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The holiday season is just around the corner of the year in Dubai, and everyone around has started to plan their holidays. Bookings are on; the required holiday shopping has started. People are all over excited to finally get an off from the daily schedule; children will get a break from their schools, colleges, tests, and assignments. Business people are also waiting for the holiday season to start, to get a temporary escape from the long business meetings, those targets and financial figures and taxes and all that stuff which you and your company have been dealing with, the whole long year and to finally be able to spend time with your family.
In schools, teachers always recommend students finish all their assignments and projects before the holiday season starts because just after the holidays, they would have to submit those. So, if they start after the holidays, it would be great confusion and mess for them.
Something similar to this can happen in your business. You can ask any successful businessman or any teacher of finance; everyone would give you this important yet overlooked tip that you should keep your business’s books in order before the holiday season starts so that you can relax with your family without your mind being tossed in your business things.
What is bookkeeping?
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.
Bookkeeping involves recording the financial transactions undertaken every day in due course of business. It prepares the base for an accountant to come and prepare the financial statements according to the local laws and regulations. Ignoring the bookkeeping process can result in missing out on recording certain transactions, rendering your accounting books invalid.
Why is bookkeeping that important in general?
While running any business, you cannot just make decisions according to your gut feeling, on the contrary, you have to think of decisions only after proper planning and discussion of facts and maybe also considering the present situation of your company. This analysis is possible only if you have information and data about your company.
This data empowers you to make decisions for the company’s betterment and also tells you whether the company is strong enough to support your decision. You can just keep thinking that your company runs in profit, but somewhere down there your employee might be hiding some issues or might be doing something wrong, then again it is these records and data which will tell you the reality and would become the whistleblower and warn you about the mishappening. Moreover, bookkeeping is the first step required to complete your company’s accounting process.
Why need to take care of your books before the holiday season starts?
The following are some important reasons which will help you in understanding why everyone recommends taking care of financial books before the holiday season starts.
- Just after the holiday season ends the season for paying taxes and other returns start and for doing so your accounts need to be up to date, and if you start this work after the holidays the task will become too tough to complete within time, and you might end up either being late on payment of taxes or you might pay wrong taxes too. Well, in both cases, you would end up getting legal notices and high penalties. Thus, ruining that fresh and enthusiastic mood of you and your company’s employees, which they had because of the holidays. So, it is better that you complete all your works of entries into your books before the holidays, and after the holidays, you do not have to hustle too much.
- Quite often, it has been noticed that many businesses that seemed to be doing well before the holidays turned bankrupt soon after the holiday season ended. The reason behind this is that during the holidays, the owners of such a company did overspend, which led to this mishappening. They overspend because they thought they had much in their accounts to suffice their spending, which was actually not true and because they were not up to date with their books and so they ended up overspending.
How can you manage your books efficiently before the holidays?
After going through all the facts mentioned above, you might have understood why everyone lays stress on managing books before the holiday season starts. Now let us discuss ways in which you can manage your books efficiently before the holidays.
- Calm Your Nerves
The foremost thing which is important in managing books right before holidays is to control your and your company’s excitement about the upcoming holidays so that you can work without any distraction. It’s a human tendency to think about things and the fun which is to come so much that we often forget about things in the present.
- Take Software Help
For finishing your task of keeping books up to date, you can even take help from different software that can do this work in a short span of time.
- Stay Organized
If you are organized from the very beginning, then it would not be that big a problem, and your business will run very smoothly.
- Start From Today
If you have not started until now, then it is not late even now. Just start grabbing all your records and receipts and start working to feed this data into your books.
- Hire Any Bookkeeping Firm
You can even hire a Bookkeeping company in Dubai for doing this work of yours, and then it would completely be their headache.
Now that you know the importance of keeping your books in order before the holiday season commences make sure you hire a professional bookkeeper in Dubai to take care of your requirements.