A Glance at the Audit Procedure Followed by Audit Firms in Dubai

Just Like Accounting or VAT serves as the strongest pillar to hold an organization. Audit plays a vital role that is just beyond the numbers and statements. An audit helps to analyze the loopholes of business and fixes it. Audit Firms in Dubai evaluates the financial records of a business which helps to boost a company’s growth. An audit is carried out in two ways i.e. Internal audit & External audit. As a company owner, you should have a gist about what is audit and how it can boost the ranking & growth of a business.

This guide will help you proceed to ahead and understand the audit procedure

Why you Need an Audit?
As most of the companies in UAE are under the mandate of the government for them on yearly basis audit. Audited financial statements are required & mandatory in order for an organization to be considered by the banks, creditors, etc. their request for loans. Investors also look at them in order to be convinced to invest in the said company. Audited financial statements are also asked by authorities based on their discretion.

Audit Procedure in UAE
In UAE, a business entity is expected to go through financial audit under the supervision of Audit Firms in Dubai for accuracy.

Planning
It is the first step when it comes to the implementation of the audit process. An auditor prepares a plan considering a holistic view of the management. While drafting the plan management process, the task performed, etc, are considered. It also includes aspects like analysis of ration, highlighting the loopholes which are needed to be sorted on a mandatory basis.

Financial Audit Test
 In the audit process, either it can be an internal or external audit, an auditor tries to understand the different aspects of the business by applying numerous audit test. An auditor also gets exposure to the company’s financial statement and analyses the financial statement to collect factual information.

Account Analysis
An auditor tries to analyze the company’s accounts and matches the same with the audited documents collected in the audit test. The main reason for the comparison is that it states a clear picture behind the changes made in the accounts since the last audit.  Account analysis/ It also helps in understanding the next initiative to be carried out.

Preparation of Audit Report
After the completion of analysis and projection, Auditor moves towards the preparation of the audit report, that includes the complete information of all tasks being performed in the organization. It also includes the future projections, the company’s SWOT analysis, that will help the audit firm to convert the weakness into strengths, as well as the threats into opportunities. After the preparation of the report, every department of the organization is informed and signatures are to be taken by the top management.

Closing Meeting
At the end of the audit, Auditors arranges a meeting with the company’s management in order to discuss the said audit that has been conducted/ concluded. The management or the auditor discusses the findings and solutions given by the auditor.

Importance of Bookkeeping in Business

For judging the importance of bookkeeping in business you need to have a full understanding of what is bookkeeping? Bookkeeping is an accounting service in UAE and is thus the process of recording day-to-day financial transactions of a particular business. Bookkeeping is also sometimes referred to as the method of recording transactions which involves preparing documents of all transactions, operations and all other events of a business.

Bookkeeping is an accounting service in Dubai that is used in accounting which includes recording transactions related to purchases done by a company, its sales, payments made and last but not the receipts. This accounting service in Dubai can be used by an individual or a firm or an organization regardless of the size of the business.

Moving forward, the method of bookkeeping has existed from the earliest times in human life in different cities. Earlier records were made for temporary use only and the accounting service in UAE was done on a regular basis until the century where technology had taken over manual recording system of accounting.

Why is Bookkeeping important?
Financial records, if organized well will help any firm or an individual to analyze the incomes and expenditures that he is getting and doing from a particular business. Bookkeeping as an accounting service in UAE is thus important as it helps with business analysis in a systematic and organized manner. It also acts as a tool for management in order to analyze the performance of the business which in return helps to identify the strengths and weaknesses of a business. It is important to study bookkeeping especially after understanding the money and tax in the UAE.

Moving forward to the importance of bookkeeping, the following points will make the topic clear:

1.    Maintaining accurate financial records: The first and the foremost reason to use the bookkeeping as an accounting service in Dubai is that it helps to maintain accuracy in the accounting of a business. In the current scenario, where businesses are flourishing with leaps and bounds, there are a number of transactions to be recorded on a daily basis. Having the right accounts maintained properly will help in determining the cash flow in a business and this will further make the process simpler while making the balance sheet. Once you have recorded small expenses efficiently, it becomes easy for analyzing the exact expenditure over the income being received.

2.    Preparation of Tax:  Any tax consultant in Dubai encourages your business to file a tax return every year. There are businessmen who are scrambling through their desks in search of missing paper works. I case it is a condition that you have also faced then you must remember to make the accounts more efficient so that while preparing tax in UAE, it becomes easy for you and you do not have to pay any extra amount from your end. This process of preparing tax in UAE can be made easy by simply having an efficient bookkeeping function within your company. 

3.    Organized business activities: To be organized is a skill that every accounting firm in Dubai should have. It is good to be able to find information regarding business at any time. There are auditors in Dubai who might be interested in your company’s financial records and well in such a case if you have been able to manage all your accounting transactions efficiently then there will be no problem as to display your books to the audit firms in Dubai. Bookkeeping is a process of maintaining the records efficiently and therefore when auditors in Dubai will request you for displaying the books, you must be able to do the same in an easier and well organized manner.

