Standard Operating Procedures – A Key to High Efficiency

In a business set up Standard Operating Procedures commonly referred as SOP’s are instruction manuals that can help lead your setup into an efficient working system that can strive forward.

4 Quick Tips on how to create an SOP

Standard operating procedures refer to the step by step instruction manual that helps your business organisation run its operations efficiently. The step by step instructions are designed differently and separately for every task that has to perform in a company. All SOPs must be clear, concise, and easily understandable so that the tasks can be performed in an efficient manner without time being wasted in confusion upon technical terms or unclear descriptions.

Now let’s talk about the tips.

  • Good and effective communication with department heads

Different tasks have different merits and different requirements. There is no one shoe fits all while working in an organization. Talking to the department heads gives you insight on all the activities and special events that are going around in the company. Every department head is well acknowledged with the nature of those working under them. Consulting them can give you the best ideas on how to construct the SOPs with the best practices and methods that can help handle challenges and situations. It’s a good practice to take disagreements as positive outcomes of meetings as they jus help u gain more knowledge on how to go about to avoid further problems.from the communication with the heads you can outline the most essential policies that will allow you to smoothly run your business and achieve the desired level of profits.

  • Organizing the outline you’ve made

Organizing the outline in a logical manner is very important. The most effective way in many cases is to number them out. This is of major help as it instantly references major and specific policies from different sections in the document. Having clear numbering with subsections is a great way to collect everything in one place in an organized manner. Having a glossary is useful so that all terms are understandable to all. Having an index can also help to look for specific sections in the document.

  • Assess the clarity of your SOP document.

Before making a final document and circulating it within the organization it is important that you make sure that all policies and instructions are clear and easily understandable to all. An easy way to make this assessment is to check whether a newly hired employee can understand the instructions that are quoted on the document. If new employees have problems deciphering it and continuously make errors you may need to revise your document so that it is less confusing and more effective.

  • Consult with your counseling firm.

Having a counseling service review your document can help a lot as they have experts that can review your document and guide you on what you need to do. They can more easily identify where you are making errors and can help guide you with how to create processes and procedures that are designed as manuals for payroll, HR sales, purchases, etc. They also provide guidance for initiating internal laws for staff training.

 

Part-Time Accounting Services: A Wonderful Alternative for Start-Ups in Dubai

CFO

In the last few decades, UAE has seen a remarkable investment boom. As a result, demand for accounting and bookkeeping services has skyrocketed in Dubai

That is unsurprising considering how the UAE government has been consistently following a policy of trade liberalization to draw in investors, entrepreneurs, and business owners to Dubai.

Aspiring business owners took to all the possibilities the ‘City of Gold’ had to offer and began the painstaking process of converting their blueprints into actual businesses

And thanks to the world-class accounting companies in Dubai, their books were the last thing they had to worry about.  This success story highlights the indispensable role accounting functions play in company formation and business setup.

Part-Time Accounting Services for Startups

Clearly, accounting and bookkeeping services are essential. It would be impossible to establish a business – much less run one – if you do not have updated financial records

At the same time, most start-up founders already have too much on their plates – and acquainting themselves with complicated accounting rules and conventions from scratch may not be the best use of their time.

Most business owners rely on in-house accounting departments or hire outsourcing companies to offer financial insights and keep their books in order.

While both these options work wonders for established businesses, full-time accounting is a ridiculously expensive option for start-ups and newly hatched SMEs with limited budgets.

Part-time accounting is the perfect solution for new businesses because it allows them to harness the benefits of accounting flexibly and economically.

Here are core reasons why you should consider availing part-time accounting services for your start-up (if you aren’t already!):

  • Save Money

Part-time accounting services have gained popularity in Dubai because they are more cost-effective compared to full-time services. Affordability is a major metric for startups that are just testing the waters or still in the incorporation phase.

If you establish an in-house accounts office, you will have to pay for the overheads, wages, and supplies. Similarly, an accounting outsourcing company may charge a fortune for handling your accounting tasks.

