Posts in category: Business Setup

Data analysis includes assessing a vast amount of information, which is why it is termed “big data.” As a result, choosing the appropriate tools and techniques for your data analytics is really important. Data analytics may provide some limited insight to nontechnical workers. 

Additionally, you require more from your data analysis than just statistical summaries; you also need to comprehend the reasons behind the patterns in your data. Understanding the reasons behind the trends is much more important. 

You can use tools to analyze big data. Real-time analytics can be used as one method of discovering much of this data. Through an executive dashboard, this kind of data analysis offers crucial information to decision makers both instantly and as needed.

You probably produce more than enough data, regardless of how small your organization is, to benefit from big-data technologies. As an illustration, your company most likely has a large number of information-rich spreadsheets, databases, and customer relationship management applications. These data sources can be combined with freely accessible technologies like Google Analytics and data sets that are offered commercially.

Five essential methods of data analysis utilized by small enterprises

Utilizing various data analysis methods that are centered on business and technology is advantageous for small organizations. In order to establish corporate resilience in 2022, the following five critical data analysis techniques are crucial:

1. Statistical Analysis

Large-scale data collection, exploration, and presentation are all parts of the statistical analysis process, which aims to find patterns and trends. To finish the statistical analysis, five steps are done, including. 

• Data explanation
• Establishing links between the data and the population at large
• The development of a model to summarize these links
• Validation evidence for the model
• Future trends prediction

2. Analysis of Text (Data mining)

Using databases or data mining techniques, text analysis or data mining assists in finding a pattern in massive data sets. Data analysts can use it to turn raw data into insightful business insights. Data mining enables the extraction of data, its examination for patterns and linkages, and its interpretation for business choices. Data sourcing, data exploration, modeling, and model deployment are the steps that make up data mining.

3. Analytical Diagnostics

A type of advanced analytics called diagnostic analytics looks at data or information to determine “why it happened?” Techniques like drill-down, data discovery, data mining, and correlations are used to describe it. Diagnostic analytics refers to the use of data to identify the reasons behind trends and the relationships between different variables. This approach can be used for a variety of purposes, including assessing market demand, studying consumer behavior, enhancing corporate culture, etc.

4. Analyses that Predict

Based on historical data, statistical modeling, data mining methods, and machine learning, predictive analytics is used to create predictions about future outcomes. Based on data analysis, businesses utilize predictive analytics to detect potential risks and opportunities.

5. Prescriptive Analytics

In order to recommend the actions a firm should take to address a problem, prescriptive analytics analyzes data or content. This kind of analytics uses a variety of tools and methods, such as recommendation engines, complicated event processing, neural networks, graph analysis, simulation, and many more.

To fully utilize your data sets, you must have a specialist’s knowledge. Consider employing a consultant who can guide you on the correct path if hiring a full-time analyst is not feasible financially. 

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 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. 

A financial feasibility study in UAE is a method that you can use to introduce outsiders to your business plan or idea. The research outlines the amount of money required to fund your project, as well as where that money will come from and how it will be used once it has been obtained. This analysis of projected cash flow can often disclose previously unknown flaws in your business plan and point you in the right direction for overcoming them.

Key steps of a feasibility study

1. Evaluate your business concept’s viability

Evaluate the market to see if funding your business makes sense before you start your financial feasibility analysis. Two things to consider are the audience and the competition. If the potential customer demand for what you’re trying to sell isn’t strong enough to keep your business afloat, now is the time to modify or remove your business plan. Similarly, you must evaluate your competition – learn about the items that customers may choose over yours and see what you can do to ensure that yours is superior.

2. Conducting and Writing a proper feasibility report

The format of most financial feasibility studies is similar. This is how they’re organized:

• Introduction – To make the paper easier to read, include a table of contents.

• Product/service – Include prototypes if there are any. Utilize this section to discuss how customers will use the product and plans for future product enhancements.

• Technology – Explain complicated technology procedures in language that a typical businessperson can grasp.

• Economical situation – Describe who your company will serve. Mention intended consumers, including both customers who buy the product in stores and end-users, who are the product’s ultimate owners.

• Competition – Include a list of significant competitors in this area. Include both direct and indirect competitors, or companies who offer a product that fills a similar need for customers.

• Industry – For already-existing industry, look at the current trends. Examine demand and supply over time and identify the elements that influence them.

