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There are some Different Types of Accounting Practices in the UAE?
  • Accounting
  • 2022-03-09

Accounting is a central function of every firm by ignoring its size, nature, and type. Accounting is an unavoidable part of a business organization and it looks like looking myself into the mirror daily in order to make sure that you are ready and searching perfect for an event. In a similar manner accounting also helps a business to make sure whether it is ready for any kind of upcoming events such as spread and if it is ready to face any unexpected events.

Accounting allows you to know your business's current stage and the profits and the loss gained by the business.

Even though accounting plays a vital character in the business, many are unaware of it and they don't provide sufficient focus to such a function which in the future opens the way for high-level probability and must be given sentences including losses. 

There are many times, the businessman or control and management of a business don't know or are confused regarding different types of accounting practices in the UAE.

Being a ruling financial office providing accounting services in UAE, we could share a few important details regarding different types of accounting practices in the UAE.

  1. Financial Accounting Financial Accounting is a type of accounting improvement which involves tracking all the financial transactions of a business, it is regarded as a traditional practice in which all the accountants are looking forward to performing accounting, a financial accountant by following overall world and locally must be agreed accounting standard provides a financial report which contains a summary of all the financial transaction of a business, by tracing the financial advantage based on cash inflow and outflow, as well as the advantage of benefit and accountability the financial accountants try to provide reports regarding the publication of funds in the organization, the financial statements to get ready, may include profit and loss account, balance sheet, available funds, statement of change in equity, etc, which may be used parties like investors and shareowner, every business firm may maintain it's myself accounting plan of action and software.
  2. Forensic Accounting - forensic accounting acts as a financial operative as it is conducted to detect any trickery and fraud or malpractices performed in the business and to find proof of such activities, the main target of conducting such accounting is to provide evidence or proof in the high court of the law regarding and embezzlement and accounting report is handed over to the high court by the accountants who exposed whether the firm is prone to such activity task or not.

  3. Cost Accounting - cost accounting deals with the investigation of all any cost to suffer in producing by complete goods by a firm, it mainly involves arranged costs, variable cost or input costs, etc analysis of this cost will help a firm to make choice regarding spending, inventory, supply, pricing, etc this accounting operation involves exploring variations between the valuate costs and the genuine costs suffer in order to examine the different, this information can be used by the firm remedial actions if there are any be in service variations.

  4. Tax Accounting - it is troubled with the process of resolving the tax liabilities of a firm, in the example of the UAE, the only tax which is relevant is VAT, and under this accounting practice, the accountants must be guarantee whether the firm complies with all the tax laws and they help the firm pay the respected tax on time without being late delay, they must secure and protect the firms from fines, penalty, and punishment due to delay or non-payment of tax.

  5. Chartered Accounting - the chartered accountant is a part of an employee of well-experienced accounting skills, the experienced accountants in Dubai are skilled lots enough to manage in a number of areas including management to auditing. they likely focus in any condition specialization within the accounting fields.

Best Accounting Firm For Outsourcing.

Risians Accounting can help allocate the accounting needs to the accounting firms in Dubai is the best course in order to lower down of cost to available skillful services, course cost by bringing down and to avail professionalized services, getting a plan of different types of accounting practices in the UAE will help businesspersons to choose the most suitable accounting practice which they are in require of, exceptional service is at all every time ready to provide all kind of accounting services to client, buyers or customers, providing by making own custom-tailored services to the clients has created Risians Accounting one of the keeps understand and known accounting auditing firms in Dubai.

keeping an understanding about different types of accounting practices will give more power to your journey as a businessperson in Dubai, whatever and businessperson require to focus more on his central competencies, which means accounting will get less consideration, not needed to hurry.

 

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Why Accounting And Bookkeeping Are Important For Your Business?
  • Accounting
  • 2022-02-11

Your business employer agency targets powerful manipulation of finances, it in fact is why you would love to understand the importance of clerking associated accounting offerings. Previously, each of those responsibilities have confirmed yourself as a problem for masses groups to guide inputs.

However, with scientific useful beneficial aid and what is greater the transport of several accounting software, groups are having it smooth. The question that stays is but can accounting and bookkeeping facilitate shielding topics inexperienced to your business employer agency?  Let’s take an in-intensity check this:

Get the best Accounting & Bookkeeping service.

Accounting And Accountancy Made Public

 

In smooth words, accounting and bookkeeping will allow you to keep track of your finances. From coins in/ outflows to taxes, costs to profits, it tackles and statistics all monetary transactions taking the region to your business employer agency and to those on the manner to be associated on the downside of your business employer agency.

Why is it essential?

several perks produce accounting and clerking offerings essential for inexperienced business employer agency proceedings. Here are some:

Accuracy in Transactions

One extra than one of the maximum essential perks of getting accounting and bookkeeping offerings is the accuracy of monetary transactions associated with statistics. You’re tuned in to some unspecified time in the future that your coins are getting back from and within the route of which it’s going.

In specific words, you’re aware of your profits streams and costs, which offers you belief in the monetary tendency of your business employer agency or business employer agency.  Not great this, however, what is greater gets obvious discrepancies among personnel and business employer agency companions concerning finances, growing topics streamlined.

Better Expense Management

You need a non-public and eager eye at the price variety to confirm that your corporation is developing the right shape of costs. That is what accounting and accountancy offerings in the town deliver; monetary literacy. Since its miles already maintain statistics for all of the transactions, you'll at the same time as now not have trouble discovering statistics related to your costs.

This aids in developing higher price manipulation at the same time as making you knowledgeable nearly greater or lots of good buy tons much less essential options. you will have a visual, numerical, and graphical example of that costs and paying off.

Ultimately, you could check which services and products are paying off, transferring costs to those which can be generating earnings and returns. This may even be a useful beneficial aid in minimizing greater costs as well.

Better Tax Management

Tax manipulation is a few notable most essential phases of taking walks in a corporation. It's one of the discouraging responsibilities that, if not finished right now, will result in havoc. Therefore, you need to celebrate the importance of accountancy in the corporation because it permits manipulation of your taxes.

With accounting and bookkeeping UAE, you've been given and have been given the whole lot taken care of and organized beforehand. With prepared statistics, you'll at the same time as now not have trouble generating invoices that will help you record your taxes within the given tax period.

Moreover, submitting your taxes well can save you from laying waste compliance requirements. As speedy as auditing the government does business employer agency leader audits, taking walks regularly with compliance can deliver your business employer agency associate edge.

Ensures Peace of Mind

One in no manner stops demanding nearly greater or lots of good buy tons much less taking walks through a business employer agency successfully. However, having accounting and accountancy offerings through the manner of your aspect will reduce your strain through a way of manifolds. If you’re having organized books and aren't able to look at your price variety correctly, then you’re most in all likelihood doomed and in all likelihood aiming to stand outcomes in Smooth unspecified time in the future of audits.

However, with accounting and bookkeeping, your price variety and business employer agency leader books are often prepared. Being the boss, you’ll go through the monetary development of the monetary business employer agency, costs made, profits generated, profits created, earnings incomes opportunities, and a whole lot greater.

