Reasons Why You Shouldn’t Use Tally ERP 9

Tally ERP 9

Are you considering using Tally ERP 9 for your business’s accounting needs? Hold off before making that decision. While Tally ERP 9 may be a popular accounting software, it has its fair share of drawbacks. From being complex and not user-friendly to offering useless paid upgrades, tt can slow down your accounting process and be a source of frustration for small businesses with limited resources.

Let’s look at why Tally ERP 9 may not be the best fit for your business and offer an alternative solution to consider.

Why You Shouldn’t Use Tally ERP 9

Let’s explore why Tally ERP 9 may not be the best choice for your accounting needs.

1.  Complex UX/UI:

It is not user-friendly software and requires a qualified accountant or at least two years of experience with the software to use it effectively. Small businesses with limited resources may find it challenging to use Tally ERP 9. Simply put, it requires expert or at least intermediate-level accounting knowledge in order to work.

2.  Software That Only Uses One Screen:

The software does not allow you to work on more than one ledger at a time, which makes it challenging to review work while making entries into the ledger. This slows down the accounting process.

3.  Pointless Paid Upgrades:

Upgrades for Tally ERP 9 are expensive and offer little noticeable difference. It costs between AED 1000 and AED 2000 per installation for Tally Partners to make upgrades.

4.  Not Useful for Multi-Branch Operations:

It is not ideal for multi-branch operations. To operate Tally from multi-sites, you must use VPN and invest in servers and LAN bundled with Tally.net. Consultancy and implementation costs can add up.

5.  No Flexibility of Changing of Chart of Accounts:

Tally ERP 9’s lack of a default setting button can cause frustration and time wastage. Changing settings after configuration settings are completed requires restarting and deleting all ledgers, making it a rigid and challenging software to use.

6.  No Central Support:

Tally ERP 9 lacks centralized support, forcing users to rely on the partner network, whose fees and level of expertise can vary.

7.  Low Security:

Losing your password can be a security risk as it can be challenging to retrieve data without it.

8.  Loss of Data:

Since it is desktop or server-based, the risk of losing data due to machine crashes or viruses is high.

9.  No Customization or Module Integration:

It does not support the customization or integration of other applications, and it cannot be customized.

So, What’s the Alternative?

If you are looking for an alternative, consider Xero Cloud Accounting Software. Xero is a user-friendly and efficient cloud-based accounting software that allows for multi-branch operations, flexible chart of accounts, and customization. Xero also offers central support and high-security features, making it a safer and more effective accounting solution.

The Benefits of Automating Accounting with AI and Machine Learning

Automating Accounting

Accounting is a critical aspect of any business, and ensuring that it is done accurately and efficiently is essential. Traditional accounting methods can be time-consuming and prone to errors, leading to discrepancies in financial statements. However, with advancements in technology, accounting has become more streamlined, and one such innovation is the use of AI and ML.

Automating accounting processes with AI and ML has several benefits for businesses, such as increased accuracy, time savings, cost-effectiveness, improved decision-making, and scalability.

1.  Accuracy

One of the main advantages of using AI and ML in accounting is its increased accuracy. AI and ML can easily perform complex calculations, ensuring the numbers are accurate. By reducing the chances of human error, businesses can have confidence in their financial statements and make informed decisions based on accurate data.

2.  Time-saving

Automating accounting processes with AI and ML can save businesses significant time. For example, AI can handle tasks such as data entry, bank reconciliation, and invoice processing, allowing accountants to focus on more complex tasks. This results in a faster turnaround time for accounting tasks, freeing up valuable time that can be spent on other critical business activities.

3.  Cost-effectiveness

Although there may be an initial investment in AI and ML technology, automating accounting processes with these technologies can be cost-effective in the long run. The time and cost savings from automation can be significant, allowing businesses to allocate resources to other areas that require attention. This can also lead to improved profitability by reducing overhead costs and increasing efficiency.

4.  Improved decision making

AI and ML can provide insights into financial data that may be difficult for humans to discern. These technologies can analyze data in real-time, make predictions and identify patterns in future trends. This can help businesses make informed decisions based on accurate data, resulting in better outcomes.

5.  Scalability

As businesses grow, their accounting needs become more complex. AI and ML can help enterprises to scale their accounting services to meet the growing needs of their clients. Automation can help manage a larger volume of financial transactions, and AI can provide insights into complex financial data. This results in increased efficiency and accuracy, leading to better outcomes for the business.

6.  Reduced Fraud

Automating accounting processes with AI and ML can help reduce the risk of fraud. Fraudulent activities can be detected more easily and quickly with automated processes, as AI and ML can identify anomalies and patterns in financial data. This reduces the risk of fraud going unnoticed and helps protect the business from financial losses.