• Business model – Explain how you intend to make money. Give enough information so that your potential investor feels comfortable discussing financial estimates later in the document.

• Sales and marketing strategy – Mention how much money you want to spend on marketing, ideally laying out a three-year sales strategy. Describe your marketing strategy in detail, as well as the rates you’ve set for your products.

• Requirements for production and operation – Once you’ve found a physical location for your business, make a note of its specifications (size, age, and condition), as well as the rental and equipment prices.

• Management and personnel requirements – Make a list of all the employees you plan to hire, as well as their qualifications. You should also consider the future, stating how many people you expect to hire and what they will be doing.

• Intellectual property – List every intellectual property that your company holds or is in the process of acquiring, including patents, copyrights, and trademarks.

• Critical risk factors: List all of the things that are keeping you from launching this business. Be open and honest about any barriers to access, economic forecasts, or rules that limit your production since your investors have a right to know how much money they’re risking by investing in you.

• Budget forecasts – Include information on start-up capital, finance, prospective returns, and payment to investors. Continue reading for helpful hints on how to make this section stand out.

• Conclusion – Present your final results and investor suggestions.

3. Financial projections guidelines.

• Request enough start-up cash to get the company up and running for the first two years.

• Put your personal money into your company, and make a big deal out of it in your feasibility study.

• Discuss factors that could affect an investor’s profit. 

ex: Set up several potential situations for investors to comprehend the risk they are taking.

• Don’t make any financial promises to investors that are precise and binding.

Reason: If you promise them a precise financial amount or a specified payment date, you run the danger of not being able to keep your word and losing a valuable partner in the process. Instead, tell them that they will receive a particular proportion of their investment at the end of each profitable business quarter, because that promise will benefit you both.

4. Make an executive summary

This single-paged document that should be the final item you write because it will act as a summary of the main points of your proposal. Because your executive summary will be the first thing your potential investors or partners view, it must be brief and interesting. It should emphasize the fascinating job you intend to undertake and how you intend to attain your objectives.

Startups have a hard time competing in new markets, and small businesses have a hard time attracting investors who believe in their visions. 

Investors who prefer to know exactly where their money is going will be impressed by your business skills and will be much more inclined to grant you the funds you need to fund your aspirations if you finish a financial feasibility study successfully.

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.

The company’s management strives to increase the company’s value and shareholder wealth at all times. To do that there are a number of models that may be used to determine a company’s valuation. Inputs to these models, on the other hand, are based on judgment, which you will gain via practice. When using any of these various methods, the projected value of a firm becomes the focus point for putting a price tag on any company.

Business valuation services must be performed regardless of a company’s structure, size, or industry to ensure that the corporation is correctly valued. To assess a company’s worth, you’ll need a solid understanding of financial analytical tools, as well as the skills to negotiate and plan a deal. These skills are also required for acquisitions. 

An organization’s worth is determined by how well it can perform in the future. As a result, evaluating an organization’s past performance isn’t enough; we also need to consider its current culture, as well as its internal resources and intellectual capital, in order to determine its future earnings potential.

Different Valuations

Startup valuation – A startup valuation is an estimate of how much a company is worth in the market, based on a variety of factors. When raising funds or seeking for a technical cofounder, a business cofounder, or any partner or shareholder, valuing your startup is a process that every entrepreneur must go through.

Company / Business valuation – The process of determining the economic value of a full firm or company unit is known as business valuation. For a variety of reasons, including sale value, establishing partner ownership, and even taxation, company valuation can be used to evaluate the fair value of a business.

Corporate valuation – Corporate valuation is the process of determining the value of a company entity in the field of finance. It’s a key part of corporate finance that’s used for a bunch of options.

Business valuation methods

There are 03 methods namely:

1. Asset-based method
2. Market value method
3. Cashflow method

1. Asset-based method

This approach of valuing a corporation adds up all of the company’s investments. When it comes to liquidating a firm, it’s often used. When using an asset-based method, there are two ways to calculate the value. You can either list the business’s net balance sheet worth of assets and remove the value of its liabilities, or you can calculate the net cash that would be obtained if all assets were sold and all liabilities were paid off.

2. Market value method

This method try to figure out how much your company is worth by comparing it to similar businesses that have recently sold. However, this strategy will only be effective if there are a large enough number of similar businesses to compare.

