What is Management Accounting?

Management Accounting is used by the internal team of the organization and is also known as managerial accounting. In Management Accounting, we analyze, identify, interpret, measure, and communicate financial information to generate the management accounting report. That report is provides all the financial information, statistical, and resources to the managers. With the help of the report, managers can make informed decisions easily for day-to-day and short-term decisions for organization growth.

It’s only used by the internal team which is the only thing that makes it different from financial accounting. The objective of managerial accounting is to improve statistics and make better decisions.

This report contains details of accounts receivable and payable, cash, current generated revenue, etc. If you are looking for a management accounting consultancy then Risians Management Consultancy is the best for your organization. 

In simple terms, Accounting managerial is the process of analysis and measurement of the financial information, resources, economy, tactic, etc. This helps the organization to make better decisions. It has no defined fixed format and structure and is not to be shared with an outsider agency like the government. 

Types of Management Accounting Reports:

1. Analyzing Cash Flow - Most companies record all financial information on an accrual basis accounting. Although, it shows the exact picture of the financial position, accountants analyze the cash flow to determine the cash impact on business decisions while performing analysis, they will consider the cash outflow and inflow as a particular business decision. The accountants may implement the working capital management strategies to optimize the cash flow and ensure the organization has enough liquid assets to cover the short-term work.
   
   
2. Product Valuation - The cost of the product is determined by the cost of production of goods and services. The Managerial accounts find the overhead cost charges on the production. It may be based on the No. of good production and related to it.
   
   
3. Analyzing Inventory Turnover - It is a calculation of the inventory that has been sold and replaced in a particular period of time. It helps the business to make a better decision regarding the price of products and services, purchasing inventory, and marketing.  It contains the carrying cost of inventory and stores unsold items. Accountants find a possible way to reduce the cost of storage.
   
   
4. Management of AR (Accounts receivable) - In this, the Accountant creates the list of all the accounts receivable according to time like 30 days, 30 to 60 days, 60 to 90days, etc.  It creates a positive effect on the business. Accountants review the receivable accounts and identify if there is any customer that becomes credit risk. If they report to the appropriate department manager that a particular customer is not making payment on time. Sometimes businesses may reconsider doing business on credit with that customer.
   
   
5. Constraint Analysis - In Constraint Analysis, Accountants analyze the whole production and sale process. To identify, there is a thing that will create any prevention and limitation and tell how to improve more sales and production process. Business managers use the report and do some implementation for efficiency in the sales and production process of the organization.
   
   
6. Budgeting - Management accountants do the measurement and analysis of the company perforation and previous expenses to create a budgeting report.  Business budgeting contains the list of all sources of expenses and earnings. Budgeting reports guide the managers to offer better renegotiate terms with vendors and suppliers and employee incentives, cut costs. Management can make new strategies to accomplish the business goal within the set budget amount. Every year businesses set a sufficient amount of budget to run a business efficiently. That’s why a budgeting report is a critical measurement of expenditure, Revenue, etc.

What is the Main Purpose And Objective Of Management Accounting?

The main objective of management accounting is to help the business organization in smooth and efficient performance in controlling, planning, directing, organizing, and more.

1. Planning - The first main objective of management accounting is to aid businesses in planning for future needs, and accomplish the goal. Managerial accountants analyze and measure the company's current & past performance, generated revenue, expenditure, regular expenditure, and more as per the business structure and function to give the report that shows the real picture of the business. By the report, management makes the decisions to increase production and sales.
   
   
2. Analyzing the data - The main purpose of management accounting is to analyze the data.  That helps in finding the problem area and developing methodologies to correct it. Data analysis increases business efficiency, increases productivity, and prevents future problem areas and harm.
   
   
3. Forecasting - As we mentioned above, managerial accounting analyzes the past and current data of the organization and generates a report based on that analysis.  Generated reports play a vital role in forecasting and make better decisions.
   
   
4.  Monitoring - In this accounting, we monitor every process of the organization to ensure that decided strategy implementation is appropriate and all the processes are in as per strategy.
5. Aids In Achievement - Management accounting reports help in making decisions and birth the new effective strategy that makes the business process feasible. They also monitor the process of the organization that the newly implemented strategy is on track or not and also do time to time forecasting. If they found any loopholes, errors, problems, and overhead costing areas. They take steps to resolve it and take precautions.

The Importance of Management Accounting

As we know, Management Accounting is a major tool for business success. The reasons are following:-

1. Prevention and rectifying -  Management accounting keeps an eye on each process of the business organization and if they find any problem, errors in any particular area they take action to fix them. By analyzing the data and economy they forecast the business performance and take prevention if they found any future problem.
   
   
2. Introducing New Product - If a business wants to launch any new product and service the management accounting plays an important role. It supports the business from the beginning planning to the end execution by giving details about the producing capability, cost of products, real picture of the product market, etc. They also define how much quantity of the product will be best and profit on it.
   
   
3. Reviewing Products -  In management accounting, review all the current products and services and generate the report that has all products' final cost and profit margin so that the business can identify which product is more profitable and which are not.  They provide you valuable metrics that help businesses to reduce the unnecessary cost of the products and how to increase profit.
4. Staffing - Organization staff is another area in which management accounting plays an important valuable role. Management accounting aids the business to make the right decision by informing the business how much staff is required, how much we can afford to spend, and the return you can expect from the per employees.

If you want to get all the benefits, get a free Management Consultancy in Dubai, UAE. Risians Accounting has become the pillar of some organizations in the UAE by giving accounting service to them. If you have any questions and issues related to accounting, bookkeeping, auditing, VAT, Tax Agent, Company formation, and management accounting feel free to contact us. Connect with us and discuss your problem with us, we are here for all your business needs. 