4.    Accounting Analysis: Coming forward to the analysis of a business, bookkeeping helps to analyze the business transactions. It acts as a tool of accounting services in Dubai to identify the performance of a business organization. Every bit spent in business if recorded systematically will yield better results while analyzing the exact income and expenditures to further know if your business is doing well or not. Auditing companies in Dubai suggest the businesses maintain proper records in the form of financial statements so that the right inflow and outflow of money can be analyzed. Through the right guidance of audit firms in Dubai, you can get the information on which business line is working efficiently and which business line needs amendments.

5.    Efficient decision making: One of the major areas of any business organization is to take some quick decisions which will be right for the business. It is believed with analyses, comes better decision making. If you need access to the relevant information, it is important for your business to use the best accounting services in UAE. In this scenario, bookkeeping is one of the best ways to get the right information at the right time. This further enables you to take relevant decisions with respect to the working of a business firm. To take all the profitable decisions, it is important for you to access the information related to the finances of a firm.

6.    Making development plans: Every business organization is established with the motive to grow and develop in the near future and it is important to do planning for this purpose. Bookkeeping displays the past performance of a business entity. In order to make plans for the future, it is important to understand the past and accounting services in UAE will give you the clear image of what exactly works and what doesn’t work for an organization. Bookkeeping not only helps to make strategies but it also plays a vital role in planning tax in UAE.

7.    Attracting Investors: Another major part of the organization is an investor. An investor wants to know the financial performance of a business in order to make the relevant investment with the motive of earning profits. Financial statements if managed efficiently make it easy to display the right information to the investors. The value of a business is presented through cash- flow statements, balance sheet and income statements. Accounting service in UAE will help the investors to have accessible and up-to-date information right away. The bookkeeping is done not only for the current investors but it is also done for future investors. Provide the right information for the betterment of your business.

8.    Financial management: Bookkeeping plays a vital role as it allows you to take control of your business finances. Accounting services in UAE helps you analyze how you send money and it also helps you to identify the outstanding invoices owned by your customers or by you solely. Accounting services in Dubai help you analyze the outstanding bills that you need to pay through which you can pay them without any hustle. Also, in case you need to receive payments from your customers then you will have the relevant details and accordingly you can track the amount easily. This delicate inflow and outflow of cash will help your business grow efficiently.

9.    The necessity for audit firms in UAE: In a country like Dubai, it is really important for a business organization to pay tax in UAE and file a return for the taxes your business is paying to the government. Auditing companies in Dubai encourage you to maintain proper records of all the financial inflow and outflow transactions. Depending on the legal structure, audit firms in Abu Dhabi require you to keep financial records separate from your personal expenses. In case you fail to do so and try to include all your personal expenses during filing a tax return, you will have to face consequences. This might also lead to termination of your business.

10.    Conduct self- audit: Every individual aim at keeping a daily record fall the financial transactions which will help in analyzing the health of a business. It will help an individual to take relevant decisions related to the business activities. For example, there are decisions to be taken regarding risk management or losses and in the case where all the actions fail, taking and planning decisions and strategies becomes an important aspect for a business person. There are times when corrective measures are required to be taken in an organization, therefore, if all the financial do’s and don’ts are clear to self, it becomes easy to take the right decision at the right time. In the case of internal audits also it becomes easy to display all the financial requirements of the auditing firms in Dubai and get the finances audited efficiently.

11.    Making sure all the deductions are covered: Even one penny can make a difference in the accounting books and in order to balance the sheets efficiently, all the transactions related to expenditures and incomes are important to be noted down starting from the bookkeeping process. Making and maintaining proper records acts as proof while you present your incomes and expenditures while filing a tax in UAE return or while presenting your transactions to the auditing firms in Dubai.

So now that you know the importance of bookkeeping. It can help you save your time, efforts and money and give you less stress in terms of managing the business transactions. In case you are not aware of the bookkeeping process then you can also hire an accountant from any of the accounting firms in Dubai and get started as soon as possible. Once you start implementing bookkeeping in your business daily, you will be able to classify the relevant transactions and give it to the Dubai tax authority or audit firms in Dubai whenever required.

Start managing your accounting transactions efficiently so that you are able to focus on the strategies and do not waste time in gathering minor transactions on a daily basis.  

A Professional VAT Consultant can take your Business to Heights

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Value Added Tax or VAT is a tax on the use of goods and services levied at each point of sale. Dubai has gone through several changes in the taxation system in the year 2018. In UAE, it was introduced on 1 January 2018 at 5 percent. Introduction of VAT in Dubai was a crucial point to the taxation system. This source of income will be helpful in providing high-quality public services. A business has to register for VAT if its taxable supplies and imports exceed AED 375,000 per annum and optional for businesses whose supplies and imports exceed AED 187,500 per annum.