Part-time accounting is an ideal solution for such situations. Not only would a professional accountant be there to comb through your financial records, update your statements and ensure that you comply with financial regulations, but they would do it at a lower rate, allowing you to save money and invest it elsewhere.

  • Save Time

Part-time accountants have fixed work schedules. They will spend a specific number of hours working on your book.

Since part-time accountants have to do all that’s necessary to update your financial records within this window of time, they are great at meeting deadlines. Therefore, hiring the services of a part-time accountant is the best way to save time and get work done efficiently,

Also, if you have a professional accountant to handle your transactions and audit your records, you save time that you would have otherwise spent pouring over your financial statements.

  • Employee Training

Hiring a part-time accountant will help create a healthy organisational culture centered around knowledge sharing, allowing you to optimally utilize onsite human resources.

A part-time accountant will only work for limited hours, but they can provide training to your employees and help them develop an in-depth understanding of the core accounting functions your organization makes use of.

At Profits Plus Accountants, our expert accountants accomplish this by using Xero, a leading accounting software in Dubai that enables businesses to go paper-free and bring down their accounting costs.

Our accounting specialists teach your staff to use Xero to handle relevant tasks and generate financial reports, so the work does not get disrupted in the absence of an accountant.

  • Immeasurable Flexibility

Flexibility is one of the biggest plus points of hiring a part-time accounting expert. That’s because accounting tasks and requirements vary, depending on several factors including the size and nature of business.

Flexibility is especially important for new businesses that have yet to gather financial data, analyze their performance, and create internal protocols.

To hire a full-time accountant in Dubai, you will have to pay them fixed wages and enter into a year-long contract with them.

Part-time accounting is more flexible in comparison. The contracts are more short-term, and you can easily request relevant changes in your plan.

 

Profits Plus: Part Time Accounting Services in Dubai

Profits Plus Accountants is one of the leading accounting companies in Dubai. All our accountants are ACCA-qualified professionals with decades’ worth of experience. Get in touch if you want to know more about our part-time accounting services.

5 Ways Outsourced Accounting Can Benefit Your Dubai Business

Accounting is a time-consuming task that requires prior practice, knowledge of accounting conventions, and, most of all, patience and consistency. For the layman, accounting may be tedious and even boring but for the business owner, it is nothing short of a necessity.

Accounting is crucial for anyone running a business. It allows business owners to track their revenue and expenses, ensure compliance, and obtain valuable financial information that can be used to make core business decisions.

But while accounting is invaluable because it allows you to track your expenses, chart your revenues and set a direction for your company, it is like a whole new language that most business owners do not have the energy or time to learn.

That’s why they rely on professional accountants to navigate complicated accounting rules, carry out painstaking computations and help with financial goal setting. One way to do that is establish an in-house accounting department to handle your books. This can only be done if your company is financially secure and you can afford hiring an internal accounting team.

Setting up an internal department to handle accounts is not such a great option for small to medium enterprises (SMEs) and start-ups because of many reasons, budget constraints being one of them.  In recent years, many accounting outsourcing companies have sprung up in Dubai to assist such businesses with day-to-day bookkeeping, managerial accounting, auditing and more.

What is Outsourced Accounting?

Outsourced accounting is just like in-house accounting – except you’re outsourcing your accounting and bookkeeping tasks to a third party like an accounting firm in Dubai.

Your accounting company will then handle all your finances and bookkeeping tasks, much in the same way an internal department would have done.

Outsourcing your accounting is a great option if you own a SME or a new business. It allows you to benefit from expert input as well as all the features of internal accounting, but at a lower cost.

5 Amazing Benefits of Outsourced Accounting

Here are five reasons you should consider hiring outsourced accounting services  in Dubai:

  • Accounting Advice from Experienced Professionals

If you want advice from the most experienced professionals in the accounting sector, you should seek help from accounting outsourcing companies in Dubai.

The best accounting firms only recruit experienced accountants and financial experts with authentic field experience and diverse portfolios. Most accounting specialists working for accounting outsourcing companies are competent professionals who have worked with businesses from many sectors.