7.  Improved Customer Experience

Automated accounting processes can improve the customer experience by providing accurate and timely information to clients. AI and ML can generate reports, invoices, and other financial statements quickly and accurately, which can be shared with clients in real time. This saves time and increases transparency, leading to a better overall customer experience.

8.  Enhanced Regulatory Compliance

Regulatory compliance is essential for businesses, but it can be a challenging and time-consuming task. Automating accounting processes with AI and ML can help companies to comply with regulations more efficiently and effectively. For example, AI can ensure that all financial statements and reports are accurate and comply with regulatory requirements. This helps businesses avoid penalties and fines, leading to a more efficient and cost-effective compliance process.

In short, automating accounting processes with AI and machine learning offers numerous benefits for businesses, including increased accuracy, time savings, cost-effectiveness, improved decision-making, scalability, reduced fraud, improved customer experience, and enhanced regulatory compliance. Therefore, by leveraging these technologies, businesses can streamline their accounting processes, freeing up time and resources to focus on other critical business activities. This will ultimately result in increased efficiency, accuracy, and profitability. So, consider automating your processes if you want to take your business to greater heights. And if you need assistance in doing so, feel free to get in touch with Profits Plus – a UAE-based accounting firm that merges the latest technology with traditional accounting techniques.

UAE’s Digital Transformation and Its Impact on Accounting and Finance

accounting and finance in the UAE

Over the past few years, the United Arab Emirates (UAE) has undergone a digital transformation that has had a significant impact on various sectors, including accounting and finance. The rapid adoption of new technologies has transformed the way financial transactions are conducted and managed, leading to increased efficiency, accuracy, and transparency of accounting firms in Dubai.

Therefore, today we’ll explore how digital transformation has impacted accounting and finance in the UAE.

Ways in Which Digital Transformation Impacted Accounting and Finance in the UAE

Let’s look at some of the ways digitalization has impacted the accounting & finance sector.

Automation of Financial Processes

One of the most significant impacts of digital transformation on accounting and finance is the automation of financial processes. With the help of software and other tools, financial transactions such as invoicing, payment processing, and reconciliation can be automated. Reducing the need for manual intervention. This has led to increased efficiency, faster processing times, and fewer errors.

Real-time Financial Reporting

Another important impact of digital transformation on accounting and finance is the availability of real-time financial reporting. With the help of digital tools, financial data can be collected, processed, and reported in real-time, allowing for better decision-making and more accurate forecasting. This has also enabled greater transparency and accountability in financial reporting, which is particularly important in the UAE’s business environment.

Improved Data Management

Digital transformation has also led to improvements in data management, particularly in the area of financial data. With the help of cloud-based storage and data analytics tools, financial data can be stored securely and analyzed more effectively. This has enabled businesses to gain insights into their financial performance, identify areas for improvement, and make informed decisions.

Increased Focus on Cybersecurity

As digital transformation has accelerated, cybersecurity has become a key concern for businesses in the UAE. With the increased use of digital tools and online transactions, the risk of cyber-attacks has also increased. This has led to a greater focus on cybersecurity measures, including the use of advanced encryption technologies, firewalls, and other security measures.

Increased Efficiency in Financial Operations

Digital transformation has enabled companies to streamline financial operations by reducing manual interventions and automating tasks. The use of digital tools has led to faster processing times, increased accuracy in data entry, and improved cash flow management. This has allowed companies to focus on core business operations, reduce costs, and improve profitability without having to worry about managing cash flow.

Enhanced Customer Experience

Digital transformation has also led to an improved customer experience in accounting and finance. With the availability of online banking, mobile applications, and other digital tools, customers can easily access their financial information and carry out transactions from anywhere at any time. This has made it easier for customers to manage their finances and has improved customer satisfaction and loyalty.

Integration with Other Business Processes

Digital transformation has enabled better integration between accounting and finance and other business processes. With the use of digital tools such as enterprise resource planning (ERP) systems, financial data can be seamlessly integrated with other business processes such as sales, supply chain management, and human resources. This has enabled most accounting and auditing companies in Dubai to gain a holistic view of their operations, improve decision-making, and optimize their business processes.

Opportunities for New Business Models

Digital transformation has also created opportunities for new business models in accounting and finance. For example, the use of blockchain technology has enabled the creation of new financial instruments and payment systems, such as cryptocurrencies and smart contracts. This has opened up new possibilities for financial transactions, increased transparency, and reduced costs. As a result, you can clearly see a rise in people trying to establish a new business setup in Dubai.

Challenges of Digital Transformation

Despite the numerous benefits of digital transformation in accounting and finance, there are also challenges associated with this process. These include the need for skilled professionals to manage digital tools, cybersecurity risks, and the potential for errors and data breaches. Companies need to have a comprehensive digital transformation strategy that addresses these challenges and ensures a smooth transition to a digital financial system.

