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An accountant can play a crucial role in the success of a business, but often their role is limited to providing financial information and tax compliance. However, an accountant can also become a trusted advisor to a business by taking a more proactive approach to their relationship with the business owner or management team.

Building a strong relationship with the business is the foundation of becoming a trusted advisor. This can be achieved by consistently providing accurate and timely financial information, offering valuable insights and advice, and being available to answer questions and address concerns. An accountant should take the time to understand the business’s goals and objectives and provide financial advice that will help the business achieve those goals.

In addition, an accountant should stay current on industry and regulatory changes, and communicate these changes to the business in a clear and understandable manner. This will help the business stay compliant and avoid any potential penalties or fines.

Confidentiality, professionalism, and integrity are also key to building trust as a trusted advisor. Business owners need to know that their financial information will be kept confidential and that their accountants will act in the best interest of the business. They should also be able to trust that the advice they receive is unbiased and in their best interest.

An accountant can also become a trusted advisor by offering additional services such as financial forecasting, budgeting, and cash flow management. These services can help the business make informed decisions and plan for the future.

In conclusion, an accountant can become a trusted advisor for a business by building a strong relationship, providing valuable insights and advice, staying current on industry and regulatory changes, maintaining confidentiality, professionalism, and integrity, and offering additional services such as financial forecasting, budgeting, and cash flow management.

KLOUDAC Accounting Firm Dubai, UAE

An accountant should stay current on industry and regulatory changes and communicate these changes to the business in a clear and understandable manner. Building trust requires an accountant to maintain confidentiality, professionalism, and integrity. KLOUDAC can assist you with guidance and support. 

Value-Added Tax (VAT) is a consumption tax added to the price of goods and services. It is used in many countries around the world, including the European Union, Canada, and Australia. Understanding VAT and how it applies to your business can be a bit tricky, but it is essential to ensure compliance and avoid costly penalties.

Here are some key points to keep in mind when understanding VAT for your business:

1. Determine your VAT registration threshold

In most countries, businesses are only required to register for VAT if they exceed a certain turnover threshold. This threshold varies by country, so it’s important to check with your local tax authorities to determine what it is for your business.

2. Register for VAT

Once you determine that your business is required to register for VAT, you will need to do so with your local tax authority. This typically involves filling out a registration form and providing information about your business.

3. Keep accurate records

In order to properly account for VAT, it’s important to keep accurate records of all sales and purchases. This includes invoicing customers for VAT and keeping track of any input VAT (VAT you have paid on purchases) that you can claim back.

4. Calculate and pay VAT

Once you have registered for VAT, you will need to charge VAT to your customers on all taxable sales. At the same time, you will be able to claim back any input VAT that you have paid on purchases. You will need to calculate and submit a VAT return to your local tax authority on a regular basis, typically every quarter or every month.

5. Know the different VAT rates

1. There are three standard VAT rates, 
   1. Standard Rate (5%)
   2. Zero rate (0%)

Check which rate applies to your products or services.

6. Seek professional advice

1. If you’re still unsure about how VAT applies to your business, it’s a good idea to seek professional advice from a tax advisor or accountant. They can help you understand your obligations and ensure that you stay compliant.

VAT can be a complex and confusing topic, but by keeping these key points in mind and seeking professional advice if necessary, you can ensure that your business is compliant and avoid costly penalties.

KLOUDAC Accounting Firm Dubai, UAE

Understanding and managing VAT correctly can help businesses save money, improve cash flow, and make better decisions. It also allows businesses to stay compliant and avoid penalties, which can help protect the business from legal and financial trouble. KLOUDAC has a number of experts that can guide and support you.

One of the simplest ways to get a residency visa in the UAE is to register a business in Dubai. 

To register a company in Dubai, you will need to follow these steps:

1. Determine the type of company you want to register. Dubai has several types of business structures, including sole proprietorship, limited liability company (LLC), and a branch office. Each type has its own requirements and benefits, so it is important to choose the one that best fits your business needs.
2. Choose a business name. It is important to choose a unique and memorable name for your business. You will need to submit a name request to the Department of Economic Development (DED) for approval.
3. Obtain the necessary licenses and approvals. Depending on the nature of your business, you may need to obtain certain licenses and approvals from relevant authorities. For example, if you are setting up a food or beverage business, you will need to obtain a food safety license from the Dubai Municipality.
4. Rent a physical office space. Most businesses in Dubai are required to have a physical office space, even if they are primarily online or home-based. You must sign a lease agreement with a landlord or property owner.
5. Register your company with the DED. The DED is responsible for registering and regulating businesses in Dubai. You will need to submit a range of documents, including your business name request, lease agreement, and any required licenses and approvals.
6. Obtain any additional permits or approvals. Depending on your business, you may need to obtain additional permits or licenses from other authorities. For example, if you are setting up a construction company, you will need to obtain a permit from the Dubai Municipality.