Compared to in-house accounting specialists who will only be able to resolve select problems associated with their field of expertise, professionals who work for outsourcing companies will be able to creatively engage with and solve a greater range of accounting problems.

  • The ‘Price’ Factor

One of the major advantages outsourced accounting has over conventional in-house accounting is lower cost. To set up an in-house department, you would need space and funding for recruitment as well as training. You may also require additional resources like accounting software and office supplies.

Once you have an in-house department that is functional, you need to pay a fixed sum to sustain it. This money would be spent on wages, supplies, and maintenance. In comparison, if you have outsourced your accounting function, you won’t need to worry about any of these expenses.

You can also save money by opting strictly for services that your business requires. Most accounting outsourcing companies allow business owners to pick and choose services they require and create flexible and bespoke accounting plans that cater to their specific requirements.

  • Ensuring Compliance

Accountants who work for outsourcing companies are never out of practice. They are well-versed in accounting rules and it is a part of their job requirement to remain updated with the latest accounting rules and conventions.

One of the key jobs of your accounting experts is to ensure that your business is complying with all the accounting requirements and regulations. In Dubai’s dynamic environment, staying abreast of such developments is vital, especially since not complying with rules can result in fines, penalties, and even huge financial setbacks.

Hiring an accounting outsourcing company can help you navigate the financial landscape in Dubai with relative ease and ensure compliance with legal requirements.

  • Boosting Productivity

Hiring the services of an outsourced accountant can lead to a boost in productivity. That’s because you have a panel of seasoned financial experts pouring over your statements and offering valuable insights about where to put in resources and where to cut costs.

Accountants do not only perform audits and offer advice, they also help organizations set realistic, concrete and data-driven goals. They will also help you budget effectively.

  • Effective Time Division

Bookkeeping is a complicated task that requires expert attention. If your employees are currently handling your financial records, outsourcing your accounting to professionals can help you save a lot of time.

Once you outsource your accounting function, you can redirect the attention of your employees to different essential functions and move towards effective time division.

 

Looking for Accounting Outsourcing Companies in Dubai?

Profits Plus Accountants is a leading accounting firm that offers a wide range of expert accounting services to businesses across the UAE. All our accountants are ACCA-qualified professionals with decades’ worth of experience. Get expert advice  now!

When to register your business for VAT; Voluntary or Involuntary

The world of tax as it applies to you and your small business is an incredibly important one, and yet often more than a little confusing; one of the areas that seem to confuse most is that of VAT (value added tax). Most business owners know that they must register their business for VAT but are a little unclear as to the exact rules. If and/or when one should register for VAT is a common question that many businesses would like a simple answer to. Most accounting firms in Dubai will offer you different types of registration, so be mindful of whom you pick.

There is in fact more than one type of registration, which is probably what confuses people; ‘compulsory registration’ is, as its name implies, the point at which the law says you have to register your business. Here in the UAE, this is when the value of your business’ taxable commodities and services reaches £70, 000 in a year. As well as the previous twelve months, the law also states that if you are aware that you will reach this figure in the next month you are also obliged to register.

You are obviously not obliged to register for VAT if your business does not reach this threshold, but many businesses do choose to do so; this is called ‘voluntary registration’ and it has both advantages and disadvantages.

One of the reasons that a business may choose to voluntarily register for VAT before they reach the UAE threshold is that when a business regularly invoices other VAT registered customers they are able to claim back some or all of the VAT charged on their purchases.

Voluntarily registering your business accounting for VAT can also improve your business profile by leading other businesses to infer that you have a much higher turnover than you actually do. This will open streams of business to you from those wishing to do business only with larger concerns as they include you in the mix.

However, once you have registered for VAT you will be required to submit a VAT return each year; adding to your business’ paperwork and form filling obligations will obviously add to your workload; something to be considered if you are a small business owner struggling with an already full-time table.