The Way Forward!

The digital transformation of accounting and finance in the UAE has led to significant changes in the way we used to conduct and manage financial transactions. Automation of financial processes, real-time financial reporting, improved data management, increased focus on cybersecurity, increased efficiency in financial operations, enhanced customer experience, integration with other business processes, and opportunities for new business models are just a few examples of how digital transformation has transformed the financial sector in the UAE.

As companies continue to adopt digital tools and technologies, it is important to address the challenges associated with digital transformation and develop a comprehensive strategy that ensures a smooth transition to a digital financial system. So, if you also want to take your company to the next level hire a new-age accounting firm such as Profits plus Accountants.

How Accounting Software Can Help New Businesses

Accounting Software

Business expansion leads to more complex financial data. When business accounts are handled in spreadsheets, they become confusing, time-consuming, and error-prone. Growing businesses require scalable accounting solutions. Business owners must think beyond spreadsheet accounting when it comes to adapting to complex financial data.

However, it is possible to solve this problem with accounting software. You need accounting software if you want your business to succeed. Depending on the program, it can help you produce expert invoices, keep track of payments received and sent, identify and pursue past-due accounts receivables, streamline tax management, and run reports that assess your business’s financial health and forecast your future.

It can aid entrepreneurs in tracking their receivables and payables, analyzing profit, and filing tax returns. Small firms frequently don’t require significant customizations to use generic accounting software.

Here are a few ways how it can help:

Billing and Invoicing

Invoicing is an essential business process; billing is vital as this is the only way money enters. Paper-based invoice management is laborious. When you have ordered, creating invoices for every purchase is impractical. Keeping track of everything and sending a notification to your client for payment will only be possible with automated tools.

Online Payments

After making a bill for your client, the next step is to receive payment from them. This process can be very challenging if an appropriate payment method isn’t provided to the client.

In order to make your customer pay quickly, you need to combine your accounting software. Payment gateways work well as they update your accounting system when the payment is received and keep track of your expenses by updating them. For this, you can start with basic accounting software for small business.

Expense Tracking

You should know where all your cash is going in order to have control of your cash flow. With the help of business accounting software for small businesses, you can easily track and categorize spending to keep track of your finances. Likewise, you can also use accounting software to upload cost receipts, read them, and automatically enter data from scanned receipts.

Timesheet

Some of the top accounting software in Dubai allows you to maintain timesheets. This means you can bill clients based on your time spent on a project using the app’s timesheets section. Timesheets help you in managing time by keeping a check on tasks and managing billing. Accounting software enables you to prevent overcharging or undercharging your clients by keeping track of the time spent on tasks.

Tax Compliance

A sound accounting system helps you manage your tax, along with everything else. An accounting system can calculate the tax well when the company is dealing with different tax rates. It also provides you with a summary of tax records in order to keep you updated with all the documents.

Report Generation

When you are an owner, you should assess your company’s progress and keep a close eye on it. Accounting reports can help you understand your company’s financial trends and growth patterns. Inputting data and formulas into a spreadsheet is easy. When you create reports in spreadsheets, you must manually combine data and enter formulas for each report. Your time is saved because accounting software generates reports automatically.

Cash flow analysis and management tools are built into accounting software. Profit and loss statements and balance sheets give you a better understanding of your company’s financial situation, draw conclusions, and make wise decisions that will help you lead your company successfully.

Final Words

Maintaining accurate records of your financial data is essential for business growth. It is necessary to find a method that can overcome the limitations of conventional spreadsheets to maintain accurate accounts. By reducing paperwork and protecting data from loss, accounting apps simplify handling expense receipts. So, if you want to make your business progress. In that case, consider investing in good accounting software like that offered by Profits Plus Accountants – the best Accounting software solutions in UAE.

VAT in UAE: Here’s Everything You Should Know!

VAT in UAE

Almost everyone knows governments collect taxes from the masses to run their affairs. So, just like every other country, the government of UAE started collecting VAT in 2018. So, let’s start at the beginning, what is VAT? VAT stands for Value Added Tax and applies to the use or consumption of goods and services. At the point of sale, an imposition of 5% VAT occurs. The government collects taxes via businesses.

Now that we understand what VAT is, let us see how it takes effect in the UAE.

VAT in UAE

2018 saw the introduction of the tax in question. The rate of VAT in UAE, as in most cases, is 5%. The tax serves as an income source for the government, which can utilize to provide quality public services. However, businesses can also take leverage from the VAT accounting UAE has to offer for businesses.

VAT Criteria for Registering

It is compulsory for a business to register for VAT if its imports and taxable supplies, among other things, are more significant than AED 375,000 per annum. Other companies whose imports amount to less than AED 375,000 are not obligated to pay. It is optional for those whose supplies rise above AED 187,000 per annum. For this, you can easily hire any accounting and auditing companies in Dubai to register your business.