It is recommended to seek the assistance of a professional service provider or legal advisor to ensure that you complete the registration process correctly and efficiently.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a talented team of professionals with a particular focus on advertising. By leveraging the most recent and cutting-edge accounting technologies, our experts are ready to meet client needs and assist the business owner in starting a company in a cost-effective manner.

What is global taxation?

When an entity engages in cross-border transactions, international taxation refers to adhering to various tax regulations of a separate jurisdiction.

It also entails establishing the tax liabilities of entities in the impacted jurisdictions and applying as the application of the relevant tax legislation.

In general, an entity must assess its exposure to tax liabilities in the jurisdiction where it conducts business and its tax spending in each country in which it operates.

Why has international taxation become more significant in the UAE recently?

The gateway for international trade between the Asia Pacific and Europe is the UAE, an economic powerhouse that is continuously expanding. Because of this, international tax planning is a crucial issue for most enterprises working in this area.

The UAE started moving toward a taxing system that promotes transparency and enhances economic diversification to increase its global competitiveness. In 2017 the UAE implemented an excise tax, then in 2018, they implemented a value-added tax (VAT). There have been a lot of positive and required improvements in the country’s effort to improve international tax conformity.

The UAE has approved the internationally recognized standards for the “EOIR” (Exchange of Information on Request) and “AEI” (Automatic Exchange of Information) methods of information exchange for tax reasons (from OECD)

The UAE largely adheres to the CRS (Common Reporting Standards) and FATCA regulations to enhance international tax compliance and international tax reporting.

On May 16, 2018, the United Arab Emirates became the 116th jurisdiction to join the Inclusive Framework of BEPS (Base Erosion and Profit Shifting). As a result, the UAE is dedicated to putting BEPS’s 4 basic criteria into practice. UAE implemented the two rules listed below in 2019;

• The Cabinet Resolution No. 31 of 2019 regulates economic substance. [Action 5 of the Base Erosion and Profit Shifting] includes the regulation of economic substances.

• legislation for “Country by Country Reporting” (CbCR) through Cabinet Resolution No. 32 of 2019. [Action 13 of the Base Erosion and Profit Shifting (BEPS)] includes CbCR.

The United Arab Emirates has now agreed to report within the deadlines to the pertinent foreign authorities.

KLOUDAC Accounting Firm Dubai, UAE

We have a group of knowledgeable tax consultants and specialists who have experience with different tax structures in the UA. KLOUDAC responds to your worries with an international perspective. We assisted numerous companies with their international growth and the installation of tax structures.Feel free to contact us. 

In Dubai, a market that is both extremely competitive and dynamic, business owners must develop strategies for financial planning and management in order to maintain their companies. You will experience large financial losses and the eventual closure of the business if you don’t have a solid financial strategy. You may reduce these risks and keep your startup on the path to expansion by consulting with accounting firms in Dubai.

1. Define Your Financial Goals

Entrepreneurs should divide their financial objectives into smaller portions. They may set daily, weekly, monthly, or even quarterly revenue targets. The business owners will be assisted in staying on course and making the required changes to maintain and expand. If setting financial goals seems difficult, you can ask for assistance from Dubai’s accounting and bookkeeping firms.

2. Cash Flow Management

Every entrepreneur must be able to predict the launch costs and cash flow needs in this time of economic uncertainty. The majority of the time, upfront payments are necessary to support business for the company. You should keep a record of all transactions involving the cash flow as an entrepreneur running a startup.

You should be aware of the source and destination of your money. Try to keep a budget that accounts for all costs, including those for office space, staff pay, manufacturing, logistics, marketing, and supplier relations, among other things. If accounting is your area of weakness, outsource it to reputable accounting & bookkeeping services in Dubai, UAE.

3. Keep an eye on daily spending

For a startup, expenses will arise in all different kinds of ways, so you’ll need to track your spending and keep an eye on it. On the other hand, beginning business owners could struggle. The ideal remedy for this is to install reliable accounting and budgeting software with the aid of accounting firms in Dubai.

4. Cutting back on fixed costs

You should set out on your path to achievement straight away. To accomplish this, you must minimize and limit initial costs in order to sustain the startup over time. Reduce wasteful spending and run a lean operation to become financially independent. Additionally, rather than initially spending money on expensive products, build tactics to bring in money. You can get advice from accounting firms in Dubai on how to cut back on fixed costs.

5. Creating a backup plan

The founders of the startup should develop a solid contingency plan to mitigate unforeseen business losses to recover the debt. Startups that have a strong business continuity plan can survive even when trouble comes knocking. A contingency plan aids in resource optimization and business process planning to ensure that the startup is profitable during all phases of operation.

6. Customer Engagement & Acquisition

UAE-based startups should concentrate on attracting new clients and keeping hold of current ones. You need to develop a variety of customer acquisition strategies. By offering a remarkable client experience, try to captivate your audience. It makes sense from an accounting standpoint to give discounts to clients who pay on time. Customers who are happy with your startup will eventually become brand champions.

