ABC of Changing your Accountant in Dubai

ABC OF CHANGING YOUR ACCOUNTANT IN DUBAI

Accountancy is a fundamental part of any business and it is vital that accounting duties are executed properly. Moreover, than just dealing with the figures, most accountants offer a full-circle service of managing tax, bookkeeping and often payroll too which makes them a key part of many companies. But what happens if the service that your accountant is providing falls short of your expectations? Many people do not realize that changing your accountant if you are unhappy could be easier than you think.

1) Consider why you are unsatisfied

There are a number of common complaints which people may have with their accountancy service. Some of the most typical ones tend to lack communication with accountants failing to answer calls or respond to emails or not doing this in a timely fashion. Other problems center around fees charged by accountants with many finding this to be erratic and different each month making it hard for companies to budget for accountancy costs. Some also find that it difficult to meet costs when accountants charge them per phone call or email making it an expensive affair to seek even the simplest advice. Here are the complaints we hear the most:

  1. Phone calls and emails are not returned in a timely manner…or not at all.
  2. Proactive tax planning and strategic advice from the accountant simply don’t happen.
  3. Tax returns are often put on an extension instead of being filed on time.
  4. Inadequate answers are given to questions about tax law.
  5. The invoice amount is a “surprise”… after the services have been provided.
  6. Frequent correspondence is received from the government due to simple filing errors.
  7. An accountant is distracted from serving clients due to having other business interests.

The good news is that if you are unsatisfied with the service that you are paying for from your accountant, you do not have to suffer in silence.

2) Find a new accountant

This may seem like an unusual step, but the consequential tasks will make it clearer why this may be a beneficial first port of call. Firstly, consider the aspects of your current accounting offerings which are making you unhappy. If it is the unforeseen costs or ‘bill surprises’ then you could benefit by looking at accountancy firms that charge a fixed fee for their services, so you always know what you are going to be charged regardless. Whether you decide on a fixed-fee service or charge per service accountant, you should ensure that all chargeable fees are made transparently clear to you right from the beginning to avoid any surprises.

Another fundamental aspect is choosing an accountant that provides a comprehensive service, accountants use jargon on a daily basis, but a good accountant should be able to make all communication clear and stable for their clients. Most accountants will offer a free no-obligation initial chat which could help you to decipher if they could be right for you. Moreover looking for an accountancy firm who is members of well-established professional bodies like the Institute of Chartered of Accountants could offer you further peace of mind.

3) Switch over

It really could be as simple as that. In contrast with the misconception that changing accountants is a practically impossible affair, your new accountant could handle the whole switching process for you taking the weight off your mind.

Your accountant could write to your previous accountant and request all the necessary paperwork. You will need to sign a change of accountants’ letter which most accountants can provide you with and guide you through. People often worry that they may offend their previous accountant but the truth is that most firms have clients who move on at some point for one reason or another and will be used to dealing with this, members of the Institute of Chartered Accountants are trained on how to deal with this.

The most important thing is that you are paying for an accountancy service that you are fully satisfied with. Once the switchover has taken place, the final step is to discuss your business needs in detail with your new accountancy firm and explain exactly what you are hoping for so that they have the relevant information to provide you with the best possible solution.

So, if you are out there worried about replacing your current accountants, in this economic climate, don’t settle for less and contact us at profitsplus.ae to sort your accounting needs now.

 

 

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 ali@profitsplus.ae

 

Zero-Rated VAT for Companies in the UAE

Zero-rated vat agencies based totally in the UAE review their unique VAT application.

There are numerous customers who while being located here in the UAE, are using zero-rated supplies which begs the question, whether this person should consider registering themselves for VAT.

Many clients, who were part of the esteemed profits tax consultants, have been reported to register for vat during the closing of 2019, or else they would have faced banking problems with transactions.

Some of these clients even as far to confess that their institutions made them register for vat as they had large sums of money coming and going via their own accounts.

Which again begs the question that, what is the appropriate approach to registering for zero rated vat?

So we went ahead on your behalf and asked the FTA, their answer is as quoted;

‘If you only make zero-rated supplies, you can also follow to be excepted from registering for VAT.

You still need to complete a VAT registration application, but you should reply “Yes” to the question: “Are you applying for an exception from VAT registration?”

This actually means that if you have an organization in the UAE producing zero rated supplies, then it a dire necessity to have to register for vat in UAE with the FTA. The only problem is the softwares which need to be set up properly for them to work.

Let us put it into perspective that, all of our zero-rated buyers have put in the incorrect vat utility and can no longer declare that they are taking advantage of an exception to the generally followed rules.

Some of our customers have experienced losses or penalties of up to 20,000 AED because of asking for amendments in the wrong way. They failed to realize that all their supposed amendments needed to be made within the 20-day limit set by the FTA

So, it is our profound recommendation that you thoroughly check your initial vat application, and that it was made in the correct order. With that being stated, we can surely rely on the FTA to begin inquiries into companies who stated on their forms, sales of up to 6m AED but failed to reach that milestone.

 

Making Tax Digital in the UAE

making tax digital dubai

Filling out taxation forms and filing for returns is a time-consuming process, it can sap all our energy and disrupt our schedules but change is happening and tax authorities around the world are shifting from traditional filing methods to all integrated digital platforms often integrating with third-party software’s to capture the masses and make it easy for clients and advisors to partake in the digital tax revolution.

What is digital taxation?
Digital taxation is set to revolutionize the way businesses file for their taxes. No longer would business owners need to fill out self-assessment forms and prepare their taxes when software can handle all that for them. Digital taxation is the process of using compatible cloud accounting software to file taxes.

Cloud accounting software can also help with the day-to-day functionality of your business. They can help you track transactions, keep accounting records and prepare invoices. They can even help you avoid legal penalties by archiving and managing your records.

Making Tax Digital (MTD) in United Kingdom (UK)

When it comes to digital taxation, the UK is the undisputed frontrunner. UK Government’s non-ministerial tax collection wing, also known as Her Majesty’s Revenue and Customs (HRMC), is collaborating with accounting software developers to digitize the tax administration system by 2020 through its MTD campaign. The campaign aims to make tax collection simpler and error-free.

MTD replaces manual processes such as form filling and paperwork with accounting software. It also reduces the HRMC’s overhead expenses. It saves both time and money by standardizing the tax process through technology.
MTD requires VAT-registered businesses to maintain their records digitally. It is also compulsory for businesses to use the MTD software to file their returns before April 1, 2019.

UAE taxation system

Digital tax seems convenient and hassle-free so when will it be launched in UAE? The UAE government is also making attempts to digitize taxation procedures. Take, for instance, the digital stamps the Federal Tax Authority (FTA) introduced for tobacco products.

Yet, the progress remains slow and steady. Right now though, the UAE government only has an e-portal for taxation. Users can visit the portal to fill out their required information. The process remains manual since the portal is not synced with accounting software.

We can’t wait for when the UAE government introduces this system and simplifies the tax system.

How can digital platforms help with taxation?

Innovative digital platforms are sprouting up to assist people with their tax claims and planning. Platforms like the UK-based RD Vault can sync with accounting software to generate invoices, update books, prepare tax credit claims and track their progress. One such solution is Xero, a Cloud Accounting Software solution used by Profits Plus Accountants and tax consultants in Dubai.

Xero is an all-in-one solution, it can be used to prepare reports and maintain taxation records. This enables you to use one platform instead of a cluster of applications to deal with your accounting and taxation needs.