Process after registration

Now the VAT registered businesses have to submit a ‘VAT return’ to the Federal Tax Authority (FTA) at the end of the tax period. Generally, the tax return is filed electronically through the FTA portal but you have to make sure that all the tax returns requirements are being fulfilled. Various details are required to be filled in by the businesses such as VAT return period, VAT on sales, VAT on expenses, details of the taxable person and few others. And the failure to file within the specified time frame will make the violator liable for fines. So, business investors and entrepreneurs prefer to choose Vat consultants in Dubai to carry out the process.

Once the business is registered under VAT law, it highlights the business goodwill in the industry. In fact, there are many firms now which may not do business with the companies that are not VAT-registered. So, it is now a must for the entities to implement VAT filing in UAE and also it gives a proof of your business existence.

The VAT is an additional charge that needs to be paid and hence certainly it has an impact on the business operations and management and business relations (both the suppliers and customers’ side). It then becomes important to manage the VAT books in a proper way so as to avoid any mishaps. At this vital point, a VAT consultant is what you need who would help you deal with the best possible way to prepare the VAT structure for the VAT return filing in UAE to be a smooth process.

Are you looking for the best-suited VAT Consultants in UAE?

While choosing a consultant it is imperative for a business firm to choose the expert who possesses great knowledge about all your business aspects and in-depth information about the industry and matters regarding their dominant field. So, you can either choose from inside the company, which has all in-depth information about the business activities and is responsible for preparing confidential and required documents and reports. The communication with the internal people will be more clear and transparent. You can also hire a consultant from outside which are experts in the particular field. This will rather be a better way as the VAT filing process is a complex one to be done in house. The professional experts are well versed with all the required information.

Now, talking about the VAT consultants, the business houses can reap many benefits by hiring them for the process, such as:

•    They have full knowledge of the VAT concept. Firstly they can help determine if you need to register under VAT

•    They can carry out the process in a quick way as being the experts in the field.

•    Helps you in simplifying the entire process

•    All the details about purchases and sales have to be maintained in order to submit the information about VAT. If the VAT charged by you is more than the amount you paid, then you will have to pay the difference to the government and if you have paid more than charged, you will have to claim the difference.

•    The indirect tax rates change from time to time. So, hiring the services of a VAT consultancy in Dubai will help you meet the business goals and save a great amount of time

•    The business and its employees gain the knowledge on VAT legislature

•    Helps in executing all VAT related communication to your trade partners.

•    They can provide all the necessary advice on the VAT knowledge in the direct interest of the business. It is very important for the businesses to understand the implication of VAT as the final responsibility is on the business itself.

•    Make VAT payments at the right time. So the businesses will be in compliance with the given deadlines and make the payment due to the government. The experts will ensure that you do not have to pay a penalty for late payment. If the returns are not prepared in the required manner or there is any delay in filing of the return, then huge penalties are being levied upon.

•    It is difficult as well as complicated for the companies to look after the issues regarding VAT and resolve it by dealing with the Federal Tax Authority (FTA). Then it becomes important for the businesses to choose a VAT Consultant to deal with VAT in UAE and other tax matters. The consultants are capable enough to advise on all small and crucial issues.

•    The businesses do not have to hire specific employees to manage the indirect taxes; they can outsource the services to an expert who will manage everything for you at small fees.

•    Generally, companies are globally expanded. So, it is important that you focus on the areas that need your attention and leave the taxation in the hands of the experts.

A good VAT expert can surely help the company in keeping the operations smooth. Before hiring the Vat consultant Dubai or Vat consultancy services in UAE, there are many points which the companies should keep in consideration as described below:

•    Full Knowledge of the VAT Law- at times, the details of the law can be tricky or complicated and can be harmful to the companies if proper understanding is not observed. So, the consultant has to have in-depth knowledge of the law and should be able to easily advise spontaneously because any mistake or error can result in penalties.

•    Industry Specific- the expert should have an in-depth understanding of all the aspects of your business such as about the business goals, requirements, operating structure, etc. So the approach of the expert should be focused as per the industry sector.

•    Experience of VAT consultant– “experience” is the major requirement in hiring VAT advisors in Dubai. He should have experience in taxes especially indirect taxes. The VAT will be the first tax to be implemented in the UAE, so there cannot be any case studies or examples to follow. But it is not new across the world. There are more than 200 countries where indirect taxes are applicable, so, their details can be checked for analysis and execution.

•    Technology friendly- as mentioned above, the return is filed online using the FTA portal, so, the consultant has to be well aware of the technology in use. Not only the portal; the expert should be able to use other applications available.

