Auditing includes the complete evaluation of an organization’s financial and operational activities, as this will provide transparency and accountability. This ensures that the company complies with the required laws and regulations. Audits are of two types; external and internal. The internal audit evaluates the issues relating to the firm’s business procedure and risks. In this post, we will give you a complete guide to preparing a successful internal audit report per the accounting and auditing regulations in Dubai.

What Is An Internal Audit Report?

An internal audit report is a formal report that details the findings of an audit, which the internal auditor uses to demonstrate what was looked at while emphasizing the issues, advantages, and conclusions. This helps the management to see what’s working well and which areas should be worked upon. A good internal audit report will encourage the readers to follow the recommended actions by clearly communicating the auditing process’s parameters, goals, and conclusions. Let us see how accounting and auditing in Dubai takes place.

Steps To Create A Good Internal Audit Report

First, you will have to acknowledge that you are aware of the report’s goals and this internal audit’s aim. Start with collecting the required information after you know the report’s objective. There might be numerous sources like financial documents, business records, and personnel interviews that can provide this information. Then start with the actual process as follows:

Planning stage

This will include planning a meeting with the primary organization to review the audit process, goals, scope, risk factors, and other topics. In this meeting, the clientele will clarify the objectives and additional information to the auditor, and then each of the elements will be thought out and documented.  

Fieldwork

In this stage, the steps outlined in the planning phase will be repeated, including interviewing people, confirming sample transactions, and examining legal guidelines and best practices. This stage also involves investigating and assessing the risks associated with the system. The testing will ensure that the controls found to be operating properly during the preliminary examination are actually working well. The auditor will share the major results with the client for evaluation, and there will be constant communication between the auditor and the clients during this stage.

Providing Reports

Now, the internal auditors will create the internal audit report, and the clients will prepare a draft report that will include the judgments, conclusions, and suggestions. The audit customer should review the information and also offer observations, remedies, and other changes, along with a timetable for completing the improvements. Each response should be recorded and given to the appropriate authority.

Follow-up

Finally, the auditor should conduct a follow-up to ensure that the suggestions have been implemented as planned, and the unfulfilled plans shall be notified to the higher authority each year.

Takeaway

As your company can face emerging risks, it is always better to have a good internal audit report in today’s challenging global environment. So you can take help from the best auditing service that focuses on providing objective support and operational efficacy for your internal audit.

When you run a business, there are too many tasks to handle. There are different operations and management tasks on hand that you need to take care of. A businessman has little to no time to manage the accounts and determine where the money came from or went. While nobody judges your skill of managing things, it’s best to opt for bookkeeping services to ease the burden of handling the accounts.

Keeping all the records of your finances and taking care of investments requires time and patience. Whether you are a small business owner or run a fairly large firm, you will need a bookkeeping service provider. This quick post will highlight why you should opt for accounting and bookkeeping services in Dubai.

What Does a Bookkeeper Do?

Let’s give you a gist of what a bookkeeper does. Bookkeepers keep a record of all the accounting scripts. They help businesses make important decisions well in time. These bookkeepers are also skilled at auditing and analysis.

Bookkeepers are essential because they keep track of all the accounting functions so that you can assess your business and not lose track. When you run a company, there are too many functions as a managing director or CEO. You want to distribute work so you can run the company without stress.

Bookkeeping services make your life convenient, and you can focus on everything else.

Four Reasons why You Need Bookkeeping Services For Your Business

#1 Keeping Day-to-day records systematically: You need professional bookkeeping services because they track day-to-day records in a structured and systematic manner. Bookkeepers eliminate any kind of bias when they record any kind of transactions of your business.

#2 Bookkeepers have relevant experience: Bookkeepers have spent many years in the industry, so their expertise and suggestions are never wrong. You get accurate reports and accounting services. Accuracy is important when keeping track of financial records.

#3 Convenience Is The Key: When you give a bookkeeper the task of maintaining and keeping track of financial records, your life gets easier and more convenient. You have enough on the table and do not need extra work. You will save not only time but also money. Bookkeepers record everything precisely, so you will have an easier time.

#4 Keep Everything Ready Before Tax Filing

When you have the right bookkeeping service provider, it’s easier to have everything ready before the tax filing date. Your books will remain updated, and there will be no discrepancies.

Management accounting involves analyzing and providing cost information to the internal management for planning, controlling, and decision-making. It refers to the accounting information developed for managers within an organization. At the same time, financial accounting includes providing information to stockholders, creditors, and others outside the organization. Management accounting is manager oriented. Before you hire a management consultant in Dubai, you should know the basic differences between financial accounting and management accounting so that you identify your needs and decide accordingly.

