+971 4 4542366 +971 554413566

Flyingcolour logo Flyingcolour logo2

  • Home
  • UAE Company Setup ›

    Business Setup Overview

    • Business Setup Overview of UAE
    • Educate yourself about Jurisdictions in UAE

    Mainland Business Setup

    • UAE Mainland Overview
    • Mainland Professional Company
    • Mainland Limited Liability Company
    • Mainland Industrial Company
    • Mainland Branch/ Representative for Foreign Company
    • Mainland GCC Owned Company

    UAE Mainland

    • Dubai Mainland
      Dubai Mainland Business Setup Overview Business Setup Al Barsha & Tcom Business Setup Al Quoz & DIP Business Setup Al Qusais Business Setup Bur Dubai Business Setup Business Bay Dubai Business Setup Deira Dubai
      Business Setup Downtown Dubai Business Setup Dubai Marina & JBR Business Setup Dubai Media City Business Setup International City Business Setup New Dubai Business Setup Sheikh Zayed Road Business Setup Jumeirah Beach Road & Al Wasal Road
    • Abu Dhabi Mainland
    • Ajman Mainland
    • Sharjah Mainland

    UAE Freezone

    • Freezone Business Setup Overview
    • Dubai Freezone
    • Abu Dhabi Freezone
    • Ajman Freezone
    • Sharjah Freezone
    • Ras al Khaimah Freezone
    • Umm al Quwain Freezone
    • Fujairah Freezone

    UAE Offshore

    • Offshore Business Setup Overview
    • Dubai Offshore
    • Ajman Offshore
    • RAK ICC Offshore
  • Taxation ›

    Taxation

    Expert taxation and financial management solutions

    VAT Services

    Business Accounting Services

    Financial Forecast & Projection

    Book-keeping Services

    Accounts Payable

    CFO Services

    Inventory Verification Service

    Tax Residency Certificate in UAE

    Payroll Management

    Month End Financial

  • PRO Services ›

    PRO Services

    Professional support for all your business needs

    PRO Business Services Overview

    PRO Services

    MEA & MOFA Attestation

    Golden Visa

    Property Visa

    DUBAI Customs Registration

    Assistance in Bank Account Opening in UAE

  • DIFC Formation ›

    DIFC Formation

    Pioneering Excellence in Financial Foundations.

    Overview

    DIFC Foundation

    DIFC Prescribed Company

  • Blogs ›
    • Categories
    • Industries

    About Business

    Building & Engineering

    Educational Activities

    Financial Activities

    Gas & Energy

    Heavy Industries

    Light Industry

    Medical

    Nutrition & Food

    Personal Household

    Print & Media

    Real Estate

    Sports

    Activity Group: Transport

    Various Activities

    Business Setup

    Company Formation

    Dubai Business Laws

    Entertainment & Related

    Freezone Company Formation

    Offshore Formation

    Research Article

    UAE Business News

    Accounting & Bookkeeping

    Business Setup Dubai

    Cloth Pressing Business

    Construction

    Crypto Business

    Decoration Design Business

    Dry Cleaning Business

    Education

    Energy and Mining

    IT

    Financial Services

    Fintech

    Healthcare

    Healthcare Industry

    Hotel and Hospitality

    Home Based Business

    Manufacturing

    Media and Entertainment

    Online Business

    Real Estates

    Restaurant and Cafe

    Shipping

    Telecommunication

    Trading

    Transport

    Travel and Tourism

    Utilities

    Yoga Centre

  • Contact
Calculate Your Business Setup Cost in UAE

Accounting guide for startups

  • Home
  • Blog
  • Accounting guide for startups
  • Tue 13 Aug 2019 | By : Flyingcolour
blog-post-image

Overview of accounting for startups:

While living in the world of your newly established business or startup and striving for success with all your skills and creativity, book-keeping and accounting seems to be burdensome. However, if you plan it wisely from the very beginning it will not seem to be a hurdle but a helping hand to understand your own business’s functioning. Firstly understand the difference between two terms Accounting and Book-keeping. Book-keeping relates to keeping track of income and expenses records as well as accounting is a wider term covering the process of interpreting your financial records. Although, both of them are necessary to maintain for better business growth.

Critical business insight for investor

Both Accounting and Bookkeeping playing vital role in every business’s success, but as a startup / new business, you may have an additional need to keep clean and proper records. Being a business owner, it will always require to review financials reports as well as important for any fund raising as all financing channels required the transparent, well maintained, clean accounts and financials report so that potentials investors can make an informed decision about investing in your startup.