If you are interested in knowing how a cloud accounting software such a Xero, can help your business then feel free to get in touch with Mubashir Malik, Partner at Profits Plus Accountants in Dubai, UAE. Contact Ali Afzal by email on a.afzal@profitsplus.ae or call on 0585442030.

 

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 Price AED 80,000
Selling Price AED 85,000
Profit AED 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 a.afzal@profitsplus.ae.

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.

 

Why You Can’t Ignore Xero Cloud Accounting Software

The Evolution of Cloud Accounting 

In the past few years, we have witnessed the birth and rapid evolution of cloud computing, with more and more traditional services being replaced by their far more efficient, affordable and secure alternatives. Accounting is no different and thanks to the hectic pace technology are moving at, the question is no longer whether you should move to small business cloud accounting but rather, when.

Problems with traditional accounting software

The drawbacks of traditional accounting software in the UAE, certainly play a role in the shift to cloud accounting. The data in the traditional accounting software system isn’t up to date and neither is the software. What’s more, the software only works on one computer – the data needs to be manually transferred between devices, usually by virtue of USB drives. This presents a myriad of other issues, mostly to do with security and reliability.

Traditional accounting software and services in the UAE are outdated since they are rooted in the idea that only one person should have access to the data. This means that important people within your business may not have access to the financial and customer details, which impairs productivity and diminishes the level of customer service your organization can provide.

What’s more, traditional accounting software tends to be costly and updates and regular maintenance are expensive (often not included in the initial price), time-consuming and challenging especially if you’re not tech-savvy. Keeping backups is rarely one and even then, it may cost you more time and money than it’s worth.

When it comes to your company’s financial needs, you cannot afford to settle for outdated accounting services that charge you too much while bringing almost no value to the table. What you need is an experienced, qualified and pioneering accounting firm that will handle every single detail, provide you with cutting-edge accounting tools and allow you to focus on your company’s future growth instead of book-keeping.

What is cloud accounting?

Cloud accounting is the alternative to traditional accounting software, whether it’s on-premises or self-install. The only difference is that small business cloud accounting is hosted on remote servers, similar to the Software as Service business model: data is sent to the cloud where it can be processed and returned to the user.

This means that all functions are performed off-site, rather than on your desktop which minimizes issues related to reliability and security. All you need to take advantage of cloud computing is a reliable connection to the Internet or another network via a cloud application service provider. Because of that, cloud accounting is far more flexible than traditional software – the accounting data can be accessed from any point around the world and from any device that has an Internet connection. What’s more, cloud accounting software in the UAE like the one Profits Tax Consultants use can update your financial information automatically and provide you with real-time financial reporting.

Profits Plus is a cloud accounting firm based in Dubai that will go above and beyond to ensure that your company is provided with qualified accounting services and support your company’s growth and expansion. Our state-of-the-art small business cloud accounting partner software is run by experienced British accountants who have spent more than 20 years of working with British companies and VAT.

Xero Cloud Accounting Software in UAE

One of the key players in the shift towards cloud accounting is Xero, a New-Zealand-based software company that develops cloud-based software for small and medium-sized businesses. Their small business cloud accounting software lets companies share access to the latest business numbers with their teams, accountants and bookkeepers so everyone – including team members around the world – are kept in the loop and up to speed.

This means that you can easily log into any Xero file you want by simply using your Internet connection. You can share access with your accountant who in turn can not only open the file but make adjustments, prepare and lodge BAS and tax returns, and provide real-time assistance if needed. This saves up time and money as the accountant doesn’t necessarily have to send the data back and forth, either digitally or physically.

We at Profits Plus truly believe Xero accounting software has transformed the modern world of accounting in the UAE. Instead of having a monthly meeting with your accountant where you pile mountains and mountains of paper files, you can easily manage your accounting information in real-time. This helps you make faster and more effective decisions. Unsurprisingly, in the past 12 months alone, Xero has shipped more than 1,2000 features and product updates, most of them designed to provide accountants with back time and helping them migrate to methods of value-priced billing while increasing their workload at the same time.

Profits Plus is a 100% cloud-based accounting service, which means that you will be able to take advantage of the flexibility, convenience, and practicality of cloud service based on the Xero Small Business Cloud Accounting Software. In addition, we will integrate accounting systems inside your company, offer you book-keeping as well as expense management services that will enable you to monitor your company’s growth, expenses and earnings.

Benefits

In a nutshell, cloud accounting software like Xero enables professionals in the UAE to save time, and businesses to enjoy greater flexibility, reliability, and security when it comes to financial operations. Xero certified accountants can create a lot of efficiencies going beyond that of manual data entry: using the cloud service, they can finally have time to analyze the work and truly help small businesses remain cash flow-positive.

Some of the benefits associated with using cloud accounting software for business purposes in the UAE are increased accessibility, productivity, organizational reporting and improved back-up and recovery. Small business cloud accounting software can improve the productivity within your organization by saving you enough time to focus on actually running your business rather than spending valuable resources on bookkeeping and accounting.

What’s more, a Xero certified accountant can access your accounting and financial information from any point around the world. This makes it the ideal option for businesses that have remote employees or work with accountants from abroad. This also frees you from having to install and maintain software on individual desktop computers (so you can save money on your IT infrastructure and training expenses). With small business cloud accounting, you can also improve the communication within your business as employees in other departments, branch offices or remote areas can access the same data and version of the software, and make changes if needed.

Xero also makes it easier for you to get real-time reporting and visibility throughout your organization. With cloud computing, subscription-based models are the most popular option – you can pay a subscription to receive updates as soon as they’re launched, without having to invest more money in additional software purchases.

Xero also provides you with better backup and recovery capabilities. Xero, cloud accounting software, makes storing and recovering data more convenient and reliable than in-house servers. All these benefits also ensure cloud computing is one of the most, if not the most, cost-effective option on the market. If you’re looking for a Dubai accountant, working with someone who is Xero certified can save you a lot of time and expenses in terms of maintenance and management of data and servers.

What the future holds

Given the many benefits cloud accounting software in the UAE offers to small and medium businesses, it’s not surprising that experts believe that cloud accounting will become the new normal. What’s more, Xero and similar software may become even more important and relevant as AI and machine learning grows in popularity.

Since we are a 100% cloud-based firm, we are able to offer you high-value, low-cost accounting services by cutting down on conventional, obsolete and expensive hardware and software and passing those savings on to you and your brand. Our mission is to establish an honest, trusting and lasting relationship by going the extra mile and ensuring your satisfaction. Choosing Profits Plus means having a whole team of highly-experienced British accountants at your disposal.

If you’re looking for a UAE accountant but have not yet made the switch to cloud accounting software, it may be a good idea to put a framework in place as soon as possible. Steadily working towards a plan is the key to enhancing what you already have and prepare for the future – and by the looks of it, the future of accounting is synonymous with cloud accounting.

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 a.afzal@profitsplus.ae.

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.

 

Tally ERP 9 [9 Reason You Should Not Use Tally ERP 9]

Thinking of purchasing Tally ERP 9? Read this article before making that decision.

