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Outsourcing Accounting Services In UAE: Top Benefits

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Calx Blog Covers

If you’re running a startup business in the UAE, you need to make sure to manage your finances accurately. This is not only a legal requirement but also ensures success and growth in your business. While many companies handle this situation by enabling in-house accounting, an increasing number of firms are looking for outsourcing accounting services. 

4 Advantages of Outsourcing Accounting Services in UAE

  1. Cost-Efficient

It may not seem like that but outsourcing an accountant can be cost-efficient than that of in-house accounting. This is because when you outsource them you don’t have to invest in the whole process of hiring, training, and retaining them. In fact, you can pay them for the particular task which is often more cost-effective and predictable for your budget. 

2. Giving Time To Core Competencies

You can shift your attention and resources to different aspects of your business by outsourcing accounting services. This will help your brand to expand and allocate more time to developing various marketing strategies. Moreover, you can also work on increasing your customer base, and improving overall operations.

3. Reduce Risk Factors

Financial mistakes can lead you to suffer from paying huge penalties to damage the company’s reputation. Therefore, you can outsource those people to handle accounting matters with better experience to avoid any risk. Furthermore, they are also committed to providing accurate and timely reports. 

4. Compliance with Laws

Establishing and maintaining a business in UAE is not soo easy as it seems. Therefore, to keep your financial records in compliance with tax regulations, outsource accounting professionals. Not only that, make sure that they have a core understanding of the other taxes of the UAE, such as excise, corporate VAT, etc. 

Final Thoughts

Outsourcing accounting services in UAE can provide you with multiple benefits helping your business to excel. From reducing the risk factors by managing your finances accurately to giving time to core competencies, all can done through it. Hence, it’s a strategic move that also lets your business stay in compliance with local regulations. 

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Myths About Setting Up A Business In UAE

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Calx Blog Covers

The UAE has become a business hub by attracting entrepreneurs from all over the globe. If you’re planning to start a business in Dubai, then it is important to be clear of any of the myths. That is because if you start believing in different points that prove to be fictional in the end can have an impact on your decision-making process. 

Breaking Myths About Establishing a Business in UAE

Myth 1: Setting up a business in the Freezone area is costlier than Mainland area

Fact 1: No. It merely depends on the choices and decisions you make during your business journey. There are certain Free zones in the UAE that require a minimum amount of share capital for setting up a business. However, some free zone areas do not have such requirements. Therefore, it all depends on the location you choose in the end. 

Myth 2: Establishing a business in UAE is quick and easy

Fact 2: it might be time-consuming as it depends upon certain factors such as the legal type of business structure. It is easy to perceive that building up a business in UAE is a swift process but always keep in mind the overall time different special approvals can take. As long as you have all the necessary documents and fulfill all the extra work, it should not take too long. 

Myth 3: No need to worry about business plan

Fact 3: No, that’s not true. You must have a business plan varying what your goals, whether they are short or long-term, that you want to achieve in UAE.  It will help you to secure your business setup by looking out for funds. Moreover, it lets you make informed decisions by navigating the whole market. 

Myth 4: Don’t need to pay any taxes

Fact 4: Nope. Remember that even if you don’t have to pay any income taxes there are myriad taxes which you cannot escape. Certain types of businesses may be subject to different taxes such as corporate tax, especially in free zones. 

Conclusion

In summary, setting up a business in the UAE is an exciting and rewarding experience. You need to keep in mind about the opportunities but also the challenges that come with it. Hence, break your myths and let facts be revealed to make your business journey secure and more profitable. 

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Tax Precautions Business Entities Should Take In UAE

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Calx Blog Covers

If you’re a startup firm, you should be careful in dealing matters of tax. Tax planning is a crucial step which causes business to manage their financial operations by minimising tax liabilities. Therefore, it is essential to ensure tax precautions to avoid any legal issues, financial penalties, and reputational damage associated with tax-compliance. 

4 Key Tax Precautions For Businesses In UAE

•. Clear Understanding of Tax System

With the introduction of new sorts of taxes such as VAT in UAE, you need to have a clear understanding of them. Whether it’s excise or corporate tax, you have to know when and how to pay them to avoid tax penalties. 

  • Purchase Tax-Assets

If you want to lower your tax-obligations, it is feasible to invest in tax-efficient properties. Purchasing tax-efficient assets can be such as zero-coupon bonds, corporate bonds, and tax-efficient mutual funds etc.  Moreover, it helps to diversify the contribution towards tax efficient account types for reducing the tax burden. 

  • Claim All Expenses 

Recognizing all those expenses incurred by the firm is significant for reducing the liabilities of the tax burden. Once you are able to reduce these costs, the company can avail the tax benefits. This will instantly provide an advantage to the company by preventing them from having to pay taxes. 

