How to register fixed assets?

How to register fixed assets?

An organization’s fixed asset registry is a comprehensive list of its fixed assets. This register is primarily created and used to maintain track of the book value of the assets for accounting and tax purposes.

Creating and maintaining a fixed asset register, as well as completing periodic physical checks on fixed assets, has become a critical task, especially for asset-intensive companies. Failure to do so may result in a balance sheet overestimation or underestimate of the company’s assets. External auditors may seek proof that the assets listed on the balance sheet exist, and an independent confirmation can help with that.

Maintaining a thorough and accurate fixed asset registry is the responsibility of the Finance or Accounts manager. The fixed assets register, which will be kept in an excel spreadsheet or a book, should include the following information:

-Identification or serial number

-Acquisition Date

-Description of asset

-Location

-Class of asset

-Cost of acquisition

-Accumulated depreciation

-Net book value

Processing Depreciation

The accountant shall generate a depreciation schedule for each of the goods at the end of each month, using the depreciation rates indicated in sub-section.

The Finance Manager should go over the schedules and sign them as proof that he or she has done so. The accountant must update the fixed assets register based on the depreciation general journal that has been thoroughly evaluated.

Accounting for fixed assets addition

The acquisition of fixed assets must be recorded and paid according to payment rules.

The asset must be categorized, labeled, and registered in the fixed assets inventory register upon delivery.

Accounting for disposal of assets

Disposal of fixed assets must be approved by the organization’s board of directors. No assets should be sold without the board’s prior written approval.

The management should request public bids for the asset purchase based on the board’s written authorization.

The board shall meet and adjudicate the proposals after receiving a minimum of three bids. The finance manager and accountant shall prepare a log to document the disposal and the bidder’s debts when the sale to the winning bidder is completed, based on the board disposal authority and adjudicated bids. If there is a revaluation, an adjustment will be made in the journal.

The accountant should issue a general receipt if the disposal is a cash sale.

An auction may be held at the board’s discretion. The auction’s cash earnings should be handled in the same way.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

Importance of having a business journal

Importance of having a business journal

Business journaling is a crucial part of building a company’s philosophy and strategy, which leads to success. It is often known as a powerful tool for personal development since it has extremely specific applications for business owners who want to advance in their careers. Business journaling helps you to identify and imagine your business vision and the journey ahead, to map your goals, milestones, and abilities, discard limiting beliefs and attitudes that hold you back, and finally, to improve your business day-by-day. 

Here are 03 major ways business journaling can be a key to success.

1. Journaling Leads to the emergence of ideas

When ideas live solely in your head or in a quick exchange with a friend, they can soon become stagnant. That valuable idea that pops up in your head should be noted down somewhere so that you can use it when needed. The act of fleshing out a business idea on paper not only makes it tangible and genuine, but it also allows for its growth and extension.

2. Journaling Reveals erroneous assumptions

Exposing faulty ideas is just as vital as fleshing out the good ones. Once you identify the bad and irrelevant ideas, you do not waste your time, energy, resources, and money on them. Your failed ideas, on the other hand, serve as vital stepping stones to your good ones. 

The act of properly studying a company’s dream and then determining how and why it will fail is an important exercise that is frequently accomplished only through journaling. A journal’s judgement-free environment is sometimes the only place where we can be honest with ourselves and recognize the shortcomings in a treasured business concept. 

Writing about your terrible ideas in a journal allows you to learn from them. In my opinion, this is the most important key of all.

3. Journaling is a sign of substantial changes.

There will come a time when something significant occurs, such as when you have a breakthrough or achieve a key objective. When things like this happen, it’s crucial to understand what led up to that point. How can you reproduce the conditions that inspired your finest ideas? If you keep a journal, you have the benefit of looking back and knowing the context of your finest thinking.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero. 

What gives a clear view and position on the state of affairs of a company

What gives a clear view and position on the state of affairs of a company

What is a statement of Affair and what is included in it?

A Statement of Affairs is a document that lists the assets and liabilities of a company.

It includes a complete accounting of the statement of financial position and obligations, as well as a professional opinion on the value that could be realized through the sale of corporate assets. As a result, it shows how much money would be left over once creditors are paid. Typically, the transaction’s administrative fees are not included at this time. A thorough record of a company’s liabilities contains a list of all creditors and shareholders, as well as the amount owing and to whom it is owed.