Disadvantages of Tally ERP 9
  1. Not user-friendly at all. I have met many CEO’s and In-House Accountants who contact me soon after setting up Tally ERP 9 and ask me to provide them with our accounting services simply because they realize how complex it is to use Tally ERP 9. Unless you are a qualified accountant or have employee a qualified accountant with at least 2 years’ experience Tally ERP 9 is just not user-friendly and thus not appropriate for small businesses with limited resources.
  2. Single screen software. Tally ERP 9 does not allow you to work on more than one ledger at a time which makes it difficult to review work whilst making entries into the ledger. This is a very basic function and means that it really slows down the accounting process.
  3. Useless paid upgrades. You have to purchase any upgrades and in fact, there is little noticeable difference between Tally 4 and Tally 9 but the cost of upgrading is expensive as you require the call out from Tally Partners and typically this will cost between AED 1000 and AED 2000 per installation.
  4. Not ideal for multi-branch. The only way to operate tally from multi-sites is to use VPN and this is hardly practical today. To make it effective you have to invest in servers and LAN bundled with Tally.net and then don’t forget the consultancy and implementation costs.
  5. No flexibility on Chart of Accounts. The default setting button is not provided and if you want to change the setting after configuration settings are done you will have to restart and delete all the ledgers and start again from the beginning. Once you have created the journal voucher it is not possible to make changes in it. This makes Tally 9 very rigid and difficult to use.
  6. No central support. Tally 9 is not supported centrally by Tally itself and instead, you have to rely on the partner network and the fees charged can vary significantly as well as the level of expertise, not always related.
  7. Low Security. Do not lose your password as it is difficult to retrieve data without the password and very time-consuming.
  8. Loss of data. Since Tally ERP 9 software is desktop or server based on the risk of losing your data is huge should your machine crash or become infected by a virus.
  9. No customization or module integration. It is not possible to customise Tally 9 or integrate with any other software.
Still thinking of purchasing Tally ERP 9?

I didn’t think so.

As an alternative consider Xero Cloud Accounting Software. We are a xero certified silver partner in Dubai and provide the software free of charge as part of our vat accounting packages.

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.

Corporate Tax in UAE 2023

Federal Tax Authority

Corporate Income Tax (CIT), also known as “Business Profits Tax” or abbreviated as CT (Corporate Tax), is an all-inclusive tax policy applicable to the income or profits of all corporations and legal business entities.

Recently this year, on 31st January, the MoF (Ministry of Finance) of UAE declared the regular implementation of a new regime of the corporate income tax system that will be effective for financial years starting on 1st June 2023 or later and supervised by FTA UAE (Federal Tax Authority) who will look after its administration and ensure collection.

If the company tends to adopt a fiscal year from 1 June 2023 to 31 May 2024, it would be subjected to corporate income tax beginning 1 June 2023 with the probability of the first tax return filing due towards late 2024. On the contrary, if the company opts for a fiscal year from 1 January 2023 to 31 December 2023, it would be subjected to corporate income tax beginning 1 January 2024 with the probability of the first corporate income tax filing (return) due towards mid-2025.

The Objective of Enforcement of UAE CIT

The Undersecretary of MoF, Younis Haji Al Khoori, stated“the certainty of a competitive and best-in-class corporate tax regime, together with the UAE’s extensive double tax treaty network, will cement the UAE’s position as a world-leading hub for business and investment.”

The primary purpose of UAE CT is to get rid of harmful tax practices and put unjust tax collection to an end, along with guaranteeing international tax transparency. The corporate tax system is designed to implement best practices and stay committed to legal tax standards worldwide.

It also aims to reduce the compliance burden on industries as you will not be wasting efforts on comprehensive preparation and maintenance of updated financial statements.

Important Features to Remember

  • Revenues earned from legal business activities carried out under a valid commercial license within the seven emirates are subjected to corporate tax and income tax.
  • Individuals buying properties(real estate) for personal use without a business permit will not be paying CT.
  • No due/unpaid tax will be collected, whether it is on the domestic level or international.
  • The updated federal CIT regime is 100% applicable to banking operations in the UAE; however, every branch of foreign banks has already been subjected to a CT on an Emirate level.
  • CT permits tax grouping and group relief programs– compensating tax losses among groups may be acceptable, but UAE Groups must be capable of filing consolidated tax returns.
  • The necessity of documentation along with transfer pricing instructions will be implemented considering the OECD transfer pricing guiding principle.
  • The CT system has mentioned some exemptions and adjustments for taxable/accounting profits.
  • Upon meeting specific requirements, companies are allowed to carry forward excessive tax losses and make them used against future payable income.
  • It will minimize the compliance obligations, leaving a single corporate tax return required to be filed without any constraint to pay an advance or interim payment of CT.
  • unilateral foreign tax credit will be obtainable to set domestic corporate tax liability against foreign income.

Corporate Tax in UAE

Lowest Corporate Income Tax Rates | UAE Tax Rate

One of the most significant advantages of UAE CT is that it levies the minimum rate within the region, excluding Bahrain. A tier system comprising 3 rates is:

  1. ZERO (0%)rate (zero corporate tax) for annual taxable profits under AED 375,000
  2. NINE (9%)rate for annual taxable profits more than AED 375,000
  3. Different CT rates for large-scale, multinational companies who successfully meet the demands/standards set under ‘Pillar Two’ of the OECD Base Erosion and Profit Shifting initiative (BEPS) 2.0 framework.

CIT in Free Zones

Every start-up and well-established business registered in the UAE free zone is subjected to corporate tax. The company will be eligible for corporate tax incentives if it stays fully compliant with all the governing requirements and keeps itself from settling business in the mainland.

Exemptions

  • Certain types of income are exempted from the corporate tax system:
  • Revenues are generated from foreign business investors or shareholdings through dividends, capital gains, royalties, interest, or any other investment return.
  • Income earned from natural resource extraction.
  • Foreign entity or individual who is not currently involved in any kind of trade or business activities within UAE regularly.
  • Individuals with employment salaries, no commercial license (governmental or private sector), and no income-generating activity.
  • Upon fulfilling specific requirements, intragroup transactions and reorganizations are exempted.

British VAT Experts

Profits Plus has the best-skilled British accountants with over 20 years of experience who ensure that your company complies with FTA requirements. Failure to do so will result in hefty administrative fines. With the intelligent use of cloud-based accounting software Xero, we deliver the best accounting services in the UAE. We help train your admin or secretarial resource for data entering. We inform you of your profits, losses, incomes, and expenditures.

11 Features of Xero Accounting Software You Should Know About

• Xero accounting software

Xero accounting software has impressed everyone with its unique, scalable, and easy-to-use features that can be accessed from any internet-connected device. This online software has become an essential business gizmo and is undoubtedly the leader in every way to keep your business growing.

It lets you keep a close track of payments, business operations, and accurate yet concise financial information, which is much easier to comprehend. Correctly set up the Xero dashboard offers a precise snapshot of your business’s financial standing.

11 Best Features of Xero Online Accounting Software

Yes, you can find many alternatives, but Xero has something extraordinary to offer with its extensive accounts management tools. To name a few, here are Xero’s best features, making it the most critical part of your accounting.

1۔ Integrate Add-ons

One of the striking features of Xero is its ability to let other powerful pieces of software (3rd party developers) add functionality with quick and seamless integration. It has the most advanced “application programming interface (API),” which combines add-ons to make your business systems more productive and highly efficient.

Each add-on connected to an online accounting software comes with a different yet valuable purpose for the sake of better management of finances. It is equipped with more than 800 third-party software integrations۔

2۔ Free-of-cost Updates

Xero accounting system receives software updates regularly to keep all functions cutting-edge. Luckily, downloading the latest version is free worldwide for all users.

How to upgrade your Xero subscription? Well, you don’t have to! As soon as the new feature is released, the update is installed whenever you are logged in to your account. It improves project administration and better collaboration.

