COVID 19 Pandemic continues to create unprecedented uncertainty across the Globe and small businesses have not been spared from its wrath. Dealing with lower business volumes and tighter liquidity, owners of small businesses should look for ways to get the best out of their accountants.
Here a few tips that can be considered in enhancing the accounting function (internal or outsourced) to maximize its value.
(1) 100% VAT Compliance
As UAE steps into fourth year of VAT implementation, it is important for small businesses to stay fully compliant with VAT Laws. It would be wise to review the adequacy of tax records, review the tax positions taken on specific issues and identify the pain points that can possible lead into filing delays, potential tax claims or even penalties. Your accountant should make full use of VAT compliance features available in the accounting systems like Tally ERP and ensure any non-compliance is identified and reported immediately.
(2) Use Excel Analytics
World wide, there is an increasing focus on data analytics using sophisticated data analytical tools. However, small businesses can perform data analytics using Excel tools and generate reports that can offer useful insights to business owners.
Not sure, where to start - ask your accountant to download sales reports into excel and use tools like Power Pivot. With a little bit of training, your accountant will also become your data analytics expert !!
(3) Create Reporting Culture
As business owners, having access to reports that give you valuable insights is of paramount importance. Ask your accountant to provide daily, weekly or monthly reports showing business performance and position. This includes simple, intuitive dashboards and flash reports using Excel tools that can be delivered straight to your inbox and give you a more clearer picture about the business.
(4) Identify Skill Gaps
If you believe there is a skill gap in any of the above areas, you can consider hiring an external service provider who can offer support for a specific period in putting the right structure in place.
Time has come to change the way we look at accountants, they are not just processing your invoices and bills but can add much more value without hurting your pockets.