charge of the finance and accounting departments, as well as ensuring that the company’s financial reports are accurate and finished on time. Since CFO services play a critical and strategic role in any company, many try to have expert CFOs in their company. But some companies where they can’t afford for a full-time CFO seek for an outsourced CFO service from established accounting firms in Dubai, UAE.

Responsibilities of a CFO in Dubai

A Chief Financial Officer is responsible for the everyday tasks of an organization, including money, bookkeeping, and tax collection, in addition to other things. 

A solid CFO will be vital, groundbreaking, and continually projecting future incomes and monetary execution. 

Forward-thinking CFO services aid in detecting and addressing resource and financial demands well ahead of time, resulting in a positive outcome for your firm.

Few responsibilities of a CFO:

-Support CEO in decision making

-Manage cash flow of the company

-Analyzation of the financial strengths and weaknesses of the company

-Management of financial actions of the company

How will the CFO Service of Kloudac be beneficial for your company?

KLOUDAC will take the full responsibility of the improvements that should be done in cash flow and other profitable facts in your company. KLOUDAC as a recognized accounting firm in Dubai, UAE provides expert CFO services by analyzing financial strategies and taking necessary actions for the improvement of the productivity of your company by supporting the financial management process. 

CFO will also lead you to the correct path by guiding you to take the right decision at the right moment of the tasks that are responsible for the CFO.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

ACCA Approved Accounting Firm In Dubai

ACCA Approved Accounting Firm In Dubai

Professional accountants play a vital role in prioritizing social responsibility in business planning. They’re in a unique position to drive climate action in the organizations they manage and work for, as well as achieve genuine, lasting change.

ACCA

ACCA (Association of Chartered Certified Accountants)  is a globally recognized accounting qualification which build professionals in accounts and finance fields. These specialized professionals have a broader knowledge in Accounting, Tax Consulting, Auditing, Business Valuation, Treasury Management, and many other sectors. Which in turn has created greater demand for ACCA specialists.  

Benefits of ACCA

-When the firm in Dubai is registered by ACCA it enables the firm to carry on probate activities in the name of the firm. 

-ACCA Accountants are Globally Recognized, and they are flexible and contribute greatly towards the growth of companies from the knowledge they possess. 

-ACCA specialized Professionals are aware of the ACCA rulebook which consists of the laws, regulations, and Code of Ethics. 

-Members of the ACCA are strategic thinkers with high ethical integrity, good financial knowledge, and strong business judgment.

-ACCA professionals possess valuable skills such as organizational and strategic skills and along with that they possess technical and management skills which increase the effectiveness since they have mastered and experienced the cost-effective business techniques which is a great necessity for any growing company.

ACCA Professionals in KLOUDAC

Since Dubai is now considered as the financial capital of the middle east, many businesses are established and maintained in Dubai UAE. KLOUDAC is recognized as an ACCA approved accounting firm in Dubai, UAE. Where KLOUDAC received the Trainee Development Gold Certification from the ACCA body. 

 With the ACCA Qualified Professionals, it gives more value to the accounting firm which in return greatly contribute towards the growth of the companies associated with the firm. 

Our ACCA Specialists can evaluate and propose great Business solutions for your organizations. KLOUDAC professionals are specialized in Accounting and Book-keeping and all other accounting and finance related work. 

And many of Our Specialists are ACCA Qualified accountants who possess technical and management skills and as well as organizational and strategic management skills in the field of accounting. With the knowledge and experience of our ACCA specialists, we guarantee to help you with all your accounting and financial work which will result a growth of your business. 

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firms in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  

Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.