3. Discounted Cashflow method

This is a widely used valuation method that is based on the concept that a company’s true value is determined by its ability to generate wealth in the future. It calculates a company’s value by forecasting predicted future cash flows. It then calculates the present value of those future cash flows by “discounting” them by the buyer’s needed rate of return. 

This enables the evaluator to factor in any short- to medium-term assumptions and immediately input multiple valuations into the cash flow or rate of return. The majority of the subjectivity involved in appraisal is quantified using this method.

Although the Discounted Cash Flow technique is the most popular form of business valuation a combination of methods will be the most accurate way to calculate a selling price.

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.

Start-up funding possibilities in the UAE are expanding. Most UAE start-ups have traditionally been bootstrapped or financed by traditional lenders such as banks and financial organizations. 

However, business incubators and accelerators have flourished in the UAE in recent years, offering a favorable and cost-effective environment for entrepreneurship. This has resulted in an increase in activity in angel investing, crowdfunding, private equity and venture capital. 

The UAE government has also been encouraging home-grown talent by sponsoring and financing local firms owned by UAE residents through government programs such as the Khalifa Fund for Enterprise Development and the Mohammed Bin Rashid Fund for SME.

Funding Options for Your Business

1. Bootstrapping

Most start-ups in the UAE are bootstrapped, which means that the company’s promoters fund the company with their own money or money borrowed from family and friends.

It’s worth noting that the UAE Central Bank controls financial activities involving loan issuing, with only licensed banks and financial organizations permitted to do so. 

Furthermore, private persons are barred from issuing loans with excessively high-interest rates under the UAE Penal Code, which is prohibited under Sharia law (Article 409). Taking loans from private individuals or uncontrolled companies could be difficult because there may be limited legal redress if a disagreement arises.

2. SME loans

Because of small-and-medium businesses’ small assets or lack of a demonstrated track record of company operations, traditional lenders are frequently hesitant or unwilling to fund SMEs. This makes it difficult for SMEs to do business, and financing options might be costly or inflexible as a result.

3. Crowdfunding

Crowdfunding is the technique of raising funds for a business venture or project from a large number of people via an electronic platform. There are two types of crowdfunding that are significant for obtaining cash for a business:

• Loan-based crowdsourcing (or peer-to-peer lending)
• Equity crowdfunding

4. Angel Investors

The UAE’s growing business ecosystem has resulted in an increase in the number of angel investors. 

Angel investors (usually high-net-worth individuals) invest in exchange for a piece of the company’s stock. 

In addition, the UAE has a number of angel investor networks, including the Dubai Angel Investor Network, the Women’s Angel Investor Network, and the Falcon network, all of which have aided in the growth of the angel investment scene.

5. Private equity and Venture capital

The UAE is slowly increasing its use of private equity and venture capital as funding sources. venture capital funds usually invest in start-ups or early SMEs (often technology companies) in exchange for modest equity holdings. Private equity funds, on the other hand, frequently acquire majority ownership in established businesses in traditional industries.

Because of the lengthy licensing process, not many private equity and venture capital funds are located onshore. Legal and regulatory constraints, legal system uncertainty, and issues structuring investments within the UAE are among the challenges. As a result, private equity and venture capital investors typically organize their funds in the DIFC or offshore in a nation with more favorable tax treatment.

6. Strategic Investment

Strategic acquisitions can also be used to fund UAE enterprises, especially if a foreign investor is looking to enter the UAE market and grow inorganically. Recent transactions in the UAE include Amazon’s acquisition of Souq.com and Uber’s acquisition of Careem.

7. Business accelerators and incubators

Although most business incubators (and accelerators) do not provide cash, they can provide a variety of packages and services that can help start-ups and entrepreneurs save money. The Dubai Future Accelerators, In5, Dubai Technology Entrepreneur Centre (DTEC), Hub71, ImpactHub, TechStars Dubai, and Fintech Hive are some of the most important business incubators in the UAE.

8. Local SME assistance

Government initiatives such as the Khalifa Fund for Enterprise Development and the Mohammed Bin Rashid Fund for SMEs can help UAE-based SMEs get finance. As a result, in June 2007, the Khalifa Fund was formed to assist indigenous businesses in Abu Dhabi. The Khalifa Fund began with a total capital of AED 300 million and has since grown to AED 2 billion, covering the whole UAE. The Mohammed Bin Rashid Fund for SMEs, based in Dubai, intends to fund innovative pilot ventures established by UAE nationals.