•    Finance background- the consultant or advisor is required to have expertise in all fields of IT, operations and most importantly finance. The VAT has everything to do with finance. The professionals who are already working in GCC (Gulf Cooperation Council) especially Dubai-UAE in accounting division are needed to acquaint themselves with the fundamentals of indirect taxes in order to survive in the industry.

•    VAT planning mind- an expert has to be smart enough for the proper planning procedure in complying with the VAT laws which can save time and money.

•    Cost Structure-the businesses generally look for consultants when they are not able to build the team within the company. So while making a hire, cost matters a lot. The expert who can provide you with appropriate service at a rate that is completely under your budget is sure to be preferred.

Above mentioned are the various factors which are to be considered when looking for VAT Consultants in UAE. Although the choice always depends on your project and business, still, these guidelines can help you make out if the expert you are considering for your business is actually worth or not.

The consultants will handle everything for you and will also advise you to ensure that you are on the right path. Hiring VAT consultants will be the best decision the business can make. With their professional knowledge, expertise, and understanding, the consultants will certainly make the entire process of filing and updating the books of accounts smooth and flawless. You do not have to create a separate department for the management of VAT and nor do you need to hire professionals to help you with the evaluation. VAT consultants are experts in the industry and they will develop your VAT return in a complete manner. Whatever your business, you will benefit from the services of VAT consultants. VAT consultants are the best advisors for your business and help you maintain the books of accounts in the best possible manner.

Accounting firms in UAE can be a Blessing for Retail Business

The retail sector in Dubai is increasing day by day as result interactions and communications with them are also increasing. Dubai is like a haven for retail business. Whether the product is known or not, you will find their retail outlets in Dubai. The retail business is in a boom condition in UAE as a result, government, as well as private sectors, are making efforts to make retail business as a cash cow. Accounting Companies in Dubai can help the retail business to grow more. The partnership between government and private owners can strengthen the retail industry. The government takes steps to grow a retail business using the assistance of private owners and the result is expected growth by 22% till 2023. The sales of the retail business can increase by keeping track of all activities. Accounting firms in Dubai can better do that through their accounting services.

Further, the population growth, increase in per capita GDP, encouragement to the tourism industry can help in the retail sector to grow. Since these days there are a lot of shopping malls and commercial markets all over in Dubai, the retail sector has shown a booming growth and it becomes necessary for every business to track each and every activity. They need to hire a professional accounting firm in UAE that will make proper use of bookkeeping and accounting services and helps your business in tackling all seasonal issues.

How accounting services in Dubai will benefit retail sector?

Every business has its own domain as a result accounting service in UAE will be different. The industry should have to knowledge which accounting process will be beneficial and relevant for them. In short, the industry must have a full understanding of accounting processes. Benefits of using accounting services in UAE are:

Proper inventory management

It is necessary to keep track and manage the inventory of your business. Proper accounting service in Dubai will not only manage the retail business but also the overall inventory of the business. It will track that shelves are not empty and overloaded as both the conditions will not benefit the business. The inventory level should be right so that there is no blockage of funds. The accounting companies in Dubai will keep track when inventory is required and how much. Any method for a stock can be followed. The management can either do it manually or using computerized systems. The manual methods can be LIFO, FIFO, and weighted average.

Payroll management

Every business is required to keep a record of each step of payroll, especially in the retail sector. The business can hire permanent employees to manage such activities or can hire professional accounting companies in UAE that will help in payroll management. It is better to hire professional accounting services in Dubai as there are a lot of calculations involved in this task. Calculating the liability of every employee correctly and then reducing it from salary needs expert knowledge. Thus payroll management is an essential task that a professional accounting firm in UAE can do better.

Tax calculations

In a retail business lot of transactions are occurred daily. It becomes necessary to calculate the right amount of tax. The calculation of VAT in Dubai is not easy. You need to hire a professional accounting company in the UAE to do such calculations. Their employees are expert in such tasks and can handle the tax-related things very smoothly without any hassles, Moreover, you can leave your worries and trust their work.

Reconciliation of data

The accounting service in UAE will ensure that all the data recorded in books is accurate. If the initial data is incorrect, the results will also be wrong. For getting a proper and accurate financial picture of the business, data recorded need to be rechecked. The accounting companies in Dubai are best in providing such services. They will review the data from time to time and implement necessary controls that will ensure that the data recorded is correct. These days numerous accounting software is used by different businesses. Accounting companies in UAE will guide you with the right software that will minimize the errors and save time.

Decision making

The accounting service in Dubai will keep the data ready all the time and at one place so that quick decisions can be taken for future growth. The accounting software will give you a different type of reports that will improve decision-making ability. With such accounting software, comparison can be made between different reports and a conclusion can be drawn very easily. In short, accounting firms in UAE will help in better decision making.

Time-saving

Hiring accounting services in UAE is time-saving for a business.  They know proper accounting measures and the right time to adopt them. It will save your time and you can focus on other issues hindering business growth. By applying appropriate accounting procedures, everything will become easy like collecting and analyzing data and managing the data. This way business as a whole can be managed properly as wastage of time in non-valuable tasks will be reduced. The accounting company in Dubai must be selected as per the requirements of your business.

