Month: December 2022

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Risk Management in Businesses

Optimized AdobeStock 444686342
Optimized AdobeStock 444686342

Risk management is essential for every organisation to run their operations smoothly without any discrepancies. It is important to identify risks at the right time and eliminate them before it affects your business. To run a successful business, you need to prepare your business for all potential problems that you may face in future. Organisations need to come up with a holistic risk management strategy that can prepare them for any kind of potential problem.

In today’s business landscape, risk management is paramount. Many businesses now have a risk management department that oversees all the risks and potential problems, builds strategies on how to guard your business against those problems, and executes those strategies smoothly keeping all other departments in the loop.

An effective risk management system will save your money, minimize the risk of threats to your business, protect your business resources and lastly, enhance your organization’s image. Risk management systems also help organizations protect themselves from potential losses from external factors affecting market conditions or any unexpected pandemic. 

How to Mitigate risks?

Once your professionals have identified and assessed the risks, it’s time to take action on it. Risk assessment professionals will prepare mitigating strategies for those risks, implement new policies or procedures or invest into new technology to tackle them. Therefore, it is important to hire professionals who can take care of your business and protect it from any major or minor disruptions.

Bottom Line:

It is essential for any business looking to stay competitive and succeed over time. Take proactive steps to identify risks early on and develop strategies for mitigating them. Therefore, it should never be overlooked as it plays an integral role in protecting a company’s financial health over time.

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Is AI the Future of the Auditing Industry?

Auditing in AI
Auditing in AI

Artificial Intelligence (AI) is considered the future of everything. Analyts predicts that AI will take over the jobs of humans and solve every complex challenge with advanced technology and tools. However, auditors are concerned about the takeover of AI in auditing procedures and what will be their role in future.

By 2025, executives predict that Artificial Intelligence will revolutionize the corporate world by taking over a staggering 30% of audits according to a World Economic Forum survey published in 2015. Certainly, AI will be playing an effective role in auditing but that doesn’t mean it will dump the workers. Companies are making sure that machines and humans are working together. Successful companies are hiring people that can work well with machines as well as manage tasks that require human knowledge. Where it is human impossible to examine large volumes of data. Here AI can process massive volumes of data and produce results in no time. Therefore, the solution is that human and AI work together to build a better future for the auditing industry.

Though it is hard to predict the future if auditing with complete accuracy. One thing which seems apparent is that AI will enhance the quality of auditing. But it cannot take away the experience, skills, and judgment of an auditor. Where AI may be better at interpreting data and numbers but it still has limitations that auditors can fill up with. For example, in assessing a company’s environment, communication with the people requires human intervention. The use of AI can benefit in a review of massive data to simpler tasks such as collecting sample evidence for audit or highlighting irregularities in finances and data

Bottom Line

Despite the rising complexity of audits brought on by the data explosion, skilled human auditors will remain at the core; AI technology is set to only enhance their ability and elevate audit quality. Now more than ever, they have access to advanced tools that can help them make informed judgments quickly and with confidence.

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Importance of Digital Accounting

digital accounting
digital accounting

Business practices are continuously evolving with inclusion of new technologies and practices. Post the pandemic, the importance of digitization has greatly increased in organisations. Digitising your business makes your operations efficient, error free and easier. However, many organisations are still reluctant to shift their operations to digital softwares. Business owners are afraid to shift to digital accounting due to prevailing cyber security issues. Traditional accounting with room full of folders and documents must be replaced with automated digital accounting with cloud-based management systems, comprehensive analytics reports and improved budgeting.

Benefits of Digital Accounting

  1. Time Saving

The most important benefit that digital accounting offers is time saving. It can drastically reduce your time, improve accuracy and streamline your accounting procedures. You will be saved from the hassle of keeping manual records at one place. Storing accounting records on cloud software can be accessed anytime and anywhere.

  1. Organized

Another significant benefit of digital accounting is that the data is more organised and can be easily tracked. Accounting professionals can easily find answers they need when reconciling the books. Also, the organised and structured data makes it easier for business owners to review and understand the finances of their company.

  1. Access from anywhere

Companies that shifted to digital accounting before the coronavirus pandemic were easily working from home without any worry. However, the companies that had their accounting records in office systems were in major trouble. Digital accounting gives the flexibility of data access from anywhere. 

  1. Error-free records

Utilising digital accounting ensures accuracy and reliability of your accounting records. It offers powerful protection against errors, highlights any mistakes and keeps your accounting data up-to-date. With advanced accounting tools, you can easily monitor every single detail of your accounts and the financial status of your company.

  1.  Integrated interfaces

Digital accounting provides another useful benefit of integrated interfaces. This integration expands beyond basic data storage needs, allowing teams to benefit from a wide range of technological developments and discover even greater success in the tasks they previously had difficulty or inadequate resources completing.

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Benefits of External Audit

audit2
audit2

Conducting an audit can be costly and require a lot of time. This impacts the decision of many business owners of conducting an external audit. Only working on the internal audit report is not always useful. The external audit is all about delivering an impartial review by a person having nothing to do with the company which is indeed essential.