9. Initial Public Offerings (IPO) in the United Arab Emirates

The UAE Companies Law and regulations issued by the Securities and Commodity Authority govern the issue of securities by onshore companies (SCA).

Only public joint-stock companies may offer securities through a prospectus under the UAE Companies Law; other companies, whether incorporated in the UAE (mainland or in a free zone) or in a foreign jurisdiction, are prohibited from advertising, including the invitation to a public subscription, without the SCA’s approval.

As a result, limited liability corporations (LLCs), which are the legal structure used by many start-ups in the UAE, are unable to raise funding from the general public. As a result of this, and the UAE’s underdeveloped capital market, local start-ups seldom make it to the IPO stage.

10. Debt Instruments

Only public or private joint-stock businesses, subject to shareholder approval, can issue bonds or sukuks (including instruments convertible into shares) in the UAE. The Companies Law and the SCA regulations will also apply to the issuance of such bonds and sukuks. Most start-ups do not have access to this option since they are not incorporated as public or private joint-stock companies.

How KLOUDAC can help you?

KLOUDAC assists start-ups in how structuring their businesses to optimize their investment opportunities. For our startup clients, we design the founders’ agreement, provide equity split advice, evaluate commercial contracts, and draft investment papers. We also connect prospective businesses with the right partners in order to seek funding.

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, and Recognized accounting software, and more. 

Reconciling your accounts is important since it helps in the detection of any errors, discrepancies, or fraud in your accounting records that could have a significant influence on your company’s financial health.

The major importance of Daily reconciliation

• It aids in the detection of any unusual transactions. If you outsource your accounting, reconciliation at the end of the day can assist you to review all of your outsourced transactions.
• It can be used to spot any potential fraud or accounting mistakes. Frauds might happen without your knowledge in today’s technologically evolved society. As a result, account reconciliation can assist you in identifying any discrepancies in your information.
• It guarantees that people can control their cash flow. This allows the user to manage their savings and expenses by keeping track of their account balances.

Therefore it is important that you reconcile your bank and credit card accounts to protect your safety net against unauthorized transactions and/or scams.

Why reconciliation is important?

1. Bank Mistakes Should Be Avoided at All Costs

If you let fraud persist, your organization may be held liable for the losses. It is feasible to detect potential fraud and cash flow leaks promptly by working through bank reconciliations on a daily basis.

Human error still exists in bank records, and if you don’t double-check the accuracy of your transactions, you risk making a mistake.

2. Frequently Reconciling results in Fewer Frustrations

It gets easier the more you go over your bank statement. You know not only what to expect, but also what to avoid. The process is made as quick and painless as feasible because you aren’t browsing through a month’s worth of transactions.

3. Bank Reconciliations on a Monthly Basis

Monthly bank reconciliations allow for differences in your accounting records and your actual cash balance. Failure to make payments can harm relationships with partners and lead to strict payback alternatives in the future. Reconciling your accounts on a daily basis also helps you avoid paying overdraft penalties.

4. Shift to trustworthy accounting software

When you conclude a project, you can debit an account using the accrual method. The payment will appear in the records, but a bank reconciliation will reveal whether or not the money was received.

Another common difference between the accounting books and the bank record is highlighted by QuickBooks. QuickBooks track sales, send invoices, and see how your business is doing any time and anywhere.

With monthly reconciliation, you’re left guessing about your cash balance. If you don’t reconcile on a regular basis, you’re making business judgments based on outdated data.

5. Tracking Daily Cashflow

Being able to predict and plan for future financial circumstances requires a thorough understanding of cash flow. You’ll have a better knowledge of your cash flow and spending patterns if you track them on a daily basis.

To execute daily reconciliations, you don’t have to be a large corporation with a lot of transactions. The process does not have to be exhausting with daily reconciliation. Reduce the number of transactions you have to sort through and use solutions like automation technologies to help you do so.

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.

It goes without saying that owning and operating a business is costly. Inexperienced entrepreneurs are more concerned with the amount of money they can make from their firm than with the costs they will incur while operating it. It’s a serious error that may be corrected with the assistance of accounting firms in Dubai.

New business owners are aware of the costs associated with launching their company, such as equipment costs and the cost foundation for their primary products. 