  • Investing Overseas

Another tax precaution which your business can take is to offshore the profits of the corporate entity. Furthermore, invest overseas where you can get tax benefits such as zero percent tax on corporate tax. A major reason to do this is to enjoy overseas profit which can’t be charged for corporate income tax in the UAE. 

Wrapping it Up

Before you apply for tax filling, you should do proper tax planning. For this purpose, you need to undertake tax precautions to mitigate the risks of financial penalties and ensure compliance with the tax laws in the UAE. Hence, to minimize any potential issues your company should look out for ways to reduce any tax burdens.  

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Choosing an Auditor in UAE: Key Factors

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Calx Blog Covers

Selecting any random auditor in the UAE will not be useful for your company. This is because the auditor has to perform very important duties without making any mistakes. Therefore, you should not rush into choosing an auditor but should carefully search for them before initiating the process. This will save your company from facing any serious problems in the future.

3 Key Factors to Consider While Choosing Auditors

• Third-Party Involvement

If you hire an auditor with the help of a third-party source, make sure to gather all the information. Now don’t put the entire burden on the third parties to carry out your business operations. Get to know the auditor properly to have a good idea about his experience and knowledge. Moreover, in this way, the auditor will also know who is in charge of the company and whom he will have to report. 

  • Constant Communication 

A communication gap between you and your auditors can make things worse for your company. You don’t what they have been doing and what problems are they facing. Not only that, it can increase the chances of misunderstandings occurring more frequently. Make sure to keep all the functions transparent and maintain constant communication with your auditor throughout the process.

  • Hire Professionals

Do not hire anybody who is incapable of conducting an audit or else you’ll face issues with them. Always hire those individuals who have enough expertise to carry out your audit properly. Moreover, check that they are aware of what they are doing, and what questions they ask. Furthermore, do not employ those people by preserving that they are offering low rates but are inexperienced in reality. 

Wrapping it Up

An auditor will ensure that your company’s accounting policies are standardized or not. Therefore, you cannot afford to make the mistake of choosing the wrong auditors. Hence, grab all the information that you need before hiring them and confirm that they have working experience by reading the reviews.   

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A Company Liquidator: Top Duties

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Calx Blog Covers

If your company is constantly facing issues and is on the verge of a liquidation process, you need a company liquidator to carry out the procedure smoothly. Moreover, it helps dissolve the company professionally, making sure a fair distribution of the company’s assets takes place among shareholders. 

What are the Duties of a Company Liquidator? 

• Inventory of company funds

The company’s manager or the company’s board of directors hands over all the information to the liquidator. It includes all the funds, accounts, books, and documents for making an inventory of the company’s funds and obligations. 

  • Representing the company

The liquidator is responsible for representing the company in court, fulfilling the company’s debts, and selling real estate by public auction. Moreover, he/she might also sell the company’s assets as a whole without taking permission from the partners. 

  • Notifying the creditors 

The company liquidator will inform all the creditors about the opening of the liquidation process along with the acknowledgment of receipt. Furthermore, it invites them to submit their requests and publish the notification in daily local newspapers. Remember that the liquidator will give 45 days for the creditors to submit their reports. 

  • Depositing debts 

The creditors will deposit their debts if they are unable to submit their application within the given time. This is because a sufficient amount of money must be deposited in the treasury of the competent court to proceed with the process. Otherwise, the company will probably decide to postpone the division of its funds until the dispute settles down. 

  • Preparation of a List

The liquidator will prepare a list upon receiving all the information regarding the company funds, obligations, and budgets. Afterward, he/she will present this list to the company’s manager and the chairman of the board of directors to sign it for approval. 

Wrapping it Up

Remember that a company liquidator must perform all his duties responsibly within the specific period. Moreover, if any mistakes are made by the liquidator in the liquidation process, he/she will compensate for them. Hence, it is mandatory for the liquidator to pay attention to all the precise details without missing any information. 

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Using EmaraTax To Claim VAT Refunds

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E628B6F8 9028 46BE A462 EDB7DE0DE42F

Most small businesses in UAE generally doesn’t have any clue on recovering from a tax difference amount. When the VAT charges on the purchased goods becomes more that that of the VAT amount you get through the sales, then a problem arises. Before you start worrying on how to handle such complex situations, discover a way to log into EmaraTax platform. 

Steps for Claiming VAT Return Using EmaraTax 

Step 1: Login to your account 

Firstly, you need to enter your credentials for logging into the EmaraTax platform. Furthermore, you can also use the UAE Pass as well. Now proceed into your account and select the user type. As you’re eligible for tax under the provision of UAE VAT lax, select the Taxable person option. 

Step 2: Choosing the VAT module 

You will come across the Taxable Person homepage which will be displaying your profile. You can then click on the view option to open it. Afterwards, go on the left-side bar and click on the VAT module option. 