It is not recommended that you voluntarily register for VAT if your only customers are the general public, who cannot claim back the VAT that they pay, as you will have to add an extra 17.5% to your prices, which could make you uncompetitive, better then to wait until compulsory registration kicks in, at which point your larger turnover may allow you other ways to increase your commerciality.

Whatever size business you have, making a decision about when to register for VAT without first sitting down with your accountant and discussing all of the options open to you would be fool hardy to say the least; most accountancy professionals have a good working relationship with HMRC and an in-depth understanding of the benefits and disadvantages of each alternative, so use their knowledge to make the best decision for your firm.

In simple terms, you must register for VAT if your business is over the VAT threshold, but if it is under it you have a choice; choosing to register voluntarily is beneficial for some businesses and less so for others, but the ways in which this will affect your own business are probably best explored by someone with an understanding of its financial history and its future forecasts.

The main advantages of voluntary registration:
If you are charging business clients who are VAT registered themselves (not the general public), then if you choose to register for VAT this will represent “money in your pocket”, as you can claim the VAT back on some or all of your purchases. Your customers will not mind as they can recover all the VAT back you charge them on your invoices.

Being VAT registered is sometimes viewed in a more favourable manner by other businesses. They may assume that you are VAT registered because you have a higher turnover, even though that is not the case. In essence, being VAT registered could mean that other organisations view your business as more credible.

If you are a business where most of your supplies are zero rated for the purposes of VAT, then it may be worthwhile voluntarily registering, as you will be in a repayment situation each month and can claim the VAT back that has been charged to you.

The main disadvantages of voluntary registration:
If you register for VAT you will be required to submit VAT Returns, and also account for all the VAT on your taxable supplies and purchases, as part of your record keeping. This extra administration can cause a drain on your time and an additional stress if you are a small business.

If you register for VAT voluntarily but your customers are the general public, then you will need to add on 17.5% to your prices; they will not be able to claim this back and therefore this represents a real hike in the cost of your services to them. Therefore, from a commercial point of view, this may not be a good idea as you may price yourself out of your market.

Like all other decisions, as regards tax and accounts compliance, you should make sure that you fully consider all of the consequences before you make a final decision. It is crucial that you consult with your accountant, so that he can look at whether or not it would be beneficial for you to voluntarily register for VAT based on your own circumstances.

So, you’re looking for accounting companies in Dubai, or more specifically a VAT accountant, then check this out!

 

 

 

 

 

An Insight into why your company needs a CFO Service

CFO services can take your business to the next level, helping you achieve your goals much sooner. While larger corporations may be able to afford a full-time CFO and accounting team, small businesses have to allocate their budget wisely. Your organization can benefit from years of experience and financial expertise without having to commit your resources to a full-time CFO.

If you are looking for advice or guidance for your business or you need help getting through a crisis period, an outsourced CFO might be your answer. Keep reading for 11 reasons why you should hire part-time CFO services.

  1. Part-time CFOs are more cost efficient.

With outsourced CFO services, you only pay for the services you need. You can budget your CFO services exactly because you pay by the hour. Your business likely does not require the same level of support every month. Your part-time CFO works and bills you when you need advice or assistance. If you do not need as much support one month, you do not have to pay.

In addition to the savings of a full-time salary, you also do not have to provide benefits or other incentives. Your part-time CFO does not get paid a bonus by your company, and you do not have to provide extra perks to retain an employee. You can also save yourself the time and headache of hiring a new employee if you contact a business that provides such services.

  1. They provide budgeting advice and mentoring.

Small business owners or entrepreneurs are experts in their field, and that field might not be accounting. You can ensure your business is financially solid by trusting a part-time CFO with your budgeting needs. Such services can help maintain your budget and keep you updated on every aspect of the financials for your business.

Your part-time CFO can also provide mentoring for you and your team. Whether you need help training your own financial team or you just want to learn the ropes for yourself, you can contract CFO services to help.

