How to develop and improve accounting systems

How to develop and improve accounting systems

Accounting systems help business owners measure business growth in terms of profitability. Good financial systems will also identify problems before they get out of hand. If you don’t know if your company has a strategy to develop, adopt and review accounting processes, now is the time to reconsider your accounting approach.

Using technology to optimize, automate, streamline and integrate as many steps of your company’s bookkeeping and accounting processes as possible will reduce your back-office burden immensely. Without a comprehensive accounting system, you’ll be operating your business in the financial dark and risk facing internal fraud, tax penalties, and possible failure.

Ways to develop, improve and optimize your accounting systems

1. Dedicated Business Accounts

Having a separate bank account keeps records distinct and will make life easier when it comes to tax time. Separating personal and business finances also protects your personal assets in the unfortunate case of bankruptcy. Most business checking accounts have higher fees than personal banking, so pay close attention to what you’ll owe.

2. Expense Management

You absolutely must have a system for managing employee expenses and reimbursing them. Your system should have processes in place for recording the expense (receipt tracking) and noting the purpose of the expense. If your employees do not have access to business credit or debit cards, you will also need to develop a standard process for expense reporting.

3. Accounts Payable / Receivable Management

Accounts receivable is your business’ lifeline for paying all of your bills on time or early. Without a thorough system for managing accounts payable, you risk your business’s reputation and the unnecessary expense of late fees and interest. Managing accounts receivable requires you to establish systems, policies, and procedures.

4. Automations to Consider

Business process automation can help you fulfill your business goals, but only if you use the right tools. Technology solutions have been developed to overcome almost every challenge. Look for scalable features and ongoing support, but don’t be afraid to make use of modern bookkeeping and accounting tools.

4.1 Select the Right Accounting Software

From the start, establish an accounting system for organizing receipts and other important records. Small/Medium businesses are most likely to use QuickBooks (43%). Other popular accounting software includes Xero, FreshBooks, Wave, and Sage. You can always consult a professional to get an understanding of which software would fit your business. You will be able to retrieve and review your income statements and balance sheets on a regular (monthly or quarterly) basis and always look at your business’s financial year as a whole with annual reports.

4.2 Data Management

Automated tools to retrieve data for you by way of optical character recognition (OCR), allowing you to automatically enter information into your accounting system are here.  It may sound futuristic, but it’s not! This technology is available today by way of tools such as QBO (QuickBooks Online)

4.3 Expense Management

Imagine a company that has the ability to memorize your company’s unique expense management policies and automatically determines which expenses need a manager’s review and which can get automatic approval. Save time and money by not having to create and authorize manual spreadsheets, speeding up the approval process, and eliminating duplicate data entry.

4.4 Invoice Management

Automated invoicing is huge! Eliminate mistakes and shave tons of time off your accounting team’s monthly tasks with solutions such as Intuit Payment Solutions, which automates billing, collections, and cash application.

4.5 Sales Tax Reporting

Finding the best tool for this type of automation depends on your business. Big penalties can be involved if you get sales tax wrong. Establish a proactive plan and system for accounting and keeping up with sales taxes.

4.6 Paperwork Management

Back up your data. Cloud accounting provides some protection, but you should have plans in place for potential outages. You should also scan paper documents to have digital backups in the event of an emergency in the office. Convert physical files into digital files. Reduce the time required to move a bill, invoice, or receipt into the system where the data is required using a tool like Receipt Bank.

5. Find High-quality Accounting Partners

As a business owner, you’ll need a little extra financial planning help or guidance, there are a few individuals you might want to consider enlisting:

●      Accountant. Accountants can advise at many different points, including your business structure, creating financial statements, obtaining necessary licenses and permits, and even writing a business plan.

●      Certified public accountant (CPA). In the case of an audit, a CPA is the only individual who can legally prepare an audited financial statement.

●      Bookkeeper. The bookkeeper manages the day-to-day records, regularly reconciling accounts, categorizing expenses, and managing accounts receivable/accounts payable.

●      Tax preparer. Your tax preparer fills out necessary forms and may file them on your behalf during tax season. Some will also set up your estimated tax payments.

●      Tax planner. These professionals help optimize your taxes before you file them, helping you learn ways to lower your tax burden.

KLOUDAC will help you design and establish smart and efficient bookkeeping and accounting processes that work for your business. We will save you time and money and provide you with the financial data you need to make strategic decisions. Partnering with Kloudac, your company will have access to a team of highly experienced, trained, and certified bookkeepers.

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.

Why daily reconciliation is important

Why daily reconciliation is important

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.