This now not great offers you peace of thoughts manners to the reality you’re aware of however topics are going but what is greater offers you the information to form sound options.  Moreover, it furthermore motivates you to conversant regarding the method and you’re capable of learning.

Planning, Analysis & coverage created smooth

One of the most appealing perks for having business employer agency answers is that you have a better hazard of planning your form development. Moreover, you're obtaining a higher hazard of analyzing the state of affairs of your business employer agency.

Having unique analytics can provide you with a head bounce to your decision-making processes. You’ll be capable of delivering collectively knowledgeable alternatives with the analytics record through the manner of your aspect. Speaking of the record, your clients are often trying opinions at the event of the monetary business employer agency.

With the right accounting and accountancy answers, you’ll be capable of providing associate-in-intensity analytics records with no troubles. Furthermore, you'll advise answers or lead new duties through the way of protrusive your thoughts through the opinions acquired with a genuinely superior record.

In super words, accounting and accountancy offerings deliver collectively topics a whole ton of considerable good buy tons much less complex for developing plans furthermore to important the marketplace with aggressive strategies.  It furthermore makes it a whole lot of masses , lots of good buy tons much less complicated for your leader corporation to diploma on the pinnacle and maintain from dangers that might damage or end up a hurdle in its development.

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Signs that you need an accountant for your business in Dubai
  • Accounting
  • 2022-01-08

In the early stages of a company’s lifecycle, the key members within the organization, particularly the owner, may have to wear several different hats. On any given day, you might play the role of CEO, secretary, salesman, accountant, or even intern… depending on what the business requires. 

While this juggling act may work initially, as the company scales, the trick becomes unsustainable. For instance, taxes and financial planning become exponentially nuanced and time-consuming, especially if you operate within an industry with stringent regulatory or compliance standards. 

To that end, every growing business reaches the stage where having an accountant becomes a matter of necessity. But how do you know when it is the right time to hire an accountant? By paying attention to the signs.

1. You Don’t Know How to Track Your Finances

The main purpose of any business is to make more money than is spends keeping up with expenses. Whether you’re using Wave vs QuickBooks or visa versa, if you’re not tracking your finances, you have no way of interpreting how well your business is doing.

If it’s an obligation you always put off or you simply don’t have the time or know-how, you need an accountant to maintain your bookkeeping. They’ll track every dollar coming in, as well as every expense. It’s just as important to know where your money is going rather than just how much is being spent.

2. You’re Scaling Your Business

Having a booming business is never a bad thing. If you can’t keep up, it just means you need to hire on a little more help, especially if you’re deciding to expand.

You may need an accountant to help you understand your best possible growth strategy (new locations, new hires, better marketing, new products, etc.). They’ll be able to look at the numbers to determine what you can and can’t afford, as well as any risks involved.

3. It Seems Like Your Business is Spending Too Much Money

Business owners who are inexperienced with financial management may find themselves at a loss each month. Where did all their money go? Shouldn’t there be more left at the end of the month?

If you find yourself in this position, always seeming to have spent more money than you should have, you probably need an accountant to help you get your budget in order.

4.You Have Problems With Payroll Each Month

If your business has any employees (other than you), you need a reliable and consistent payroll system to make sure you’re taking care of your staff. However, payroll can be difficult to manage, especially for busy or inexperienced business owners. You may need an accountant to help you set up a payroll system and ensure everyone’s getting accurately compensated.

5. You Need Help With Forms

When you’re a business owner with employees, there are a number of forms you need to file with federal, state, or local tax agencies in addition to your business tax return. You must file tax forms (e.g., Form 941) showing how much you paid employees and withheld in taxes.

To help you with this responsibility, you could also sign up for full-service payroll software. Full-service payroll files federal, state, and local payroll taxes on your behalf. 

Did you take out a Paycheck Protection Program loan? An accountant can help you navigate the intricacies of applying for loan forgiveness on Form 3508.

6. You Get Audited

An audit can be a nerve-racking ordeal for business owners. During an audit, the IRS analyzes and exposes your financial history to find discrepancies. 

Accountants can review your records and make sure they are accurate. They can reconcile accounts, check for missing information, and run reports to help you avoid tripping IRS audit triggers and keep your books up-to-date, clear, and accurate. 

7. Your Business Is Growing

Did your sales explode overnight? Steadily rise? Either way, an accountant can help as you grow. A bigger business means more profits—and more spending. But if you fly too close to the sun, you could be hurting your business’s future.  

An accountant has the expertise to project how successful your investments will be so you can confidently spend your revenue—without overspending. They can caution you about harmful business purchases and suggest smart investments. 

Accountants play a leading role in year-end tax planning for business owners and can help you prevent overspending or under-spending.  Their reports could prevent you from making a regrettable investment.

And if you’re experiencing business growth, you might need to update your business plan. A business plan is an ever-changing document that should evolve as your business does. You might talk with an accountant about making key business plan updates.  

8. You Don’t Understand Business Taxes

Taxes can be confusing, especially if you’re filing your first business tax return. Make a mistake, and you could wind up with IRS penalties. Not to mention, you could miss out on opportunities to lower your tax bill through tax deductions and credits. 

Not sure where to start with your tax return? An accountant can help you make sense of it by:

  1. Letting you know which tax return form you need to file for your business structure
  2. Notifying you of filing deadlines
  3. Finding tax credits and deductions
  4. Helping you understand your accounting records

You may want to hire an accountant for taxes when you’re just starting your business (or at any stage in business ownership) to help ensure you fill out the forms correctly. 

9. Turnover has increased but profits haven’t.

More money coming in must mean more profit right? Not necessarily! This is a good time to have an accountant review your books and identify areas where your expenses can be improved to make a significant difference to the bottom line.

10. GST

This might seem simple, especially if you have invested in a software package such as Xero. This makes it feel as though managing GST is easy. However, there are a few pitfalls that new businesses can get trapped in when it comes to GST. If you are registered for GST then it is best to get some advice from an accountant.

11. Feeling overwhelmed

When you first started your business the invoices were pretty simple. You had a few customers and you collected the money and gave them a receipt. But as the business has grown you might be experience more complicated scenarios. When it starts to get tricky, it's time to call your accountant.

12. You have better things to do

Once business is going well you will be too busy working on more technical areas of your business. This is where you are going to get the most return is if you focus on the things that you are good at. 

13. Thinking of selling or expanding the business.

When selling, expanding, taking on a partner, each scenario has a number of potential tax implications. It could cost you thousands of dollars if you don’t seek professional advice. A professional accountant can ensure that you have the correct structure to maximize your profits and minimize your liabilities when making big changes in your business.

14. Buying or selling property

Buying and selling property within a business structure can be tricky and there are many things that need to be considered. An accountant can walk you through all the scenarios to ensure that you choose the best outcome. You need to get this advice prior to making any purchases as once you have signed a contract it may be too late.

