Accounting

Why Small Home Business Owners Must Hire A Freelance Accountant in Dubai

5 Mins read

Attract Investors

 

Small home businesses are always running on low capital. Their small size is probably funded desperately by the owner. They are often unnoticed by big investors or venture capitalists. But if you hire a freelance accountant in Dubai, your business might take off.

 

If your business does not have any financial statements, technically it does not exist in the eyes of the investors. This means that your chance of getting financing is very low because these financial statements act as a resume.

 

Hiring a freelance accountant might as well solve this problem. When investors go looking for businesses, they often look at their assets. And physical assets are more important than non-physical assets.

 

When you will hire an accountant, he or she would understand the nature of assets and how investors perceive them to develop a suitable financial strategy.

 

There is also another reason why a small home business owner should hire an accountant. An accountant uses best practices that are internationally recognized. One of them is called international accounting standards (IAS).

 

These can ensure the investor’s trust. If the accountant does not use these standards then the investors would not put their money in. Therefore, your accountant has to be qualified and well-versed in IASs. You can hire qualified and experienced freelance accountants in Dubai from Bawabba.

 

Selling Your Business

 

If you are a small home business owner and wish to sell your business, you might have some expectations. You would like to have a high profit, a secure deal, and a quick process as well. Even though it seems easy while talking, acquisitions are extremely difficult.

 

You would have to price your business correctly and find a suitable buyer. For this process, a freelance accountant in Dubai would be of your service.

 

The accountant will help you organize and structure your business deal. There are multiple ways to sell a business such as selling assets, intellectual property, or equity. With an accountant by your side, it will be easier to make a decision.

 

Also, such highly-priced deals also have added risks. Most of the days, you would have to conduct due diligence which is basically a thorough investigation of your buyer’s portfolio. Your accountant would help you coordinate this due diligence and run the process smoothly.

 

Proper Company Valuation

 

Another very important reason to hire a freelance accountant in Dubai is to carry out a proper business valuation. Business owners might have a rough idea of their business’s worth. But there can not be any guesses in business.

 

There are many factors that affect the business valuation. Factors such as the number of owners, the quality of systems, business growth, time spent, etc. And hence, the proficiency of an accountant will help you make a correct estimation.

 

He can help you in opting correct method. It could be a return on equity valuation or profit multiple. He can also help you understand terms like discounted future earnings. These methods value your business differently.

 

So, when deciding to value your business for your self or for the purpose of selling, correct estimation might help you save some money. And that is why you should hire an accountant. Where hiring a professional accountant is a must. Companies can cut their cost by hiring a professional freelance accountant. Here is why Small Home Business Owners Must Hire A Freelance Accountant in Dubai. Hiring a freelance Accountant also helps you with  financial management.

 

Avoid Losses

 

We all know if you are a business owner, the word that you do not want to hear is a loss. Loss is a critical message that disrupts business operations. In order to avoid it, you might log on to Bawabba and get yourself a freelance accountant in Dubai.

 

There are so many errors that could occur on a daily basis that are important to avoid. It is also possible that as a small business owner, you might be making it and not aware of them.

 

An accountant can use his expertise to find out the ineffective areas of business. These are the areas that are generally responsible for losses. They can fix the operations that are cutting the company’s margins.

 

Your accountant can also do regular economic valuations to figure out the trend. This can help your business adjust their trajectory. Also, preparation and planning for the tax can save you good sums of money.

 

Accountants also possess the ability to understand and analyze the data to make future financial forecasts that might help you avoid further losses.

 

Your accountant can also fill the financial blanks from quarterly tax filings to cost projections. Because of it, your business can avoid expenses and improve the return on investments.

 

Budgeting and Financial Forecasts

 

If you are a business owner, you must be aware that it is important to assign a specific budget to each department or operation. But how much? Your freelance accountant from Dubai can help you with that.

 

Budgeting incorporates planning and enacting a fiscal plan. The accounting process involves detailed collection and reporting of the expenditures and revenues. Your accountant will help you devise a plan. And along with it, the cost of services and the areas that make more profits.

 

Having good forecasts for upcoming years also acts as a bait for an investor. When the investor sees the business progressing or its trend going upwards, he would be willing to put his money in.

 

Processes such as cashflow forecasts are extremely important. They will make sure how much cash would you have available at a certain point in time. They also help you choose the right time to make a purchase. And the right time to sell on credit.

 

Avoid Fraud

 

Fraud is something that all business owners would love to avoid. It is the thing that could give them nightmares. Unless they have hired an expert accountant.

 

An accountant could keep tabs on the business expenses and make sure they are all accurate. He can analyze the ledgers every now and then to see if they balance. There is a strong need for every business to have an accountant look for errors no matter how insignificant.

 

But most importantly, an accountant can audit a firm. It is a long procedure whereby an accountant goes through all of the company’s financial records. This extensive check is to figure out if there’s corruption or fraud within the firm.

 

If the audit report is ‘qualified’, that means there is a problem somewhere. Which then the business owner could fix.

Here are the  5 Crucial Reasons why you need a Professional Accountant in the UAE.

We all now saw how important is an accountant to a business. So if you are a business owner, go to Bawabba and hire a freelance accountant in Dubai now!

 

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