However, they frequently overlook important expenses that are critical to their company’s survival. Ignoring such costs at the planning stage will result in some unexpected incidents later. Let’s have a look at some of the most common mistakes that entrepreneurs make in order to avoid them:

Expenses Management

As you are all aware, the UAE will no longer be a tax-free zone after June 2023, when corporation tax will be implemented. Value Added Tax (VAT) has also been imposed on enterprises since 2018. Even if you’re not a large corporation, taxes can quickly become confusing. In the UAE, you must understand how much of your income must be set aside for VAT and corporation tax.

You must conduct thorough study and include tax costs in your profit forecast. This kind of forethought and strategizing will keep you from getting a harsh awakening when it comes to completing your UAE tax return. During tax season, administrative penalties may be a death sentence for SMEs.

Accounting firms in Dubai can assist business owners who don’t have a VAT or corporate tax strategy.

Insurance expenses

When calculating the costs of starting a new business, most companies put insurance-related expenses at the bottom of their priority list. Even though there is a wide selection of company insurance available, you may not require all of it. You must, however, have a clear grasp of your requirements. Depending on your industry, you may require general liability, product liability, or even professional liability insurance. Analyze the cost of your insurance demand and set aside the necessary funds.

Employee Expenses

If you have a large number of employees, you will be spending a lot of money on them each month. Basic needs, such as the cost of office supplies needed to help your staff function more efficiently, are included in the employee expenses. Payments for business-related travel, meals, and other expenses incurred while performing their duties are also included in the expenses.

Utility Expenses

Rent costs are commonly projected into business financial models by entrepreneurs. They, on the other hand, ignore utility costs. Depending on the size and location of your company, you could be spending a significant amount of money each month on internet charges as well as bills for energy, phone service, water, janitorial services, gas, and other services. During the planning process, get a comprehensive understanding of utility expenses and include them into your company’s financial model. For further information, consult with accounting firms in Dubai.

Cost Cutting Techniques

1. Emergency repairs are costs that you can’t plan for. Unexpected expenses might throw a budget off track. The best solution is to budget for typical unexpected bills and crises. This method would assist you in effectively managing any expense.
2. Emergency repairs are costs that you can’t plan for. Unexpected expenses might throw a budget off track. The best solution is to budget for typical unexpected bills and crises. This method would assist you in effectively managing any 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. 

If a company expects financial difficulties, it must forecast, plan, and speak with lenders immediately to determine its future.

What is cashflow crisis?

A cash flow shortfall occurs when a company’s cash outflow exceeds its cash inflow. That means you could not have enough money to cover payroll or other operating expenses if you’re experiencing a cash flow problem.

Adhere to the 5 strategies mentioned below in order to survive cashflow crisis:

1. Adjust your business plans

When you have a cash flow problem, you should examine your business plan, methods, operations, and expenses carefully. You’ll need to figure out:

why you ran into a cash flow difficulty

whether it’ll be a reoccurring issue 

Devise a strategy to deal with future shortages

To discover which aspects of your organization are the most and least profitable, look at your profit and loss statements and profit margins depending on specific categories inside your firm (jobs, clients, employees, events, marketing tactics, products, and services). This will assist you in adjusting your company plan to focus on services that make the greatest profit, letting go of clients who may be costing you more money than you know, optimizing your pricing structure, and identifying waste or excessive expense in your operations.

2. Speed-up receivables

Your cash flow difficulties will be solved faster if money starts coming into your firm right away. Top companies accelerated their receivables by accepting and giving pre-orders for a product before it went into production, but there are other ways to speed up receivables:

• Invoices should be sent more frequently. Rather than waiting until the task is finished to send an invoice, send bills every week or every two weeks to cover the services provided up to that time.
• Send your invoices out as soon as possible. Adjust your receivables management to invoice clients as soon as the products or services are delivered, rather than sending out all bills on a specific day of the month. You will receive payment sooner if you send an invoice as soon as possible.
• Rather than invoicing the total amount owed after services have been given or products have been delivered, ask new clients for a deposit or partial payment up front.
• Pay special attention to any accounts that are past due. Start calling past-due clients from your accounts receivable. You can request partial payments from past due clients, in a cash flow emergency, every penny matters.
• Make it easier for customers to pay by providing additional payment options such as:
  • credit cards
  • electronic payments
  • mobile payments

3. Negotiate Accounts Payable

Assuming you can defer or diminish how much money streaming out of your organization during an income emergency, it will assist with lessening the strain on your functioning capital. Be straightforward with your merchants to arrange installments or to ask about delaying installments.