15. You’ve realized how little you know about accounting!

You might have done an accounting subject at high school or uni, but times have changed and tax laws change constantly. It is best to get advice from someone who knows the current laws and how to maximize the opportunities.

16. Unexpected circumstances

Sometimes, personal affairs can impact the future of your business. For instance, if a business partner were to leave or if the company is considered a marital asset in the case of a divorce, either could change a business’ course. An accountant can help advise proper actions about taxes, business structures, estimate the business value, or produce financial statements for the company’s sale.

17. Taking out a business loan

An accountant can help you determine if taking out a loan aligns with your business plans. If so, they can recommend the best loan structure, size, and payment structure while preparing the necessary financial statements. 

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What Information Must be Included in Your Tax Invoice In UAE?
  • Taxation
  • 2022-01-05

Since the commencement of value-added tax (VAT) from January 1st, 2018, the format of the invoices or bills that usually exchange hands between seller and buyer will change and it is not limited to the inclusion of VAT at five percent on the invoice alone but many other elements also need to be incorporated in invoices in line with Article 59 of Executive Regulations of the VAT Law.

As per the law, invoices should not display "invoice" or "bill"; rather, "tax invoice" should be clearly displayed on it. Also, the tax registration number (TRN) issued to the supplier or seller should also find a place on invoices along with addresses.

The FTA said that four items on the receipt should be clearly marked:

  • Tax receipt displayed
  • Tax registration number
  • Price that includes VAT
  • Amount of VAT added

In a brief statement, the FTA called on consumers "to review tax invoices as businesses can’t charge VAT if they were not registered".

For issuing a tax invoice the following conditions must be met:

  • A consecutive serial number not exceeding 16 characters, in one or multiple series, containing letters or numerals or special characters (hyphen or dash and slash symbolized as “-” and “/” respectively) and any combination thereof, unique for a financial year.
  • Address and name of the recipient and the address of delivery, along with the name of state and its code, if such recipient is unregistered and where the value of taxable supply is Rs 50,000 or more.
  • Quantity, in case of goods and unit or Unique Quantity Code thereof.
  • Total value of supply of goods or services or both.
  • Taxable value of supply of goods or services or both, taking into account discount or abatement, if any.
  • Rate of tax (central tax, state tax, integrated tax, union territory tax, or CESS).
  • Amount of tax charged in respect of taxable goods or services (central tax, state tax, integrated tax, union territory tax or CESS).
  • Place of supply along with the name of the state, in case of a supply in the course of inter-state trade or commerce.

According to the guidelines issued by the Federal Tax Authority (FTA) in relation to the contents of the UAE VAT Tax Invoice, there are two types of Tax Invoice:

Simple VAT Invoice will be for supply less than the specified amount. It is issued in the case when the customers are retail consumers and don’t need to provide a VAT number. This type of invoice is for supermarkets and other retail industries.

Detailed VAT Invoice will be for supply more than the specified amount. It is issued in the case when registered business supplies to another registered user. This type of invoice is for wholesalers and traders dealing in bigger quantities.

 

What are the key contents of a Tax Invoice?

Contents of tax invoices are classified on the basis of simplified and detailed tax invoices as follows:

1. Simple VAT Invoice

  • A simple VAT Invoice must the word “Tax Invoice” at a prominent place.
  • It must consist the details of the supplier. Name, Address and Tax Registration Number (VAT Number).
  • In addition to the above, it must contain, Date of issue of the tax invoice.
  • The complete description of goods supplied must be included.
  • Apart from that, the most important thing a simple VAT invoice must have is the Total Amount Payable and Total VAT Chargeable.

2. Detailed VAT Invoice

In addition to the above details that are in simple tax invoice, a detailed VAT Invoice will consist of the following details:

  1. Name, address, and TRN of the recipient.
  2. A unique invoice number
  3. Date of Supply, if it is different from the date of issue.
  4. Price per unit, the supplied quantity/volume, rate of tax and the payable amount in AED.
  5. Discount, if applicable.
  6. Payable Gross value of Invoice in AED.
  7. Payable Tax Amount in AED.
  8. Statement relating to Reverse Charge, if applicable.

How can a business entity avoid errors in a Tax Invoice?

According to the law of VAT, all registrants should offer sufficient details in the tax invoice in UAE, this should not be incomplete or contain any wrong details otherwise the registrant would be responsible to make payment of administrative penalty. The right method to make sure that the invoice contains all the necessary details according to the law is to utilize software that will notify the user if any kind of detail isn’t involved and this will also help in making changes to the invoice according to the updates brought in the laws. Utilizing such software would save the registrant from making payment of a penalty and issue the invoice to the recipient in a timely manner.

 

Hire the Best Tax Agents in Dubai, UAE

Failing to comply with the requirements of tax invoice under VAT in the UAE will lead to hefty penalties which call for the need to hire the best Tax Agent in Dubai. Our company is well-known for providing specialized tax services such as UAE VAT registration, VAT deregistration, VAT compliance / VAT Return, excise tax services, and services related to VAT reconsideration etc. We ensure that businesses get efficient services through a dedicated team of VAT specialists and approved tax agents in Dubai, UAE. With our efficient VAT services in Dubai, UAE and a registered Tax Agent in Dubai, UAE the businesses ensure compliance with all the existing laws.

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Penalties For Violation of TAX
  • Taxation
  • 2021-12-29

In a statement, the FTA said 16 types of administrative penalties have either been reduced or had the method of calculation amended under the latest initiative in line with Cabinet Decision No. 49 of 2021 about amending some provisions of the Administrative Penalties for Violation of Tax Laws in the UAE, is designed to support tax registrants and help them fulfil their tax obligations.

Khalid Ali Al Bustani, director-general of the Federal Tax Authority, said the new amendment will become effective on June 28, 2021, and will reduce many administrative penalties imposed for violating tax laws. He said late payment penalty will not be imposed on voluntary disclosures if payment is settled within 20 business days of submitting the voluntary disclosure.

“This comes as part of the wise leadership’s directives to implement the tax system according to the best standards that ensure further growth for the national economy and help achieve transparency and economic momentum, providing an ideal and resilient tax legislative environment that encourages self-compliance and keeps pace with change through constant issuance of decisions in accordance with phased requirements,” Al Bustani said in a statement to Khaleej Times on Saturday.

Atik Munshi, managing partner at Enterprise House, said the relief announced by FTA on various penalties and their calculation is a positive step from the authority which will certainly be well received by the business community.

“This will also provide a proper direction on how to interpret the various articles thus a further clarity is now known. Such positive action from FTA will boost the business confidence. It remains to be seen on what shall be the outcome of the assesses who have filed and paid their penalties as per previous interpretation,” Munshi told Khaleej Times on Saturday.

 

To keep your business away and safe from the tax Penalties Get our Taxation Service.

1. Amendment of administrative penalties 

The new resolution amends the administrative penalties listed in Table No.(1), Table No.(2) and Table No. (3) of Cabinet Decision No. 40/2017. 