View and Position on State of Affairs

By identifying all business assets, a Statement of Affairs clarifies the company’s financial situation. It creates a clear audit trail that demonstrates whether any assets were sold in bankruptcy, which is a crime that the Insolvency Service would investigate and might lead to director disqualification if creditors’ interests were not prioritized.

This document also makes it easy to keep track of how much money was produced from each asset sale and compare it to the IP’s estimates.

Failure to deliver a Statement of Affairs during insolvency may result in a penalty, but it will also reflect poorly on the directors’ actions in the view of the insolvency practitioner. This could be seen in small and medium scale companies. Therefore, proper guidance should be received for SMEs to avoid these circumstances. 

Due to the complexity of a Statement of Affairs, it is highly recommended that you use a licensed insolvency practitioner to create it. KLOUDAC can help with this and provides a comprehensive guide.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

Why Business Startup is so easy with KLOUDAC?

Why Business Startup is so easy with KLOUDAC?

Our ultimate goal is to see you being successful in this fast-growing business industry. Perfect Business startup is the foundation of your dream  Business. With over 15 years of experience we, KLOUDAC, give a kick start to build your business with suitable Business strategies in Dubai, UAE. 

For many Entrepreneurs the Business startup process has always been a very tedious task. With the Guidance from an authorized and experienced accounting firm in Dubai, many entrepreneurs have smoothly reached their dream. KLOUDAC is one such accounting firm in Dubai who has helped over the past 15 years for SME starters and many other existing Business Companies. 

KLOUDAC is ready to guide and support you from the very first step of your business startup process to the end. Starting off with finding a perfect office space in mainland, offshore or Free zone depending on your requirements. 

The Cost for starting up your Business varies according to your needs and requirements therefore we have customized flexible packages. The cost always varies according to the nature of the activity and license required; depending on whether it is commercial, industrial, or service oriented and many more factors. So, you can easily contact our consultants and get more details.

Why Choose KLOUDAC to start your business?

-KLOUDAC is always updated about new company Laws of the UAE government

-Quick and Fast timelines to boost your startup process

-Facilitate Documentation

-Continuous Guidance for Company Structuring

-Supports in Visa Services

-Highest Privacy and Confidentiality. 

-Advisory and Consulting Services at any time

KLOUDAC has simplified this tedious ‘Business startup Process’ and  has already made necessary plans and procedures to guide new entrepreneurs. It’s super easy to walk with KLOUDAC and achieve your goals in a hassle-free manner. For more details about the business startup process please feel free to contact our consultants at any time. They are always ready to help and guide you.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firms in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

Top 5 benefits of XERO cloud accounting software

Top 5 benefits of XERO cloud accounting software

Xero is one of the most popular and faster-growing cloud-based software solutions available nowadays. KLOUDAC is one of the trustworthy accounting firms in Dubai, UAE which works with XERO.

Time Saving

Your time is saved to a greater extent with the technologies used in XERO. You do not have to worry about protecting your paper records any more. All the documents are stored online in the cloud database. 

Maintaining Bookkeeping is made easy by connecting to your bank and importing transactions every business day, Xero can save you time and help you avoid hours of manual data entry. Automatic bank feeds allow you to reconcile your accounts on a daily basis, giving you a complete view of your company’s finances. It will even make recommendations and categorize your transactions for you.

Report generation is another benefit that can save your time. Users can be free from manual report creation and monitoring accounts and cash flows.

Easy Collaboration

Xero facilitates communication between businesses and their bookkeeper, accountant, or financial advisor. Real-time updates are feasible with Xero because it is a cloud-based system. As a result, you and others can look at the same information at the same time from different locations.

Users always have control over who has access to Xero and what they can do with it, so security is always a consideration.

Data Security

To secure your personal and financial information, Xero follows the strictest cloud security requirements and has established many levels of security.

Xero uses a variety of cloud security precautions and even releases a comprehensive report on the topic.

Updates, Upgrades and Backup

Updates

One major advantage of using XERO is that it does not require any updates to be done manually. Automated updates occur in the background of the company’s server without any disturbance for the work going on and with the help of an automated updating system the accounting software is constantly up to date. 