As we stated before, businesses help the government collect VAT. In return for its services, the government gives the businesses a refund on tax. Foreign businesses may also take part in this endeavor while visiting the UAE, as there is no restriction for local and national businesses to be the sole VAT collectors.

Guidelines to Register for VAT

Usually, the process starts by going to the FTA (FTA stands for Federal Tax Authority) website and into the eServices section. Businesses need to establish an FTA account; only then will registration be possible. In case you have any questions or concerns about how to proceed on the matter, you are free to get in touch with Federal Tax Authority. Or for a more direct helpline, call on either 600 599 994 or 04-7775777. This is something that everyone thinking about starting a business in Dubai should know.

Imposition of VAT on Businesses

VAT applies to tax-registered businesses located both on the mainland and within the free zones. But if a company is located in a free zone which is defined as a designated zone. A designated site, by definition, is not a part of the UAE and hence does not come under the jurisdiction of the UAE government. The exchange of goods between such zones is free of tax.

VAT Return Filing

Business registered for VAT and other ‘taxable persons’ (any person who carries out a business independently within the EU or anywhere else) is under the requirement to put forward a ‘VAT return’ to the FTA. They are to do this at the close of every tax period. VAT returns basically account for all the purchases and supplies that a business or individual has made over a given period, as well as their VAT liability. Still, if you don’t know how to proceed, then contacting any reputable accounting services in Dubai will come in handy.

What is VAT Liability?

Tax difference between output tax, which is payable for a specific tax term, and the input tax, which is restorable within that period. The output tax is the VAT imposed on goods and services, and the input tax is those on purchases. This is VAT’s liability. When the output tax is higher than the input, the difference is the payment that the FTA demands in that case. However, if the input tax is higher than the output tax, the business or taxable person in question will have extra input recovered. This input tax can be set off from subsequent payments due to the FTA.

How to file a VAT return?

This process is online now. You can go to eservices.tax.gov.ae and file your VAT return.

Now that you know all the basics, what are you waiting for? Get registered for the VAT! It is best to read through the FTA guidelines to answer the more specific questions. However, suppose you don’t want to get involved in these complicated papers works. In that case, you can engage a reputable firm such as Profits Plus Accountants to do it for you!

Why You Should Start Your Business in Dubai

business in dubai

It has taken Dubai a long time to develop into the prosperous, aspirational, and dynamic economy it is today. Investing in the United Arab Emirates is a great way to get your business off the ground. The Middle East is simpler to do business in than Dubai, which is ranked 16 internationally in the World Bank’s Easy to Do Business according to the 2020 report.

The UAE has become a major global trading hub with its diverse economic sectors, such as business, trade, export, logistics, tourism, hospitality, event management, financial services, construction, and more. There are numerous reasons why many business people favor or want to do business in the UAE.

Dubai Is a Growing Business Hub

Businesses frequently flourish in an area where other companies have already successfully laid their foundations. Since it’s near Europe, Asia, and Africa, Dubai is a great location for doing many business activities, including international trading, import, export, logistics, tourism, hospitality, and event management. Due to its proximity to the sea and one of the world’s largest airports, Dubai makes it easier to transport commodities. Because of this, most business owners who wonder if starting a business in Dubai is tough will be amazed to know it isn’t.

It is Tax-Free

In comparison to many other nations throughout the world, tax regulations in the UAE are quite lax. As Dubai develops into a fiercely competitive global business hub, it attracts both new and established companies searching for a tax-free zone to build their operations. The region’s most open and diverse economies are generally seen as being those of the United Arab Emirates.

Dubai has a no taxation policy that applies to practically all economic activity. Dubai residents benefit from tax-free income because both personal income and profits are not subject to tax. Nobody enjoys giving away even a modest portion of their hard-earned cash. Moreover, if you’re wondering how to open a bank account in Dubai, trust us, it’s pretty straightforward. That is one of the main reasons why you should consider Dubai to start your business. In fact, you can take the help of any CFO services Dubai has to take care of your taxation needs.

A Stable Government and Economy

Dubai provides a stable administration that fosters economic growth. The abundance of both large and small businesses also encourages healthy rivalry in Dubai’s commercial environment. Competition spurs innovation among companies, which pushes them to pursue greater profitability and profits.

Possibilities for Expanding Business

Dubai has already begun bolstering its infrastructure program for smart cities, which will expand the chance for newer firms to participate. In Dubai, there are many zones where businesses can be established, including the free trade zone. With more room to quickly adapt, develop, and diversify, thanks to company registration in Dubai, your firm can reach new heights.