Some of the key amendments to the administrative penalties listed in the new resolution are as follows (non-exhaustive list):

  1. AED 20,000 reduced to AED 10,000 for failure of the taxable person to submit a registration application within the timeframe specified in the Tax Law. 
  2. AED 10,000 reduced to AED 1,000 monthly (not exceeding AED 10,000) for failure of the registrant to submit a deregistration application within the timeframe specified in the Tax Law.
  3. AED 15,000 reduced to AED 5,000 for failure by the taxable person to display prices inclusive of VAT.
  4. AED 5,000 (for each tax invoice) reduced to AED 2,500 (for each instance discovered) for failure by the taxable person to issue a tax invoice / tax credit note or an alternative document when making any supply.
  5. AED 5,000 (for each tax invoice) reduced to AED 2,500 (for each instance discovered) for failure by the taxable person to comply with the conditions and procedures regarding the issuance of electronic tax invoices and electronic tax credit notes.

Moreover, the percentage-based penalties applicable to the late payment of the tax due - in the tax return or in the voluntary disclosure or in the tax assessment - are reduced and the 1% daily penalty previously imposed is eliminated. 

The new late payment penalty is now calculated as follows (the 300% cap still applies):

  1. 2% of the unpaid tax due on the day following the payment due date, 
  2. 4% monthly penalty due after one (1) month from the payment due date, and on the same date every month thereafter, on the amount of tax that has not been paid to date.

The voluntary disclosure penalties that are applicable to the difference between the tax declared and the tax due are now linked to the period during which the taxpayers amend the previously submitted VAT returns and range between 5% (in case the voluntary disclosure was submitted within 1 year from the due date of tax return or tax assessment or refund application) and 40% (in case the voluntary disclosure was submitted after the 4th year). 

Please refer to the Cabinet Resolution No.49/2021 for a comprehensive list of the amended administrative penalties for violations of tax laws in the UAE.

2. Calculation of penalties

The new resolution stipulates that the payment due date for the purposes of calculating the late payment penalty shall be as follows:

  1. 20 business days as of the date of submission of voluntary disclosure.
  2. 20 business days as of the date of receipt of a tax assessment.

The above overrides the application of late payment penalties retrospectively from the due date of filing of the tax return subject to amendment or assessment. 

3. Discounts for previously imposed penalties 

Administrative penalties - that have not been paid - imposed before the effective date of the new resolution will be reduced to 30% of total unpaid penalties if all of the following conditions are met:

  1. The penalties were applied under the previous Cabinet Resolution No. 40/2017; 
  2. The registrant has paid all taxes due by 31 December 2021; and
  3. By 31 December 2021, the registrant has paid 30% of the total administrative penalties due and unpaid by the effective date of the new resolution (i.e. 60 days as of 28 April 2021).

4. Effective date of the new Cabinet Resolution 

The new resolution shall be effective after sixty (60) days from the date of its issuance on 28 April 2021, i.e. effective as from 28 June 2021.

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What is financial auditing and Why Are Audits Necessary?
  • Auditing
  • 2021-12-14

What Is Financial Auditing?

A financial statement audit involves performing a detailed evaluation of a company’s financial records. Regular financial statement audits are essential to every business – particularly those that are undergoing rapid growth – when it comes to tax planning, legal compliance, and the ability to develop an accurate budget. However, sifting through countless mountains of paperwork can undoubtedly put you behind schedule when you are trying to manage a business. While there are many reasons why your business may need a financial statement audit

During a financial audit, a company’s accounting records and financial statements are examined. In the process, any issues are uncovered and documented in a final report. Sometimes the audit is carried out by an external auditor and sometimes by a committee within the company itself. External specialists know how to conduct professional financial audits and understand what to focus on. Internal audits are usually held in regular intervals, such as yearly or quarterly.

What are the benefits of an audit?

Audits can be incredibly beneficial to the growth of your company. A successful report can even help improve your credit rating and make you more eligible for financial business loans. It may even lead to lower interest rates and determine eligibility for certain types of loans which may be more difficult to apply for.

You will also be able to prove to investors that your company is reliable and can be trusted. This is not only a benefit for potential shareholders but can also improve the image of your brand in general.

By conducting an audit, you are able to promote accountability which will help employees be more organized and work more efficiently. Additionally, it helps you gain perspective and insights into problems and areas that could be improved.

For businesses, it’s very important to be transparent and accountable. Financial audits are relevant to companies in all industries and can increase confidence and trust in your brand.

It can even make your accounting easier since you will be motivated to organize your process better and be highly detailed when keeping records.

 

Why Are Audits Necessary?

An audit is important because it provides credibility to financial statements in your company. The credibility provided by an audit goes a long way to save you from many hassles and delays in the business world. The purpose of audits is to ensure that a company or business keeps accurate records and follows proper accounting principles.

Audits assure shareholders that the accounting records presented in the financial statement are fair and accurate. In addition, with the help of audit reports, companies can improve their internal controls and systems. And, if your company is audited, it can increase your chances of improving cash flow through financing, investors, etc. (more on that later in the article).

 

Reasons to audit your financial statements:

Detecting and Neutralizing Fraudulent Activity:- Running a business and analyzing your finances can be an overwhelming task. Paying attention to every detail of your daily operations while sifting through hundreds of documents can affect your company negatively. With so many tasks at hand, discovering possible fraud – and neutralizing it swiftly – can be difficult for business owners.

A financial statement audit will allow you to have a detailed report on your finances. Having accurate information about every business decision over a set period places you in a better position for identifying whether fraud has occurred, and if so, when and to what extent. Tying into the point above, a financial statement audit can help you boost your credibility with stakeholders and investors, demonstrating that your company is managing its funds vigilantly and appropriately.

Expanding your Business:- Growth and profitability should be among the top focuses of any company. As your business expands and adds more branches or employees, so does the need for tight financial controls and efficient decision-making. A financial statement audit can help you determine the best courses of financial action to help your business continue its growth. If you are thinking about expanding your business, then you may need an audit that lets you know where your company stands financially – and where it can be improved.

Timely and Accurate Information:- Information is a powerful tool which can be used to drive the future success of the company. In saying this, the information must be both timely and accurate. If the information received to make decisions is accurate, but a year out, to what use is the information? Conversely, if the information is timely, but incorrect, a misstep is likely. Our firm works with a lot of small and medium sized companies and a common theme we find is that when management has no outside statutory requirements, the timely and accurate close of the books suffers in lieu of the day-to-day operations. We field calls all the time from companies looking for reviews or audits many months after the year-end because a requirement has suddenly come about. In many of these cases, the books are still not closed. Having an annual review or audit on the calendar each year sets a precedence for management to focus on annual closings. It now becomes a bit of an annual report card for your accounting team. Management now knows that there is an expectation for timely annual information which hopefully results in timely monthly information throughout the year.

Our firm also works with management to ensure financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  We find that many small to medium sized companies prepare their financial statements on a cash basis. Firstly, this is not in compliance with GAAP and secondly it does not provide ownership with the complete picture of what took place during the year and how it may compare with previous years. Also, many industry standards and ratios are based on GAAP reporting, therefore when ownership is comparing the results of its company to the industry, the results may be deceptive. A review or audit will take a look at the accrual-based accounting as well as provide footnotes to users that provide additional information about the financial health of the company.