How will you select the accounting service in Dubai for your retail business?

There are many things to consider before making a selection of accounting firm in UAE for your retail business. Let’s discuss all one by one:

Reasonable cost

The number of fees charged by accounting companies in Dubai should be reasonable. The cost is a very important factor that needs consideration. You are supposed to give confidential information to an accounting firm in UAE, fees charged must be checked thoroughly. It is not necessary that fees charged will be the same from all accounting firms in Dubai. The fees will be according to the service hired by you. All firms have different criteria for charging fees. Some may charge a lump sum amount for activities performed while others charge for each separate service.

Expertise in accounting services

The accounting companies in UAE have expertise in different fields of accounting. You need to check their areas of expertise before hiring for your firm. The specialized areas are accounting, vat, taxation, and audit. The accounting company in Dubai you are appointing must be aware of your business and working because accounting services will be different for different businesses.

Proper Certifications

The accounting firms in Dubai that you are hiring must have all certifications that an accountant must hold. It will be good if you are hiring accounting firms having CPAs, certified public accountants, ISO certifications, etc. Certified people will ensure that working will be professional and they will have more control over work.

Guidance at every step

The accounting firm in Dubai should be such that gives you guidance at every step. The advice is needed not only at the initial stage but after you have availed their services. Some accounting firms in UAE provide guidance until you are availing their services, after that they pay less attention which is not good for your business. It will bring down the productivity of your business.

Service level

You need to decide the level of service you want to hire before searching for a good accounting firm in Dubai. If you want to opt for all type of accounting services, hire a full-time accounting service in Dubai, otherwise, part-time service will be fine.

Availability

The accounting company in UAE should be such that will stay in touch with you and resolve their doubts that arise from time to time for the future growth of the business. There are some accounting firms in Dubai who contact their clients only at the time of tax filing. So the firm should be such that will be available all the time when you need advice and to handle other business issues creating hindrance in business growth.

Helps in setting objectives

As discussed, the accounting firm in Dubai you are selecting should be such that will guide you at every step, they should also help in setting the goals of your business. They know your business better, so they can better guide you in setting goals and can also help you in fulfilling them.

Connection

You should have a good connection with your accounting firm. You should be comfortable with them as you will be able to discuss all your business issues without any hesitation and can ask for solutions. If there is no good connection you will not be able to share confidential information and things necessary for your business growth will not work smoothly. Hiring an expensive and professional accounting firm will not work towards business growth. There should be bonding between your business and accounting firm in Dubai.

Audit services

If your accounting firm in UAE is also providing audit services, it will be a time saver for you. You need not make a separate search for selecting audit firm in Dubai for your business. Moreover, the firm handling your accounting activities can better handle auditing services too.

Your retail business can reach to heights if accounting services are good. Things will work smoothly and efficiently. There will be fewer chances of inaccuracy.

Why Risk Management is Significant for every business in Dubai?

Risk Management | Alkhadim LLC

Facing business risks?? Not able to detect business risks timely?? Performance and efficiency going down due to risks??
Don’t worry and go for risk management audit services. Hire any professional and dedicated audit firm in UAE and leave your stress.
Every business organization has to face risks. There are various sources from which risks can be originated. These sources include financial market uncertainty, Project failure threat, the risk from a natural disaster, credit risk, uncertain circumstances or events, legal liabilities, etc. Certain risks are necessary for the future growth of the organization. Risk management service offered by Audit firms in UAE will recognize these risks in advance and besides that, they will take precautionary steps after analyzing them. Risk management in terms of Audit Firms in Dubai is identifying and analyzing risks in financial statements before making any decision.  In simple words, risk management is the continuous reviewing of the organization to determine the processes that are providing harm to your organization. For ensuring the success and growth of the business, it must be capable to assess and manage risks.

Why Risk Management and assessment is required?
There has been a lot of business failures recently and the collapse of large organizations. The economic challenges prevailing currently are also one such factor that demands revision of risk profile at regular intervals. As the conditions in market changes, risk also changes. Hence there arise a need to reflect such changes in risk profile. But certain organizations do not make any adjustments in risk profiles. Such organizations are helped by audit firms in Dubai in risk assessment and prioritizing them so that the well-being of an organization is affected.
The number of incorporations in Dubai is increasing because a lot of opportunities and offers are given by the government. As a result audit firms in Dubai are also increasing. More and more businessmen and investors are ready to set up in Dubai to avail the advantages offered by the government. As a result, competition is increasing and further, there is an increase in risks to businesses. This creates the need for Audit firms in UAE for adopting risk management practices. It will keep up the performance and efficiency of the organization.