Step 3: Creating refund requests 

You will see two different options in front of the screen. Go and select the VAT 311 and click on “create new” for a new refund request. A new window will open letting you know about the guidelines, templates, criteria. After you have completely read and understood it, mark the check box to proceed further. 

Step 4: Verifying information 

Now you have to enter your personal information including your bank details as well. Make sure they are accurate for ensuring a smooth working process. Moreover, double-check the entire information for avoiding any grammatical errors which may lead to payment failure. 

Step 5: Refund your VAT amount 

Choose the VAT return and enter the refund amount while clicking on “Add Supporting Details” for getting a breakdown. Upload a filled template by adding additional refund details. Remember to upload your required documents and download the filed amounts for selected tax period. Finally, submit the refund request and note down the application reference number for future purposes. 

Conclusion 

The EmaraTax platform lets many businesses in UAE to file returns and apply for refunds in a convenient way. The tax difference can affect the business operations. Therefore, stop confusing yourself and make use of this great platform for claiming direct VAT returns. 

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Forensic Audit: How Does It Work?

Forensic Audit
Forensic Audit

Forensic audits examines that your company’s financial records are not irregular and ensure compliance with regulatory protocols. It runs an investigation process and analysis of financial transactions, business operations and accounting records to detect any fraudulent activities. Moreover, it differs from a regular audit as it focuses on a much more inclusive and detailed analysis on uncovering financial crimes. 

How Does a Forensic Audit Report Work?

Planning the Audit

    Firstly, the auditor and its team will work on the scope and the planning of the audit by choosing which objectives to achieve. It can be identifying the fraud, or determining the period through which it has been occurring. Furthermore, they can collect relevant evidence that is admissible to the court and suggesting measures to prevent it. 

    • Collecting Data

    Gather enough evidence and analyze it from several sources such as financial records, transaction data etc. You need this data to prove the fraudster’s activity in court and reveal its true scheme. Therefore, a logical flow of evidence will help you to present your case in front of the judges in a more authentic manner. 

    • Investigation Methods

    Now to conduct the investigation step, you may interview certain people, or collect document examination etc. To work extensively, the audits can also take help from other computer forensic specialists and legal professionals. This is because they will not only save time but use advanced techniques to uncover fraudulent activities. 

    • Reporting 

    Formulate a clear and brief report which audits will present it to you to file a case. A written report can include the summary, findings of investigation and explanation of how the fraud was executed. Simplify any complex accounting issues so that people who have no understanding of those terms can understand the fraud clearly. 

    Conclusion

    A forensic audit helps your company to save themselves from facing any sort of fraud, extortion or bribery acts. In addition to that, it covers a wide range of investigative activities. Hence, it is essential to conduct as it protects the reputation, financial well-being and prevent economic issues. 

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    Internal Audit outsourcing benefits

    interna laudit
    interna laudit

    In the dynamic business landscape of today, organizations are constantly seeking ways to optimize their operations and resources. One strategic move that has gained prominence in recent years is the outsourcing of internal audit functions. Internal audit outsourcing involves delegating the responsibility of evaluating and monitoring an organization’s internal controls, processes, and risk management to a third-party service provider. This approach offers both advantages and challenges that must be carefully weighed before making a decision. Let’s have a look at some benefits of internal audit outsourcing.

    Cost Efficiency: 

    One of the primary benefits for outsourcing internal audit functions is cost savings. By leveraging the expertise of external specialists, organizations can avoid the expenses associated with hiring, training, and maintaining an in-house audit team. This allows them to allocate resources more effectively to other critical business activities.

    Access to Expertise: 

    External audit firms often bring a wealth of industry knowledge and years of experience to the table. This can be particularly beneficial for SMEs that lack the specialized skills required to address complex compliance and regulatory issues.

    Enhanced Focus: 

    Outsourcing specialists enables the organization’s internal team to concentrate on core business functions rather than being diverted by audit activities. This can lead to improved productivity and overall efficiency within the organization.

    Scalability: 

    As business needs fluctuate, organizations can easily adjust the level of outsourcing to match their requirements. This scalability ensures that the right resources are allocated at the right time without the need for extensive recruitment or layoffs.

    Objectivity: 

    External auditors bring an objective perspective to the auditing process. Their independence can lead to more impartial evaluations of internal controls, risk management, and governance practices.

    Bottom line:

    Internal audit outsourcing offers a compelling solution for organizations aiming to streamline their operational effectiveness and risk management frameworks. By harnessing the expertise of external specialists, companies can tap into a reservoir of knowledge and tools that elevate their internal audit processes to a higher standard. This proactive approach not only results in more accurate financial reporting and compliance measures but also promotes a culture of continuous improvement within the organization. As businesses navigate an increasingly complex and dynamic landscape, the benefits of internal audit outsourcing stand as a testament to its value in enhancing transparency, efficiency, and overall long-term success.

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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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    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.