Upgrades

If you need to get the advantage of the new features of the software, you will have to upgrade the software to a newer version. Since many employees need to work on your account you will have to upgrade your license from time to time. With XERO it is just one button click to upgrade the software to enjoy new features. 

Backups

Unless you backup your data you will not be able to access them if they are deleted accidently. XERO protects your data by backing them up, so you do not have to worry about data losses due to technical issues, disasters or even accidently deleting them. XERO platforms perform a back-up process in the background on their server. 

Improve Business Efficiency

Another significant advantage of cloud accounting is the increased efficiency that most business owners will be seeing. One main feature is the ability to save time. Secondly, the automation system of XERO helps in reporting, employee management, expense management, financial monitoring, and many other features. 

With the advanced features of the XERO software the user receives alerts in sudden cash flow rises or sudden drops. Using this software, the user can also save their energy and time by scheduling amounts to pay suppliers automatically. These are just a few benefits that are mentioned. Contact our experts to get more details.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firms in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

Adverse effect on money laundering and terror financing

Adverse effect on money laundering and terror financing

Money laundering, as the term implies, is the crime of getting money illegally. Criminals and terrorist financiers might use their financial profits to grow their criminal activities and support illegal activities like corruption and drug trafficking in nations with corrupt anti-money laundering systems. Money laundering and terrorist financing can occur in any country, but they have relatively large economic and social impact in developing countries.

Negative Impacts of Money Laundering  

Money laundering harms financial sector institutions, which are crucial for economic progress,  which slows growth and reduces efficiency in the real economy. Such activities may lead to serious penalties. The majority of global research on money laundering focuses on two key sectors: drug trafficking and terrorist organizations. 

Impact on Money Demand

It happens more frequently in countries with a low risk of money laundering. The informal economy has a high ratio to the national economy in economies where there are no rules on money laundering, where there is a system that stores bank or customer information, and where banking secrecy is rigidly maintained. 

For money launderers, cash inflows and outflows are simple. Expenditure rates, particularly luxury consumption, are rising because of the rapid and unregulated input of money into the country. However, exports, imports, the foreign payments imbalance, inflation, interest rates, and unemployment rates may all rise significantly.

Impact on Economic Growth:

The economy can be severely damaged by the country’s financial instability. As a result, international investors have become more crucial to enterprises. It is, therefore, difficult to attract international investors to money laundering countries.

Reasonable amount of businesspeople will be hesitant to invest in the country due to the pricing instability caused by black money in the banking system will undermine the economy’s external credibility.

Investment rates will remain constant if only legal money is permitted to enter the country. As a result, a long-term, persistent growth decline is expected. Investing in countries with large amounts of money is risky. Fighting black money is a key message that gives investors confidence for those who want to attract international capital to their country. Investors will increase as a result of the struggle’s effectiveness, which will boost growth rates and the economy.

Impact on Tax Revenues:

With declining tax income, the state has two options. 

-The first is to borrow. It diminishes the private sector’s productive investments due to government crowding-out, which causes the private sector to borrow to attract productive investors. Furthermore, as the value of bonds rises as a result of borrowing, market interest rates rise, causing a slew of issues. 

-The emissions policy is another strategy to reduce deficits. This policy’s outcomes are comparable to those of others.

 As a result, both options have a detrimental impact on the economy.

Terrorism and Finance

Money laundering has major economic and social ramifications for countries with unstable financial systems, as we mentioned, because such disruptions are also susceptible to such effects. On the other hand, a strong system for anti-money laundering (AML) and counter-terrorist financing (CFT) provides considerable domestic and international benefits for a country.

Countries Money laundering and terrorism financing can take place in any country, although the amount of harm they create varies greatly. Money laundering has enormous economic and social effects, particularly in developing nations, where markets are smaller and more susceptible to disruption from criminal or terrorist attacks. 

If caught, penalties may be imposed as a result of such attacks. Money laundering and terrorism financing, of course, have serious economic and social impacts for countries with weak financial systems. These countries are also vulnerable to losses as a result of such factors.

The economy, society, and security of countries that are used as money laundering or terrorist financing platforms are all at risk in the end.

How to reduce the negative impacts on money laundering?