Dubai, located in the northeastern UAE is the business hub of the country. It is the fastest-growing economy among the world’s other cities. That attracts the investors and business starts-up and they begin setting up their business in Dubai.

Now Dubai government allows ex-pat business owners to own full business in some cases and the 0% tax rate as well. In the UAE expat can get long-term visas that make it the perfect location for overseas entrepreneurs. 

Why should you establish a business in Dubai?

The fastest-growing economy has shifted from the oil economy to the business innovation economy in the last 30 years. Multiple reasons make Dubai the first choice for investment and business owners. 

Due to the strategic location and business-friendly government rules and regulations Dubai fascinates foreign investment and business owners alike.

Business owners want to start their business due to two prime reasons. The reasons are following:-

1. Business Friendly Environment - The United Arab Emirates got the 16th position for an easy place to do business by the World Bank. Setting up the business in Dubai is not complicated. It’s quite simple and easy.  Many business owners can establish their businesses within a week provided they have all the approved documents. There are many free zone areas to set up a business that the UAE government has established. In the free zone areas, the Dubai government allows 100% foreign ownership, profit earned repatriation and large tax exemption.
   
   
2. Low Rate of Taxes And Open Market - In Dubai, there is no tax on personal income. And has a free-trade economy. The Dubai government and regulatory authorities do very little interference in the private sector activities. Dubai has a liberal policy system; this allows a business owner to easily hire employees from anywhere in the world. Dubai has implemented strict rules and regulations for fraud and money laundering. Foreign investors love to invest here because of the clean place and with little worries.
   
   
3. World Class Infrastructure - Dubai has various international standard free zone areas for the business. It also has a modern infrastructure in the entire world that holds significant importance.  Dubai handles thousands of visitors with its beautiful airports and seaports. It also has numerous roads and highways that make travel easy and fast. Trusted telecom infrastructure, undisturbed power supply, and loaded with amenities to attract business owners throughout the world.
4. Best Accessible location - Dubai is located in the center of Africa and CIS (Commonwealth of independent states). Currently, 8555 airlines are operating here. It is connected with more than 120 Shipping lines.  Dubai is an easily accessible location from anywhere in the world.
5. High Standard of living - Dubai is a diverse. Numerous foreigners have made Dubai their second home. Dubai leads the world in real estate, housing facilities, educational institutes, recreational activities. Dubai is a low-crime city that makes it the safest city in the entire world.

How To Set Up Business In Dubai?

If some want to set up a business in Dubai then setting business is a simple and pretty smooth process. Dubai is the best city for the set-up business. The process to apply for business approval is quite simple.

The process to set up business in Dubai:-

1. If someone wants to start a business in the mainland of Dubai, then they should have a local investor. Investors should be local Emirati. 
   
   
2. After getting local investors the next step to acquire the NOC from the local sponsor.
   
   
3. Now you have to Prepare the MOA of the company. MoA should have the basic condition on which business is carried out.
   
   
4. Get approval from the DED (Department of Economic Development). It’s an initial approval and must.
5. After obtaining the initial approval from the DED then register your business’s unique name.
6. After getting a business trade name. Placed your business at the best suitable location for their business.
7. While setting up the physical office, a business owner should apply for a trade license.
8. After receiving the trade license, the business will be set up within a week.

Required Documents To Start Business

If company location in free zone areas that are governed by the respected rules. Then the required documents will depend on the area rules. A required document may include.

1. Business plan
2. Application Form.
3. If you are an existing company or applicable for the local company then you need a copy of the registration certificate and trade license.
4. Director, Manager, and shareholder passport copy and Specimen signature
5. For individuals, we need NOC From the sponsor.

Company Formation Fees

The Cost of company formation is low in comparison to the other cities which is another reason that entrepreneurs like.

There are many factors involved, But for the trade license you can expect the AED 15,000 to AED 25,000.

The company formation cost in Dubai depends on the location, premises, No. of employees, etc. If you are establishing your business in a free zone area then the cost will be lower than the mainland. 

Popular Area Name in Dubai

1. Al Quoz
2. Al Qusaia
3. Al Karama
4. Business Bay
5. Bur Dubai
6. Deria
7. Sheikh Zayed Road

Free zone area in Dubai:-

In the entire UAE, there are about 45 free zones. Some division are:-

1. Energy
2. Automotive
3. Aviation
4. Media
5. Investment
6. Academics
7. Information Technology
8. Logistics

Establishing company In Mainland.

1. Real estate
2. Education
3. Hospitality
4. Retail

Hope this short Information Help you If you have any doubt and query, please contact our business consultant team.  When you allow us to work with you, first we understand the business model; get information about the business and nature of business. Now you sit back and let our team manage trade license work and communicate with all relevant authorities and departments. After completing our team report you back when all the things are set and you are ready to start trading. We also give time-to-time reports of working status.

Accounting is the measurement of all financial records of any business and the key form of communication to measure financial or non-financial information. Most small business owners create business models based on business competition, products, and services. They gather all the resources and plan to grow their business accordingly. Business owners are very good in business but not so in accounting. They generally don’t have sufficient accounting and financial experience to make effective financial decisions regarding business growth, keeping business accounts updated as per law, and point out errors in accounting.

If you are also a business owner and are seeking to find the best accounting companies in Dubai to outsource your financial operations, be assured that you have taken the right step towards an informed way of keeping your finances in check. It is much easier to hire an accounting agency to keep your financial records than setting up an entire accounting system in the business itself. 

While searching you will come across hundreds of accounting firms in Dubai but you should hire the best one that is fit for your business needs. To hire the top accounting firm for your business you have come to the correct place, Hire The Best Accounting Firm In Dubai. I’m not saying hire the expensive service, top means the firm suitable for your business which has working experience in your business niche.

