When starting a business, the first things that a businessperson would require is knowledge in the particular domain, and next, he would need to secure funds for the company. There are various methods to procure funds for the company such as by applying for loans, crowdfunding, shares and debentures, but to gain the complete knowledge of the industry is difficult. The entrepreneurs and the businesspeople have found a way around the problem of attaining comprehensive knowledge before starting a business by hiring consultants.
A consultant bears the responsibility of understanding the problems of a business and then guiding them towards the correct and appropriate solution. It may be entirely possible that the consultant advises numerous companies. In such a case, it is the duty of the consultant not to amalgamate the data of all the companies being handled, which can be done using proper accounting measures.
Let us first understand who is considered as a consultant and then know how accounting can help a consultancy business.
Who is a Consultant?
A consultant is a person who is considered as a knowledgeable professional and expert in a particular domain. Depending upon the industry, consultants provide expert and professional advice to the business, and it is very advantageous for a growing business to avail the services of a consultant. With the help of the expertise and experience of a seasoned expert, the company can appropriately tackle the problem faced by it.
Apart from the expert advice, the consultancy will also provide an outside viewpoint with regards to the problem being faced by the company. The different view will help the business to understand the problem better and then give a suitable solution to it.
Now, being a consultant is tedious and complicated work as the consultant not only helps to remove the hurdle the business is facing but also provides a direction for your business. To accomplish their work properly, the consultants in question also can take the help of the accounting process. The various accounting procedures will provide multiple benefits to the consultants.
How can Accounting Help a Consultancy Business?
The process of accounting will allow the consultants to take advantage of various benefits such as:
1.Maintaining Separate Accounts
A consultancy can have several clients to which it provides its services, and it would be of paramount importance that the consultant does not mix the data of any two of its clients by mistake. The accounting process will allow the consultant to keep separate accounts of its clients. The consultant will also be able to keep track of any other service such as payroll, auditing, etc. is provided to any of the organisations.
One of the most important benefits of availing the services of an accounting firm is that the firm would prepare a report regarding all the aspects of the business periodically. Having a detailed report of the entire working of the company developed by an accountant in UAE will help the management of the consultancy to distribute the resources in the grasp of the business properly.
3.Helps in Decision Making
The different accounting processes will help to simplify the data generated and will also ease the process of examination and breakdown of this data. With the analysis of the present as well as the older data will allow the consultants to properly take decisions as to where in the business the consultancy should focus more and what kind of services the consultancy should provide.
4.Calculation of Taxes
As the consultancy would have many clients, the calculation of the taxes to be paid would differ from year to year. The taxes to be paid by the consultancy will be decided based on the number of clients and the type of services provided to them.
5.Streamline the Processes
The accounting process will help streamline all the processes of the consultancy and will allow them to work in a better and efficient manner. With the betterment of their processes, they will be able to take on more clients and help in making their business more profitable.
Consultancies can prove to be very advantageous for the up and coming business firms which do not have the required experience or the expertise to run a special kind of business. They also help in getting the old and the retired people a new source of income by taking advantage of their experience in such matters.
If you are looking for such experienced and reputed accounting firms in Dubai, “JAXA Chartered Accountants” can be of service to you. They have teams of experienced specialist and Chartered Accountants in Dubai which would not only provide financial advisory services in UAE but will also help in securing the future of your consultancy business. They also offer a range of other services such as auditing services, VAT services etc. For details regarding our services, contact us, we would be happy to help.