  1. You will receive strategic analysis.

A CFO can do so much more than help with the finances for your company. Your part-time resource can assist with goal setting and strategy development, creating milestones for financial goals and non-financial goals alike. The strategic analysis, such as risks or threats, provided by such services can be essential for your business, setting you apart from the competition.

  1. Their advice and guidance is easy to understand.

You do not have to be a financial expert to understand your CFO. While full-time CFOs tend to get bogged down in industry and company jargon, a part-time CFO serves a wider range of clients. They are used to providing analyses and explanations in a language that everyone on your team can understand. Not only can such an individual communicate directly with you, they can also provide crucial information for your investors, stakeholders, and team.

  1. Outsourced CFOs have a wider range of experience.

Your part-time CFO is constantly learning and growing their own set of skills. They are likely working with multiple companies across various industries while serving your business. This wide range of experience can greatly benefit your organization as your outsourced CFO shares insights into what makes other organizations successful.

  1. You can receive crisis management support.

Nobody wants to think about their business experiencing a time of crisis, but major losses or setbacks do happen. Instead of panicking during that time, you can trust your business with an experienced CFO. Your outsourced CFO can help guide you through the difficult period, providing advice and suggestions to help cut costs, improve cashflow, rework budgets, and raise funds. With a part-time CFO, you will not have to spend your precious resources on a full-time employee during a stormy season.

  1. Part-time CFOs can establish reporting systems.

Whether you utilize the services of a part-time CFO for an ongoing basis or a limited period of time, they can help establish reporting systems that you can use for years to come. They have access to the top financial and reporting systems and can help determine which metrics and tools work best for your organization.

Your CFO can provide insight into managing your business’ financials and communicating your metrics to key stakeholders. They can also guide your team, helping them create the best reports for your organization. Utilizing a part-time CFO for even a short period can provide lasting benefits for your bottom line.

  1. They provide sound advice for business leaders.

Sometimes you just need a sounding board. Whether you are a seasoned pro or starting your first business, it can be stressful work. Entrepreneurs and business leaders are under immense pressure and often feel alone with the burdens they carry. Your part-time CFO is able to serve as a sounding board, mentor, or personal advisor. With their years of experience they can provide valuable insight into the road ahead and act as an outside set of eyes.

  1. You can increase your business network.

Your outsourced CFO has worked with many clients and served various industries throughout their career. Along the way, they have likely picked up some impressive contacts, building a network or professionals and business leaders. Your part-time CFO can help connect you to the right people, providing support for every aspect of your business. They can also lean on the assistance of other CFOs if you are facing a unique challenge or something outside of their experience.

  1. Part-time CFO services are flexible.

With CFO services, you are not entering a long-term commitment. You have the flexibility to decide when you need assistance and what type of support you want for your business. The role and functions of your part-time CFO are entirely within your control, and you can alter them if needed. As your business grows, your needs are likely to change as well, and your outsourced CFO can meet those changes with you.

  1. You can focus on your business.

If financials are not your thing, your part-time CFO can free up your time to focus on what you do best. Instead of spending countless hours trying to attain a certain level of financial knowledge, you can trust an experienced CFO. You can also decide which roles your part-time CFO takes on, including meeting with investors, managing stakeholder relations, and providing training for your team. With a more open schedule, you can keep your focus on growing your business.

So if you’re looking for the best cfo services Dubai, look no further than profits plus accountants.

 

The guaranteed way to raise money for your small business

Loans for business used to come under the banner of banks but that time is gone now. Banks now only lend money to companies which are low risk or can secure the loan amount against assets.

It is much more difficult in Dubai to get business loans as almost 80 percent of the population consist of ex-pats. Who may well exit, depending upon situations in both Dubai and home country. But it’s not as if they will not pay up on their debts before actually exiting.

Small businesses struggle the most as the cash flow is inconsistent at times which can hinder the growth of that business at times. The common traits which a failing small business has is them having an absence of funding and taking on more debt to pay the original debt off. Moreover, if the timing of these events is coinciding, this may well yell doom for the business itself. With that being stated, it is no doubt that small business is the lifeline of a country.

