You are managing your business blindly if your bookkeeping system is not up-to-date. However, your business bookkeeper can help you see the financial state of your company and remove the blindfold. How is it possible for you to make decisions without actual financial information? Without current income and expense figures, how can you even begin to plan how to build your business? In my opinion, you can’t. Here is what’s going on behind that blindfold.
INCOME AND EXPENSES
It amazes us how many business owners have no idea where their company stands right now. Many business owners come to us for bookkeeping help, as we are a renowned bookkeeping and accounting firm in Dubai. They usually come at some time during the year (usually later in the year) when they haven’t done any yet. Without knowing your current financial situation, how can you make any financial business decisions?
CASH FLOW AND ACCOUNTS RECEIVABLE
Account receivables are a cash flow generator for your company and a short-term liability for the customer. The length of time you may allow a customer to continue without paying is determined by your cash flow factors.
The supplier registers the short-term credit as current assets on the balance sheet, which affects the cash flow as accounts payable. An account receivable is a debt that a company owes to a customer.
Since cash flow is critical to any firm, regardless of its stage of development. A common issue is that a company is selling its product or service like crazy yet doesn’t have any cash on hand. When we go deeper and find the root of the problem, it always accounts receivable. Keeping track of your invoices and accounts receivable will improve your cash flow and help you stay in the company.
A solid financial forecast includes both macroeconomic aspects and situations that are critical to the organization. Financial forecasting is a financial plan that calculates the future income and spending of the organization.
You can start financial forecasting if you have updated income and spending statistics and are keeping track of your accounts receivable. Forecasting is impossible without accurate books, and accurate books can only be obtained by performing monthly account reconciliations. Forecasting is a vital step for a company to take, but many companies fail to maintain their books up to date, making forecasting impossible.
A GROWTH PLAN
You have accurate, updated books, a handle on your cash flow, and a financial projection put together. Now it’s time to get down to business and expand your company. Few companies do not desire to expand their business. Most people want to grow, but they aren’t sure how to do it. While there is much more to growth than money, taking a close look at your current financial status might help you with your business expansion strategy.
As you can see, there’s a lot of useful information hidden behind your financial blindfold, and it’s all connected. Make sure your business’s bookkeeping is up to date, manage your cash flow, create a financial projection, and expand your company.
Do you have a system in place for keeping track of your finances? Is your accounting strategy correct and up to date? If not, we at Harbins are all here to assist you with our bookkeeping services in the UAE. We are a leading provider of financial services customized to your specific needs. We help organizations reach their maximum potential by leveraging our global network of expertise.
Furthermore, we are also serving our customers with HR consultancy in Dubai.