As a business owner, you may be so focused on operations or may not be versed enough on GAAP reporting that you cannot properly assess the performance of your accounting team, which brings us to our second point.

Improving Your Operations:- Running and keeping a business afloat in today’s economy requires a high level of focus and control. While some business owners have a management background and experience with finances, many others might not have the same luck. If you don’t have enough financial expertise, or no experience at all, obtaining internal audit services is in your company’s best interests.

It’s understandable that business owners want their finances to be in top condition, to make new investments, and ultimately, make their business grow. However, business growth and development requires having funds – and further, having an accurate, comprehensive picture of how those funds are being allocated. A financial statement audit allows business owners to see the bigger picture. An accurate report will let you make better decisions for improving your business’ operations and future development.

Audit Allows One:-

  1. To get a reliable idea of ??the adequacy of the reality of financial and accounting reporting
  2. Identify the facts of incompetence of employees and deliberate misrepresentation of accounts
  3. Comply with mandatory requirements of law, bank and counterparty
  4. Get an idea of ??the compliance of accounting and tax accounting with regulatory requirements
  5. Assess the system of internal control of the client for compliance with regulatory requirements, scale and nature of the activity
  6. To identify significant risks in the tax sphere and in relations with other enterprises and individuals
  7. To Identify and use all legitimate opportunities for tax optimization.

On the basis of the information received during the audit, develop proposals for the elimination of identified shortcomings, as well as control the results of their implementation.

Mandatory audit is conducted annuall:- Compulsory audit of the accounting (financial) statements of organizations whose securities are admitted to trading at stock exchanges and (or) other trade organizers on the securities market, other credit and insurance organizations, non-state pension funds, as well as consolidated reporting is conducted only by audit organizations. Thus, it is important to engage a professional that provides internal audit services for you.

 

 

 

 

 

 

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Various Ways To Improve Your Accounting Strategy During An Economic Downturn.
  • Accounting
  • 2021-12-05

During these difficult times of the Coronavirus pandemic, there has been a lot of discussion about the different government programs available to help small businesses weather the storm. However, there are several internal things that businesses can do to help them make it through an economic downturn. Below are the actions that all businesses should be doing during a downturn in the economy.

1. Adjust your strategy and long-term goals. - While focusing on putting out fires in the short term is important, your business plan should focus on long-term business continuity and profitability. Your accounting team is there to help you sort out your options.

Look at the profitability of each of your products and services. Is everything profitable? Are some products or clients more profitable than others? Have your accounting team do a thorough financial analysis, and use the results to build a new, more profitable business strategy.

 

2. Know where you’re making and losing moneyRevise your revenue forecast to factor in the current economic climate so you have real numbers in your budget for the rest of the year. Consider which of your products, services or clients are profitable.

For one of our clients, our accounting team assessed the profitability of each of its customers and products. Through this analysis, we suggested variable-based pricing and to shift its sales and marketing to its most profitable customers. In less than two months, it removed 20% percent of its customers so that it could focus on the more profitable ones.

At first, this might sound like a loss, but cutting the least profitable clients actually took this client out of the red, and its revenue didn’t drop at all. Once it had a clear picture of who its most profitable clients were, it narrowed the focus of its new client outreach. The result? Its compounded annual growth increased by 40% per year.

 

3.Get aggressive with collectionsAccording to the partner of a consulting firm, "when business is good, companies tend to become lazy about collecting on receivables. This can prove dangerous in a recession." Assume that the average collection period for your industry is 45 days, but your company is at 51 days. After bringing that collection period down to the industry average, keep working to get it down to 40 days. Being tough with customers may be unpleasant, but it's an important safeguard against the effects of a prolonged economic Downturn.

 

4. Ask yourself what your business truly needsThe Covid-19 pandemic has made us reflect on the merits of what we buy, asking ourselves, “Is this product really essential”? Ask yourself about your overall operating costs, especially those that are recurring month over month. Look at your credit card statement; for each item, ask yourself: Would I buy this again? If the answer is no, cut it. Cut recurring subscriptions you hardly use. Are there items that just keep hitting your credit card that you don’t really need? Do you know your margins? How can you maximize those margins? 

Do make sure not to cut the wrong things. To foster business growth, consider putting more into business development and marketing. Don’t cut anything that helps you minimize risk, such as insurance, which can be a lifesaver if the unexpected occurs.

5. Focus on QualityDon’t let being understaffed impact your level of service and quality of your product. Options include freelancers, consultants, and part-time employees. One advantage of a slowdown is that hiring gets easier because there are more candidates from which to choose due to layoffs and other cutbacks.

 

6. Manage Inventory BalancesTypically, during a slowdown, there is an imbalance between sales and overstocked inventories. One possibility is converting inventories into cash. Monitor the results, keeping an eye out for those products that can tolerate even leaner inventories or that should be eliminated from your stock. This way if sales drop significantly, less of your cash is locked into unproductive assets.

 

7. Analyze Your PricingA recession is the last time you want to increase your pricing, so understanding your cost structure is essential to drive down costs and optimize profits. If your cost analysis shows that your current pricing is not enough to cover costs and provide a reasonable profit, you must find ways to be more efficient rather than increasing your price.

 

8. Ask what you need right now and define your backup planHow and when are you receiving your cash, and when do you need it? Compare this to your revenue forecast. Where can you reinvest? If you see cash-flow issues, can you renegotiate payment dates with your vendors or offer to make payments in chunks? Your accounting team can help you get creative without burning bridges with your long-term business partners.

 

If cash is tight, what’s your backup plan? Maybe you can acquire a line of credit from a bank or gain family or friend funding, an SBA loan, or one of the government’s current programs, such as a Paycheck Protection Program or EIDL loan. For government programs, your accounting team needs to be well versed in the specifics so you don’t miss out on a loan because of a clerical error. Some outsourced accounting firms also have special relationships with banks and can help you access capital.

If you are looking for best accounting firm in dubai who have talented accounting team then risians accounting is the best UAE accounting firm

Leverage your accounting team and consider “zero-based budgeting,” which helps you to assess what’s essential and what’s not. With their help, you can create the foundation for a strategy that helps you get through this difficult time so you come out highly competitive and ready for growth. 

Accountants are available to help small businesses survive through these difficult times. If you can’t complete this process internally or don’t have qualified accountants on your team, consider outsourced accounting and HR services. Many companies hire outsourced back-end office teams because for the same cost as a full-time person, they can provide specialists who work with you to find more technical and nuanced solutions.

Regardless of your strategy, speak with your accounting team about these ideas, and find out what their plan of attack is. If they are not able to help you develop a business continuity strategy and future goals, then they may not be the right team to help you survive the current economic downturn.