A mainland company structure will be more advantageous if you intend to introduce new goods or services, enter new markets, or carry out new business operations. With a Dubai company registration, you have the freedom to grow your company by adding branches, hiring more people, etc., in other areas of Dubai and the UAE. Similarly, if you outsource your Accounting and bookkeeping services to some professional firms, you can enjoy peace of mind.

Infrastructure

The social, economic, and transportation infrastructure in Dubai is incredibly well-developed. But this doesn’t mean it’s limited to high-end office and residential space. The Emirate also offers reliable transportation and an advanced financial and service sector, making it ideal for establishing your business setup in Dubai.

As we already know, a company’s growth frequently hinges on the availability of sound infrastructure that can support growth. Dubai is renowned for its skyscrapers, magnificent architecture, and striking structures. There are also robust civic amenities, well-kept roads, and an effective public transportation system.

Before We Part!

Dubai has evolved into one of the most sought-after locations for conducting business, working, and residing for a variety of other reasons. Nearly 90% of the population in Dubai is made up of immigrants from more than 200 different nations. The Emirate’s economic and investment potential draw foreigners, among other things.

Why is Dubai Investor’s Paradise

Why is Dubai Investor's Paradise

It is no surprise that Dubai is a magnet for investors as it offers a rich blend of urban life and traditional elements of Middle Eastern culture. This city offers a diverse talent pool, well-developed public transportation, and many investment opportunities. A number of factors make it a popular investment and professional destination. Additionally, the UAE’s new visa offers and changes to owning businesses have served as the icing on the cake. So, foreign workers will stay longer, and more new investors will enter the waters.

Not to mention, it is one of the top vacation spots for businesspeople and investors because of these and other factors. If you’re also one of those business owners who are interested in starting a business in Dubai, then now’s the perfect time to do so.

The following are some reasons why Dubai is regarded as a paradise for investors.

Duabai a Government Backed Global City

What makes Dubai so appealing is the way it is administered. The city’s proactive leaders and the UAE government have made sure that investors continue to find it attractive. The government has given the economy a lot of energy by making significant reforms to the regulations governing visas and corporate ownership. Dubai now permits corporate licenses at 100 percent without the requirement of a local partner. Those seeking residency in the UAE have been drawn to the Golden Visa program like a moth to a flame.

With these adjustments, the new business setup in Dubai has become a breeze. And with this, Dubai has reopened its doors to the outside world while ensuring its residents’ and employees’ health and safety.

Investor Paradise

Dubai offers rental yields between 6 and 10%, which is unheard of in many developed markets. In comparison to the majority of other cosmopolitan cities like Mumbai, Shanghai, London, Singapore, and Monaco, 1 million USD can purchase a lot more real estate property in Dubai.

The Dubai real estate market is also very tightly controlled. An authority that strictly enforces real estate regulation protects investors and holds developers accountable. Right now, the market is much more transparent and compliance-focused.

No Annual Taxes

Dubai is the finest place to invest because there are no capital gains or property taxes there. Following the initial purchase of a property, owners only have to pay the one-time real estate transaction charge. Moreover, business owners can also take leverage from this by hiring reputable accounting and auditing companies in Dubai.

Financial Rewards

The fifth-best performing economy in the world is Dubai. The administration is committed to enhancing the business climate and fostering long-term growth in order to make the Emirate competitive on a global scale. Property investors in Dubai benefit from customizable payment schedules that are adapted to their financial circumstances. Investors favor Dubai because it is gradually becoming a reliable investment option with simple departure and, in many cases, a guaranteed 10-year visa.

Strong Infrastructure

Due to investors’ unwavering faith in Dubai and its promised infrastructure development, the real estate market in Dubai is poised to begin a brilliant comeback at the beginning of 2021. The excellent infrastructure of Dubai is one of its critical assets, according to the administration. One such place with excellent infrastructure and a high standard of living that keeps improving in Dubai. Dubai International Airport claims to be among the world’s busiest airports in terms of passenger flow. Jebel Ali Port is the biggest artificial port in the world when it comes to seaports. Any astute investor would be able to decide to invest in Dubai after considering these factors.

Business Hub of Middle East

A gateway to the Middle East, the Indian Subcontinent, and Central Asia, Dubai is a veritable center of global trade. Dubai, which is home to one-third of Fortune’s Top 500 Companies, draws business professionals from all over the world. Dubai also merits inclusion in the Top 20 Cities list of the 2022 Global Power Index.

Final Words!

These are a few reasons why you should invest in Dubai. Some of the most potent ones we’ve already mentioned above. However, if you’re looking for a place where your capital will be in safe hands, then look no further than Dubai.

10 Benefits of Business Setup in a Dubai Free Zone

dubai free zone companies

We are all aware that setting up a business in Dubai can give you a brilliant opportunity to flourish and experience tremendous growth, thanks to its strategic geographic location. Another main reason for Dubai to become an exceptional business start-up city is Free Trade Zones/Free Zones (more than 30) which is home to approx. 150,000 companies.