3۔ Direct Bank Feeds

Reconciling bank accounts every month can be frustrating, tedious, and time-consuming. You can put away your problems by replacing traditional desktop accounting software with Xero!

Xero bank reconciliation has a feature (included in all plans) that enables you to link your bank accounts directly with your Xero account, bringing in all data and importing your bank statements at the end of every business day to keep everyone updated with banking activities. It reduces bookkeeping time and banking errors updates financial data and induces greater accuracy by providing daily feed automatically.

4۔ Cloud-Based

Xero is online software that saves and updates information in the cloud, letting you access it from any part of the globe and any internet-enabled device. The easiest way to access vital business metrics in real time!

Multiple users can access or edit information and projects simultaneously, giving a better chance at collaboration. You have the authority to restrict access of particular employees to confidential data for safety purposes.

Now, you don’t have to use USBs for repositioning or sharing data with your accountant – kiss goodbye to alignment journals. Give your trusted business consultant or accountant the login details; they will make all the vital entries to keep your finances straight.

5۔ Quick Quotes

Xero has a remarkable feature of providing quotes rapidly and accurately by offering quick inventory setup and updating pricing information timely. In addition, the software updates your system according to the client’s activity (acceptance or refusal to quote). If the customer leaves comments, you will be notified to maintain a trouble-free follow-up process.

Upon project completion, the original quote can simply be turned into an online invoice guaranteeing faster disbursements.

6۔ Multi-Currency

Xero Premium Plan multi-currency feature allows you to receive bills, make or accept payments, provide quotes, forward invoices, and place orders in more than 160 currencies to support international trade with excellent flexibility. You can also set a default currency for a particular client to save the hassle. Xero currency conversion is worth the appreciation!

Moreover, it has a feature where it converts foreign currency automatically into local dollars (money you spend or receive). Xero conversion keeps updating foreign exchange rates.

xero software

7۔ Online Invoicing – Xero Custom Invoice

Xero Accounting Software has many inspiring features, but fast and straightforward “online invoicing” has been the best. It lets you receive payments up to 35% faster in comparison to bank transfers. This feature allows you to:

  • Create professional invoices online.
  • Send invoices to customers through email, even in bulk.
  • Set an automatic payment reminder.
  • Replicate invoices.
  • Send invoices in multi-currency and forward customer account statements (with payment add-ons).
  • Make customised templates with the company’s logo or business information.
  • Track invoices.
  • Forward recurring invoices automatically.
  • Create and send credit notes to consumers (with payment add-ons).
  • Receive payment directly from the customers from your invoice.

Manage the entire payment process from one place, even via mobile phones!

8۔ Add Files

You can upload files online and attach them to particular invoices or almost any transaction because Xero produces a PDF of each invoice, expense, and journal entry. Integrate any add-on, such as Invitbox, and save the time that can be wasted in searching through your filing cabinet.

Xero attaches a file to invoices – it is easier to keep track of any manuscript this way.

9۔ Paying Bills

This feature is one of the most resourceful as it has various amazing features installed within. Xero system saves every bill inside the cloud, letting you access it when needed.

  • Due bills for payment– giving a quick summary of bills while observing and sending alerts for unpaid bills.
  • Schedule payments– make scheduling payments for bills easier.
  • Hubdoc integration– assisting you in collecting critical data from every receipt.
  • Repeat and replicate bills– helping you save time by duplicating the old bills and editing the amount automatically.
  • Xero batch payments – letting you pay in bulk simultaneously.
  • Money back– valuable for reimbursing money to clients directly.
  • Records bills online– offering a chance to go paperless completely.

With innovative O.C.R. technology, the Xero finance system extracts essential data that may be names, amounts, or dates.

10۔ Customised Dashboard

You can personalise the columns, blocks of text, formulas, and drag-and-drop accounts according to your business needs. You have access to more than 55 accounting reports that can be customised to get the desired updates. It lets you view and share data regarding sales, inventory, cash flow statements, and balance sheets.

Xero has another classic feature of ‘Journal Report’ that solves your research issues.

11۔ Payroll & Pensions

Xero has mastered the skills of processing payrolls and pensions. Add payroll to Xero and rest on your seat.

This feature gives every member an “employee portal” for letting them view group certificates, access receipts, submit time sheets, and apply for leave. It keeps payroll and pension activities under balance with efficient management and constantly modifying the required aspects of payroll assistance.

Xero – Business & Accounting Software

We all agree on how important it is to keep accounting information safe, updated, and accurate. Xero helps you maintain all sensitive and confidential data online while implementing various security procedures.

Profits Plus tax consultants always use Xero cloud accounting software to allow companies to bring accounting automation to save time and money. Rest assured, we give you real-time assistance with Xero, the best VAT-compliant accounting software in the UAE, to train your admin or secretarial resource. Our British accountants, with over 20 years of experience, will ensure every piece of information is 100% correct.

7 Types of Internal Audits

internal audit

Internal audit is an analytical method that can be your valuable decision-making tool to improve business performance and management after investigating and understanding cost inefficiencies. You can significantly make organizational controls better with the help of the unbiased, independent analysis of business processes, workflows, and systems.

7 Types of Internal Audit Methods

Why internal audit?

From recognising enterprise-wide performance loopholes to getting insights into the company’s financial statements data, identifying risk areas to evaluating the accuracy of transactions – an internal audit critically assesses the completeness concerned with the organization’s financial and non-financial aspects. 7 types of Internal Audits include the following:

1.  A Compliance Audit

What is a compliance audit? It is the most practised type of IA where auditors check each phase of the process thoroughly to ensure that every workflow perfectly complies with established (federal, international, or state) laws, policies, and regulations. Finances, as well as operating controls, are critically reviewed for adherence to standards.

A compliance audit lets you highlight gaps between requirements that govern the conduct and company procedures. If your organization follows any other reporting entity, your management must stay acquiescent to the laws and regulations provided by the entity to avoid regulatory action. The nature of laws can significantly vary depending on the industry.

Failure to conform with laws or other restrictions may cause you to lose money worth millions of dollars. Or worse, your company can be suspended in certain dominions, negatively impacting your financial health.

How can internal audit add value to the business? The auditors help you stay compliant with international standards on auditing by delivering an unbiased judgement on the company’s compliance requirement and advising you on value-adding training.

2.  An Operational Audit

Simply put, it is an in-depth analysis focused on evaluating productivity, efficiency, and effectiveness of internal controls of every vital development procedure, critical business operation, and system. An operational internal audit is helpful to ensure that company’s financial and non-financial resources are utilized most efficiently and cost-effectively per the guidelines presented by the Board of Directors, without compromising professional objectives.

Operational Audit techniques are best-defined in a combination of the 3 Es: Effectiveness, Economy, and Efficiency.

Also called performance audits, they let you make significant and much-needed improvements for operating excellently. Consider an operational audit report an ideal way to assess how new management and the current staff are handling processes.

If your management fails to execute operations at its full potential, you may experience reduced profit performance, inability to achieve objectives, an unfair relationship between economy and efficiency, and unjustified use of extra resources.

3.  A Financial Audit

Internal financial audits are performed with peculiarity to objectively inspect and appraise internal control processes to get an estimate of generated revenues and expenditures. It evaluates the accuracy of the company’s financial statements to keep financial records, including transactions, up to date. Your company budgets need to be settled by comparing income to expense reimbursements.