In the Accounting Firm, Certified Chartered Accountants deal with each monetary transaction of the business and individuals. It’s one of the main factors to run a business towards success. They provide a business balance sheet, cash flow statement, financial statement, and fill the vat returns. With the help of business accounting, you can make better returns out of your business. Business accounts ensure what is your current financial position and determine further steps for growth. 

It has been mandated for the 2015 commercial companies to maintain the proper accounting books at least for five years as a legal requirement. As you know VAT is also mandatory and VAT and tax returns are now too important otherwise you can get the penalty from the FTA. That’s why accounting and bookkeeping services in Dubai are advised by experts. There are a lot of things to be done in the business and it is not easy to comply with the legal requirement and keep business strategy running on track continuously in this competitive race.  It’s very difficult to manage business accounting along with business accounting. That's the biggest reason, accounting services in Dubai UAE are offered by many various companies as an outsource. 

Accounting service outsourcing has become highly recommended since it helps the business especially when service provider companies use the latest accounting software and technology like Risians Accounting. Accounting software makes the work easy. It is more effective and fast in recording transactions. 

Get The Service From The Best Accounting Firm In Dubai 

Risians Accounting is an FTA-Approved accounting firm located in the heart of Dubai. Risians Accounting offers accounting and bookkeeping, advisory, VAT Consultant, Tax Consultant, Tax agent, VAT return services, etc. We have a certified team of chartered accountants who have 10+ years of working experience in different industries and projects.

At Risians Accounting, We provide you with the best strategies. Our expert team first understands the accounting requirements of the business and discusses each step, process, and aspect based on the client’s business needs. Our Chartered accountants reduce the owner's burden and financial costs wherever possible. We count our success when we are able to carry out successful decision-making and tasks for our clients.

Risians Accounting is considered amongst the top accounting service providers and prominent accounting firms in Dubai, UAE.  Our business auditors and consultants keep your business’s financial records up to date and financial statements that help you coordinate well with the law and regulation. They concentrate on the risk areas and improve the company performance with flexibility to grow business and accounting requirements.

We give the tailoring service and fee package based on your activity and requirement. We also provide full-time support to fulfill your requirement on time and with utmost efficacy.

Bookkeeping Service

In bookkeeping, bookkeepers record all the financial transactions appropriately and summarize the records. In the old times when computers weren't born these entities were recorded in the book that’ why it’s called bookkeeping. 

Currently, we are managing the bookkeeping service of various industry clients. Our Bookkeeping Service in Dubai Includes

1. Recording all business transactions.
2. Vendors bills payments
3. Make ledger
4. Reconciliation of Accounts, Bank statements, and passing.
5. Include receipts & payments & income & expenses or other adjustments for recording transactions.
6. Create and prepare the invoices.
   
   

VAT Tax Service

1st Jan 2018 UAE government has introduced the VAT with a 5% rate of interest. It became a new source of income in the UAE. We prepare and fill the VAT return on time and fulfill the FTA requirement on the behalf of the client's business. Save the unnecessary amount on the VAT Tax.

Audit And Assurance Service

The financial statement audit means reviewing the business accounting books to make sure that all financial records are in the right place as per rules and regulations. It increases the value and credibility. We provide full support during the auditing by giving full support to the Auditors and prepare the requirements. 

Financial Statement Or Financial Position.

It's a formal record of financial record of a business. It presents the financial position of the business. It’s mandatory for business because With the help of the financial statement business makes decisions for future growth. 

We provide proper business accounts statements along with recommendations to improve the business. We offer:-

1. Profit and loss account.
2. Cash flow statement
3. Balance sheet

Monthly, Quarterly, And Yearly Reviews

For business security and accuracy of your financial records and accounts, we review your entire business in order to mitigate risks and harms. We share the review report along with suggestions and recommendations and discuss with clients ways on how to grow their business.  We help businesses realize their full potential and reap the benefits of informed decision-making and smart execution of their finances. 

Why Choose Risians Accounting Firm?

Accounting is a major part of any business. Our business consultant and Chartered accountants give you full support in your business accounting and bookkeeping services. They have the caliber to take care of your business accounts & finance and know how and where you can save money without any further harm. We have decades of working experience in different industries.

Our aim is just to take care of the client's business accounts and finances along with full transparency. Our accounting service business growth is after your business success. We provide tailor-made strategies with tailor-made quotes or packages.

In Accounting or financing language,  the term accounting and bookkeeping are almost used interchangeably because they both deal with business accounts. However both concepts are different but if someone asks about the difference between accounting and bookkeeping it becomes taught to describe because both support the business finance in different stages and ways. Let's take a look at the difference between Bookkeeping and accounting.

What is Accounting?

Accounting is high level work that uses the financial information that is accumulated by the bookkeeping and business owners. Accounting is the process of systematically recording, communicating and measuring about business finance and financial transactions. It determines the business finance position & health and Position of the stakeholders. It plays a vital role in decision making for a short and term period and passes the reliability of the company in the market.

The main purpose of accounting is to provide a clear view of the finance with the full insight for the business users like owners, stakeholders, employees, government and etc that’s why it’s more subjective in comparison to bookkeeping. In accounting, an accountant converts the information into ledgers and then into statements that present the business financial situation and how business is going. 

What is Bookkeeping?

Bookkeeping is the essential key to building a successful business. Bookkeeping is a process of the classification and recording of each transaction of the business consistently. 

It's said to be basic accounting. The importance of bookkeeping is that it maintains each record of the monetary transaction. Businesses use this information for business financial statements and investment decisions. 