Management accounting assists the internal users of the company in making well-informed decisions. It encompasses many facets of accounting aimed at improving the quality of information delivered to the management about business operation metrics. The types of management accounting may include cash flow analysis, product costing valuation, constraint analysis, inventory turnover analysis, financial leverage metrics, AR management, budgeting, trend analysis, and forecasting.

Objectives

The main objective of financial accounting is to disclose the end results and the business’s financial condition on a particular date. In comparison, financial accounting is more about revealing the firm’s business performance. In the case of management accounting, it produces useful information for a company’s internal use. The management consultant in Dubai will collect the information that encourages strategic planning, helps them set realistic goals, and encourages an efficient directing of company resources.

Aim

Management accounting can be said to be management’s discretion, and there are no mandatory requirements for its maintenance, but some frameworks and formats are still provided. But when it comes to financial accounting, it is a compulsory requirement for every organization to disclose its financial statements, which are governed by accounting standard boards, companies’ laws, and the government.

Governing Principles

Management accounting is not bound by a legal basis for the preparation of its statements and is hence designed based on the requirements of the management team. In contrast, financial accounting statements are prepared on the basis of ‘Generally Accepted Accounting Principles’ (GAAP), which is different for every country.

Independent Audit

Financial accounting needs mandatory independent audits in most countries. While there is no such requirement for management accounting, the management can take the initiative to conduct an independent audit for efficient and effective management.

Segment Reporting

Financial accounting is concerned with the whole business, and it is an end in itself, and the accounting standards in some countries bind companies to do such reporting in defined formats. Management accounting includes a specific area for their analysis, and these segments may consist of product line, geography, manufacturing unit, etc.

The Bottom Line

It is important for businesses to differentiate between their financial and management accounting needs, especially if they are looking to hire a consultation agency, as they offer a wide range of services that includes everything from taxation, VAT, audit, and the different types of accounting. Management accounting can be modified to meet the needs of its intended users.

VAT refunds are complex and complicated in nature. Calculating your input and output VAT calculations and quarterly submissions to the tax authorities can take time and effort. Outsourcing tax consultants who can help with accounting for a VAT refund can be a big relief for you. In the UAE, all registered businesses should file a VAT refund that includes all the details of purchases, sales, output and input VAT during the tax period. Let us see this process in detail.

What Is Output And Input VAT?

In simple words, input VAT is the amount paid to the supplier towards purchases or expenses, while output VAT is the amount collected on sales. If the output VAT is higher than the input VAT on the VAT return, the balance is considered to be VAT payable which the taxpayer has to pay. If the input tax is greater than the output tax on the VAT return, then the taxpayer is eligible for a VAT refund and can apply for the same.

VAT Refund Form

A VAT refund form in UAE contains some fields that will be prefilled based on your profile. These include the following:

• TRN (Tax Registration Number), which has to be verified before submitting.
• Total amount of Excess Refundable Tax, which is the list of refunds reported in all previously submitted VAT returns and all administration penalties due, except the late registration penalty.
• The remaining amount of eligible Excess Refundable Tax, which is the amount of refundable tax that you can apply for in the future.
• Late registration penalty amount, which will be based on penalties imposed upon you and on whether you have settled the amount or not.
• An authorized signatory and declaration which should be read thoroughly before form submission.

Apart from this, there will be a field where you will have to put the amount you wish to have refunded, which has to be equal to or less than the amount displayed in the Total amount of Excess Refundable TAx field.

How To Claim FTA VAT Refund in UAE?

To submit a VAT refund claim in UAE, you must first log in to the FTA’s e-services portal, go to the VAT tab > refunds tab, and access the form by clicking the VAT refund request. Ensure that the details you have entered are correct and click on ‘Submit,’ after which you will receive an email from the FTA to notify the result of your application within 20 business days. If approved, the refund will be processed within five business days.

How Can Accounting Services Help?

Many agencies offer various services across a wide range of finance-related issues. Hiring a professional accountancy service firm can be extremely beneficial for dealing with bookkeeping, tax, and VAT returns. This allows you to take advantage of their expertise and experience with accounting for a VAT refund.

Accounting services can help you apply for a VAT refund and also take care of other important factors like emirates wise reporting, categorization of supplies, adjustments to goods imported into the UAE, identifying non-claimable and claimable input VAT, and much more. Since they are experts in the domain, they know each of these aspects that help you to avoid errors and non-compliance.

