Accounting Tips for Sole Entrepreneurs/SME’s in UAE

Sole entrepreneurs tend to do most, or all the work required to keep their companies running. You may or may not have the necessary skills to perform the bookkeeping tasks that your firm requires. Even if you hire someone else to do your bookkeeping, you should still familiarize yourself with basic accounting tips. It is because lack of accounting knowledge can lead to a failure on both financial and legal grounds.

Below are the Accounting Tips for Sole Entrepreneurs/SME’s in UAE :

Keep Track of Everything

Like any other business owner, a sole entrepreneur must keep complete and accurate records of revenue and costs. Keeping all receipts and documenting all transactions, is a good practice. Today, there are many apps available that allow to snap pictures of documents & organize them in accounting software. Maintaining records of company inventory like computer hardware and software, desks and office equipment is also important. A carefully laid out paper trail is what you want, one that you can easily revisit.

Separate your personal and professional expenses

The most basic accounting tip for sole entrepreneurs is not to merge your personal and professional expenses. When you mix personal & business expenses you end up losing money which is not good for business’s financial health. It is best to maintain an exclusive bank account for the company’s transactions to manage the funds easily.

Schedule & Monitor the Accounting

Make it a point to schedule and update your books on time. This can be difficult to do for many busy business owners, but it is of the utmost importance. There are many accounting and vat consultants in UAE who can help with return filing and monitoring your financials. Financial reports help provide a summary of the overall financial health profile of your business.

Be more cautious if you work with international clients

Working across the national borders involves different taxation, different accounting concepts, import and export charges. To avoid legal issues, it is best to hire an experienced accountant who is expert in it to saves time & chaos.

Know When to Outsource

The most important accounting basic SME’s should know is when to outsource your accounting. When you first start out, your accounting is simple and straightforward. However, once you start to grow, things get a little more complicated. It can be challenging to stay on top of accounting, file your UAE VAT returns and run your business. Your focus should be what you do, not tasks like accounting, bookkeeping, and financial handling. Outsourcing your accounting and VAT to expert vat consultants in UAE saves time & money and reduces compliance issues.


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