-Conducting Awareness Sessions

-Knowledge of typical money laundering strategies is one of the most important aspects of preventing and combating money laundering.

-Hiring a certified anti-money laundering expert

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

How to register your company in Dubai

How to register your company in Dubai

KLOUDAC specializes in providing you with the finest alternatives for moving to the UAE and registering a company by providing you with rapid, efficient, hassle-free, and professional guidance. 

Registering  a business in Dubai is also one of the easiest methods to obtain a residence visa in the UAE. And we are a skilled group of experts with a focus on advertising. Our specialists are prepared to fulfill the demands of the customer and support the entrepreneur in launching a business in a cost-effective way by utilizing the most advanced and up-to-date accounting technologies.

Company Registration in Dubai, UAE

In Dubai there are 03 categories where a company could be registered. Mentioned below are them:

Mainland : Also known as an onshore corporation. It has been granted a license by the Department of Economic Development (DED) of the relevant emirate, allowing it to operate freely in the local market as well as outside the UAE.

Free Zone: Most entrepreneurs who want to save money on taxes choose to establish a free zone since the free zone authorities offer a variety of benefits and incentives to firms that set up shop there.

Offshore Jurisdiction: An offshore company is one that is incorporated in one jurisdiction but has its parent firm in another. There is no need for a physical office, thus this is not a branch firm. They have no physical presence in the nation in which they have chosen to incorporate as an offshore corporation.

A Mainland Firm can now be registered in the UAE as a 100% expatriate-owned company, and Free Zones and Offshore Companies can also be incorporated with 100% expatriate ownership, according to the new Cabinet Resolution 2021. 

They are, nevertheless, unique in terms of their features, corporate operations, and business laws and regulations that govern them. Clients who establish their companies in the UAE can benefit from a number of the country’s commercial benefits.

As previously mentioned, foreign investors prefer to create their company in the United States for a variety of reasons, including tax savings, increased business infrastructure, e-governance, ease of doing business, and expanded commercial opportunities.

One of the most important steps in the process of creating a successful and remarkable company in the world is the establishment of your own business. Choosing the right location and the right licensing for your company may be a tough, but necessary, process. On the mainland, offshore, and in free zones, we provide complete company formation services to start-ups, small companies, and medium-sized organizations. 

Our accounting firm in Dubai, UAE is ready to assist customers who are looking to expand their business by assisting them in choosing a suitable site, business model, understanding legal procedures, and collaborating with local governments.

Step-By-Step Process of Registering a Company in Dubai

In order to register a company in Dubai there is a process that should be followed. Below mentioned are Checklist of the steps that should be taken:

-Speak with one of our experienced business experts – one of our consultants or call the hotline listed on the home page to speak with one of our consultants. Also, feel free to ask questions, receive answers to your questions, and learn more about business registration.

-Choose your business activity – Our experts will help you to decide on the business activity and visa requirements to sum-up the total cost required.

-Get Approval of the company name – We submit all required paperwork for approval of the company name and if it’s not eligible we will help you to decide on a suitable alternative.

-Obtaining corporate records – KLOUDAC register the business online and gather all required documentation and stamps.

-Getting a Resident Visa – KLOUDAC takes on the duty of applying for your company’s immigration card as well as a resident visa in the United Arab Emirates.

-Visa stamping – Investors must go to the United Arab Emirates for a medical check and to get a residency visa issued on their passport. Once you receive your company license you will be immediately contacted so you can collect the original corporate documents. 

Opening a business and personal bank account in the United Arab Emirates – KLOUDAC collaborates with UAE banks to create corporate and personal bank accounts for our clients, making it easier for them to manage their hectic schedules.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firms in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.

Setup your Ecommerce business with Kloudac

Setup your E-Commerce business with KLOUDAC

In the United Arab Emirates, e-commerce has a bright future. UAE is having one of the major B2C e-commerce sectors in the rapidly growing Middle East which will benefit you to setup your own e-commerce Business.

E-Commerce

Before moving on to setting-up an e-commerce company we should have to have an idea about what e-commerce is and what are its categories.