What will the experts of Audit Firms in UAE do?
Their main focus is on the assessment of risk portfolios, and lay emphasis on the enhancement of business performance. Not only this, to meet internal and external expectations, they will frame the risk strategy, establish governance and culture in an organization. They will find a suitable remedy for different risk issues. Audit firms in Dubai will reduce compliant costs and introduce measures related to new compliances. They will assess the risk management capabilities of the organization. The experts employed by Audit firms in UAE will reduce cost and add value by transforming risk management functions. They also develop tools that will handle compliance issues and provide a report on financial risks by continuously measuring and monitoring them. They also take care of corporate treasury functions. The strategies to avoid risks are not only framed rather executed properly using the expertise of auditors appointed by audit firms in the UAE. Besides managing corporate treasury, they provide accounting support, hedging governance and ongoing valuation services.

How Risk Management by Audit Firms in Dubai will benefit the organization?

Benefits of Risk Management | Alkhadim LLC

Benefits of risk management are many. There is a need to create awareness among business owners. Risk assessment and management are two significant functions that every organization must carry out for future growth and success. If business risks are not assessed timely and actions are not taken to manage such risks, a business may fail. Those business owners, who think that risk assessment audit leads to extra cost, they should know that it will save future cost and time of the organization.
•    The reputation of your business will improve
•    Any potential business risk harming your business will be identified timely through risk management
•    There will be saving in time and cost to the organization
•    Resources of the organization will be saved
•    Risks can be avoided in the future based on past experiences

Understand the risk management services provided by Audit firms in UAE
Audit firms in Dubai will perform risk management services for your business. What they will do? Let’s discuss:

Key Factors of Risk Management | Alkhadim LLC

Risk identification
Firstly, they will identify risk affecting the working of the organization. The risk identification is done through a deep study of the organization and having a discussion with the staff. The risks that are affecting the reputation of the business and harming your business needs to be concentrate first.

Risk Analyzing
After risk identification, Audit firms in Dubai will go for risk analyzing. It includes determining the consequences of risks by understanding their nature. Their impact on the goals and objectives of the company will also be studied in detail.

Risk evaluation and ranking
Risk evaluation and ranking by audit firms in the UAE will help in prioritizing them. It will help in determining the seriousness of risks and take timely actions.

Risk planning
In this step, auditors at audit firms in Dubai will make plans in response to risks identified. Plans will be according to highest to modest ranked risks. There will be plans to prevent risks, mitigate them and for contingency situations.

Monitoring and reviewing
The risks will be monitored and reviewed by audit firms in Dubai continuously so that they do not get repeated in the future. They may also guide the management to ensure compliance of internal controls to avoid the occurrence of risks again.

How to prepare a risk management plan?
Who will prepare a risk management plan?? Audit firms in UAE will frame the best plan for your business to mitigate the risks. The risk management plan will determine the risks prevailing, study its impacts and take necessary measures to handle them. Let’s discuss how risk management plan is framed by audit firms in Dubai:
•    The risks identified will be recorded in risk registers. A detailed list of all risks will be maintained.
•    The level and impact of risks will be analyzed. A measure should be set for timely analyzing the risk before it’s too late to take action.
•    The team of audit firms in UAE will do the deep study of the risks and identify the triggers that will work for those risks to be controlled.
•    The next step is finding the right solution where the team of the audit firms in Dubai will come together to do detailed discussions. They need to take collective action against those risks otherwise it will harm the organization.
•    After finding a collective solution, a plan is framed by audit firms in UAE where all risks will be documented with respective solutions to use them in the future.
•    After framing an effective plan, risk registers will be monitored and reviewed regularly so that changes can be implemented according to changes in circumstances.

Risk management types
There are various types of risk management managed by audit firms in UAE that are discussed one by one:
1.    Enterprise risk management
2.    Quantitative risk management
3.    Market risk management
4.    Bank and Currency risk management
5.    Credit risk management
6.    Operational and Financial risk management
7.    Software and IT risk management
8.    Technology risk management
9.    Project risk management
10.    Integrated risk management
11.    Commodity risk management

Techniques or Strategies of risk management
Risk management and assessment need certain strategies so that their reoccurrence can be prevented. This is done by audit firms in Dubai. They are responsible for implementing strategies that will not only assess risk but will reduce their impacts. The risk register is prepared that needs to be revised at regular intervals and that will be used for future reference. Following are the techniques that will manage risks prevailing in the organization:

Risk avoidance
Risk should be avoided to the maximum extent in order to manage it. Business can avoid risky situations or activities that carry any kind of risk.

Mitigation of risk
Risk can also be managed by mitigating or reducing it. The effort is made on reducing the negative impact of risk audit firms in Dubai are trying to mitigate.

Transfer of risk
Risk can also be managed by transferring it away

Acceptance of Risk
Certain risk level is accepted by every organization provided profitability is more than its potential risk level.