The complexity of the bookkeeping is dependent upon the business size and how much financial transaction is done weekly, daily or monthly.  All the sale purchase transactions are recorded in the bookkeeping book. 

To be a successful bookkeeper we don’t need  any formal education. We can become experts in bookkeeping easily. Bookkeepers always work under the eye of either accounting or business owners. Keep in mind bookkeepers can’t call themselves accountant. 

The bookkeeping process contain:-

1. Identifying a financial transaction
2. Recording a financial transaction
3. Preparing a ledger account
4. Preparing trial balance

What Is the Difference Between Bookkeeping and Accounting?

A business book is a scorecard of your business that defines how you are doing. Being a good business, it’s your responsibility to stay one step ahead in the industry. Having accurate and up-to-date accounting records is the sign that shows the business is on track of success.

Small Business Bookkeeping Tips

Tips will help you to be skill full to manage the business process and increase the ability and knowledge to operate your business skill.

1. Separate Personal And Business Bank Account:- The business owner must have separate accounting for their business and personal account so that we can separate the business fund from the personal amount. Recording personal expenses transactions is a waste of time and energy. It becomes worse when you outsource for bookkeeping and get mixed with personal expenses. Always use the separate account and only record the business account transaction so that you can track your business cash flow easily. If you want money in your personal account then make the bulk transaction from your business to your personal account on a monthly and weekly basis.
   
   
2. Identify The Personal And Business Expenses - The business owner withdraws the money from the business account to the personal account to fulfill their needs, wants, and desires. The best practice is to choose the one fixed amount to transfer from the business account to the personal account on a weekly or monthly basis.  By doing this business account will be clean and tidy with only business transactions. It will avoid confusion between personal and business transactions.
   
   
   To reduce tax business owners should know and recognize what types of expense transactions can be claimed against the profit. 
   1. Those expenses that directly related to the business operation and producing income.
   2. Owner personal Expenses and etc.
   
   To know more about these types of transactions contact risians accounting and auditing firms.
    
3. Make Automate As Much As Possible.
   Use accounting software to save time and money. With software, you can goodbye the putting data into spreadsheets and manually action. The software records the transaction automatically in the right manner. While selecting the software, look at the storage, accessibility, and security. you must make a list of things that software must-have for your business. Don’t rush to buy the software and first perform your homework to find what software should be fit for my business.
   Applying automation in business means you are saving your time and energy by automation process. After automation, you will have time to focus on the business. Putting data into a spreadsheet and crunching numbers manually is an old and time taken method.
   
   
4. A Regular Check of Business Books -  Business owners should check the business book on a regular basis such as weekly and monthly in order to confirm that transaction is recorded accurately and timely.  Up to date information on accounts defines the business health, how business is going and etc.
   
   
5. Reminder for Deadlines - It’s possible for business owners to miss the due and last date of tax filing.   To avoid this, the business owner should set the reminder, can use the google digital calendar and any other preferred calendar, and fill the tax return on time. A business owner also uses reminders also for other important works. Complete work on time it’s a sign of success.
   
   
6. Track Business Expenses - We can forecast some expenses but it’s very difficult to predict unexpected expenses. But if you plan and plan for the expected and unexpected expenses then it will be beneficial for the business’s health. With the help of bookkeeping records, such as supplies, inventory, insurance, and utilities. We can easily predict the expenses that will happen in the future and prepare ourselves for them.
   
   
7. Give Priority To Your Accounting Books - As business owners, we have lots of tasks to do for running the business and forget to update the business books. To keep business on the success road we should give top priority to maintain the books.
   
   From day one we should record each and every transaction and organize the books in a proper manner.  If we avoid maintaining records timely and accurately then we push our business towards failure.  We should give priority to business accounts to keep them updated and keep reviewing the transaction for accuracy and transparency.
   
   
8. Ask From Accountant - Take assistance from your accountant to figure out this. Your accountant gives you advice on how to do it and also helps in setting up software and customize software as per your business needs.

If you have any doubt and query feel free to contact Risians Accounting. We will help you to set up a cost effective tailor made business accounting system for your business from which you can record each and every transaction systematically and focus on the business.

The European Union (EU) has blacklisted those countries that don’t have criteria to meet with EU fair taxation, tax transparency, and measurement of the (BEPS)   base erosion of profit shifting.

Economic Substance Regulations: In 2019, the UAE government has introduced the Economic Substance Regulation (Cabinet of Ministers Resolution No. 31 of 2019), in UAE for un-blacklisted from the list of EU.  After implementation of the Economic Substance Regulation (ESR) system, UAE has been removed from the list of blacklisted countries by the EU. On 10 August 2020, UAE cabinet Minister issued Cabinet Resolution No. 57 of 2020 Concerning Economic Substance Requirements. Which gives the revision set of  Economic Substance Regulations. For the implementation of the provisions of the economic substance requirement and Ministerial Decision No. 100 of 2020 on the Issuance of Directives was introduced on 19 August 2020. This decision also repeals and replaces Cabinet of Ministers Resolution No. 31 of 2019 and Cabinet of Ministers Resolution No. 58 of 2019. 

UAE Regulation Authorities 

VAT Deregistration means to cancel their VAT registration with FTA.  I noticed in the market there is a lot of confusion going on related to vat registration. Let’s understand about Deregistration. Suppose Business is registered under the VAT but businesses stop making taxable transactions. Then it’s mandatory for a business to cancel their registration with FTA (Federal Tax Authority). The business has to submit the application for deregistration  With the required documents to FTA, then FTA will cancel the registration. 

Deregistration is important as VAT registration and businesses should have a good understanding of which circumstances they should apply for deregistration otherwise they will get heavy plenty from FTA for late application for VAT deregistration. Businesses must apply for VAT deregistration within 20 business days of becoming eligible for  VAT deregistration. If a business gets late then has to pay AED10,000 plenty that is charged by the FTA.