Importance of accounting

  1. Track of expenses:- When a new business is in the process of setting up, a varied nature of expenses are incurred. It is very important to keep note of all expenses incurred along with the physical copy of invoices in file or maintaining records electronically. It gets important to have all records ready for claiming expenses while filing your tax returns.
  2. Sales projection:- To get an accurate read on how much money you'll need to keep your business running in the first 90 days, you'll need to forecast as how much revenue your business will produce in those initial 90 days. The greater the revenue, the less you'll have to come up with funds from your personal resources. In an ideal world, revenues would cover expenses (and then some), and it wouldn't be necessary to figure out how much more you'll have to pay to keep the business going. It might happen, but it's not likely to take place within the first few months of operation.
  3. Open business bank account:- In the rush of setting up business, people forget to open a separate bank account for business and incur business related expenditure by their personal account which may lead to difficulty while preparing income and expense account.
  4. Identify your vendors:- Make sure to make a list of your vendor and their details along with purchase and payment records. It helps in maintaining good relation with them and balance in their account ready to know any time.
  5. Setting up a payroll system:- As the business is new it does not involve a large force, however with the passage of time team grows and it requires keeping all details ready about them from personal details to payment schedules.
  6. Tax Compliance:– Each country involves its own tax levy structure. It is very important to be ready for it from the beginning. Missing any tax compliance may lead to attract fines and penalty and disrepute the organization name.

Method of accounting to be used

a. Cash Method-Income and Expenses are taken in books at the time of its receipt or when it is actually incurred. b. Accrual Method-Income and Expenses are recognized in books as and when the transaction occurs, irrespective of when cash is expenses or income is actually received. Nowadays, Accrual Method of accounting is widely used as it shows a clear picture of business at any point of time along with helping business owner to analyze the functioning of business to take future steps and decisions accurately.

Why outsource book-keeping and accounting

In contrast with the past, these days, outsourcing your accounts to professional company is very popular and more reliable method. There are things to keep in mind before choosing an outsourced accounting firm in uae, which make sure reliability and other factors. The team of professional keep your business terms and work to you, working with integrity and confidentiality. The option of outsourcing is majorly used as it saves cost of hiring people, training them and setting a whole new accounting department in your organization, instead of that, a team of professionals will help you to carry out all work on time with their skills and trained staff. The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity, reduce work cycles and tax return filing.

Hire an expert

Handling the startup and managing books and accounts at the same time becomes lengthy. Engaging an expert while going with a startup helps you in many ways –
  • Helps in setting up customized accounting as per the nature and need of your business.
  • Help while planning your major expenses.
  • Let you know about various schemes laid down by government authority to ease your new business.
  • Plan your taxes wisely by taking advantage of various tax incentives available for startups.
  • Day-to-day update with compliance lead to save you from paying unnecessary fine and penalties.

Conclusion

Focusing on your startup product / services is very important but along with it becomes crucial to manage records of the business. Keeping note of mentioned points, plan your business processes integrated with accounting and payroll services. This blog post written by Mr. Taher (CA), Tax advisor at Flyingcolour Business Setup, Accounting & Tax Services in Dubai and across UAE. For more detail, Please contact us at info[at]flyingcolour[dot]com or call +971 4 4542366.

Leave a reply

  • flyingcolourbs
  • 3000+ Real Customer Reviews on Google.

  • Click here to Read.

Recent Posts

Get A Kiosk License in Dubai
Wed 04 Jun 2025
Start A Trading Company in Dubai Mainland
Fri 30 May 2025

Contact Us

Our Success

Our Success lies in honestly and integrity which are used as motivational factors to inspire us to arrive at success as well as prosperity for the company plus our customers.

18,000

+

Global Clients

20

+

Years of Experience

175

+

Team of Professional

High Tech


Real Time Support

Ready to take it a step further?

You can schedule a free call with our expert consultants

Do you have questions or want more information ?

Phone : +971 4 4542366

Mobile or Whatsapp : +971 554413566

Email : info@flyingcolour.com

Keep connected

Get updates by subscribe our newsletter

About Us
  • We are a leading consulting firm providing Company formation, Accounting & VAT and immigration services located in Dubai - UAE ...Read more
  • flyingcolourbs
  • 3000+ Real Customer Reviews on Google.
  • Click here to Read.
Popular Services
  • Jebel Ali Offshore Company Setup
  • Business Setup in Dubai Free zones
  • Limited Liability Company
  • Professional Company Setup
  • Bank Account Opening in Dubai
  • Offshore Company Formation
  • Dubai Mainland Company Setup
  • Trade License
  • Miscellaneous
  • Flyingcolour® Careers
Quick Links
  • Mainland Company Formation
  • Free Zone Company Formation
  • Offshore Company Formation
  • VAT Registration & Return Filing
  • Economic Activity Guide for UAE
  • VAT Consultancy Services
  • Customer Grievance Policy
  • Terms and Conditions
  • Privacy Policy
Contact
  • Head Office:
  • Office No.2608,2609 & 2610
  • Concord Tower Opposite Palm Jumeirah Dubai Media City,
  • Dubai. UAE.
  • DIFC Office:
  • Unit GV-00-04-03-BC-44, Level 3,
  • Gate Village Building 04, PO Box 84059,
  • Dubai. UAE.
  • payment

©2004 - 2025 Flyingcolour® . All rights reserved