Internal auditors provide the management with authenticated and verified figures (in the form of financial audit reports) from accounts that perfectly represent the organization’s current financial well-being. Nonetheless, it is imperative to minimize risks of bankruptcy, recognise potential weaknesses in workflows, and make enhancements to bring precision in reporting compliance to laws and regulations.

Why do we audit financial statements? Your inefficient records and false financial statements can result in huge losses of capital assets, putting you in a challenging fiscal condition.

Internal financial audit

4.  An Information Technology Audit

IT auditing is solely dedicated to evaluating IT infrastructures and performing real-time assessments to guarantee the accuracy of running applications, operating systems, and databases. This evaluation provides a 360-degree overview of the management looking after information technology environments.

Apart from determining input, output and processing controls. It is carried out to check the precision of backup and recovery plans as well as system security. It is performed alongside compliance, operational, and financial audits to give computer facility reviews (controls, hardware, software, security, documentation).

If automated information processing systems fail to perform proficiently or you are unaware that these systems are utilized effectually. Your company can lose confidential data or experience a data breach.

Why internal audit is required? Information technology control and audit help you find the loopholes and possibilities to upgrade the system, bring IT accuracy and identify processing capabilities. Without fortified and keenly appraised IT infrastructure, confidential information can be at risk.

5.  Investigative Audits

This auditing and investigation are only conducted when needed to evaluate an exceptional circumstance. The most common causes that can ask you for special investigations include:

  • Internal theft
  • Misuse of assets
  • Hotline allegations
  • Conflicts of interest

Internal audit fraud investigation is primarily required when the company has become the target of alleged federal or state laws violations. It keeps you mindful of the company’s expertise, independence, and complaints from staff.

6.  Environmental Audits

An assessment is carried out to evaluate the influence or impression of a firm’s existing operations on the surroundings. Along with ensuring compliance with environmental laws or regulations to save the planet. The internal audit function is to weigh if the management is using methods that are eco-friendly and minimizes energy consumption. Environmental Audit reports may add value to your business.

Well, your companies must be environmentally conscious and safely source raw materials to minimize environmental damage. Such as reduced greenhouse gas production.

7.  Construction Audits

Least practised internal audit (technical audit of construction projects) where inspections are performed to certify that the building is made following suitable physical development procedures and appropriate project billing. A construction project audit is beneficial to keep you adhering to the contract terms and invoicing activity as necessary.

Construction internal audit tasks are executed by development, operating, real estate, and construction companies.

Profits Plus for Maintaining a Good Internal Control System

Experienced and skilled accountants at Profits Plus provide quality assurance and top-tier consultant service through the internal audit process. We let your company achieve professional missions by checking the effectiveness and efficiency of the procedures

From evaluating risks to mitigating them, detecting fraud and errors to scrutinizing the economy – our internal quality audit procedure helps you improve operational internal controls and reliability over financial statements/reporting.

New Tax Law In UAE – Installments & Waiver of UAE VAT Administrative Penalties

UAE VAT

UAE introduced VAT in 2018, and since then, nearly every businessman has been the target of hefty penalties and fines due to incompliance with VAT regulations. Genuinely speaking, following FTA VAT strict Installment rules can be tough.

Many changes have been made to the UAE VAT FTA rules, whether it is about offering a time extension for non-UAE businesses to forward an application claiming a VAT refund or modifying the voluntary disclosure guide.

But recently, a surprisingly significant change has been made in the UAE tax laws where problems related to penalty waivers and installments were discussed in a new Cabinet Decree No. 105 of 2021 titled ‘Regarding Protocols and Procedures for [Tax] Penalty Installments and Waiver’.

Signed on December 28, 2021, the UAE new tax law was put out in January 2022 in the official gazette and became effective on March 1, 2022.

Now, taxable persons are allowed to resolve their administrative monetary penalty either by requesting a waiver or paying in installments. Considering specific circumstances, a waiver can be permitted for the VAT Penalties compensated in the last 05 years. Moreover, no application for installments or waivers can be accepted if litigation is continued.

According to this law, the Committee holds the power to cancel the installment plan anytime in the case of the taxpayer’s failure to submit the installments on time. For maximum ease, taxable persons in UAE who have asked the authorities for an installment of penalties can request the revision in a plan to make instant amendments. Still, first, the taxpayer must ensure to satisfy the Federal Tax Authority.z

Installments in Administrative Penalties

If you meet the criteria below, your request to pay administrative penalties in installments will get instant approval.

  • You can forward an application for only an unpaid tax penalty.
  • The total sum of unsettled penalties must cross AED 50,000.
  • The taxable person is willing to pay the penalties in full in installments.
  • The unsettled administrative installment penalties shall never be questioned by the TDRC (Tax Disputes Resolution Committee UAE) or the Federal Court.
  • No tax is due for the tax period for which an installment request is being filed.

Request For Penalty Waiver Of Administrative Penalties

If you meet certain conditions, the authorities will permit the waiver for penalties. But Committee will always have the right to cancel the request for authentic reasons. But remember, the Decree never discusses single-person held limited liability businesses.

The waiver will be approved in the following scenarios, or one must comply with the following requirements:

  • If the unsettled administrative monetary penalty is not associated (directly or indirectly) with tax evasion.
  • The taxpayer has never been imposed officially with any restrictions, precautions, or preventative measures from the UAE government or any governmental authorities.
  • Death of a natural business owner or a key employee of a tax registrant, regardless of the cause.
  • If a registered taxable person had already paid the tax before he went into insolvency or bankruptcy.
  • All taxes are paid through another taxable person’s tax account.
  • If the natural registered person, owner of the sole establishment, or a key employee of a tax registrant is severely ill.
  • In case of resignation of the key employee of a tax registrant.
  • No evidence was found concerning constraints on the rights, liberty, and independence of natural taxpayers or establishment owners.
  • No waiver will be accepted if a proof is found against the individual regarding general malfunctioning in the Authority’s systems, reimbursements, or used telecommunication services.
  • In cases of insolvency that was not for purposes of tax evasion.
  • No proof of compliance in the system of the FTA UAE or payment and communication systems.
  • The registered person or the owner of an establishment has the record of “execution of a custodial sentence.”
  • A penalty waiver request is forwarded within the specified time frame suggested by the Committee.

installments plan

Procedures for Submitting Requests

Once you have met the necessary criteria, the taxpayer must fill out the official application forms the Federal Tax Authority UAE asked to request installment plans or a waiver. A taxable individual cannot file more than 01 application for the same penalty/ies.

Generally, the following documents and information are required in the forms:

  1. Personal details include correctly spelled name, updated address, and other information on the taxpayer.
  2. TRN (tax registration number), if applicable.
  3. The amount of penalty.
  4. The details of violations for which you are requesting.
  5. The original date when the penalty was applied to the business.
  6. Authentic reasons behind submitting the request.

Be aware of the common mistakes that can lead to the cancellation of a waiver or installments. Most importantly, you must never breach the undertakings, or else the application will be nullified, and FTA will re-impose the waived VAT penalty payment. The taxable individual is held accountable for filing an undertaking as:

  1. In case of an installment schedule, you MUST ensure that your application states that the installment will be remunerated per the schedule specified by the Committee.
  2. In case of a waiver request, you MUST ensure that your application states that the reasons for the administrative penalties will indeed be mended and corrected. The taxpayer must promise not to make a mistake ever in the future.