The Tax payable business must know all the procedures of the  Deregistration. The expert advice of the best VAT consultancy services should be taken to know how to register or deregister. On time deregistration and in the right way prevents the plenties.

VAT Deregistration Eligibility

It is an online process. Businesses and individuals who are registered can apply for deregistration in two situations.

1. After registering with VAT If the business annual turnover is not above AED 187,500, They can apply for the Deregistration.
2. If a business is no longer dealing with the taxable supplies then they have to apply for the deregistration.

Under FTA guidelines Deregistration there are two norms for deregistration.

1. Compulsory VAT-Deregistration
2. Voluntary VAT Deregistration

Compulsory VAT-Deregistration

The business tax payable transactions are below the voluntary registration threshold limit. In this condition, the registered business and individuals become eligible for the Compulsory VAT-Deregistration. Businesses must apply for the deregistration to avoid the plenties.

Voluntary VAT Deregistration

The business applied for the Voluntary registration on 1st April after 12 months on 31st March business not made tax payable transaction equal to AED 187,000, The business and individuals shall analyze and evaluate the tax payable transaction for the next 30 days if the taxable supplies will exceed then they can apply for VAT Deregistration in the next 20 days.

Guide To Apply For VAT Deregistration

It’s an online process and easily accessible with the FTA portal. To apply for the VAT deregistration, Companies and individuals have to submit the application form to FTA along with required documents and the valid reason then FTA will verify the reason and documents and If the reason is valid then FTA will approve the Deregistration. FTA approves the status of the return, Outstanding tax Payment, and any plenty that is pending. If FTA found any outstanding and plenty then you have to clear them otherwise FTA will not approve the deregistration.

Deregistration For VAT Group

The Group vat deregistration is similar to the individual’s deregistration. There only Criteria apply for it.

1. VAT Deregistration approves when the group is no longer meets the considered conditions.
2. The tax status of the group may lead to tax evasion then the FTA approves the Deregistration 
3. If the constituent member of the company is no longer financially associated with the group.

Procedure of the VAT Deregistration

Step 1- You have to login into your FTA account. On the homepage, you can see the option of Deregistration.

Step 2 - Click on the Deregistration button then the form will open. Fill the form correctly and send it for review and approval.

Now you have applied for the  VAT Deregistration successfully. FTA will review the application and then confirm it. When FTA approves the Deregistration, you can check the status there will be pre-approved status at the place of the VAT Deregistration. Now you have to submit the final return, after that, you have to clear all the outstanding liabilities in order to complete the VAT Deregistration process. 

Hope this short guide helps you. If you have any questions and doubt feel free to reach risians accounting. Risians accounting is a certified and FTA-approved accounting firm in dubai. Allow us to take care of your business accounting, VAT registration and deregistration, auditing, and other accounting work.

Being the best accounting firm in Dubai, We are asked by every client that what is the difference between the internal and external audit. So today, we are writing about the internal and external audit differences and similarities. Before start let’s take a look at what is auditing. 

Auditing is the process of inspection and evaluation of the various accounts, a financial statement, etc. To ensure that all the business management accounts are recorded systematically and accurately in the proper manner of accounting law and regulation. By auditing process, auditors detect fraud, error, etc, and save the management or company from potential loss and harm.

Purpose of Auditing

The purpose of the auditing is to review the information is right and accurate or not, that is presented in the accounting books and financial accounting books. The presented information in cash flow, balance sheet, income statement, etc are matching right or not. As per Government accounting standards, the auditor evaluates the financial report of the organization. The main purpose of auditing is to find any mistake, fraud, a loophole. If the accounting system is not working as per government law and management or company policy then have to face any loss, harm, and plenty from the government. Well, the future is uncertain nobody can judge that what will happen next? The auditor do a prediction for the organization by a current and previous financial statement and give the opinion. Now you are thinking one side you are saying future is uncertain and now your saying auditor predict the future of the company by the financial statement. Well, We are 100%  agree future is uncertain but the auditor shares their opinion by evaluating the past and current financial health and give advice for accomplish a company-oriented goal or define a new goal. The auditor’s advice helps the organization to take more control over the work and be more productive effectively.

Auditor suggestion is very important for organizations and single-owner businesses.

1. It helps in achieving the goal or set a new goal.
2. More control over the business
3. Save business from fraud.
4. Auditor report is very helpful for getting fund from investors, bank, etc.
5. Save the business from the government plenty and legal action against the business. 

Generally, auditing is two types are:-

1. Internal Audit
2. External Audit

Internal Audit 

In an internal Audit, the Auditor audit the internal environment of the organization and make sure that all the work is going as per rules and regulations, increase the control over the internal environment and make the production department more effective. The auditor gathers all the information and shows the report that contains how business is going, where is a mistake, error, fraud, risk area, etc, how we can reduce the risk, and how we can be more productive. The internal auditor also makes sure that all the implemented policies are working properly.

External Auditing

External auditing is an independent evaluation of financial statements. External is done by the independent outside person of the organization and plays a critical role. The interest of conflict is less likely to happen as compared to an internal audit. External Audit provides valuable reports for business and government. The purpose of external auditing is to review business account to show that the business account is accurate and complete.

Internal V/S External Auditing

Your Best Auditing Firm - Risianss Accounting 

Being a leading audit firm in Dubai, we have a special audit team who have 20+ years of working experience. Our auditing team provides support for your business accounting and management solution and cover advice & guidance. It doesn’t matter what is your need relating to auditing and accounting. We aim to provide our client’s full insight into their corporate strategies, business processes, and financial reports and deliver tailor-made solutions. Risians Accounting is a registered auditing firm in Dubai. Our Methodology of auditing will minimize your business routine office work and make work more productive effectively.