It is anticipated that you will manage the accounts to balance the books as part of running your firm. While many business owners undertake this as a part of their ownership responsibilities, as your business expands, it may become more challenging to keep up with because the accounts can frequently grow exponentially complex. There are numerous benefits to hiring an accounting firm Dubai for your company, including financial savings and the avoidance of countless hours spent attempting to comprehend those complex figures. If you’re asking, “why to hire an accounting firm,” you should consider it a sound investment that will pay off in the long term.

VAT or Value Added Tax applies to all taxable goods and services. However, the VAT rate on exports and some specified goods is 0%. Tax Consultants can help you with the registration for VAT number and all other related aspects of VAT registrations. Tax consultants can help you greatly with VAT registration as they can access the applicability of VAT for your business and advise you accordingly. Continue reading to know more about this.

Easy VAT registrations

Although VAT registration is compulsory, only some businesses need to apply for VAT registration. The right consultants will tell you whether you should register your business for VAT. They will also offer guidance for the online registration process, which varies depending on the revenue and type of business and also help with the procedural formalities, documents required, turnover quantum, and much more.

Provide expertise

VAT consultants are equipped with the right information and keep themselves updated about the latest developments in the industry. They possess the appropriate knowledge about VAT laws and thus are in a better position to provide the right guidance for any business. This helps business owners to avoid common mistakes that could lead to penalties. This is an integral part of dealing with VAT, as the rates of indirect taxes change frequently.

Provide Accuracy

These consultants will go the extra mile to ensure that every VAT filed is accurate. They are industry experts and possess years of experience and thus can avoid generic mistakes during registration for VAT numbers or return filing.

Saves Time And Efforts

VAT consultants assist in timely return filing, making it easier for the companies to file their returns and thereby make all the necessary payments that help to manage indirect taxes promptly. These services also help to minimize the time required for analysis, assessments and measurements of risks related to the company revenue and payment of taxes.

Give Best Advisory Services

The right consultants will offer the best VAT services by guiding business owners in predicting the impact of VAT on their business, whether positive or negative. The best ones will be proficient in adopting a strategy that will help you minimize the negative effects. This will further help make sound business decisions, achieve business goals, and let the companies focus on expanding their business globally while not worrying about tax issues.

Advise on Legal And Business Structure

The professionals will assess the requirements of your business structure and accordingly plan VAT implementation based on your company’s financial strengths and weaknesses. You will be able to adopt various structures based on your business type and goals since they will help your business to adopt the most suitable system for maximum benefits and enhanced revenue.

Summing Up

The ideal VAT service providers will ensure that they prioritize the data confidentiality of their clients and will offer timely assistance through qualified consultants. Look for a provider that provides all VAT-related consulting services like VAT registration, VAT return filing, VAT impact studies, VAT accounting, VAT consultancy, VAT training and compliance.

There will be a 5% VAT on all online sales in the UAE. A supply of goods is what is meant when purchasing things through an online marketplace or website in the context of e-commerce. The items are mailed to the recipient after being imported. When calculating VAT for online sales in the UAE, the seller and recipient’s location is considered.

E-commerce sellers have to have online vat registration in Dubai done, and this comprehensive guide will help you to know more about the VAT to be paid for goods they sell. Depending on the location of the source, the buyer, and the items, the supply could be of any of the specific categories listed below:

• A supply made to a recipient in the UAE by a resident seller of goods sourced from inside or outside the UAE;
• A resident supplier providing goods delivered from the UAE or from outside the country to a recipient outside the UAE;
• A non-resident supplier providing goods from within or outside the UAE to a recipient within the UAE;
• The delivery of goods from inside or outside the UAE by a non-resident supplier to a recipient outside the UAE.

In each of the scenarios mentioned above, the retailer must consider how the VAT would affect the sale of the goods if the goods are physically brought into the UAE from a country other than the UAE.

VAT’s Effect on Online Businesses:  

The Federal Tax Authority (FTA) has stated that as long as the goods are delivered within the United Arab Emirates, all sales conducted through online shopping platforms are subject to the same 5% Value Added Tax (VAT) as any other transaction made through conventional channels.

According to Article 18 of the Decree Law, a non-resident supplier must register for tax and make supplies of goods or services, and no threshold limit applies to non-residents. “This means that if a consumer in the UAE purchases a service or good from an online platform (social media, e-commerce, education, games, arts, fashion, music, or any other services), the non-resident supplier must register for the VAT within the stipulated time and comply with local tax legislation.

VAT Application to Online Sales

The value-added tax (VAT) treatment of electronic services and transactions was clarified by the Federal Tax Authority of the United Arab Emirates. The VAT status of the tax authorities is also covered in the advice.