Timeline & Committee Decisions

Federal authority of tax takes 40 business days for:

  • Reviewing your request
  • Making sure that your application is in full compliance with official government standards
  • Verifying each control & procedure sketched during the cabinet decision is being followed properly.

If the application is found valid, it shall be sent to the Committee, who takes approx. 60 business days for taking the final decision of approval or cancellation. The applicant will be informed within 10 business days. If you notice a “lack of a decision,” consider it a denial. In case of installment application approval, you will be asked to provide corporate, personal, or bank guarantees.

The Committee is not only accountable for setting the timeline for filing waiver and installment applications but also has a free will to decide how much percentage of administrative penalties will be renounced, the payment dates, the total amount to be waived off, and a new plan against admissible excuse for defiance with the payment schedule.

Providing Cost-Effective Services In VAT In UAE

Profits Plus provides top-tier VAT advisory for optimization. From VAT registration to VAT filing and implementation, our experienced tax advisors, finance experts, and tax accountants ensure that you stay compliant with UAE VAT penalty laws.

No one understands the complexity of VAT registration better than we do. That’s why our VAT services in UAE can save you from suffering an administrative penalty in the future!

How To Develop Standard Operating Procedures (SOPs)

Develop Standard Operating Procedures (SOPs)

If you want to see your company flourish, discipline and consistency are what you need to bring in If you want to see your company succeed, discipline and consistency are what you need to bring to each workflow. When the companies grow over time, managing operations become more complex, which can make you compromise on the quality of the services. That is when SOPs come in! The benefits of Standard Operating procedures (SOPs) are endless. The importance of standard operating procedures cannot be denied!

We agree with what MaintainX has to say about SOPs, “Whether attempting to sell the world’s tangiest loaves of sourdough bread or recycle 5K tons of non-ferrous metals every day, standard operating procedures (SOP) help busy teams consistently meet consumer demand and company standards with minimal errors.”

How To Make Standard Operating Procedures (SOPs) – Top 7 Tips

Where SOP improves collaboration and efficiency, it also needs a lot of time and your attention to investigate every crucial business process and pen the protocols down. Well, it doesn’t mean you can present a poorly written SOP. Considered the pivotal point in business growth, SOPs accuracy is demanded. But, how can you develop the standard operating procedures that will not only engage the employee but clearly explain their responsibilities? What are the pain points of effective SOPs?!

1.  Understand What You Want This SOP To Accomplish

Why exactly are you creating Standard Operating Procedures? Without determining your goals for developing SOP, you cannot even start writing an outline. You must have the vision, the aim, and a clear-cut answer to WHY and it should be knowledge-based. Be aware of how SOP executions will bring out the positive side of your company. Don’t make your SOP documents text-heavy and boring.

To better define the reason, highlight hurdles and complications found in existing processes. Having a solid basis for SOP helps in outlining the necessary activities for a better understanding of the reader. The best approach is to keep the end in mind and start writing each aspect crucial for fulfilling SOP’s objective.

Be sure to ask yourself:

  • How will SOP help your company work more efficiently?
  • Will it promote teamwork and better alliance?
  • Is SOP written to make the company more compliant with industry standards?
  • Are you creating an SOP for employees to follow guidelines for improved productivity?
  • Is it designed to serve clientele most professionally?
  • Does your SOP assist in developing absolute best practices?
  • Are you writing your SOP as a guide or for highlighting essential steps of procedures?

What will be the purpose of standard operating procedures if the end-user fails to understand its real meaning and cannot follow guidelines? For achieving positive results, you must mention the main objective of SOPs at the top of the document. It will not only explain to your teams why following the SOP matters but also double the engagement levels.

2.  List of Processes

Once you have explained WHY now move on to WHICH. By which, we mean which processes must be mentioned in SOPs or for what processes you will be creating a step-by-step guide. It is necessary to develop a list of processes for creating Company operations procedures and standards as it will assist in either combining multiple guidelines or splitting one into different SOPs. The managers better have a detailed discussion session with their teams and then forward the list to the management team for the final review and identifying redundancies.

While enlisting the processes, make sure to include only the ones that need standardization and the procedures foreseeing a change.

3.  Write End-User Focused SOPs

Most importantly, the SOPs must be written from the audience’s perspective. You should understand your staff and gather knowledge about their professional experience, language skills, traits, etc., for a clearer picture of how you can relate your SOP to the reader. EVERYTHING must be suitable for the end-user! It must be impactful for your audience. A few tips include:

  • Use easy-to-understand, consistent language.
  • Don’t make it overwhelmingly detailed.
  • Always add a glossary section.
  • Use active voice.
  • Be consistent in formatting.
  • Stay laser-focused on the tangible responsibilities of the end-user.
  • Never miss out on adding eye-catchy visuals, such as flowcharts, screenshots, diagrams, and videos.
  • Do not use unacquainted abbreviations or terminologies.
  • Use “must” for mandatory instructions.

Always put yourself in the employees’ shoes and decide which processes need to be mentioned to achieve overarching business goals rather than over-explaining.

standard operating procedure

4.  Use SOPs For Minimizing Waste

Taiichi Ohno idealizes SOPs as a source of reducing particular types of operational waste for well-organized and competent resource usage. For example:

  • Under-utilization of Skills is one of the biggest wastes that can be minimized with SOPs by addressing inefficient hiring processes, lack of communication, and wasteful administrative duties.
  • Overproduction is considered an operational waste. With good SOPs, you can acknowledge erroneous market forecasts, bizarre customer needs, and unproductive use of automation.
  • Highlighting recurrent reasons behind troubleshooting along with responsible consulting staff can fill the gaps and eliminate the risks of defects in organizational procedures. Another waste was removed!
  • One of the most common wastes is waiting time. Through SOPs, you can identify possible delays, noticeable lop-sided workloads, and unacceptable employee absent-mindedness.

While writing the Standard Operating Procedure document, every skilled manager must be conscious and proactively look for ways to get rid of the common types of waste with world-class solutions.

5.  Implementation of Electronic Data Management System

For easy management and automation of SOPs, it is advised to use user-friendly standard operating procedure software. Electronic Data Management System or Computerized Maintenance Management System software not only systematizes SOP development but offers wide-ranging convenient, smart features to:

  • Develop SOPs without errors.
  • Edit multiple SOPs from remote locations offline.
  • Track changes.
  • Download files easily.
  • Save SOP templates for better customization.
  • Create SOP or assign tasks even on smartphones.
  • Monitor improvements.
  • Ensure regulatory compliance.

Digitizing documents declutters your file mess, causing disorganization in your cabinets. It makes the standard operating procedure checklist scannable, measurable, and actionable.

6.  Choose The Right SOP Format

Do you want to produce consistent results? Are you looking for ways to explain company processes unmistakably and briefly?

Pick the most straightforward format that adheres to the international standard ISO 9000 or something similar, lets you produce a precise list, and gives enough space to include necessary explanations. You can find a variety of formats to follow, but the most commonly used structures include:

Simple Step-By-Step List:

  • Presented in a bulleted list.
  • Written in short sentences.
  • Best-suited to explain routinely workflows that need to be followed in a specific order.
  • Suitable for developing safety guidelines.

Hierarchical Steps:

  • Best-suited for complex procedures comprising a lot of steps.
  • Based on primary & secondary checkboxes.
  • Provides extra space to present additional information.

Flowchart:

  • Best-suited for penning down detailed processes that can give not one but several possible outcomes.
  • Helps explain the actions that must be taken in unpredictable scenarios.
  • Makes SOP easy to read and comprehend visually.
  • Provide better insights with standard operating procedure flow chart template.