How to make better decisions and improve profitability

How to make better decisions and improve profitability

Every action you do and decision you make has an impact on a company’s profitability. As a result, you should have a greater knowledge of the decisions that you make. Here are 7 recommendations for increasing profitability:

There are four strategies to boost your company’s profitability.

There are four primary areas where profitability can be increased. 

  • Reduced expenses
  • Increased turnover
  • Increased production
  • Increased efficiency 

You can also diversify your business by entering new markets or developing new products or services.

Keep track of your expenses

Your profitability can be boosted by proper expense management. While most organizations can discover ways to minimize costs, it’s critical not to sacrifice the quality of your products and services.

Activity-based costing is a useful tool for determining the true cost of various company activities. It determines how much it costs to perform a certain business activity by allocating proportions of all expenditures – such as salaries, office space, and raw materials – to specific activities.

Examine your offer

Examine what you offer, who you sell it to, and how much you charge to determine if you can improve.

  • Pricing Factors to consider: Regularly reviewing your pricing. Changes in your market may allow you to boost your prices without risking your sales.
  • Determine who your best customers are: Your profitability is influenced by more than just your price list; the type of clients you sell to can also have a significant impact.

Think about the following possibilities:

  • Upselling – selling customers higher-priced items that contribute more to your bottom line.
  • Cross-selling – entails analyzing what customers buy and recommending comparable items.
  • diversification – Identifying a demand and generating new products and services to meet it.

Increase your purchasing power

Buying more effectively is one of the most obvious ways to boost your profits. It’s a good idea to check your supplier base on a regular basis to see if you can get the same raw materials at a lower cost or with greater efficiency. At the same time, make an effort to maintain a high level of quality.

Get the greatest price from your vendors

  • Identifying your major spending categories will reveal where you spend the most money.
  • To get a better price, consider using your status as a trusted client to negotiate long-term contracts or realistic annual minimum spending with your regular suppliers. Consider switching to a different supplier if you can’t find a better bargain.
  • Examine the number of vendors you work with. Purchasing from a large number of vendors can be inefficient because it takes more time and dilutes your purchasing power. Avoid putting all of your business with just one or two providers, as this could leave you susceptible if something goes wrong.

Reduce waste in the workplace

  • Reduce your energy costs by turning off all equipment while it is not in use
  • Remove unused phone lines or photocopiers that you are paying for

Broaden your customer base

Moving into new markets can completely reshape a company and, if done successfully, can greatly boost profits. Expansion into new markets, on the other hand, can be dangerous, and costly mistakes might be made.

Investigate

  • Research before you begin. Are you able to alter or adapt existing products or services to meet the needs of new markets? This can generate additional money at a low cost, which is great for increasing profits. 
  • Do you know who your potential new consumers are, why they’ll buy your product or service, when and how they’ll buy it, and how much they’ll pay?
  • You can also utilize social media to do research and solicit alternate perspectives, ideas, and comments from your customers.

New product and service development

It’s important to think about the viability of a new product or service before producing it for a new market. The following are some important questions to consider:

  • Do you have the necessary skills and expertise on staff, or will you need to hire them?
  • Do you have the commitment and resources to make the new endeavor a success?
  • Is it possible to reduce the risk?
  • Can you be certain that there will be a demand for the new product or service at a price that will allow you to profit?
  • Partnerships and joint ventures, rather than going alone, might give you more security in establishing yourself in a new or expanded industry.

 Increased output

  • Choosing the right key performance indicators (KPIs) for your company will help you set clear goals. They should reflect your objectives, be quantifiable and comparative, and allow for adjustments to keep you on track.
  • It’s beneficial to gain a sense of how similar companies address similar problems. Benchmarking can be as simple as comparing energy expenses between similar organizations or as complex as sharing data and analyzing production and stockholding habits with other companies you trust.
  • Benchmarking can generate new ideas and energy for making your firm more efficient by providing a different perspective.
  • When benchmarking, it’s a good idea to focus on areas that are similar to the KPIs you’ve already defined.

Checklist for Increasing Your Business’s Profitability

Improving the profitability of your company can help you cut expenses, enhance turnover and production, and plan for change and expansion.

The way you boost the profitability of your business will be determined by a variety of criteria, including the industry you work in, the size of your company, and its running costs. You could, however, consider the following choices:

  • Identifying areas in your firm that could be improved or made more effective
  • Evaluate your general business costs, such as overheads, how reduced deals with loyal customers affect your revenues, and how productive your employees are, as well as identify and reduce areas of business waste, such as electricity supply prices.
  • To increase your profit margins, use up-selling, cross-selling, and diversification tactics.
  • Identifying and limiting areas of expenditure via bargaining with your suppliers’
  • long-term contracts with suppliers to get a better bargain on products explore new opportunities in your industry and figure out where you could extend your market
  • Install monitoring systems and processes, such as benchmarking.