E-Commerce is any economical transaction that takes place digitally is known as e-commerce. This transfer could be 

  • B2B – Business-to-Business
  • B2C – Business-to-Consumer
  • C2C – Consumer-to-Consumer
  • C2B – Consumer-to-Business

The Dubai government recently announced the Dubai e-commerce Strategy, which aims to establish the city as a global logistics hub for the Middle East and boost its contribution to the local economy to AED12 billion (nearly US$3.2 billion) by 2023. The strategy includes initiatives such as attracting more foreign direct investments and lowering the cost of e-commerce activities by 23%.Moreover, setting up an e-commerce business in Dubai becomes even more easier when you consult one of KLOUDAC experts. They will guide you throughout this journey step-by-step.

How to start your own E-Commerce Business?

In order to start your own e-commerce business, you have to fulfill the below mentioned requirements:

  1. Finalize your business operations 

The Dubai Economic Development (DED) maintains a list of permissible activities. You may obtain additional approvals in case a few of them are not mentioned in the list. 

  1. Select a Business Location 

You can choose a location at any free trading zones or in the mainland region. 

In order to build your own e-commerce business in Dubai, you need to have a legal address. 

  1. Registering a business name

You must follow all the naming convention guidelines before finalizing the name of your new e-commerce business. 

Refrain from using names / words which are unethical, controversial, or insulting anyone in any sense.

  1. Applying for e-commerce license 

After fulfilling the above-mentioned requirements, you can proceed to apply for an e-commerce license. All the legal entities in the UAE are required to have a valid license to get the benefits without any compliance issues. 

  1. Optimized e-commerce website 

You can host your own e-commerce website to obtain more traffic to your portal which will result in an increased number of sales. This is one of the best techniques to optimize your e-commerce business. 

More information about Business setup and company formation and Financial Feasibility Studies in Dubai, UAE.

Investments for business growth

You may take advantage of the huge opportunities available in the Middle East by establishing your new online business in the UAE. Dubai is a home to a big, well-connected population, as well as a number of government-led initiatives that will boost e-commerce growth over the next decade.

More information about Business Valuation that will help you out.

How Much Does It Cost to Open an E-Commerce Business in Dubai?

The cost will be determined by the type of license you have and the business activities you perform. For more details, please feel free to contact one of our consultants

Benefits of setting up a business

-There is no personal or corporation tax.

-Request a Visa

-In only a few hours, you can have your business up and running.

-There are no restrictions on obtaining work visas, and the recruiting procedure is simple.

-Get your Trade License Dubai without Office Space

-Low import duty

-With a Professional license, you will have complete ownership.

-Establish a solid relationship with local stakeholders.

-There are no trade barriers, and you may conduct business with the UAE market directly.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firms in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  

Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more. 

Major Impact of Economic Substance Regulation(ESR) on Businesses in UAE

Major Impact of Economic Substance Regulation (ESR) on Businesses in UAE

Economic Substance Regulation (ESR)

Cabinet Decision Number 31 of 2019 established the Economic Substance Regulations (ESR) in the United Arab Emirates. This legislation was set up to prevent unethical tax practices and other wrongdoings in the business sector. 

This legislation will prevent unethical tax tactics in international company and guarantee that firms pay the right amount of taxes in the countries where the ultimate beneficial owner is located.

Furthermore, these rules apply to all businesses, whether they are located onshore or in a free zone. These businesses must follow the rules or risk facing penalties and other consequences.

The 03 fundamental actions that a firm must do in order to ensure compliance with the Economic Substance Regulation:

  1. The company should notify the appropriate authority about its business operations and if any relevant actions are being carried out by the company. There is no need to proceed to steps 2 and 3 if it is determined that the firm is not engaged in any relevant activity.
  2. The second stage for those who engage in relevant activity is to conduct an economic substance test, which will determine whether or not the firm has satisfied the required criteria. The company’s management must submit a report to the appropriate authorities detailing the income generated by the relevant activity, the costs associated with it, the personnel data, and the location of the office, and the other relevant information.
  3. The firm should have a sufficient number of qualified employees, as well as suitable facilities and annual operating expenditures.

Impact of ESR on Businesses

Regular and Accurate Reports 

Each activity must provide a yearly or bi-annual “economic substance return” detailing how the organization complies with substance regulations. Because the different economic substance regulations took effect on 1 January 2019 in some of the activities, reporting requirements pertaining to compliance with the economic substance rules for businesses formed prior to 1 January 2019 can begin as early as 1 July 2019.