With the proper standard operating procedure format, you will save yourself from creating unappealing, clumsy, and drudgery SOPs.

7.  User-Friendly Template

Different tasks demand different Standard operating procedure templates to share the essence of a valuable message but ensure to follow consistency to make all of your SOPs appear the same way!

For organizing procedural documentation, pick the template that best conveys the information about task completion, as it will save time and energy. As Monitrium explained, “Pre-made SOP templates that are based on industry standards provide organizations with a solid foundation for SOP creation, speeding up the time to developing documentation.”

Most essential elements of the standard operating procedure manual template include:

  • Title
  • Scope
  • Overview
  • Necessary Tools
  • Procedural Steps
  • Attached Manuals
  • Target department
  • Accountability Measures

Always use industry-vetted templates to have an excellent starting point for SOPs and keep the battles of unnecessary formatting at bay. Use at least two templates to escape the last-moment problems in the final review.

Minimize Variability & Maximize Quality With Well-Written SOPs

Profits Plus Accountants are always ready to provide top-tier counseling services and offer complete guidance in writing company standard operating procedures for making task delegation convenient. Our experienced team assists in establishing best industrial practices and law-compliant policies while meeting your monitoring purposes.

With our SOPs, you will become stress-free about completing workflows on time. We ensure a unique client experience.

8 Advantages Of Online Accounting Software | Why Business Must Use Cloud Accounting Software?

online accounting software

In the past recent years, the business world has been introduced to progressive and high-performing cloud technology, completely revolutionizing the approach to carry out routine tasks. Cloud-enabled computing is needed more than ever to keep a company’s accounts and finances under check. Cloud accounting software tops the chart among the cloud-based business solutions, for instance, Zoho software, FreshbooksQuickBooksSAGE, and Xero.

Whether you have subscribed to a paid or free cloud accounting software, it will help you collaborate and create seamless connections globally. The company will experience a significant reduction in overall management costs while enjoying business growth and top-tier efficiency.

According to Forbes, by selecting the best cloud based accounting software for medium sized businesses, you can easily keep a close eye on company expenses without wasting your wealth on recruiting, training, and managing accountants’ teams. With a close cloud accounting software comparison, you will find the best fit.

The Top 8 Benefits of Cloud Accounting Software

The implementation of online/cloud based accounting software is most likely to grow as it supports companies in running automated, streamlined processes by minimizing human errors. The cloud based accounting software ensures accuracy and security in managing real-time financial information and transactions. It not only cuts down your expenditures but also proves to secure confidential data from online & offline threats.

With improved visibility and easy access to real-time centralized financial data, a shift to digital accounting software will bring eye-popping transformation to businesses’ basic accounting activities.

Let’s look closely at the incredible benefits of cloud based accounting software!

  1. Quick, All-Time, and Easy Access To Updated Data

With online company finance software, you will be provided instant, trouble-free, and easy access to real-time, updated information saved online on the cloud platform. All you need is a secure internet connection and a functional device. You never have to install heavy, space-taking programs and apps on your laptops or mobiles to carry information.

Kiss goodbye to outdated asset management spreadsheets! A simple login to your authorized business account (cloud) will take you to the latest data you must be looking for to have an accurate business overview. It brings you the information no matter what corner of the world you are in. With 24/7 access from anywhere, you can share files securely and generate reports.

You are allowed to restrict anyone’s access and manage permissions for particular job roles—one of the best benefits of accounting software for small businesses.

  1. No Installation and Maintenance

The best cloud accounting software for accountants takes the burden off your shoulder to administer, run, supervise, and maintain IT infrastructure or any other administrative tasks. Cloud software needs no installation or specialized IT department. The company never has to worry about implementing routine backups, downloading time-consuming software, or installing management servers. The online cloud computing accounting software service provider will handle everything on your behalf.

Solve all your problems by accessing advanced software over the internet! Now, you can spend your resources on more important tasks to increase productivity and free your administration staff to complete pending projects.

  1. Improved Collaboration

Need to work with your partner on the same file, but you are miles apart at a different location? Not a problem with cloud accounting! Online collaboration significantly simplifies tasks, improves decision-making, and gives a way to achieve better outcomes.

Accounting/financial information saved and accessed through online platforms enhances collaboration as you can communicate with other members and teams or add multiple users when needed for better project management.

  1. Automate Your Accounting Tasks For Accuracy

Human errors are inevitable, and a single mistake in a company’s finances can make you face drastic consequences. So, why not eliminate the risks by automating your accounting procedures with cloud accounting software?!

It is high time to free your staff from predictable, repetitive tasks and let them focus on more valuable, strategic tasks!

Cloud-based accounting platforms save not only time but also your efforts by automating laborious manual tasks such as maintaining records, generating reports and invoices, calculating discounts and taxes, making pay slips, scheduling and paying subscriptions, and handling payroll applications, etc. It is, undoubtedly, an affordable alternative.

On the one hand, automation speeds the process. On the other hand, automation eliminates many of the error-prone manual steps guaranteeing accuracy in each calculation.

Automate Your Accounting Tasks For Accuracy

  1. Customization, Scalability, and Integration

The most significant advantage of using cloud accounting is its high availability and scalability, flexibility, and customizable features. After all, spreadsheets become unmanageable with all-time increasing data. Considering the company’s demands, needs, and budget, the software is scaled up or down. You are most welcomed to create your personalized dashboards on cloud based payroll software for accountants by adding business-target and industry-specific terminologies of your choice. Online accounting systems work well with all sorts of expansion plans.

Additionally, the best cloud based accounting software gives you the freedom to integrate cloud accounting software with your other business applications, especially if you find it challenging to supervise each application individually. Integration possibilities are truly endless!

  1. Go Paper-Less – Eco friendly Choice

Time to shift systematically from traditional paper accounting to digitalized, paper-free, online accounting!

Apart from being an efficient solution for you to play your part as a responsible citizen, it declutters your physically stored archived paper records. Manually writing notes, handling printed documents, and distributing confidential reports to other parties can be really risky as they can go missing.

You must start storing electronically generated reports and invoices in the cloud. You better scan all copies of bills and receipts and save them online in an organized way, rather than piling them on the desk. Moreover, you must save important conversational emails for future use. Where reducing paper use brings a positive environmental impact, it also cuts down the energy used by servers.

  1. High-End Data Security

What if your employee steals essential company documents? What will you do in case of cyberattack or theft? How will you cover the damage if the server crashes? You always need a fool-proof backup plan, redundant disaster recovery plan, and a top-tier safety plan to ensure that each piece of information is safe in transit and storage. This is only possible with the use of best-in-class cloud/ online accounting software that guarantees data security with end-to-end encryption encryptions, access permissions, tracking records, 24/7 surveillance, and constant backups.

Data security in cloud accounting seems unbreakable because of pioneering tech. You can enjoy full-time privacy and protection from hackers. Skilfully planned disaster recovery strategies never let you face data loss and improve your productivity.

  1. Increased Efficiency

 Why use cloud accounting software?

From automation to backup plans, no installation and maintenance to data encryption, providing updated information to keeping track of authorized access, generating error-free reports to built-in analytics tools, quick data access to cutting down overall expenses, checking the system automatically for any mistakes to offering scalability – cloud accounting software only impacts the business positively by improving efficiency and productivity.

An online system with built-in controls promises increased accuracy on a grander scale.