 Risk management and assessment are the essentials of every organization without which business may get fail. Risks provide great harm to the organization. Hence, it is necessary to keep the organization away from such a threat.

Essential tasks for financial Audit in 2019 and their processes

Essential tasks for financial Audit in 2019 and their processes | Alkhadim LLC

Are you worried about your business financial flow? Are you in a doubt regarding future prospects of your business? You are not able to find loopholes in your business?

Financial audit by Audit firms in UAE is the solution for you. The financial audit will keep track of financial flow and future growth prospects of your business. As a business owner, it is a good chance to boost your profits through a financial audit. Hire any good Audit firm in Dubai and improve your business growth prospects.

How will you prepare yourself before the audit?

•    You need to communicate the plan to employees who are associated with this task.

•    There should be proper alignment between accounting and reporting statements

•    All fixed assets used in the business must be properly recorded in books

•    All the statements should be recorded digitally for better auditing

•    The expenses incurred must be recorded under the right category

•    Books should be closed every month to tally the balances properly

Essential tasks for financial audit by Audit firms in UAE

Audit Firms in UAE | Alkhadim LLC

Ø  The organization, communication, and planning:
BY planning we mean that the financial stability of the business must be planned in advance by the owner of the business before audit firms in Dubai are called for an audit. Along with planning proper communication is required with the person concerned. The communication needs to be done in advance. The idea of the financial stability of your business can be made through account receivable, inventory receivable, accounts payable, accrued expenses, and cash. Everything must be properly organized.

Ø  Studying financial records:
Before going to the audit firms in Dubai for financial audit, it is always better to review internally. This way half of the loopholes can be detected before the audit and necessary steps can be taken to fix them. Now you will say it will waste a lot of time but as a business owner, one must have a clear idea about their business numbers. It will help you in future when external auditor sent by audit firms in UAE will ask you questions about the financial figures of your business.

Ø  Documents must be handy
Before the audit process is started by Audit Firms in UAE, you must ensure that all significant records are kept in hand. Let’s discuss how you can keep your documents ready:

• The general ledger must be updated till date
• The trial balance must be completed
• Financial statements audited internally must be ready
• Other documents such as bank statements, inventory records, account receivables, etc. must be up to date
• Fixed assets record must be properly maintained.
• A proper schedule of liabilities, expenses, loans and trade payables and accrued liabilities must be kept ready
• There is a corporate minute book, stock certificate book, insurance policies, canceled checks, invoices, and bank statements, etc. must be kept in hand.

Ø  Expense categorization must be correct
The expenses must be recorded under the right head. Their right categorization will make the work easy for audit firms in Dubai. If cost and revenues are rightly bifurcated, it will help the audit firms in UAE to track the finances and prevent any mishappening. Along with expenses fixed asset categorization is also necessary. They are a significant part of your business. The digital records of fixed assets with the right values must be maintained. The financial auditor will get a better idea about business if digital records are maintained.

Ø  The habit of books closing
The books of the business must be closed every month as a good practice. Audit firms in Dubai recommend the same to keep proper track over financial records. The frauds can also be easily detected if there is a practice of monthly closing of books.

Ø  Documentation by audit firms in the UAE
The auditor must provide the necessary documentation after the audit process. The reports and documents provided by audit firms in Dubai will be helpful in future for gaining a reputation in the market, making improvements and building trust among investors.

Why financial audit is suggested by Audit firms in UAE?
Business owners may not find it viable to spend money on it but it has become a demand for today. A financial audit is necessary for increasing the comfort level of shareholders and investors. The investors will trust more if your business is audited. They will get an accurate picture of the performance of your business.

Now Let’s discuss the benefits financial audit will give in 2019

•    Your business can be uplifted to the next level and your future growth prospects will increase

•    Your business goodwill will increase and market targets can be achieved quickly with the help of financial audit if conducted by a good Audit firm in UAE

•    Many investors will get attracted to your business. In other words, the chances of acquiring your business will be more if your business is audited by reputed audit firms in Dubai

•    Tax-savings can be achieved easily through financial audits as the professionals of audit firms in UAE will guide you where to invest.

•    You will get numerous and profitable opportunities if you are thinking of selling your business. This is because the audited business has more demand these days that too if audited by Professional audit firms in Dubai.

•    Your future costs can be saved through a financial audit.

Only professional audit firms in UAE must be hired to get your business audited. The experts will not only do a proper audit of your business but they will also guide you for future benefits.

Why only experienced audit firms in Dubai is recommended? Well, we will discuss one by one:

The financial statements will get error-proof as their work is to find loopholes that are doing harm to your business.
The frauds prevailing in business can also be identified timely. Fraud investigation audit is the best way to detect hidden frauds.
They will open opportunities for fundraising for your business. This is because financial audit will ensure compliance of auditing standards and financial institutions and banks lend loans to such businesses very easily.
Free zones in UAE demands a license for business running and with audited financial statements by audit firms in UAE renewal of license becomes easy. They demand a financial audit report for renewal
You can use a financial audit report even to settle insurance claims in case of unforeseen events.
Your business credibility and viability will be improved through auditing by reputed and professional Audit firms in Dubai.
Internal Control procedures can be better adapted with the help of an audit.