7. Reducing the Risk

When the state of the market is unstable or changeable, startups may suffer losses from business transactions. Such circumstances necessitate increased work for entrepreneurs to maintain the startup. By keeping your personal and business finances in separate accounts, you can reduce risk and minimize obligations from the startup. To save money, diversify your finances, and protect your personal life in dangerous situations, separate the two accounts. Additionally, you need to keep cash reserves in an emergency savings account for both your personal and corporate needs.

KLOUDAC Accounting Firm Dubai, UAE

The sustainability of startups in Dubai depends on sound accounting procedures and sound financial planning. Nevertheless, most business owners overlook this formula for achievement when looking for financiers and clients. Instead of focusing on the fundamentals of accounting and financial management, they spend more time marketing. Instead, busy business owners can outsource their accounting needs to Dubai accounting firms like KLOUDAC.

Numerous developing growth and middle-market businesses would profit from the knowledge of a seasoned financial and accounting professional, but they are reluctant to shoulder the cost of a full-time CFO or simply find it difficult to fill that position.

These organizations frequently have a bookkeeper and accounting staff on staff, but they frequently don’t have a fully operational accounting department that can handle complicated problems and understand financial data to produce insightful estimates that will help the group move forward.

An Outsourced CFO can be a quick, affordable help when a company finds itself in this situation. With the help of cloud-based accounting tools and virtual team collaboration technologies like Zoom and Microsoft Teams, the Outsourced CFO is typically hired on a time-and-materials or monthly subscription basis.

Focus on business

Business owners can concentrate more on their businesses by using an outsourced CFO. By outsourcing that job to seasoned financial professionals and their businesses, acquiring, training, and retaining accounting expertise is freed up for business owners and executives, allowing them to concentrate on expanding their company and other more important goals.

Improve efficiency

Technologies based on the cloud have opened up some possibilities for integration and automation that can be used to boost productivity and streamline processes.

Guidance

You can count on your outsourced CFO to help you with a variety of financial tasks, including guiding you through complicated financial projects, ensuring that your business is compliant, assisting you in achieving your goals, helping you design strategies to expand your business, and much more. Another advantage of having a specialist like an Outsourced CFO on your team is that you can ask them any questions as they come up and be sure that you will get sound advice to help you.

Saving on costs

You can hire an outsourced CFO for a lot less money for your organization and get the same level of service as you would if you had a CFO employee within your business, as opposed to hiring a full-time CFO as a member of your team and incurring the additional cost of covering their salary and benefits.

KLOUDAC Accounting Firm Dubai, UAE

You should have access to a CFO that is not only affordable but also trustworthy, reassuring, and knowledgeable about your company’s field. KLOUDAC works with dozens of companies just like yours as CFOs and business advisers since they are aware of how difficult it can be to find a good solution for your CFO role and the effect it has on your company. 

Take a systematic strategy to identify, reduce, and regularly monitor the compliance risks your company confronts in order to manage compliance risks.

Making sure an organization complies with internal and external rules and policies is a crucial part of owning or running one in order to safeguard it from the risks associated with non-compliance. Understanding and managing compliance with laws and regulations while also assisting in more effective management of the risks connected to non-compliance is the process of compliance risk management.

It can be difficult to know and understand your internal and external compliance obligations, let alone the risks associated with them. For this reason, it’s crucial to establish a process that will give you the confidence that your compliance is being successfully managed while avoiding potential liabilities.

Follow below steps,

Step 1: Establish a structure to categorize your duties.

The first stage is creating a structure that makes sure your business accurately defines and understands its responsibilities and liabilities towards the government, as well as towards its staff, investors, and any other partners. Implementing a cycle to check for new or updated compliance obligations your organization might need to meet is part of this process. The ability to identify and compile the laws, rules and internal policies you must abide by in one location makes using third-party software immensely helpful.

Step 2: Evaluate the risks.

Once you are aware of your organization’s compliance requirements, you should undertake a risk analysis to determine how failure to comply with the requirements could endanger your business. In other words, you should evaluate the threat to your organization from not adhering to a certain standard. You will be able to prioritize your compliance activities as a result of this approach, and you may spend resources accordingly.

Step 3: Implement policies and processes to guarantee compliance.

It is crucial for any organization to protect its compliance efforts by developing rules and procedures, as well as any relevant contracts, that ensure you are timely fulfilling your duties. Assigning ownership and responsibility to particular employees or teams as part of this stage will help you stay on top of the standards you need to adhere to and will also help you plan and be ready for any potential hazards.

Step 4: Report on your compliance risk management activities

It’s crucial to routinely report on the compliance environment at your organization, just like with any management process. In order to determine what is functioning and any inefficiencies that can be corrected, you should assess your duties and the processes and procedures set in place for meeting them. For the purpose of internal or external audits, you should also retain a record of your compliance history. A tool can generate customized reports on your compliance history and progress.

KLOUDAC Accounting Firm Dubai, UAE

Creating a standardized system using the methods above will enable your organization to consistently satisfy your compliance duties and even investigate voluntary standards that could enhance your business operations. Managing compliance is not a one-time project, but rather an ongoing activity. You can get full guidance and support from KLOUDAC.