5 Advantages of Conducting an External Audit

  • Providing an Accurate Report

An external audit provides insight into the validity and accuracy of all business accounting processes. It provides an understanding to the business owners unable to grasp the financial condition of their company. Not only that, it allows them to work closely and see what’s financially working and what’s not.

  • Highlighting Financial Mistakes

Firstly, the external auditor will help to detect any errors in the system disrupting financial transactions. Moreover, it will focus on the points which need more attention. It eliminates those elements which possess a higher chance of wasting the resources and time of the company.

  • Giving a Different Perspective

Discovering various weaknesses of the company and thinking of ways to improve is another benefit of an external audit. As the internal auditor is a person having connections within the firm, they might ignore some significant points. But this does not happen in the case of an external auditor. It gives you a different perspective without any biases.

  • Simplifying the Decision-Making Process

While an external audit gives you an accurate description of your company’s financial conditions, it helps in the decision-making process. Investors will know what they’re investing in and what are the chances of profits. Moreover, if they feel that this is the right company to invest in, they’ll simply make up decisions efficiently.

  • Keeps the Interest of Shareholders Intact

Hiring a third-party person for performing an audit, gives confidence to other stakeholders. Besides that, it provokes any internal problems which your internal auditor has not openly evaluated and will get assessed properly too. Furthermore, it helps in creating new and better strategies for your company in the future.

Conclusion

For avoiding any risks that may hurt your company in the future, it’s better to conduct an external audit. With complete objectivity, it will provide you with an accurate report without wasting any time or resources. Lastly, avail these benefits and uplift your company by performing an external audit.

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Tips to sustain growth for small businesses in UAE

small business work environment 887882750
small business work environment 887882750

Setting up a business in UAE and scaling its long-term growth is not an easy task. As the competition in the market is rising rapidly, so are the tensions among small business owners. You need to think of ways that can help to outrank other competitors.

5 Growth Tips Helping Small Businesses in the UAE

  • – Pay Close Attention to Cash-Flow

Keep a check on your finances and how you can make them cost-efficient. Do not buy resources more than what you need. Negotiate with other team members about how you can fill in the gaps to avoid paying more than you expect. Do maintain a great relationship with your bank as well.

  • – Research Customers

Your customer is the main key to achieving success which means you need to keep them happy. Research their likes and dislikes and what the customer can demand from you. Provide exceptional service to your customers so that they choose your company over all other businesses available in the market.

  • – Experiment New Methods

Making plans on how will work in the upcoming week or month is evident. But testing new methods and making some changes can help in acquiring new opportunities. You might meet a new investor or get a chance to collaborate with another firm that you haven’t planned yet.

  • – Host and Attend Events

Networking is going to help you establish better relationships with other business leaders. Word of mouth can be very effective in attracting new customers to your company. You can also host events to which you can invite your best customers. You can give them a chance of bringing their friends/family to the event as well.

  • – Uplift Marketing Strategies

Use various marketing strategies to sustain growth for a longer period. Choose which is the best platform on which you can easily promote your product and stay within budget. You can either select the traditional media method (print, TV ads, etc.) or the digital technique (social media, web marketing, etc.).

Final Thoughts

Remember that there is no fixed rule for sustaining long-term growth for your business. Every aspect of your organization needs attention for attaining maximum profits. Work hard and put all your efforts into removing all those hard obstacles stopping your company from becoming successful.

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Navigating through economic uncertainty

business uncertainty
business uncertainty

As the business industry is out from the dark times of pandemic. One major thing that every business learnt from that period is the uncertainty of the business landscape. At one time your business may be blooming but everything shatters once you are hit by a storm of pandemic. Managing your business in a challenging climate can be very tough, especially if you don’t have any financial backup. But how can companies prepare themselves for the future?

  • Proactive Planning 

Businesses need to be proactive in building their strategies and financial plans. They should identify all potential threats, how they can tackle them and what resources they would need. Do scenarios planning, plan your business strategies for worst business conditions and how will you survive in them. Once you have done their homework, navigating through any circumstance will not be difficult for them. 

  • Evolve your business practices

With the evolution of time, business practices have changed as well as the consumer preferences. Businesses need to understand this crucial thing and adapt to new business practices. In order to stay relevant in current business landscapes, you have to make tweaks and adjustments in your practices. This will help your business retain its position in the market and  grow towards success.

  • Strengthen your team

In an unstable and period of crisis, make sure to be transparent with your employees. Acknowledge the uncertainty to them, motive and try to keep a positive attitude regardless of the situation. Keep your employees informed about new practices, adjustments and ensure smooth communication. This will help strengthen your team and help build their trust in your company.

Bottom Line

The uncertain economic conditions in business may bring unique challenges in future. However, by taking proactive measures and building a strong foundation of your business will help you survive in a crisis. Businesses can get inspiration from their competitors and analyse how well they performed in tough times. But having said that every business has to find their own path to success. Once strategy and plan doesn’t fit all, make sure to pick things that are relevant with your business to track your business on the route of success.