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.

3 Tips to Stop Struggling with Inventory Management

3 Tips to Stop Struggling with Inventory Management

Manufacturers all across the world deal with the impression that they’re never truly in control of their inventories. You have enough merchandise on hand to meet and exceed client expectations for market demand if you have good inventory control. You will be able to speed up your business and deliver improved client satisfaction if you use the appropriate approach to inventory management.

Tracking inventory:

Manual inventory tracking techniques spanning many applications and spreadsheets are inefficient, redundant, and prone to errors. A centralized inventory management system with accounting features can assist even small enterprises and this will also reduce human errors.  

Your mobile device can provide you with all of the information you require about your inventory. You can oversee inventory and enhance business productivity from anywhere in the globe with mobile solutions and cloud-based applications.

You can also Outsource inventory management to a professional. To help staff follow best practices for working with technical inventory management software features, contract in-person training and give online support.

Documentation for the manual:

Inventory management using paperwork and manual processes is inefficient and insecure. It also doesn’t scale well across numerous businesses with a lot of inventory. 

Provide the necessary inventory tools for the job to your personnel. They require software to replace manual inventory records, as well as paperless invoicing and purchase order interactions.

Reporting:

Any report connected to procurement management, production management, or sales reporting is referred to as an inventory report. 

Having up-to-date inventory reports allows business owners to keep track of their stock’s movement and profitability. They come in a variety of formats and lengths, but effective inventory reports are always clear and comprehensive.

Keeping a healthy product business requires reliable inventory reports. It enables you to swiftly detect problems, control costs, and increase customer satisfaction.

To prioritize your top inventories, use an inventory management system with powerful demand forecasting and reporting options. Consider the availability of the top 20% of your inventory, which accounts for 80% of your consumer demand.

Inventory management software that works well should include the following features:

Reduce costs, increase cash flow, and improve the bottom line of your company.

  • In real-time, keep track of your inventory.
  • Assist with demand forecasting.
  • Avoid shortages. 
  • Excess inventory and raw materials should be avoided at all costs.
  • Allow inventory analysis to be performed on any device.
  • Your point-of-sale (POS) system should be able to reach you.

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.

The ultimate financial guide to grow your startup

The ultimate financial guide to grow your startup

Do you want to start a business that will be financially stable? Are you trying to stay out of debt? And If you want to create your own business, you should do it yourself. But before that, you should be aware of a variety of growth strategies. Here’s a checklist to help you get started.

1. The importance of cash flow management 

  • Most businesses fail for a variety of reasons, but one of the most prevalent is running out of cash. 
  • You must be aware of the origins and destinations of each and every dollar. You are putting your business in a very risky situation if you do not keep track of your cash flow. 
  • When you run out of money, no matter how amazing your idea is, you are running into a problem. Make a budgeting plan and stick to it.

2. Track and monitor expenses

  • Expenses will come at you from all sides when you’re starting a new business. Because hiring a full-time bookkeeper is extremely expensive at first, instead, you can use accounting software to keep track of your finances. There are a number of certified and recognized accounting software such as Xero and Zoho books which you can use for this purpose. 
  • This will not only assist with cash flow management, but it will also make tax time much easier each year. 
  • You may need to hire a professional when your business grows, and your accounting becomes more complicated.

3. Limiting Fixed Expenses

  • Keeping your expenses minimal in the early phases of a firm is important to its success. Focus less on the size of the office, your office does not have to be huge in order to attract clients. 
  • Operate leanly so you may devote the majority of your wealth to expansion, which will allow you to implement any benefit you desire in the future. 
  • Too many entrepreneurs place too much emphasis on the wrong things, such as luxurious offices and expensive amenities, and overlook the fact that earning revenue should be their first priority.

4. Keep a positive attitude but be prepared for the worst

  • Maintain a positive attitude while expecting the worst.
  • When beginning a business, you never know what might happen, so it’s best to plan for the worse. Wait until your business can replace your major source of income before quitting your employment.
  • Maintain an emergency savings account for both personal and corporate funds. It’s impossible to be too prepared for difficulties. They do, unfortunately, happen, and they usually strike when you least expect it. You are responsible for your own retirement as an entrepreneur

5. Every minute is worth

  • Nothing is more valuable than your time in terms of money. You only receive so much of it each day, so keep that in mind as you plan your calendar and day-to-day responsibilities. 
  • Time (and money) is wasted every second you spend on something unrelated to your business.