From ensuring 100% ownership to top-tier administration, exempting income tax to providing excellent infrastructure, low cost of setting up a company in Dubai free zone, and easy Dubai free zone visa requirements – this is a fertile ground equipped with unmatched facilities.

Multiple companies from different niches can invest, including Free Zone or Sole Establishment, Free Zone Company (Limited Liability Company with two or more shareholders), and Branch or representative office of the present or parent company (registered in the UAE or foreign).

Why Set Up Business in Dubai Free Zones? | 10 Key Benefits

Are you searching for an ideal place with a beneficial prospect?

Look for the free zones, as these areas are particularly designed for the sake of enhancing international business at a very low start-up and operational cost. Although your business activities depend on the license you obtain from the government (commercial, general trading, industrial, and service). Being a Dubai tax-free zone, these areas highly support entrepreneurial ventures.

1.  Full Ownership

To settle your business in Dubai’s mainland jurisdiction, you need a UAE National (local) sponsor who must possess a minimum of 51% company shares. It will give him the ownership and more control to take professional decisions, making you lose your power with the remaining 49%.

Foreign investors, irrespective of nationality, can get their company 100% ownership and full authority by setting up a business in free zone Dubai. No UAE national sponsor is needed, and no requirement to give maximum shares to someone else for company formation!

2.  No Currency Regulations

Restrictions on foreign currencies (regulated by the UAE government) must be followed by companies settled within the mainland. On the contrary, UAE free zone doesn’t implement currency restrictions to support seamless, quick, and stress-free financial transactions. Being a foreign professional businessman, you have the free will to use any currency.

3.  Exemption of Import/Export Duties

Dubai’s free zone jurisdictions are cleared from all Import and Export duties to maintain international trade. It helps companies save their wealth and grow exponentially. This benefit makes it easier for the government to promote foreign relations with various countries.

4.  100% Return on Capital & Profits

Dubai free zone business setups can enjoy the benefit of full repatriation, including profits as well as financial assets. In short, the investor holds the authority to transfer all profits earned through business and capital invested in the company to his home country.

5.  Readily Available Workspaces

You can find well-structured warehouses and innovatively constructed office spaces effortlessly in free zone jurisdictions that provide you with multiple amenities. You can either purchase or lease. They can also be rented. Luckily, you get 25 years of lease options. Storerooms are available in different sizes at different prices alongside modern and fully equipped workspaces.

You will surely find something savvy matching your available budget.

6.  Independent Regulatory Authorities

Dubai free trade zones are not run by the UAE government but are only overseen by their respective free zone regulatory bodies. They are responsible for setting rules and regulations. No company is answerable to the official government, which gives foreign investors flexibility and more freedom. It makes free zone company registration in Dubai extremely easy.

7.  100% Tax Exclusion

Another fantastic benefit attracting investors the most is the total income tax and corporate tax exemption. 100% tax omission lets you keep the maximum of your business profits. Exemption from corporate tax in Dubai free zone lasts for 15 years but comes with a renewal option that prolongs the period for another 15 years.

Free zone Dubai

It is applicable on personal and corporate gains, customs taxes, and imported products wholesaled to the mainland, except VAT which is comparatively low.

8.  Cost-Saving & Easy Recruitment

Do you want to save time, effort, and resources while hiring labor? The free zone allows you to recruit a low-priced workforce efficiently without going through time-consuming formalities. You can even employ foreign nationals in a very pocket-friendly way by following easy recruitment procedures.

9.  Brilliant Communication & Impeccable Infrastructure

You will get exceptional internet/connectivity networks, the most advanced communication systems, and flawless and efficient construction that offers budget-saving and plentiful energy. The zones provide first-rate transportation by air, sea, and land.

The best part is their locations offer easy and quick access to well-known airports and seaports for accessible business. To avail of more facilities, rent your ideal workspace.

10.  Fast Company Incorporation and Easy Immigration Process

The company incorporation process in free zones in Dubai is made extremely simple and straightforward, which may be accomplished within a minimum of days.

Completing the immigration process can be really challenging, but Dubai-free zones offer time-saving immigration facilities. Their simple and easy procedures are completed in a matter of time, saving your efforts.

Business Setup in Dubai Free Zone Areas

Profits Plus understands how tedious setting up a business in the UAE can get. That is why Profits Consultants are helping you find the ideal solution to protect your assets and grow your business.

Whether you need to start a company in Dubai or within one of the UAE Free zones, our experts can guide you by providing a top-level service. Establish your business in Dubai today with our professional assistance!

