In the world of entrepreneurship, making mistakes is an inherent aspect of launching a business venture.
It’s a journey filled with trial and error, where initial missteps become stepping stones towards eventual success.
In the beginning you may fail over and over again, but the faster you can navigate through these failures and gather data on what works the better your decision making will be next time.
Many companies would not be here today if they did not have the ability to persevere and adapt before they had the chance to shine.
In this article we delve into financial and accounting aspects start ups should take into consideration:
Separate personal and business finances
Maintain separate bank accounts and credit cards for your business to ensure accurate record-keeping and simplify UAE corporate tax preparation. This separation also helps establish credibility and professionalism.
Track and categorise expenses
Keep a meticulous record of all business expenses and categorise them appropriately. This practice will help you understand your spending patterns, identify areas for cost reduction, and make informed financial decisions.
Implement a robust bookkeeping system
Make use of CRESCO Accounting to manage your financial records effectively. A well-organised bookkeeping system ensures accurate financial reporting, simplifies tax & vat filing, and provides valuable insights into your business’s financial health.
Understand your corporate tax obligations
While Corporate Tax is only coming into effect in the UAE on 1 June 2023, and has a threshold of 375 000 AED on taxable profits – it’s important for you as a startup to familiarise yourself with the tax obligations specific to your business structure and industry.
Monitor your cashflow
Cash flow management is critical for startups. Regularly review your cash flow statement to understand the inflows and outflows of cash, anticipate any potential cash shortages, and make necessary adjustments to ensure sufficient liquidity.
Know when to stop
The ability to stop when an idea is not worth the time is a valuable trait for a startup owner. Find the courage to move on when an idea that seems brilliant isn’t the one.
Don’t complicate the idea
Some start-ups fall prey to aiming for perfection before they even define a target user segment. However the simpler your product is, the better it is for you to start. Present the core idea you intend to sell and add perks along the way.
Set targets
When you start out it sometimes can feel as if you are fighting so many fires at once that you just don’t have time to sit down and figure out your future roadmap and goals – but without these achievable goals in place you will flounder. Write down your vision and how you plan on achieving it with actionable steps!
Get comfortable with risk
While having a vision is an important aspect of starting a business but equally as important is your attitude to risk.
This doesn’t mean taking gambles but rather learning to manage and mitigate risks and accept that if you are planning on disrupting the market you will struggle with capturing the market in the beginning.
Don’t hesitate to seek professional advice when needed, especially when facing complex financial situations or making financial decisions.
With the expertise of CRESCO Accounting we can help you navigate challenges and make informed decisions. Our Accounting services and business tips can help startups develop a strong financial foundation that will lead them to long term success.