So how does a small business owner compete in not only the local market but with freelancers as well? Those freelancers sitting across the globe with lesser overheads.

Appropriate Practices for Business Owners

Investors, individuals or institutional, look for a number of things when deciding to lend:

  1. Owner – the character behind the enterprise is the most important, so emerge as a likable man or woman and professional in your enterprise endeavors. If you prepare a meeting, keep to it, if you want to make a payment do it straight away, if you make a promise, make certain to deliver on it. Your popularity will unfold shortly within the business neighborhood and amongst your peers. These are the equal individuals who could be contacted or approached for lending in the future.
  2. Accounts – hold precise debts from the day you begin and no longer when you want a loan. Maintaining accurate books is so important and have to no longer be ignored. Try to use a cloud accounting software program that offers you get admission to real-time administration accounts.
  3. Processes – create a stable workflow in your business, get organized, forms go in documents do now not draw. Keep data well organized, maintain a CRM device if possible.

These are just the basics of any enterprise and without these, you will war to elevate even the smallest loan.

Personal Loans

When borrowing for your small commercial enterprise it may also be less complicated to borrow personally, specifically if you are on an employee visa inside your personal company. Banks and Credit Cards (not recommended) will lend to personnel with 3-6 months of revenue proof.

The following are links to platforms that would be a good start to personal lending:
1.  SouqMal: This is an exquisite place to start for non-public lending. Applying via SouqMal will assist you to get admission to a heap of lenders in the UAE with just one application.
2. MyMoneySouq: Another amazing platform to get right of entry to hundreds of personal lending picks with just one application. Review the lending charges and the terms all online earlier than talking to anyone.
3. Friends & Family: Always the high-quality and cheapest option, subsequently the reason to be a high-quality individual two

Business Loans

Banks are the closing vicinity we recommend for Business Loans, there are many small enterprise pleasant alternatives and we analyze some of these below:

  1. Friends and family. At the top of the list are pals and family. Consider approaching those who are employed as a substitute than entrepreneurs. People who work have much less time to consider innovative investment alternatives and generally stop storing their money in financial savings debts paying less than 3% per annum. If you can offer them a return of over 5%-10% per annum, then you should be a better option for most humans who truly work and save.
  2. Beehive.ae, think about going to people but through a platform. Beehive is a peer-to-peer lending platform that connects small enterprise owners with buyers without the want for a conventional intermediary. Its focus is on finance from AED 100k on reimbursement terms from 6-36 months. Check it out on www.beehive.ae
  3. Eureeca.com, a terrific platform for those looking to raise extra than $200k. Launched in 2013 the group at Eureeca has helped many high increase corporations increase widespread amounts. Check them out on www.eureeca.com
  4. Dubizzle, What the…? I hear you ask, Dubizzle, Really? Well, Yes. Dubizzle is an exquisite platform in Dubai and posting in their business section for an investor, with as plenty detail as possible, does without a doubt work. Just be careful to pick the proper person.

Although there are many other options, I in my view accept as true with these are an exceptional vicinity to start, however, take note to make sure the following statistics in place:

  1. Access to a correct set of accounts. We can assist with that www.profitsplus.ae
  2. Good processes, software, and CRM. Check out Zoho CRM
  3. Try to maintain the enterprise in the blue by way of reducing overheads and growing your fees. Only develop when it is justified.
  4. A solid internet site will also assist and a top nice online presence.

Good Luck with your fund-raising exercise and do message me if you need any help. If you want to speak to an advisor to help you with VAT, Funding or Accounting in AE then contact me, Ali Afzal, on +971585442030 or email me on [email protected]

 

Understanding VAT in the UAE 2020

You may know nothing about VAT Accounting, but that doesn’t mean that you should remain ignorant. If you’re a VAT taxpayer, the more you know about it, the more benefit you and your business can derive from it. Here are five essential things that you need to know about VAT in UAE.