27 Tips For Writing Internal Audit Report | Best Practices To Make Report Persuasive

Writing Internal Audit Report

For those who don’t know what is internal audit report, it is an essential deliverable of the audit engagement which must explain all the efforts that have been made, all the steps that have been completed, and all the decisions that have been taken while conducting the audit. It must contain the results of the whole audit process summarized with facts and supported with credible references.

You can call it a good internal audit report only if the contents of the internal audit report make the readers understand its objectives clearly along with describing the scope and findings of your audit engagement. Every company tends to have its audit report template (internal audit report layout). To make your internal audit engagement a complete success and draft the best internal audit report, it is advised to follow the rule of 20:40:40:

  • Spend 20% of your energy on developing a detailed plan for the internal audit
  • Use the first 40% of your efforts in fact-finding, making observations, examining, and conducting fieldwork.
  • Keep the second 40% of your energy reserved for the internal audit findings report.

Top 27 Internal Audit Report Writing Tips – Internal Audit Reports Best Practices

If you have been questioning yourself “how to write an audit report”, you must look for the below-mentioned tips!

1.  The best practice is to start creating the report’s rough draft from the very first day of the fieldwork. Day 1 of engagement should be your day 1 of writing an internal audit summary report to avoid unforeseen delays.

2.  Like other auditors, do you also want to be called the “bearers of bad news”? If not, then you must check your tone and selection of words. The time has changed, and now the “Give and Take” approach is preferred as it creates a favorable business environment radiating pleasant vibes. But, don’t exaggerate your positives and balance them with negatives.

3.  A report will only get a higher rating and be comprehensible when the content revolves around your core objectives. The information must clearly explain the purpose of the draft.

4.  You must have used terminologies in the report, and they must be explained for a better understanding at the end of the report.

5.  Never miss out on proofreading internal audit reports before the final presentation. Keep a review internal audit report checklist for each step to limit the risks of avoidable mistakes. It is advised to never finalize the report without checking for spelling, grammar, formatting, and factual or numerical errors.

6.  Timely reporting and communication with team members are necessary to maintain stability, transparency, and a collaborative environment.

7.  Limit writing your executive summary of the internal audit annual report to 1 page of the Word document and 1 PowerPoint slide that must not take more than 10 minutes for the readers. The senior management must keep it compact for better influence.

8.  Avoid writing material misstatements in the scope and objectives paragraphs of the report.

9.  The best internal audit report format is title cover, addressee details, introduction, scope and objectives, opinion, basis of the opinion, results, recommendations, conclusions, auditor’s signature, place of the signature, and audit report date.

10.  The standards you are following for auditing processes must be highlighted in the introduction section, for example, ISO 9001, ISO 14001, etc.

11.  Never overwhelm your report with the company’s positives. Make a “Findings Sandwich” where you will be making layers by explaining positive and negative points alternatively. Although, you better end your report on a positive note.

12.  For the content, you must use bullets to your best. It is easier to catch the reader’s attention with bullet points.

internal audit

13.  The purpose of an internal audit report is not only to explain engagement results but also to make practical recommendations and find better opportunities to make greater progress.

14.  Besides bullets, the internal audit report’s content must have tables, charts, and graphs summarizing essential stats.

15.  While writing the detailed observations, make sure that each issue comprises all 5 c’s internal audit reports (Criteria, Condition, Cause, Consequence, and Corrective Action Plans/ Recommendations).

16.  To keep the report legible and authentic, reference every point. Making unverifiable claims will make you lose your credibility.

17.  Take full advantage of indices, appendices, and tables for bridging any information gaps.

18.  Putting too much data will bore the readers. The report must have specific information to make it persuasive and logical. Eliminate redundant ideas to maintain readability.

19.  Whenever you discuss any issue, it must be explained with its root cause.

20.  We all have heard “first impression is the last impression” which is why we make a good impact with a quality cover. It must not skip any important information, including report title, name of auditor responsible, audit end date, and name of company or business unit audited.

21.  Scientifically, you can keep the audience engaged in reading one paragraph for not more than 5 seconds. That’s why keep the 3-5 second rule in mind and try covering maximum information in the starting lines.

22.  A good audit report must be drafted and critically evaluated from the audience’s perspective. You must be aware of their interests, demands, and preferences.

23.  One of the best approaches to draft internal audit reporting is to emphasize the important data by circling or underlining it, highlighting it with different colors, or changing its format to bold or italics.

24.  Mentioning particular teams or blaming others for the failures in internal control audit report presentation should not be the aim. The problem must be seen universally.

25.  Always keep the internal audit report rating system in mind to help highlight the issues accordingly.

26.  Get rid of all the unnecessary descriptive adjectives, adverbs, or pointless information from your “executive summary.” Use numbers, facts, stats, figures, and percentages while summarizing your report’s content.