Although some merchants may be hesitant to budge, chances are that loyal vendors will be flexible and willing to work with you in a need. Your utility providers may also be able to give you some reduction in your bill.

4. Reduce unnecessary Expenses

In general, you should monitor every penny that leaves your bank account in business, but during a cash flow crisis, you’ll need to be more vigilant. You must prioritize your business’s expenses during a cash flow crisis. Remove any needless costs and focus only on those that keep your business running and generating income.

5. Sell unessential items

In a cash flow crisis, you can also off-load non-essential business assets in addition to decreasing non-essential spending. Although this is simply a short-term solution because you can only sell an unwanted item once, it is an effective and rapid way to make cash when you are in a need.

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.

An organization’s fixed asset registry is a comprehensive list of its fixed assets. This register is primarily created and used to maintain track of the book value of the assets for accounting and tax purposes.

Creating and maintaining a fixed asset register, as well as completing periodic physical checks on fixed assets, has become a critical task, especially for asset-intensive companies. Failure to do so may result in a balance sheet overestimation or underestimate of the company’s assets. External auditors may seek proof that the assets listed on the balance sheet exist, and an independent confirmation can help with that.

Maintaining a thorough and accurate fixed asset registry is the responsibility of the Finance or Accounts manager. The fixed assets register, which will be kept in an excel spreadsheet or a book, should include the following information:

-Identification or serial number

-Acquisition Date

-Description of asset

-Location

-Class of asset

-Cost of acquisition

-Accumulated depreciation

-Net book value

Processing Depreciation

The accountant shall generate a depreciation schedule for each of the goods at the end of each month, using the depreciation rates indicated in sub-section.

The Finance Manager should go over the schedules and sign them as proof that he or she has done so. The accountant must update the fixed assets register based on the depreciation general journal that has been thoroughly evaluated.

Accounting for fixed assets addition

The acquisition of fixed assets must be recorded and paid according to payment rules.

The asset must be categorized, labeled, and registered in the fixed assets inventory register upon delivery.

Accounting for disposal of assets

Disposal of fixed assets must be approved by the organization’s board of directors. No assets should be sold without the board’s prior written approval.

The management should request public bids for the asset purchase based on the board’s written authorization.

The board shall meet and adjudicate the proposals after receiving a minimum of three bids. The finance manager and accountant shall prepare a log to document the disposal and the bidder’s debts when the sale to the winning bidder is completed, based on the board disposal authority and adjudicated bids. If there is a revaluation, an adjustment will be made in the journal.

The accountant should issue a general receipt if the disposal is a cash sale.

An auction may be held at the board’s discretion. The auction’s cash earnings should be handled in the same way.

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.

Business journaling is a crucial part of building a company’s philosophy and strategy, which leads to success. It is often known as a powerful tool for personal development since it has extremely specific applications for business owners who want to advance in their careers. Business journaling helps you to identify and imagine your business vision and the journey ahead, to map your goals, milestones, and abilities, discard limiting beliefs and attitudes that hold you back, and finally, to improve your business day-by-day. 

Here are 03 major ways business journaling can be a key to success.

1. Journaling Leads to the emergence of ideas

When ideas live solely in your head or in a quick exchange with a friend, they can soon become stagnant. That valuable idea that pops up in your head should be noted down somewhere so that you can use it when needed. The act of fleshing out a business idea on paper not only makes it tangible and genuine, but it also allows for its growth and extension.

2. Journaling Reveals erroneous assumptions

Exposing faulty ideas is just as vital as fleshing out the good ones. Once you identify the bad and irrelevant ideas, you do not waste your time, energy, resources, and money on them. Your failed ideas, on the other hand, serve as vital stepping stones to your good ones. 

The act of properly studying a company’s dream and then determining how and why it will fail is an important exercise that is frequently accomplished only through journaling. A journal’s judgement-free environment is sometimes the only place where we can be honest with ourselves and recognize the shortcomings in a treasured business concept. 

Writing about your terrible ideas in a journal allows you to learn from them. In my opinion, this is the most important key of all.

3. Journaling is a sign of substantial changes.

There will come a time when something significant occurs, such as when you have a breakthrough or achieve a key objective. When things like this happen, it’s crucial to understand what led up to that point. How can you reproduce the conditions that inspired your finest ideas? If you keep a journal, you have the benefit of looking back and knowing the context of your finest thinking.

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