Physical goods and computer resources, like applications, e-games, subscriptions, smartphone apps, and e-content, are governed by tight legislation that specifies how VAT should be charged to them.

• Domestic sales are defined as e-commerce transactions in the UAE and are subject to the standard 5% VAT cap.
• The standard 5% VAT fee is applied to purchases of goods or services made outside the United Arab Emirates.

The recipient is expected to calculate the standard 5% VAT utilizing the reverse charge technique, in which the taxable recipient calculates the due VAT rather than the non-resident seller if the buyer of goods or services is in the UAE and registered for VAT (as a taxable person).

The agency or logistics company bills and pays the standard 5% VAT to the authority if the recipient is an end client (i.e., not registered with the tax authorities for VAT).

The agent (who imports and supplies) is in charge of adhering to UAE VAT for all imports made on behalf of a non-registered individual.

Tax is a very confusing term for many people. Not everyone understands the articles, protocols, and sub-paragraphs of the law as amended by the government. It is difficult to pay attention and follow all the protocols when the subject is not easily understood and is relatively new to everyone. The same applies to Dubai’s business and professional community. The introduction of Value Added Tax (VAT) on 1 January 2018 has made it somewhat difficult to deal with professional tax issues unless a tax agent is hired in Dubai.

A COMPLEX TAX SYSTEM JUST GOT EASIER

The tax system can be daunting even when it is simpler. Why not hire someone to make VAT in the UAE easier to understand and take advantage of? In this case, you can hire the most trusted and reliable FTA Registered Tax Agents in Dubai such as BestaxCA in the UAE for professional help. Our team iof highly skilled professionals is more than capable of legally representing an individual or company before the Federal Tax Authority (FTA) and handling all the necessary requirements for tax compliance every cycle.

Benefits of Hiring Registered Tax Agents in Dubai

Firstly, it should be noted that all taxes are introduced to improve the welfare of ordinary people. It is often complex as it needs to be inclusive and beneficial to the country and its people. Only a registered UAE tax agent should be hired to ensure that the interests of the individual or company are preserved.

HERE ARE THE BENEFITS YOU CAN ENJOY BY HIRING BESTAXCA

Enjoy tax benefits

As mentioned above, most people tend not to take advantage of the tax benefits that the government provides to its taxpayers. These types of benefits are designed to encourage greater taxpayer participation. Finding out more and taking advantage of these types of benefits is a great advantage for your business or professional profile. You can make a good profit from the income tax and value-added tax (VAT) schemes offered by the government.

A NEW IDEA NEEDS TO BE EDUCATED

It is a challenging time for those who have so far exploited natural resources in a tax-free format. It is very important to understand the clause of the new tax law. Hiring a tax agent is therefore very important. Only a professional and experienced tax advisor in Dubai can help you understand the pros and cons of each tax law amended by the government so that everyone is better off. Educating clients is also part of a tax agent’s duties. Only responsible tax agents will take this initiative and represent their clients excellently in front of the FTA.

AVOIDING TAX-RELATED TROUBLE

Registered Chartered Accounting Services companies have the most complete knowledge of tax laws. This means that the company will pay more attention and give more importance to the laws. He will also take care of important dates, and crucial points and inform clients about them. Business can only run smoothly if tax obligations are perfectly met. A professional review of every tax-related issue will ensure a smooth business for clients.

LESS TIME CONSUMING

Why worry when a professional tax agent in UAE handles the tax filing part on your behalf? You don’t have to break a sweat if you have hired a knowledgeable and experienced tax advisor to handle your tax affairs. The tax advisor will check and confirm all tax issues and ensure that they are resolved in a short time. This way, your tax filing, and other important requirements will be handled smoothly.

STRESS-FREE TAX FILING

To comply with the new tax rules, you will need the help of an experienced tax advisor company. This is a big responsibility for every professional and business owner in the UAE. Such a huge burden will also take away your peace of mind. This is where the advantage of hiring a tax consultant firm comes in. All the responsibility will be taken care of by an assistant when you can focus on other important areas.

DETECTION OF ILLEGAL ACTIVITIES

Your hired a firm for Tax Agent Services in Dubai that can detect any illegal activity or tax practice. Disclosing non-compliance will also protect you from legal trouble. To run your business smoothly and maintain a spotless professional profile, you will need a tax advisor in your CSR to take care of your tax-related needs.

VERDICT

Whether you need to file corporate tax returns, VAT, and other business-related tax processes, hiring a tax advisory firm in Dubai will be ideal in every possible way. Enjoy the above benefits and make your professional career brighter and stress-free.