27.  Always make your internal audit reporting lines brief yet understandable and move with brevity!

Profits Plus’s Internal Audit Service – Designed to Improve the Reliability

Profits Plus has a team of certified accountants who are always ready to guide Dubai-based businesses throughout the internal audit process and provide outstanding risk advisory. From measuring the procedure’s effectiveness to supervising financial operations, we ensure you adopt the policies that help you improve internal operational control.

7 Effective Cash Flow Management Techniques

cash flow management

Whether your business is small or mid-sized, completing decades of establishment or a few months – efficient cash flow management is critical because “cash is king” and a key to a successful future.

With cash flow management, companies exercise full control of input and outflow of funds which helps them make sure that the outflow of cash stays lesser, profits keep increasing, excess funds are available for further investment, and business is not going to run out of money shortly, and the return on capital is always maximizing.

7 Best Tips for a Better Cash Flow Management

If you are only looking for nonpayers, heavy invoices, and loan repayment deadlines for better cash flow accounting, you lack a strategy. Many companies, particularly SMEs, make mistakes of not planning, misallocating resources, or over-forecasting their sales, consequently affecting their cash flow. But, we have enlisted the most practical cash flow tips that will let you save big and enjoy positive cash flow.

1.  Generate Cash Flow Reports

How do you plan on keeping a close check on each transaction without reports?

Well-maintained cash flow report, generated with accounting or Cash Flow Management software and tools (XERO), is necessary for calculating the incoming and outgoing balance. It is advised to use cloud-based storage spreadsheets to supervise and identify the highs and lows in the company’s money flow anytime.

Always assign such monitoring tasks to trustworthy team members who must be aware of all financial aspects as managing cash flow gets easier.

2.  Smart Inventory Management

How to manage cash flow effectively?

Always keep your inventory updated for a better understanding of ongoing supply-and-demand levels. Also, keep it freshly loaded with your best-selling products to cope with the growing orders without delay. The clever way is to do “ABC analysis”, as it will highlight the products that have been the client’s favourite and the products that are not appreciated.

You can either dispose of your no longer needed stock or sell it at great discounts for quick cash, leaving the only products that your customers are demanding. Prioritised stocking will help you get rid of excess stock, as well, because apparently, they won’t be generating revenue any time soon.

3.  Online Payment Methods

Never compromise on the payment method, or else you will face major setbacks. There are phone payment methods applications, but online payment methods will be a good choice as it tracks every activity and keeps a record. With net banking, Google pay, Paypal, etc., you will get your payment faster.

cash flow

4.  Fixed and Variable Expenses Across the Financial Year

It is essential to categorize your fixed and variable expenses. For instance, you will be paying rent, telecommunications costs, and employees’ salaries throughout the year – fixed variables. On the contrary, you will be receiving shipping fees depending on the location and paying for manufacturing material considering the demand or products – variable expenses. Cut their cost down from your total earnings and move forwards with another investment with a clear figure in your mind.

Additionally, a common area maintenance (CAM) fee for a brick-and-mortar shop needs your attention. It includes other outlays such as lighting, janitorial services, cleaning, etc. Don’t forget to add them up to your operating expenses!

5.  Lease for Small Businesses

Buying is not always a secure option. Leasing the equipment or inventory will benefit you in the longer run. It might get tricky sometimes but it will save you from getting troubled with debt because you won’t be paying massive amounts; instead, making small payments over a defined period. And yes, it does write off your taxes.

Still, asking how to improve cash flow management? We have just told you the best way to manage cash flow!

6.  Keep A Cash Reserve

With no backup cash, you will always be scared of making a new investment or taking a future decision because WHAT IF you fail to maximize capital or sales don’t give you the expected amount?! Petrifying!

That is why you must have a hefty cash reserve of a fixed amount to cover unanticipated or emergency expenses at any given time because companies run on money. If you face a sudden shortfall of money, your business will crumble.

7.  Maintain Your Invoicing Workflow

One of the most important aspects of maintaining a positive cash flow is utilizing the invoice-on-demand model for the company’s benefit. You must practice and teach your employees to send invoices immediately after delivering the products and collaborate watchfully with the buyers to get your payment as early as possible. SMEs don’t go well with the monthly billing cycle. Your invoice should be:

  • Clear and understandable
  • Fully Detailed
  • Easy to read

Every profitable business must have a secure method for sending an invoice, such as an email automation system. Choose the method of payment that not only pays you faster but saves you time. It will play a significant role in cash flow management during a crisis.

Profits Plus’s Expert Accountants at Your Service

Do you want to predict your company’s future financial position? Or looking for professional assistance in financial management planning? Profits Plus has every solution to your business and accounting problems!

Our cash flow management accounting services are solely focused on helping businesses generate a greater amount of cash for a secure future. We use the best cash flow management tools & techniques to minimise the chances of negative consequences.