The activities required to submit the details mentioned below:

-Banking Businesses

-Insurance Businesses

-Investment Fund Management Businesses

-Lease-Finance Businesses

-Headquarter Businesses

-Shipping Businesses

-Company Businesses

-Property Businesses

-Distribution and repair Centre Businesses

Non-compliance penalties

A penalty will be levied on the firm if it fails to comply with ESR standards. The fines’ amounts are set by the company’s economic substance regulations and are not consistent.

Companies’ liquidations and deregistration

Companies’ liquidations and deregistration

If a firm consistently fails to comply with the Economic Substance Regulations or fails to provide the required information, the entity’s license may not be renewed, and the company may be forced to liquidate. This will have a significant impact on the country’s economy.

Transparent tax information

The adoption of ESR will push the company to conduct business in a lawful and right manner. As a result, the firms will be required to furnish accurate financial data and may be subject to extra taxes.

Strong Business Competitors 

The adoption of ESR will help in the reduction of firms that engage in unethical and unlawful business activities, paving the way for companies that are better and conduct business ethically. This will assist to encourage friendly competition among the firms, which will help to boost profits.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firms in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  

Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more. 

Analytics and Auditing A comprehensive guide to understand the correlation

Analytics and Auditing – A comprehensive guide to understand the correlation

What is Analytics?

Analytics is a process of analyzing, collecting, and studying data sets in order for auditors to make conclusions from it and use it to obtain new insights and improve strategic decision-making. In other words, analytics is a technique that auditors use to examine a company’s financial data and derive conclusions from it. 

What is Auditing in Dubai, UAE?

Auditing in Dubai, UAE is a procedure in which a person is assigned the task of reviewing and analyzing a company’s financial accounts in order to determine if they are compliant with industry standards. 

Auditors in Dubai safeguard your books of account in the businesses against a variety of frauds and assist them to avoid making poor business decisions by understanding the industry and attempting to extract the correct information from financial statements using analytics.

Different Types of Audits in Dubai, UAE

There are different types of audits. The two main types of audits are,

Internal Audits – Which are carried out by internal parties

External Audits –  Which are conducted by external audit firms in Dubai.

Other types of audits such as tax audits are conducted by the Federal Tax Authority (FTA).

Types of Analytics in Auditing

There are 05 major types of analytics that could be used by a Business.

  1. Descriptive analytics

It’s a type of analytics that describes what happened in the past. By using the information in the past, the auditors can figure out what and where went wrong. Simply, descriptive analytics provides useful knowledge about the past, which is gathered from the analyzed data from numerous data sources.

  1. Diagnostic analytics

This method is used to discover the answer to the question, “Why did this happen?” By looking at previous data or performance. Many approaches, such as data discovery , drill-down, data mining, and correlations, are used in this analysis. Because this analysis provides comprehensive insight into problems that emerge and therefore is used by some businesses.

  1. Predictive analytics

Predictive business analytics use a range of statistical approaches to build models that extract data from datasets, find trends, and offer a score for a variety of organizational outcomes.

  1. Prescriptive analytics  

Prescriptive analytics is about determining what action to take in order to avoid a future issue or seize the chance of a good trend. This assists the individual or businessman in determining the best course of action to pursue in order to make better judgments.

  1. Optimization

After the identification of the pattern and the predictions the businesses can engage simulation techniques to test out best-case scenarios in order to optimize the business.

Benefits of Analytics in Auditing

-Analytics is the best way to analyze and understand the data by representing them in multiple statistical forms. 

-Analytics helps to make future predictions and optimize the business growth.

-Computer programs are commonly used to do analytics, making the process considerably faster and more efficient for processing huge amounts of data. 

-With the use of modern technologies and because of today’s analytical skills, an auditor can now evaluate all the data at once, ensuring that the analysis is 100 percent accurate.

-Fraud detection has become a very simple task for the auditors in Dubai, as auditor can now verify every minute transaction accurately and in a relatively short period of time, allowing for a complete check on everyone.

KLOUDAC Accounting Firm Dubai, UAE

KLOUDAC is a recognized accounting firms in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.  Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.