In the UAE tax agents have been working here for many years to provide legal support to the businesses, but after the introduction of the VAT tax in Dubai on 1st Jan 2018, the demand for the tax agent in Dubai increased rapidly. 

Many issues and difficulties might affect your business badly. So, FTA (Federal Tax Authority) encourages the business owner to hire the tax agent. The tax agent helps the business to run a business smoothly. In UAE, There are many tax-certified agencies, you can hire them and take their services. But Under the roof Risians Accounting & Auditing, you can only get the best to best Tax Agent Service in Dubai. We have top certified players for taxes and have decades of working experience in many different industries and projects.

Our tax agents first understand the framework of business; give advice and assistance for individuals and companies for tax filings and returns. Our consultant discussed every single step deeply which would help the company in saving money and payment of unnecessary taxes along with following government rules and regulations.  

Recommendation: - You can meet with plenty of individual tax agents and tax agent agencies. But you should hire only the perfect tax agent for your business industry. Agent or agency should know your business and should have working experience. To know about this, it’s your responsibility to ask them questions relevant to your business tax-related or accounting. By only doing this you can hire perfect service. Don’t think this and that agent or agency demanding a low or high price. Keep in mind knowledge and experience is important.

Why should you hire a tax agent or agency?

• Make you understand the government policy and regulation because the tax policies are typical only tax agent can understand the policy and those who have only deep tax knowledge otherwise people get confused.
  
  
• Tax agent works as an intermediate between the FTA (Federal Tax authority). Keep the business true with the tax system and increase the awareness regarding tax.
  
  
• Tax agents help businesses in saving money on tax legally.
  
  
• Tax agents always give suggestions and recommendations to run a business smoothly and get the made changes in the business according to the new and existing tax policies.
  
  
• Tax agent consults the business for the registration on the time and ensuring that they meet the registration criteria including Tax Group registrations.
  
  
• Tax agent shares their work experience to make business more profitable. 
  
  
• If a business doing any illegal activity and taxation practice so tax agents can detect it easily and save you from potential legal troubles. For doing business smoothly and keep your business profile clean you need a certified professional tax agent.
  
  
• Tax agents check the records, files, and documents that are maintained by the taxable person for accuracy and also review the tax returns filed.
  
  
• We can represent the agent as a tax payable person in case of FTA queries while auditing. But tax agents should know the Arabic language so that they can interact with FTA.
  
  
• By hiring a tax agent we save tons of time because you don’t need to worry regarding the tax filing and return. A professional Tax Agent managing the part of taxation.

Certified Tax Agent 

Is not easy to become a tax agent in UAE by FTA? You have to pass so many exams and meet requirements.

Requirements to be a Tax Agent are following:-

• FLuency in Arabic and English
• The candidate should have a bachelor or master degree in accounting or tax or law
• Should have 3 years of working experience in accounting or tax or law. 
• Don’t have any criminal record.
• The candidate should be physically fit.

If you are looking for the best tax agent in the UAE so, a Risians Accounting & Auditing Firm will be the best option for you. If you have any questions in your mind related to the tax, accounting, and tax agent so feel free to call us we will assist over the call that will be free. 

Before defining accounting services let’s take a look at accounting meaning.  Accounting or accountancy is the measurement and communication of business finance by collecting financial data from organizations and individuals. Let’s understand the meaning of the accounting service by taking an example. Suppose you have a manufacturing business of biscuits. The accountant must collect financial transaction data and record each transaction properly to provide the financial report and fill the tax. The Accounting financial report shows the insight of the business finance that is very helpful in making a decision.  Everyone knows an accountant must record the financial transaction, make financial reports, and filing taxes. But a good professional accountant provides you business growth strategy based on the financial report of a business and always keeps you updated about accounting and taxing news, laws, etc. so that you can stay one step ahead from your competitors. Always guide you way of generating more money because accounting or finance it’s about money. 

Main Types Of Accounting.

Public Accounting - Public Accounting means providing accounting services to other businesses. It offers  Expertise accounting and bookkeeping service, Auditing service, Tax filing and registration service, tax consultancy service, etc. as per the demand of their clients.

Government Accounting - Government accounting means take care of the government department accounts. Keep a tight control on the government revenue and expenditure. 

Management Accounting - It refers to the recording and analyzing the financial data of your company. To use in buying an asset, selecting budget, performance evaluation, and cost management.

Inter Audit - Interview refers to reviewing the business to detect the frauds, loopholes in business, fraud, risk area, compliance, etc. An internal audit is very important to run a business effectively and efficiently. 

Types of Accounting Service

Bookkeeping and accounting service - We provide on-time financial information to a client properly so that they can’t feel compromised.  In simple words, bookkeeping and accounting mean records of each transaction properly. we at Risians accounting provide a full range of accounting, includes:-

1. Creating journal entries, leaders, and financial statements.
2. Quarterly, half-yearly, and yearly bookkeeping service. 
3. Set - up an accounting system for new business.
4. Individuals accounting system.

Auditing Service -  Business auditing evaluates the overall business so that management can detect the weak point, errors and etc. before any harm and loss in business. The audit report ensures everything is going systematically and business is on track.

Tax Service - In TAx services the accountant fills the income tax and other tax that is applied to the business. It is the obligation of the accountant to claim the tax return and save a business to pay unnecessary taxes to the government.

ESR (Economic Substance Regulation)Service - In April 2019  UAE Government issued the ESR that introduced the requirement for UAE entities to maintain an adequate economic presence in the UAE. At risians, we provide all ESR related services.