6. Concentrate on acquiring new customers

  • You can’t run a business without customers. Once you realize how to gain consumers and scale, the more likely your firm is to succeed. 
  • Once you’ve identified the various acquisition channels, you may focus on optimizing them to reduce your expenditures.
  • Concentrate on the most profitable options because it’s hard to try every prospective acquisition channel at first, both in terms of time and money. You’ll have the financial capability to investigate other channels once you’ve effectively scaled those.

7. Ensure that you are compensated

  • You must pay yourself for your hard work and attention to your business. Make sure you pay yourself enough to live.
  • Allow yourself enough money to live comfortably while you concentrate on growing your company. It’s easier to keep focused on your business when you don’t have to worry about personal finances. 

8. Establish financial objectives

  • Break down your financial goals into manageable and verifiable segments.
  • Monthly or daily income objectives keep you on track and allow you to make the required modifications for continuous growth.
  • You can also set milestones along the way to keep track of your progress, giving you a lot of smaller goals to keep track of. Small accomplishments can provide you with the confidence you need to continue your business journey.

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.

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.

Heads up for these expenses small and medium businesses

Heads up for these expenses small and medium businesses

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. 

5 Strategies to Survive a Cash Flow Crisis

5 strategies to survive a cashflow crisis

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.

VAT consultancy packages in Dubai

VAT consultancy packages in Dubai

VAT (Value Added Tax) is an indirect tax placed on the consumption of goods and services. The introduction of vat would have a significant influence on the operation of transactions, making it harder for taxpayers to satisfy their tax obligations.

To keep up with global developments, VAT legislation are dynamic and always changing. Globalization necessitates global and local adaptation to current patterns. Building value for you is the first step in developing a long-term connection. 

KLOUDAC offers number of VAT consultancy packages for you. Starting off with VAT Registration and up until VAT Transaction Advisory which guides your business to success. 

Packages include:

Package 1: VAT Registration

Package 2: VAT Return Filing Services

Package 3: VAT Consultancy

Package 4: VAT Deregistration

Package 5: VAT Training for Staff

Package 6: VAT Transaction Advisory

Package 1: VAT Registration

A firm that is registered under the VAT legislation is recognized by the government as a provider of goods and services and is entitled to collect VAT from consumers and submit it to the government. Only VAT-registered enterprises will be permitted to carry out the following activities:

  1. Value-added tax (VAT) should be applied to taxable products and services.
  2. Input Tax Credits can be claimed for VAT paid on purchases, which will be deducted from the VAT liability on sales.
  3. VAT is a tax that must be paid to the government.
  4. VAT returns must be filed on a regular basis. 

With the help of VAT registration professionals, registering for VAT becomes a simple. KLOUDAC has a team of experts that have assisted a number of firms in implementing VAT.

Package 2: VAT Return Filing Services

VAT registered enterprises or ‘taxable individuals’ must file a ‘VAT return’ to the Federal Tax Authority at the end of each tax period (FTA). The value of supply and purchases made by a taxable person during the tax period is detailed in a VAT return, which also reveals the taxable person’s VAT liability.

The taxpayer must fill out and submit the ‘VAT 201’ VAT Return form in order to complete the VAT Return filing. The Form VAT 201 is divided into seven components, as listed below:

  1. Taxable Person Details
  2. VAT Return Period
  3. VAT on sales and all other outputs
  4. VAT on expenses and all other inputs
  5. Net VAT Due
  6. Additional reporting requirements
  7. Declaration and Authorized Signatory

Package 3: VAT Consultancy

Business consulting services connect you with an experienced business consultant who can assist you with your company’s requirements. Security, finance, operations, human resources, legal, future planning, and a variety of other areas are among the topics that the consultant may assist with. A consultant can be hired both internally and externally. There are numerous benefits of business consultancy. Such as increasing profitability, operational improvements, and safe side.

Package 4: VAT Deregistration

If the application is not submitted in a timely manner, VAT deregistration might be costly to your organization. The VAT deregistration process should be done properly and with the help of a professional.

Tax deregistration can be applied if the following conditions are met:

  1. If the value of taxable supplies made during a 12-month period is less than the voluntary registration level in the next 30-days
  2. If it no longer produces taxable goods

Package 5: VAT Training for Staff

The training sessions describe how to handle the risks associated with VAT errors. Following that, meetings are held to show the administration how these risks might be eliminated using various ways.

The proper execution of the VAT journey requires employee training and the establishment of rules and processes. These are tailored to the needs of the businesses and executed concurrently to guarantee that trained staff fully comprehend the revised policies and processes in order to ensure complete implementation. 

Package 6: VAT Transaction Advisory

Vat transaction advising services are designed to help your company through unique sector transactions. Companies with complicated transactions, goods, and branches may find this to be more relevant. KLOUDAC has a group of experts to guide your through this journey.

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.

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.