VAT Registration and De-Registration

How do you know whether you should register or de-register for VAT? If your turnover is more than AED 375,000 per year, you must register for VAT. If your turnover for the year is under AED 375,000, you are allowed to de-register or apply for voluntary registration. Once you’ve registered for VAT, that’s when a VAT consultant will be useful to you. They can advise you on the latest regulations and keep you and your business on the good side of HM Revenue and Customs.

VAT Schemes

Businesses that are registered for VAT need to account for tax when they invoice customers or when their own suppliers invoice them. HM Revenue and Customs has a number of VAT schemes that allow your business to save time or only account for VAT when they are actually paid. To work out which scheme bests suits you, seek the qualified advice of an experienced VAT advisor.

VAT Records

It is your legal and mandatory obligation to keep accurate VAT records regarding any tax paid or received. You need to keep these records for a fixed number of years and there are penalties for poorly kept records. Keeping accurate VAT records helps you to avoid paying too much tax. To find out more about keeping accurate VAT records, speak to a VAT accounting specialist.

VAT Responsibilities

Do you know what your VAT responsibilities are? If not, you could fall foul of the VAT penalty system. A VAT consultant will let you know your VAT responsibilities and help you to stick to them. You don’t need to be a VAT expert when you have a VAT adviser, they’ll keep you informed of all your responsibilities regarding Value Added Tax.

VAT Penalties

As of 2017, a brand-new VAT penalty system is in place. There are two scenarios under which a penalty will apply. The first is in the case of failure to notify about an under-assessment. This occurs when a VAT Return is not submitted, and Customs have to estimate the assessment. If this assessment is lower than the actual figure it should be and the taxpayer does not inform HM Revenue and Customs, then a penalty is liable.

Second, when someone submits a document that includes an error, this will also trigger a penalty. An error when reasonable care was not taken will be punished with 30% penalty. An error which is deliberate but not concealed from HM Revenue & Customs will be punished with a 70% penalty fine. Finally, an error which is deliberate and where concealment can be proved will result in a 100% fine. By using a professional VAT consultant, you can avoid making mistakes and paying the price for it.

Exemption from VAT

If you have an alternate license in the UAE (LLC or Freezone) and do not function in Dubai and obtain all profits from outside UAE, then you may qualify for exemption from VAT, but you nevertheless MUST practice for this through the FTA. Banks will request this and may also hold repayments as a result. This is also regarded as zero-rated supplies.

To benefit from the expertise and experience of a VAT adviser visit profitsplus.ae to find out how they can help you manage your VAT accounting.

Top 3 Ways A CFO Can Help Your Business

Every business is sure to benefit from having a chief financial officer overseeing accounting and finances. These top-notch financial advisors help to keep all of your reports and bookkeeping up to date as well as give useful financial advice and strategy to keep your business on track and meeting margins.

But paying out AED 700,000 a year for a full-time CFO consultant can be a lot more than many smaller businesses, such as client companies, can reasonably spend. But before you count yourself out on being able to hire these useful consultants, did you know that part-time CFO services are making involved and dedicated financial analysis available to all businesses? With the possibility of paying for a CFO on an as need basis, there’s no reason why you can’t cash in on all of their knowledge and skills.

Chief financial officers supervise the accounting staff and on occasion controllers as well. They make sure that all of your accounting operations are in order and now play a bigger role in the planning and direction of businesses than ever before.

In fact, a CFO consultant in Dubai offers a lot of additional benefits:

  • Financial strategy, such as the development and execution of any new or existing plans.
  • Contingency planning to help see you safely through any soft markets and customer demand crises before they can happen.
  • Business analysis to pinpoint any possible issues that need to be rectified if you want to get margins back in line.
  • Business planning to help you meet or set up long term goals as well as forecasts to aid in planning.
  • The valuable insight that can challenge the way you view your business and help it to grow.
  • Extensive knowledge with other companies that will get them asking the right questions you should think about, as well as what strategies are proven to work.