You must be thinking about what they do during the audit process?? Let’s discuss one by one:
They will ask you the necessary documents that will be helpful in the audit process.
After gathering documents, they will call a meeting with management and key employees. This meeting will discuss the scope of the audit and time frame in which the audit is completed.
The next step is planning. It includes steps taken while conducting the audit. Audit firms in Dubai will organize a risk workshop that will recognize all type of problems. This workshop is helpful in framing the audit plan.

Audit firms in UAE will conduct field work after planning. It is required to study procedures followed by business. It will also review internal controls that will ensure that all procedures carried out are in compliance with regulations.
The next step is reporting. All the findings made by audit firms in Dubai such as problems related to posting, mathematical errors, and other matters looked in the audit process will be included in the report. The report will not only discuss problems, rather it will suggest the right solutions to those problems too.
The last step is the report discussion and for that, a meeting is arranged with the management. Many issues are resolved in that meeting only through discussion. Audit firms in UAE will also provide valuable suggestions that the company can adapt to avoid such mistakes in the future.
The financial audit has gained importance a lot in 2019. Business owners have become more conscious and auditing have become a significant process for their business. Their business will not grow if there is no auditing process. Moreover, in 2019 the UAE government has made compulsory for businesses to prepare an audit report. The professional audit firms in Dubai will make everything comfortable for you.

Increase the growth prospects of your business through auditing. Your risks and frauds will be detected timely and can be avoided in the future. How? Audit firms in UAE will guide you in that.

The audit firms in Dubai have increased in numbers. The reason is increasing awareness of the benefits of the audit. Every business wants a professional to carry out the audit process. The reason is they have knowledge and expertise.

VAT: ZERO-RATED VAT vs EXEMPTED VAT

VAT implementation is into effect from January 1, 2018. UAE VAT is a charge borne by the final customer. The general rule of VAT law is that the supplier has to account for VAT. The closing price of the transaction is inclusive of VAT.

There are two major terminology in VAT (Value Added Tax) “Zero-Rated VAT” and “Exempted VAT”.

What is Zero-Rated VAT?

Any goods and services that are exported to a gulf cooperation (GCC) country that doesn`t implemented VAT just yet. This includes international transportation of passengers and goods, transfer that starts in UAE or ends in UAE or cross any region of UAE.

Simply, Zero Rated VAT means that supply of goods and services that are taxable but 0% VAT is imposed.

VAT registered business that makes Zero-Rated supplies or services have the right to claim their input tax deduction that they have obtained for producing taxable supplies.

The price of goods are reduced when Zero-Rated VAT is imposed.

What is Exempted VAT?

Goods on which tax is not imposed by the government and suppliers cannot claim/ recover credits for any VAT expenses incurred in making of these goods.

VAT exemptions/exemptions sometimes can be the cause of rise in prices. Due to this government uses exempted VAT for the goods or services where it is difficult to define, such as financial services.

Difference between Zero-Rated VAT and exempted VAT

Zero-Rated VAT means 0% VAT is applied to goods or services and allows the businessmen/supplier to claim the VAT expenses incurred in making of these goods. on the other hand exempted VAT means that no VAT is applied on the goods and services.

14 Zero-Rated VAT Goods and Services listed in Article 45 of federal decree law of 2017 are as follows:

(a) Direct or Indirect Exports

(b) International Transport (international airfares)

(c) Air Passenger Transport;

(d) Supply of transport for passengers and goods using air, sea, and land means;

(e) Goods and services supply for the purpose of the operation, repair, maintenance, or conversion of those means of transport;

(f) Aircraft and Vessels for Rescue,

(g) Supply of Goods and Services Related to the Transfer of Passengers or Goods

(h) Investment in Precious Metal

(i) Sale of the Residential Building

(j) Charitable Building Supplies

(k) First Supply for Residential Building

(l) Oil and Gas, which is crude oil and natural gas

(m) Educational Services

(n) Healthcare Services

Exempted VAT Goods and Services listed in Article 46 of federal decree law of 2017 are as follows:

(a) Financial services;

(b) Supply of residential buildings through lease or sale

(c) Supply of bare land

(d) Supply of local passenger transport.

VAT Consultancy in Dubai and UAE

Alkhadim LLC is a regulated Tax Agent in Dubai and UAE that offers VAT consultancy services in Dubai and UAE. Our team is specialized in providing followings services:

• VAT Registration or Implementation
• Preparation of TAX returns
• Taxation and Return filling services
• Advisory activities and representation on behalf of the client before tax authorities
• Provide proper training to the staffs with respect to taxation.