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What is risk management and why is it important?
  • Auditing
  • 2021-12-02

Risk management activities are just as vital when it comes to personal finances. By definition, risk management is the process of understanding, analyzing and addressing potential risks to ensure objectives are achieved. Risk management is a process dedicated to identifying risks within a business and developing procedures to mitigate or eliminate those potential risks. An effective system helps maintain the safety of staff, whilst protecting business resources.

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Risk management has perhaps never been more important than it is now. The risks modern organizations face have grown more complex, fueled by the rapid pace of globalization. New risks are constantly emerging, often related to and generated by the now-pervasive use of digital technology. Climate change has been dubbed a "threat multiplier" by risk experts.

A recent external risk that manifested itself as a supply chain issue at many companies -- the coronavirus pandemic -- quickly evolved into an existential threat, affecting the health and safety of their employees, the means of doing business, the ability to interact with customers and corporate reputations.

Businesses made rapid adjustments to the threats posed by the pandemic. But, going forward they are grappling with novel risks, including how or whether to bring employees back to the office and what should be done to make their supply chains less vulnerable to crises.

 

What is Considered Risk Management?

We know based on the definition of risk management that it is the methodology used to mitigate adverse consequences that result from threats and uncertainties. Put simply, this means developing a strategy to avoid losing money when unexpected events occur.

In corporate finance, this could be a succession plan that would be put into effect when a key stakeholder of the company is no longer able to perform their duties. In personal finance, however, there are many different situations which could result in financial hardships that you will want to plan for. This planning process is risk management. The primary goal of personal risk management is to protect one’s goals, dreams, treasure and personal well-being from the “what ifs” in life.

 

Benefits of Risk Management For Businesses.

Risk management plans offer several benefits that make them a worthwhile endeavor for every business. For example, risk management plans help companies to identify the potential risks they may face. Being aware of these risks allows businesses to make plans to avoid specific risks or deal with them when they arise.

Effectively managing risks that could have a negative or positive impact on capital and earnings brings many benefits. It also presents challenges, even for companies with mature governance, risk and compliance strategies.

 

Benefits of risk management include the following:

  1. Increased awareness of risk across the organization;
  2. More confidence in organizational objectives and goals because risk is factored into strategy;
  3. Better and more efficient compliance with regulatory and internal compliance mandates because compliance is coordinated;
  4. Improved operational efficiency through more consistent application of risk processes and control;
  5. iIproved workplace safety and security for employees and customers; and
  6. A competitive differentiator in the marketplace. 

The following are some of the challenges risk management teams should expect to encounter: 

  1. Expenditures go up initially, as risk management programs can require expensive software and services.
  2. The increased emphasis on governance also requires business units to invest time and money to comply.
  3. Reaching consensus on the severity of risk and how to treat it can be a difficult and contentious exercise and sometimes lead to risk analysis paralysis.
  4. Demonstrating the value of risk management to executives without being able to give them hard numbers is difficult.

 

Risk Management Process.

There are different methods of risk management for the various types of risk; however, the process generally has three specific steps:

  1. Identify the cause and nature of the risk. To use one of our previous examples, your death would leave your family to cope with the lack of income to pay debts and living expenses.
  2. Determine how much risk you are willing to retain. This could be how much deductible you are willing to assume for an insurance policy. Or it could be your choice of a living location and the associated natural disasters of the area. Generally speaking, we all assume some sort of risk every day, it is unavoidable.
  3. Determine how to handle risk not retained.  An important risk management factor is the balancing of insurance expenditures against the risks which present the most significant negative impact on your individual personal financial plan. In theory, we could insure ourselves against almost any risk but go broke paying the premiums.

This process should be followed for any risk you want to plan for, and the list of possibilities is nearly endless. As a result, it is important to identify your priorities alongside the risks most likely to come to fruition. This means every individual’s risk management plan will be as unique as their fingerprint. It is also crucial to know that risk management is never a stagnant process, you can’t just set it and forget. You should be reviewing your risk management strategy regularly and assessing whether or not it still satisfies your current needs and objectives.

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Accounting Checklist For Startups In UAE.
  • Accounting
  • 2021-11-27

Every business small or big needs a bookkeeper/accountant who will manage its finances. Business owners today realize more than ever before that if they are not careful about their finances, they soon won’t be in business. It can be costlier for smaller businesses to appoint a full-time bookkeeper or accountant, outsourcing this function has become very attractive to business owners and a great opportunity for bookkeepers or accountants to start up their own bookkeeping or accounting business in Dubai.

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Bookkeeping and Accounting Checklist For Startups

Bookkeeping and accounting differ in the areas they cover, both of which are vital with regard to the company’s financial health status. Bookkeeping, as the name suggests, focuses on keeping the records of transactions and cash flow up to date. Accounting, on the other hand, tends to devote itself to interpreting the financial picture the bookkeepers create and shaping that into final representative documents like profit and loss statements and balance sheets, and year to year comparisons which provide the overall picture of where the company stands financially and can give an indication of its future outlook.

Daily:-

Accounting is not an activity which you can perform at the end of the month, and everything will be good. It requires regular attention and maintenance to avoid loss at the end of the month. Here are some important accounting activities you need to check on a daily basis.

a. Check Financial Data

b. Reconcile Cash against Receipts

c. Review and Reconcile All Transactions

d. Record All Received Payments

Weekly:- 

Take the recorded daily information a step further with more intensive reconciliations using the week’s cash sheets to refresh financial data, record payments received and categorize the expenses incurred, as well as keeping your inventory list up to date. It’s also time to deposit cash received, issue invoices, schedule any bills for payment and, if you are using accounting or bookkeeping software, to be sure to back up your data.

a. Manage Record of Transactions

b. Review Outstanding Bills

c. Prepare All the Invoices

d. Project your Cash Flow Analysis

Every 2 Weeks:-

Follow up on customer invoices that are unpaid, apply any deposits they have made to their invoices, and follow up on any proposals you have made which have not yet had a reaction. 

Monthly:- 

Not every day and week is the same for any business organization. Every day brings new challenges and opportunities specifically for startups. Therefore, you need to follow this monthly accounting checklist to track your performance.

a. Balance Your Business Checkbook

b. Analyze Past and Aged Receivables

c. Check Inventory Status

d. Review Profit and Loss Accounts

Quarterly:-

In addition to the daily, weekly, and fortnightly operations, the need for more comprehensive reports and records increases. These include income statements, balance sheets, and reports on accounts receivable and payable.

 

Benefits of Starting an Accounting & Bookkeeping Firm in Dubai.

If you have characteristics of outsourcing bookkeeping accounting in UAE, here are the benefits you must know.

  1. The start-up cost for Accounting and Bookkeeping business is minimal.
  2. You can become a specialist in one accounting application for increased marketability.
  3. Its consistent work that typically takes place on a regular schedule.
  4. You can also work virtually and broaden your target market.

 

Starting an Accounting & Bookkeeping Services in Dubai.

Accounting and Bookkeeping consulting firms are one of the most popular business services to start and they’re almost always in demand. The introduction of new levies and fine-tuning of the existing taxation systems has led to unprecedented demand for accounting firms, especially those that offer integrated solutions to their clients and the scope of accounting and bookkeeping business start-ups in Dubai is increasing with every passing day. Before getting into the procedure of registering your business with the authorities, here are a few things you need to know.