1. consulting on Economic Substance Regulation (ESR).
2. Identify the qualifying entities for Economic Substance Regulation(ESR) compliance.
3. Identify the qualifying business segments for Economic Substance Regulation(ESR) compliance.
4. Report and advise on overall Economic Substance Regulation(ESR) readiness by the Entity.
5. Ongoing Economic Substance Regulation(ESR) compliance.
6. Secretarial services in connection with Economic Substance Regulation(ESR) record maintenance.
7. Economic Substance Regulation(ESR) filing with the authorities in the proper /prescribed format.

Tax Consultation -  Tax consultant offers the strategy to pay less on the tax and keep save the business to pay more on taxes without any plenty and legal action by the tax government.

Financial Controller service - It involves many functions of the management such as Assign work to employees, deals with clients, Keeps a regular eye on the work, performance, etc. In a financial controller, the service may also conduct internal and external audits.

Bank Reconciliation -  It ensures the correct record of the transaction and accurate financial account.  It helps the business to pay less on the expenditures and projects.

Forensic Accounting Or Forensic Financial Service -  This service provider investigates fraud and the missing amount that appears in the financial report. Ensure the accuracy of the accounts. 

Payroll processing - Calculating the wages, managing the deduction and bonuses of the employees, and filling the payroll taxes. Provide accurate tax rates and regulatory information.

Accounting is mandatory for any kind of business. It doesn’t matter in which business you are in. Every business owner aims to earn more more money and save as much they can save on tax and business expenses. Get the best accounting service in Dubai. Accounting and finance is about money. A proper accounting system provides the full details about each income, expenditure, tax rates, and amount filing of tax in an accounting or financial report. With the help of these accounting reports business owners or accountants easily can detect the point from where we can save money on tax, expenditure and generate more revenue. Accounting keeps clear the figure of the business liabilities, shares, assets, cash in hand and etc so that we can make an effective strategy for business growth, new launch of a product, buy a new asset, etc. To keep business on track and keep control over the employees, the proper accounting system is essential. If you have any queries or need accounting consulting feel free to contact Risians Accounting.

Auditing becomes an essential part of the life of businesses or organizations. Entire businesses and organizations of the world conduct the auditing. Some businesses and owners only conduct the auditing when they require potential investors, industry regulations, other stakeholders require one. Well, Auditing of the Business is very important to detect and prevent fraud, Mistakes, illegal activity. In simple words, Auditing means to review the business activity, compliance, control over the business, etc, and give the suggestion to make business or organization work effectively and efficiently.

Many business owners think that auditing of the business is wasting time, money, and resources because they don’t know the importance of auditing and benefits after the auditing. Well, business auditing is very beneficial for the business. Here is the importance of the business:-

1. Enhancement In controlling -  A qualified auditor audits the work of the business organization to check how it’s doing and if there any loophole, errors, risk area, fraud, etc. what if auditors found any mistakes, frauds they mention in the auditing report along with the suggestion. Based on the audit report, business management takes action to prevent frauds, mistakes, risks and make new decisions to make work more effective and efficient to achieve the business goal.
   
   
2. Transparent Financial Report  -  It is especially important for those that are looking for an investment to expand and merge with another company. Auditing identifies the unknown area of risk and errors.
   Bank’s, stakeholders,s and other financial institutes ask the financial statement of the business. If your business financial statement is audited by a qualified and independent auditor so it increases the 90% chance to get investment quickly. Because an audited financial statement is more reliable in comparison to an unaudited financial statement. 
   
   
3. Planning -  Auditors check the accuracy of each transaction by analyzing the financial statement. It's a detailed process and presents the clear value of the assets, income, expenditure, and liabilities.  It can be used by the owners to make future decisions for financial planning, budgeting, and financial decisions.
   
   
4. Rules And Regulation - While auditing if the auditor found that the work in the organization is not done as per set government rules and regulation or need to applied new government rules and regulation. Then the auditor suggests the rules and regulations to apply in business for better results and legal action against the business by the government.
   
   
5. Insurance - When a business does a claim from the insurance company, the Insurance company audits the business to determine the value of the damage and then pays the amount.
   
   
6. Detection of frauds - It's a major reason for business auditing. The auditor compares the accuracy of each financial transaction with the financial book. By doing this auditor check the all transaction has been recorded as per accounting principle and the main thing is that they can detect the fraud in the organization. It’s the obligation of the auditors to provide the suggestion and recommendation action in order to prevent fraud.
   
   
7. Helpful In Future Planning - Every business owner wants to grow their business year after year.  To do effective planning and make decisions, Accurate value of the business finance is required. The auditing provides the full insight of the business finance that is very helpful for business owners in future planning and decisions.
   
   
8. Proper Evaluation  Of Investment - Business invests money in various sources. Auditing provides the proper valuation regarding all investments of the business. Auditing provides the exact value of the profit and loss from the investment and most important current & future risk from the investment.
   
   
9. Valuation of the Assets - In audit ensure the value of the assets after the assets verification. The auditors verify the current value of the assets is recorded in the balance sheet or not.
   
   
10. Profit and Loss -  Financial audit gives a summary of all work that is very helpful to determine the exact reason for the profit and loss. It’s essential for a business owner to enhance the business strength and generate more profit.

There are plenty of benefits that the company can avail by the auditing. We hope the above mentioned point will clear the importance of auditing. If you have any query and doubt feel free to contact us to get a business auditing consultant from the best top auditors players in Dubai.

If you are searching to get the best auditing firm in dubai. So, you can get the service from the risians accounting and auditing firm in dubai. Risians is one of the most trusted and reputed accounting firms in Dubai, which can take care of your business accounting and auditing. Risians also offers the service such as VAT & excise tax service, Business consultant service, UBO (ultimate beneficial ownership), Tax Consultant service, free zone business set up service, business set up service. Contact risians Accounting it would be our pleasure to help you in your business growth.

