Accounting Advise For UAE Startups.
Doing more with less’ has become the mantra of startups and SMEs across the world in the post-pandemic era. Even the businesses that have not come under the reel of the pandemic are treading cautiously to avoid future risks. Controlling the expenses while maintaining, or even increasing, your quality of service and/or product may appear to be a challenge. However, advice from the best accounting firms in Dubai will equip you to achieve this objective.
Does this sound great? Let’s get into the details of how you can accomplish this:
Know your strategic costs
The right way to implement a cost-cutting strategy is by making a list of things that make and save the most money in your company. These could include costs directly connected with product quality, excellent customer service, profitable new sales or your defined competitive edge. These are the strategic costs that you must leave untouched. Focus on other things that are not strategic costs and aggressively cut such expenses. The mantra is simple: after listing out strategic costs, consider everything else as overhead expenses. Your accountant is the key to make such a list or consult with the best accounting firms in Dubai.
Embrace Technology
The COVID-19 pandemic drastically changed the way businesses operate in the UAE. Digital transformation has become inevitable to navigate the economic challenges posed by the pandemic. Businesses that embrace technology have greater chances of staying afloat as it can significantly reduce operational costs. What you need to do is conduct an assessment of your current administrative processes and identify areas that could be automated using technology, instead of manpower.
Set a Monthly Budget
From an accounting perspective, this adage applies to every small business: You can’t manage the things that you can’t measure. Although most startup owners believe they are responsible for controlling the costs, many of them operate without a monthly budget. Business owners who aim to save a lot of money in very little time must set a budget. With a solid budget, you can save a significant amount of money every month. Seek the help of the best accounting firms in Dubai to prepare robust monthly budgets.
Assess Inventory
You may be storing a lot of inventory that won’t be needed for a while. The extra inventory will cost you a lot of money because of the expense of buying the products. And, it will force you to spend cash on the warehouse space that is needed to hold the products. If possible, you should look for lean business options to minimize your inventory while ensuring that you always have products available when your customers are ready to buy.
Save for a Rainy Day
Since the outbreak of the pandemic, every business owner seems to have realized the importance of setting aside cash for the future. The emergency funds will come in handy for you if any unexpected event strikes. Sometimes, it may help you pay the tax amount when it’s urgent. Saving for the future will help you avoid running up business credit cards.
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