Requirements to Set Up an Accounting and Bookkeeping Firm in Dubai.

1.Degree in AccountingAs a consultant, you will be engaged in providing services for businesses rather than private individuals. As an entrepreneur/professional you need to possess a degree in accounting or a related area for business setup in Dubai. It also means that you need to have an authentic certificate that proves you are a veritable accountant. However, before opening an accounting firm in Dubai, entrepreneurs need to ascertain the legality of the degree they hold. You can also take local exams to enhance the chance of approval.

2. Professional LicenseTo start any business in Dubai, you will need a license. When it comes to starting an accounting firm, you must have a valid professional license which is typically issued by the Department of Economic Development (DED) in Dubai.

3.Office SpaceIn the UAE, it is mandatory to have office space while setting up a company. Also having an office in a commercial district helps fetch clients easily. A physical working space also generates lots of confidence amongst the clients as they feel assured and comfortable dealing with an accounting firm that boasts a team of dedicated CPA’s. As a bookkeeping business start-up in Dubai, you can rent a space of your choice.

 

What Bookkeeping and Accounting Services Can Do?

Depending on whether or not you choose to outsource only the accounting, or bookkeeping services in Dubai, or choose to enlist help in both areas with the same or two different companies, these professionals can take some or all of the weight off your shoulders when it comes to keeping track of your finances.

 

However, choosing the right professionals to handle these pivotal areas of your business is vital. Before making a choice, careful research and investigation are needed to determine that you are hiring the right person to take care of your finances and maintain regular contact with them throughout your contract so you don’t become disconnected from that sector of your startup.

 

 

 

 

 

 

 

 

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How to Register VAT for a Freelancer in the UAE.
  • Taxation
  • 2021-11-22

It has been a few months since the introduction of VAT in the UAE, and businesses are settling well into the VAT regime. Initial apprehensions of compliance and regulation are giving way to confidence in the system. Businesses due to their size and expertise have understood the rules and adapted well. There is increased VAT compliance by the individuals who have to follow some processes in order to remain in business. Unlike in other countries, freelancers from the UAE are now encouraged to properly create and manage their financial records for the purpose of taxing. After a freelancing business has been registered with the government, the individual is given a TRN number which they ought to mention on every invoice. For transparency purposes, freelancers from the UAE are now required by law to provide VAT invoices to their clients. These invoices should have their serial numbers and be in their sequence, mention the TRN number, and must have the total service cost and the VAT stated separately.

Understanding the Eligibility of Registering for VAT

Freelancers are divided into three categories for the purpose of VAT, and they are:

  1. If the revenue is more than AED 375,000, then the freelancer has to register for VAT.
  2. If the revenue is between AED 187,500 and AED 375,000, then it is optional for the freelancer to register.
  3. If the revenue is less than AED 187,500, then the freelancer cannot register.

Revenue, in this case, includes reverse charge supplies, imports, exports i.e. the zero rated supplies, and the taxable supplies. It is also important for the freelancer to secure an income of over AED 187,500 in the past twelve months.

Steps To Register For VAT In UAE

If you are eligible to register for VAT in UAE, you will have to follow the steps given below:

1. Confirm whether you are eligible for VAT or notAs indicated earlier, freelancers are divided into three categories for the purposes of taxation. Check which bracket you fall into as per your income, whether you are eligible for a VAT or not. If yes, proceed to the next steps.

2.Acquiring a licenseA freelancer can only register for VAT after he has acquired a license. The freelancer has to get his employer’s permission to get a license, and then apply for one. There are multiple free zones in the UAE that offer freelancing licenses for a price. You will have to find out more about the free zones and their respective costs before getting licensed under one.

3.Register Yourself OnlineThe procedure of VAT registration is online based. After obtaining the required license, the freelancer must go to the portal of the Federal Tax Authority and create an account. After logging in, they need to register for VAT. They should keep the necessary documents handy while registering for VAT.

A list of all the documents required for VAT registration is given below:

  1. Certificate of Incorporation
  2. Trade license
  3. The Memorandum of Association (MOA) or The Articles of Association (AOA)
  4. Description of Business Activity
  5. Projected Future Revenues
  6. Freelancer Passport and a copy of the Emirates ID
  7. Bank Account Details
  8. Revenues Details for the last 12 months
  9. The Agreement by the Sponsor and the Custom Details will only be required if the freelancer deals in such kind of business.

After submitting all the documents mentioned above, the registration will be approved by the concerned Ministry, and the freelancer would be assigned a Tax Registration Number also known as TRN.

4. Maintaining financial recordsThis is an important step for you, even if you are not eligible to be registered for VAT. After all, you might not be eligible for VAT registrations, but your customers might be. So, they might need you to draft the invoices in a certain format or manner. Thus, you will have to keep your books updated and check all the financial records regularly.

VAT compliance also involves abiding by the following guidelines:

  1. Mentioning the TRN on each invoice drafted by you
  2. Keeping invoices numbered in a sequence
  3.  
  4. Disclosing the additional VAT and the total cost separately

5.File your tax returnsFreelancers have to file their tax returns quarterly without fail. Furthermore, ensure that your records are right as errors and discrepancies can lead to heavy penalties.

Like any other country, in the UAE it is essential to abide by the law to avoid heavy fines. In the past, companies that failed to abide by the law have received heavy penalties and even lost their license. It is advised that before you start working in the UAE, you must be well-versed with the laws in the UAE. You can get in touch with the relevant authorities if you have any questions. There are many government websites to assist you as well.

 

Get The VAT Service in Dubai From Expert

Risians Accounting is a leading accounting firm in Dubai. We have a special team who are experts in VAT Taxation or we can say master in this. They have 30+ years of working in taxation. They know well how to register, how to fill, how to claim for VAT return, etc. Our team knows the hundreds of ways that how we can save money on VAT without getting any plenty and legal action by FTA. We always say publicly we are the best UAE VAT service provider because of our team. If you have concerns related to taxation, accounting, auditing, etc feel free to contact us and get a free consultation.

 

 

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VAT Refund Guide for EXPO 2020 Participants & Tourists
  • Taxation
  • 2021-11-13

What Is A VAT Refund?

A VAT tax refund is the reimbursement of Value Added Tax paid on certain purchases. VAT is charged in many countries throughout the world. Non-resident tourists and companies located outside those countries are often eligible for VAT tax refunds for goods and services purchased for export or business purposes. There are certain restrictions and requirements that must be followed to be eligible for a VAT tax refund.

VAT Refund Expo 2020:

The UAE government has recently introduced Cabinet Decision No. 1 of 2020 on the “Refund of VAT paid on Goods and Services connected with the Expo 2020 Dubai”. Offices of the Official Participants will be able to claim a refund on the VAT incurred by them on the import or supply of certain goods and services which will be mentioned below.

Offices of the Official Participants are the representative offices of the Official Participants for the whole period of preparation, operation, dismantlement of the pavilion and execution of all necessary operations and various other activities for participation in the Expo 2020 Dubai.