How To Register For Excise Tax In UAE?

Excise tax is an internal tax that is applied on several products that are harmful to health and the environment, such as alcohol, fuel, tobacco, and carbonated products. Excise tax is not paid by the customers directly, It’s paid by the manufacturer and wholesaler and they add the price to the product. So it’s clear, the Excise tax is an indirect tax. For maintaining a healthy standard environment in the country, UAE rolled out the excise tax system in the entire UAE. From Dec. 2019, the UAE government levied the excise tax on all kinds of e-cigarettes, e-liquids used in e-cigarettes, e-cigarettes devices, and sweetened drinks.

How to Consider that Excise Tax is Applied On Our Products?

1. Tobacco products - If you  Business deal in any kind tobacco products.
2. Tobacco - Business deal and produce the tobacco.
3. Energy Drinks - Sweetened drinks that are sold in the market. The excise tax applies to all kinds of drinks that contain stimulant substances that provoke mentally and physically.  Also apply on these drinks which have caffeine, taurine, ginseng, and guarana. And any other product that makes carbonated drinks like powder, gel, etc.
4. Carbonated Drinks - Drinks that contain aerated except the unflavoured water. And any other product that makes carbonated drinks like powder, gel, etc.
5. Tobacco Device and Tool -  From Which People can consume e-cigarettes and other smoking products.
6. Import Business -  If anyone imports any kind of products that are harmful to human health and environments like tobacco, carbonated products, e-cigarettes, e-cigarettes devices, and tools, etc. 

How to Register For Excise Tax in Dubai?

Excise Tax Registration is Mandatory for business under the  UAE federal decree law No. 7 of 2017 on Excise Tax.  If any corporates have been involved and to be involved in above mention products listed must be registered and have an excise tax account.

Business can be registered for excise online by follow the following steps:-

Step:1 -  You have to visit the official site of the Federal tax authority. Here is a link. 

After clicking on a link, you will see this screen.

Step:2 -  Before registration of excise tax, You have to login into the federal tax authority e-service account. If you are not registered here is a link for registration.

The FTA e-service registration page appears like the above image.

Step:3 -   After login into your e-service account, you will see the button which is inviting you for excise tax registration. 

After Clicked you will see the short guide. The short guide makes you understand the important requirements for the registration. After completing the short guide Click on the confirm to do the next step.

Step:4 -  After the confirmed guide, you have to fill the registration form. And you will get there two buttons.

1. Save as Draft - You can Draft your form. 
2. Save and review - You can check that the form has been filled properly.

Note: Maybe you will be logged out after  10 minutes automatically if you don’t do any activity.

Step:5 - You just have to hit on the submit for approval button. Great, your excise registration form has been submitted successfully for review.

Step:6 -  In this step, you will check the registration status. Click on the Dashboard button and look at the status.

1. Drafted - It means your form either has not been submitted or completed.
2. Rejected - Your registration has been rejected.
3. Pending  - It means your registration still is under review.
4. Approved - Congratulations, you have successfully registered for excise tax.

Step: 7 - If your registration is failed due to late registration. Then you have to pay the late plenty charge, The late plenty charge is 20,000 AED. To check the plenty charge and make a payment follow these following steps:

1. Visit your dashboard, there you will see the “late registration penalty”. Under the Excise tax box, you can see the late payment charge. Click on the “Pay Now” button to make the payment.
2. After clicking on the pay now button you will redirect to the E-dirham payment gateway page. There you make the payment of the late registration.
3. You can make the payment by the e-Dirham or credit card.
4. Once payment is done. You can check the translation history under my payment tab.

Required Documents for Excise Tax Registration.

1. Trade License.
2. Authorized signatory documents.
3. Details of the bank account.
4. Role of your business (importer, producer, and supplier).
5. Details of products in which you deal.
6. Copy of passport.
7. Emirates ID.
8. Incorporation Certificate (if Applicable).
9. Details of firm type, sole proprietorship, or partnership.
10. TRN registration number for excise tax in another GCC State.
11. Registration of custom authority. (If Applicable).
    

Risians Accounting Excise Tax Service and Advisory In Dubai.

Risians accounting is a reputed and trusted firm in dubai which offers accounting service in dubai. Risians Accounting is a team of certified accountants who has decades of working experience in different business industries and projects.  Risians accounting also has a specialized team for a tax consultant in Dubai, who can properly assist you with your excise tax and other various tax consultant services. Along with tax consultant service, risians accounting also offers accounting and bookkeeping, auditing and assurance, Business consultancy, organization consultancy, ESR services, and other accounting related services.

At risians accounting, we provide all types of accounting services under a roof and are passionate to deliver tailor-made strategies for 100% guaranteed business growth.

Why has the UAE Government Introduced the Excise Tax in Dubai?

To make a more healthy environment in the UAE. The UAE government introduced the excise tax on all kinds of harmful products for human health and the environment. The UAE Government wants that In UAE people don’t consume harmful commodities and also increase the government income that aid the UAE government to accomplish their vision. In the UAE consumers have to pay more money on the consumption of harmful commodities like tobacco, e-cigarettes, energy drinks, sweetened drinks, etc.

Rate Of Excise Tax in UAE.

1. On carbonated drinks 50% rate.
2. On tobaccos product 100% rate.
3. On energy drinks100% rate.
4. On electronic smoking devices 100% Rate.
5. On liquids used in such devices and tools 100% rate.
6. On any product with added sugar or other sweeteners 50% rate.

If you still have any confusion related to the excise tax and other tax or accounting, feel free to contact the risians accounting firm in dubai.