Establishing a company and holding a physical existence for the same requires continuous efforts at every point. The initial phase requires rigorous planning, brainstorming, dedication, and of course, the will to succeed. However, once you incorporate and get a company registration certificate, or carry out the business activities, do you think that’s enough?
Building a brand is essential, but more than that, maintaining the position turns out to be a more significant challenge. After the establishment of the company and operating business operations, you need to take care of the maintenance. The scenario turns out to be worst when a company stands on the edge of being insolvent, which direct the path to liquidation. Wondering how? Don’t worry. This guide will give you insights where you need to focus on excelling in this competitive world.
Step 1: Make Sure Your Bookkeeping is Up-to-Date
The first and foremost thing that you should keep in mind is recording the business transactions. Since the initial stage, you must have incurred many expenses, and when it comes to the company expenses, the variable costs are meant to be made to carry out the business operations. Recording of the business transactions at every point is the ground of bookkeeping, and you need to make sure that your records are up-to-date.
Step 2: Analyze the Records During the Accounting Process
Now, once you are done with the recording process, you need to make sure that you analyze the recordings frequently. By doing so, you will get many insights regarding the performance of your company, along with financial stability. This will help to go ahead in business planning and strategy building effectively. Continuous assessment will give you a detailed picture regarding your business, and you can fix the loopholes (if any) through the process implementation of accounting process.
Step 3: Infuse Audit
You must have heard multiple times that the audit phase turns out to be a crucial part of any business. Well, it’s nothing to be scared about as the audit process plays a much more significant role in uplifting your business and enhance your growth and revenue simultaneously. Under the audit umbrella, you do have an internal audit and external audit that a company opts. Implementing them in your business will guide you accordingly regarding the internal politics, misinterpretations etc. that needs immediate attention. Sufficing the stated purpose will help you to fix the issues at a faster pace, which will help you to avoid unwanted scenarios like
Step 4: Maintain Separate Books for Creditors and Debtors
While dealing with your business activities, you need to deal with a number of creditors and debtors at every point. Maintaining separate books for both will help you to keep a track on both business creditors and debtors. It is essential to know that you need to maintain a balance between the two to avoid the stage of being insolvent.
Step 5: Be Clear Regarding the VAT Proceedings
As per the new rule of VAT implemented by the UAE in 2018, a VAT rate of 5% is to be implemented at every point in the business cycle. The moment you apply the VAT scenario in your business, it becomes vital to make a separate note for it. Properly maintaining this will not only help you to understand the VAT proceedings but will also guide you to keep clean records for the audit inspection.
If you take care of the essentials mentioned above, you will be in a better position to avoid being an insolvent. Maintaining these records are essential, but at the same time, it is essential to manage them effectively and professionally. By getting in touch with approved auditors in Dubai, you can gain industry insights and protect your company from being insolvent. JAXA Chartered Accountants stand as one of the best business auditors in Dubai. Being approved as JAFZA and DAFZA Auditors, JAXA takes utmost care in delivering the best services to the esteemed clients. Our experts are well-versed with the relevant proceedings and can guide you at every step. If you hold any query, get in touch with our experts. Contact us today-we’d be glad to assist.