 

Refund Application Process:

VAT registered participants can claim their Expo 2020 VAT refunds through normal.

For registrants in the FTA system:

  1. Log into the FTA account.
  2. Apply for refund as per the process available in the VAT refund user guide.
  3. The FTA will review and approve the request within 20 working days.

 

For Non-Registrants In The FTA System:

VAT Non-Registered applicants shall need to proceed with VAT refund application through a special VAT Refund request and must provide following information to the FTA.

  1. The official participant must provide the following documents to the EXPO 2020 office: (Submit the Special Refund sheet, Tax Invoices, Bank IBAN letter, EXPO license).
  2. The EXPO office will review the submitted documents and forward the request to the FTA through email to approve the refund amount claimed.
  3. The FTA will review and approve the refund requested and transfer the amount to the participant’s bank account.
  4. Reference number and date of the previous refund claim.
  5. Details of the supplies supported by original tax invoices / customs declarations.
  6. Description of the Goods and Services to demonstrate that they fall under the categories of eligible Goods and Services. 

In addition to the above following Supporting documents must also be provided:

  1. Copy of the Certificate of Entitlement issued to the Official Participant.
  2. Copies of the tax invoices, including simplified tax invoices. Only invoices issued
  3. to the eligible persons are allowed to be used to claim the refund.
  4. Copies of customs declarations issued in respect of imported Goods.
  5. -Copies of an employment ID that proves the employment of the personnel in
  6. respect of whom the VAT is being reclaimed.

 

What Type of VAT can be Reclaimed?

In normal scenarios, only VAT incurred in UAE for Goods and Services where they are connected or intended for making taxable supplies is refundable, however, if it’s not connected or intended for making taxable supplies, then it’s not refundable.

 

  1. However, with the introduction Cabinet Decision No. 1 of 2020 for the duration for Expo 2020, Offices of the Official Participants can claim VAT incurred on the following five categories without the need to use them for taxable supplies;
  2. VAT incurred by the Official Participant on Goods and Services in direct connection with the construction, installation, alteration, decoration, and dismantlement of their exhibition space.
  3. VAT incurred by the Official Participant on Goods and Services in direct connection with the works and activities of organizing and operating the Official Participant’s exhibition space and any presentations and events within the Expo 2020 site.
  4. VAT incurred by the Official Participant on Goods and Services relating to the actual operations of the Official Participant, provided that the value of each Good or Service for which the Office of the Official Participant makes a claim is not less than AED 200.
  5. VAT incurred by the Official Participant in connection with all operations, services and activities provided for the purpose of participation in Expo 2020 Dubai, whether located within or outside the boundaries of the Expo 2020 Dubai site.
  6. VAT incurred on import of Goods for personal use of the Official Participant’s Section Commissioner-General, Section Staff and the Beneficiaries.

 

How Can We Help You?

Our VAT experts can offer guidance in connection with your activities related to EXPO 2020. The list includes license, registration with FTA, eligibility of input tax recovery, VAT returns and submission of VAT refund application. We support participants through administrative tasks to ensure full compliance with the VAT laws and allow them to recover VAT expenses incurred in the UAE.

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What Are The Duties of An Auditor Under UAE-AML?
  • Auditing
  • 2021-11-09

What is an Audit?

An audit is an impartial examination and evaluation of the accounting records of a company by a statutory auditor. The purpose of the audit is to verify that the records are an accurate and fair  representation of the company’s transactions, and involves obtaining evidence about the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. 

What Is an Auditor?

An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws. They protect businesses from fraud, point out discrepancies in accounting methods and, on occasion, work on a consultancy basis, helping organizations to spot ways to boost operational efficiency. Auditors work in various capacities within different industries.

Hire the top Dubai auditors team and to easily accomplish your company auditing goal. Our auditors in Dubai have 20+ years of working experience in auditing, by using their experience they perform auditing activity effectively and smoothly and deliver the high informative and useful auditing reports that help the business organization.

Key Points:-

  • The main duty of an auditor is to determine whether financial statements follow generally accepted accounting principles (GAAP).

  • The Securities and Exchange Commission (SEC) requires all public companies to conduct regular reviews by external auditors, in compliance with official auditing procedures.

  • There are several different types of auditors, including those hired to work in-house for companies and those who work for an outside audit firm.

  • The final judgment of an audit report can be either qualified or unqualified.

 

Types of Auditors:

  • Internal auditors are hired by organizations to provide in-house, independent, and objective evaluations of financial and operational business activities, including corporate governance. They report their findings, including tips on how to better run the business, back to senior management.

  • External auditors usually work in conjunction with government agencies. They are tasked with providing an objective, public opinion concerning the organization's financial statements and whether they fairly and accurately represent the organization's financial position.

  • Government auditors maintain and examine records of government agencies and of private businesses or individuals performing activities subject to government regulations or taxation. Auditors employed through the government ensure revenues are received and spent according to laws and regulations. They detect embezzlement and fraud, analyze agency accounting controls, and evaluate risk management.

  • Forensic auditors specialize in crime and are used by law enforcement organizations.

The purpose of an audit for your business in Dubai:

The general reason for an audit is to create an independent and impartial view on the information offered in the financial statements, whether that information reveals the true and fair interpretation of the operations of that business or not. For example, the auditors will prove and give their opinion on whether the reported incomes, payments, profit/loss, possessions, obligations, and equity are specified at their true and fair standards or if there is any material misstatement.

Audit requirements for listed companies in Dubai:

In the UAE, the following types of companies must have an audit at any time in the financial year if they are:  

  •  joint-stock companies;
  •  limited liability companies; 
  •  affiliations or partnerships limited by shares;
  •  any other business which is mandatory by any other law. 

Small companies in Dubai are audited when they are required to do so by any supervisory unit or financial institution or to meet any other special condition.

 

Power and Duties of an Auditor:

  • The auditor has a right to receive information and explanation regarding the matters which are necessary for the performance of his duties. He needs to know whether:

  • The company makes loans and advances against proper security and the terms of these are prejudicial to the interests of the company.

  • Transactions that merely represent a book entry are prejudicial to the interests of the company.

  • In the case of a company that is not an investment or banking company, it sells the assets. They are in the form of shares, debentures, and other securities at a price less than their purchase price.

  • The company shows the loans and advances that it makes as deposits.

  • It charges personal expenses to the revenue account.

  • Every auditor has a right of access to the books of account and vouchers of the company at all times, whether they are at the registered office of the company or at any other place.

  • The auditor of a holding company also has a right of access to the records of the subsidiary company if they are necessary for the purposes of the consolidation.

  • An auditor also has a right to receive notice of any general meeting. He may attend it himself or through his authorized representative who is also qualified to be an auditor. He also has a right to be heard on any part of the business which concerns him.

 

 

 

 

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Aqeeb Aqeeb Internstional
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Office No-112, 1st Floor, National Insurance Building,
Sheikh Zayed Road, Dubai-UAE

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