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When you come back home after spending a vacation or after doing shopping from the supermarket you check the bills and your wallet and calculate how much money did you took there, how much was spent, what balance money should you have and then check are you having the exact amount in your wallet as you calculated it to be.
Why you do so? You do so to keep the record of your expenditure, to check whether or not you have lost or kept your money somewhere. Well, bookkeeping is also just like this, where this noting down of expenditure in done more officially and properly.
Bookkeeping is the legitimate process of recording your company or business’s financial transactions. From purchases of the small stationery to purchases of the raw materials required for the business, sales, income tax returns, receipts of payments done to employees, or other organizations, all are recorded in this process of bookkeeping.
Signs which reveal problems in the current bookkeeper
When you observe some strange things to happen in due course of time, then understand that it’s time that you get rid of the present bookkeeper and hire an employee or a firm or a freelancer, someone who is more qualified for this important job of bookkeeping. It is important for the owner of a business to keep an eye upon the employees and especially those related to maintaining accounts and other financial matters. Frequent discrepancies in the balance sheets, several penalties levied upon, and any loss of data in the books clearly depicts that there are some errors on the part of the bookkeeper.
Steps required to have a new bookkeeper
Here are the steps you need to undertake to switch from one bookkeeper to another in the Dubai: –
- Understanding the cues:You need to start looking more into the financial workings of your company and understand balance sheets so that you can find out if there exists any fault in the working of the bookkeeper and whether he or she is performing his or her duties carefully.
2.Pre-Research and analysis: Before firing your present bookkeeper, you need to be ready with a new option so that he or she can take over as soon as possible. For this, you need to get into the problem, which has caused the expulsion of the current bookkeeper and understand what you want more from the new bookkeeper.
3. Deciding what type of bookkeeper you want for your company: It more or less depends on you and your company’s needs to decide to go with either a freelance bookkeeper or with a firm to manage your records. So, go through each option that is available to you and also decide as to what you want from your new bookkeeper in Dubai.
4. Communication to the current one: When you have finally planned everything, then communicate your decision and concern to the current bookkeeper and take notes from him or her as to what part has he or she done the records and fetch all records and documents from him or her.
5. Contact a Firm or a Freelancer:Finally, after all the planning and communication is over hiring a new bookkeeper, maybe from a firm or a freelancer.
6. Meet the firm or the freelancer and talk:It’s very important that you talk with the person to whom you are going to bestow the duties and also to expect great service from the bookkeeper you need to make him or her aware of what you think of them and what type of service you would need from them.
Relevant skills required for the new bookkeeper
Even though you do not require a person with a very high qualification or a much highly educated person as a bookkeeper in Dubai, still there are some requirements, which include the following: –
- Data entry skills
- Attention to details
- Proficiency in using Microsoft Excel
- Basic knowledge of accounting
- Organizational skills
- Knowledge of software required for bookkeeping
- Traits your new bookkeeper in Dubai should have:Seems to be an easy job but actually, it is not considering the tasks which a bookkeeper needs to perform .
- Maintain records: A bookkeeper in Dubai needs to add all transactions to the book daily with proper dates to prevent loss of data.
- Management of bank accounts: It is his or her job to flag any inconsistency between the book’s record and the bank’s records and then overcome this.
- Keep the books aligned with law: Audits happen both internally and externally, which can cause a lot of loss to the company if the books are not accurate and according to the rules.
- Keep you ready for tax: Tax is calculated on the basis of the company’s turnover and other financial transactions, and it so happens that you are paying a tax less than that you are supposed to because your books are not correct, then be ready to get a penalty and notice from the income tax authorities.
- Sending out Invoices: It is the bookkeeper in Dubai who prepares the invoices and sends them to your client to receive the payment on time and also looks upon the book and chases the late payers.
- Keeping Invoices: To maintain proper functioning, the invoices which your company has paid must be kept safely for future use.
- Deal with foreign currency transactions: Bookkeepers in Dubai also make sure that they maintain accurate foreign currency accounts within the boundary of law and order.
- Maintain proper cash flow: One of the important tasks a bookkeeper does is to make sure that the company doesn’t run out of day-to-day money, thus keeping an eye on the balance of expenses and that of revenues and also to inform the company if it requires to have more cash to operate.
- Prepare Financial Statements: They not only keep books, but they also prepare some other significant financial statements, which include profit and loss statements, balance sheets, and cash flow statements.
- Getting a book ready for the Accountant: It is the bookkeeper in Dubai who sees that the book is ready and accurate so that the accountant can continue with his work.
By following the tips mentioned above, you can easily switch from one bookkeeper to another and still ensure that your accounting work is not hampered at all.