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.