Transformed from the land of deserts to a Land of Gold, Dubai stands a hotbed for tourists across the world. The tourism sector stands as one of the most significant contributors to uplift the Emirate’s economy. According to a survey conducted by Euro Monitor, Dubai holds the first position, as the most visited city by international tourists. In 2018, the count of total foreign visitors reached 15.9 million, which paves out multiple ways for business investors to invest in the tourism business. The Government of Dubai has taken numerous steps to uplift the tourism sector, but it equally demands the business entities to implement accounting practices.
Are you a business owner in the tourism sector or an entrepreneur planning to start a tourism business in Dubai? If yes, then this blog is for you to understand why accounting is to be implemented from the very start of company incorporation. Let’s dive in to understand better.
How Can Accounting Help Tourism Business?
The branch of accounting is considered to be the language of business, which can’t be avoided by any business entity. The scope of the tourism industry is vast as it includes an enormous scope for business entrepreneurs to invest. Moreover, the service categories provided also turns out to be huge.
You can provide services ranging from standard to customized packages, and the rates can be fixed accordingly. By implementing accounting in your Tourism business, you will be able to analyse a better ground for your business.
Let’s have a look at the ways how accounting can help tourism business to boosts the business growth.
1. Cash Flow Management
The core purpose of any business entity is to earn a profit. After a company gets incorporates, you might end up increasing the services to be provided. Maintaining a track of the cash, its inflow and outflow will help you get a better understanding of the unwanted expenses and can be gradually decreased.
It is to be noted that the proceedings are to be carried out in an error free-way, and the best way to do it is to take the help of an accounting expert, as the chances of error in the cash flow activities stand less.
2. Overview of General Ledger
General travel is one of the accounting tools that help you to get a clear picture of the company’s financial status. The sheet of information keeps track of the company’s assets, and the information gets recorded in the accounting software. Maintaining that on a specific period turns out to be fruitful and helps you to grow your businesses after proper analysis of reports.
3. Error-Free Calculation of Revenue
As mentioned above, professional experts are well-versed with the accounting process, their profession demands them to deal with calculation at every single step. This becomes a boon for business investors because upon hiring accounting professionals, they can demand an error-free calculation of revenue.
In the tourism business, various segments can be built, and revenue generated from each of them is different. The final calculation would generate the final business reports and error-free reports will give you the exact value of your business, and you can build further plans based on the data gathered from the experts.
4. Eases the Audit Process
Accountants stand by your side during an external audit and help the auditor to carry out the process in a hassle-free way. Accounting and bookkeeping records stand as the foundation for audit, which gets scrutinized by an auditor, and if any error turns up, it will lead your business in big trouble.
5. Better Management of Economic Activities
Accountants will help you to get a clear idea regarding the business cash and can help you in prioritizing the economic activities as well, which will ultimately increase the company’s goodwill.
Thus, you have seen how accounting shapes a tourism business. Error-free accounting records will help you to conduct easy external audit process and also earn a good score. Keeping track of complete financial record of a business is essential, and will help you to leverage your business growth to the next level.
To ease the process for you, we at JAXA are here to maintain your accounting books. Experienced accounting professionals are here to ease the process for you, leaving you a better space for planning and strategy building. To have a word with our experts, do contact us today-we’d be glad to assist.