Part-time CFO services can give you all of these benefits but only at the hours, you need. Whether it’s just a few days a week or even per month! They can be in the office regularly enough to make sure everything is running smoothly, and your financial operations are in order without you paying the salary of a full-time CFO consultant.

Their easier hire in and out also makes them the perfect resource to use to keep things running while your current CFO is out or if you’re looking to hire the right full-time CFO. Many part-time CFO services offer interim CFO’s to fit these small gaps so you don’t have to worry that your financial operations will fall apart while your current CFO is on medical leave or you’re currently searching for a new one.

You can also bring them in to temporarily head up projects that your other staff are too busy to get to. Have a massive sales opportunity coming up, but all of your workers are too tied up or inexperienced to assist? A short-term CFO can get it out the door and only need to be paid for the time that you need them. Along with that, their more temporary or part-time status also makes them much easier to dismiss as opposed to a full-time salary CFO consultant.

So if you’ve been feeling that your financial operations could use help, or if you’ve wanted the advice of a trained professional, a part-time CFO could be right for you. And with the ability to hire them on as need basis, there’s no reason why your business can’t have the same edge as the big guys.

If you need dedicated and professional CFO services at an affordable price and availability, profits plus accountants is the place to go. With an assortment of solutions and a sincere dedication to making your business a success, you’re sure to be well on your way to the growth and expansion you’ve always wanted.

Xero Cloud Accounting Partner in Dubai

Xero cloud accounting is one of the most exciting innovations in accounting. Profits Plus Accountants are a Silver Partner with Xero Cloud Accounting. More importantly, we engage with all clients through Xero Cloud Accounting and this approach earned us the title of ‘No.1 Xero Cloud Accounting Partner in the UAE’.

Currently, 95% of our clients are taking advantage of the free subscription offered to Xero Cloud Accounting software only available through Profits Plus Accountants. Similarly, you too can get your business on Xero Cloud Accounting and work with the only accounting company in the UAE dedicated to cloud accounting.

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Profit Margin Tax Scheme [Used Car Sales]

Profit margin tax is a value-added tax (VAT) scheme created by the FTA AE for the benefit of the used goods industry.

The scheme allows VAT to be applied only to the profit portion of the goods sold, provided full VAT has been charged on the goods previously.

Working Example

Ahmed buys a brand new car from a dealer in Dubai. He pays AED 100,000 plus 5% VAT. Regardless of how he purchases the car i.e. full cash or on finance VAT of 5% has been paid on the total value of the car. Now since he is a consumer and not a UAE business that has undergone VAT registration, he will NOT be able to claim for VAT return, according to the FTA rules.

6 months later Ahmed decides to sell the Car to Khaled (a used car dealer) based in Dubai. After agreeing on the price of AED 80,000 Khaled pays Ahmed in cash. Ahmed then sells the car through his showroom for a price of AED 85,000.

Let’s calculate his VAT liability

Purchase PriceAED 80,000
Selling PriceAED 85,000
ProfitAED 5,000
VAT Liability (5% of AED 5,000)AED 250

Common Mistakes

  1. Deducting expenses before calculating the Profit; there is no provision in any FTA portal publications that allow for the deduction of expenses on the used car before calculating the Profit element on which the VAT is applied. Therefore you cannot deduct car polishing, car repairs, and other expenses before calculating the Profit on which VAT is applicable.
  2. Charging Profit Margin Tax to used cars 2017 or earlier; Profit Margin Scheme can only be used for cars where the FULL VAThas been previously applied, therefore since cars previous to 2017 or earlier have not had the full vat applied it is not possible to apply the Profit Margin Scheme to these cars.

NOTE: Profit Margin Tax can still be applied to cars 2017 or earlier but only if the full vat was applied by a used car dealer in the chain of events.

If you are looking for an accountant in Dubai then speak to Ali Afzal, a Managing Partner at the firm. You can reach him directly on [email protected].

Note: www.profitsplus.ae is a domain belonging to Profits Accounting and Bookkeeping, an accounting and bookkeeping firm registered with Dubai Economy, Trade License No. 796316.