Xero Cloud Accounting Software 

Now you have acknowledged how cloud accounting software helps your business’s finances, you must be desiring to use online accounting platforms, and Profits Plus makes this shift easier for you.

At Profit Plus, we not only provide you with qualified accountants who offer top-notch accounting services, but we ensure the use of the latest technologies, including Xero cloud based accounting software, the best accounting software, to help businesses save time and cost through accounting automation. This is how we keep your cash flow healthy!

How To Be A Great CFO For Driving Operational Gains

Be A Great CFO

What do you expect from a CFO? What the key strengths for CFO? Do you define a good Chief Financial Officer with financial insights, a few technical skills, accounting competence, and the ability to forecast and take calculated risks? To be a professional, modern, and good CFO, you need a lot more to keep up with the ever-evolving digital transformation.

What Abilities Required For CFO? | Top 7 CFO Requirements

You must be wondering exactly what makes a great CFO? Over the years, the definition of a great financial officer has modified as CFO duties and responsibilities have become more leadership-centric. 

A good CFO is smart enough to look beyond the numbers and play the role of a trustworthy strategic business partner to the CEO for maximizing investment, harnessing Big Data, and adapting swiftly. A successful CFO must have a keen eye for minute details, a deeper understanding of the company’s finances, a forward-looking mindset, and a macro view of the competitive market.

Let’s look at the characteristics and common key attributes of becoming a remarkable CFO!

  1. Excellent Leadership 

One of the essential traits of a great CFO is “strong leadership ability” because he will not only be responsible for bringing a talented team together but also for leading, motivating, guiding, and training them. Officer must be a problem-solver with the front-runner confidence to make critical decisions for handling disrupted relationships with stakeholders.

The role of CFOs is the proposer of the company’s growth which requires unparalleled headship qualities so they can envision the bigger picture and achieve the company’s business goals by utilizing their tactical skills.

  1. Master Technical Skills

If CFO lacks IT knowledge, managing the finance department might get tougher!

A CFO must make profitable decisions about the company’s expenditures and make its procedures more efficient through automation. BUT, it is only possible if the chief officer is tech conversant and has the capacity to adopt and implement the newest technology solutions. As Sarah Spoja, CFO of fintech provider Tipalti, explains, “CFOs should be thinking about how they can build a tech stack that will help them and their team be as successful as possible. That means both reducing manual work and having the data and insights more easily attainable.”

Whether the finance chief is making a budget, carrying out analysis or auditing, ensuring compliance to standards, or implementing accounting principles, it is necessary to develop or refine their technical expertise to look closely at the organization’s finances.

  1. Comprehend Real-Time Financial Data

If the CFO fails to handle data and cannot appreciate the importance of delivering in-the-moment insights when needed, the enterprise will never grow!

To improve internal efficiencies, make profitable decisions, limit instability, foster a friendly relationship with global companies, and impress new clients, the CFO should be familiar with the numbers and must have the ability to perform analytics of the existing financial data to help the CEO take executive choices without struggle. A good CFO must have a strong analytical aptitude.

CFO with the proper knowledge and industry experience is more likely to succeed in the argument against competitors, scaling up the company’s growth exponentially.

Comprehend Real-Time Financial Data

  1. Forward-Looking Strategic Mindset

How to be a CFO who is appraised by every member?

The simplest answer to “how to be a great CFO?” is “to be able to forecast risks through analysis and help the company accomplish all financial goals by following strategic, forward-thinking models.”

A good, effective CFO is the one who always thinks and progresses strategically, the one who is always ready to take strategic initiatives, the one who acts as a change leader with a forward-looking approach, and the one who partners with the board of directors to forecast the future using numbers.

The finance officer should follow the “ask, analyze, and strategize” attitude for revealing opportunities, identifying challenges, analysing diverse viewpoints, making impactful real-time analysis, and expecting change without succumbing to pressure.

As explained by Steve Priest, eBay’s CFO, “Helping them think about what’s around the corner and the trajectory of the company, particularly in an ever-changing environment, is incredibly important. To do that, finance leaders need to be looking forward and anticipating change.”

  1. Adaptability & Innovation management

Modern CFOs are considered “good” only if they show the capability of:

  • Making the most out of the available resources to run a company’s finances effectively
  • Focusing on process improvement to adapt to the existing situation
  • Revolutionizing a highly motivated working environment which supports originality
  • Retaining employees with his organizational skills
  • CFO strategy for internal departments should reflect radicalism
  • Adapting the newest advances in technology for innovation
  • Refining the company’s talent recruitment strategy to bring in the best candidate
  • Utilizing automation solutions and management tools for effortless working

CFO activities must reflect modernization. Ash Noah, vice president of CGMA External Relations at the American Institute of CPAs (AICPA), emphasizes innovation and advises against relying on old practices anymore. He says, “Making your business resilient and strengthening your business model is what the CFO of the future will have to do. The old way of thinking stifles innovation and ruins new business creation.”

  1. Best Style to Communicate & Collaborate

CFO duties are nearly endless, and to become the best CFO, first, you must be aware of different communication styles and understand what style suits the situation or audience. Second, you must choose the most professional, effective, and comprehensible ways to communicate with your partners and competitors. CFO educational background might play a significant role here.

According to Brian Beckwith, CEO of Formation Capital, “Flex Communication Style” should be the priority. To become excellent communicators:

  • Always prefer a transparent communication
  • Uphold an engaging session
  • Make sincere and confident statements
  • Don’t forget to address critical issues
  • Stay interactive while sharing information with management
  • The conversation should be concise

When you know how to communicate being CFO, you will better coordinate company activities, carry out hiring procedures, manage offshore teams, and collaborate with other parties.

  1. Risk Assessment Skills

Where providing real-time insights is one of the primary CFO tasks and responsibilities, forecasting risks related to security, compliance, financial, personnel, or IT is also central to their job. A successful chief financial officer must not only recognize potential threats but also mitigate them to avoid a long-term business crisis. He should take responsibility for creating a strong defense against calculated risks within the operating framework.

In the opinion of executive recruiter Arnold, “Managing cyber risk specifically has now become front and center for CFOs. They’re partnering with their CIO to determine the risks and how to confront them across the entire organization.

Leading Provider of CFO Services to Dubai-based SMEs

Who needs CFO services? Everyone does!

Profits Plus has flexible, affordable, and pioneering CFO accounting services to help grow companies operating in Dubai while meeting their all business needs. We deal in four leading accountancy firms. From hiring a skilled in-house CFO for internal audits to consulting our verified British accountants to understand VAT, Profits Plus offers a plenitude of services.

What Are The Benefits Of Standard Operating Procedures? | Top 8 Advantages Of SOPs

Top 8 Advantages Of SOPs

No matter the size of your company or number of employees, creating Standard Operating Procedures (SOPs) is a must-have for fostering better employee autonomy and achieving consistency in employee performance. With professionally documented SOPs, you can achieve the desired output in terms of staying organized, delivering effective training, simplifying recruitment procedures, and operating smoothly by following specific work policies.

For those who don’t know what is SOP? These are step by step instructions that must be numbered or better presented in flow diagrams to act as leading guidelines for existing and new employees.

To introduce the culture of reliability, independence, safety, and quality control, develop SOPs for your company!

8 Benefits of Standard Operating Procedures (SOPs)

We are aware that making SOPs demands time and effort, but it is definitely worth it. They help you in the longer run. Let’s see some of the best advantages of SOPs.

  1. Reduced Employee Training Time and Cost

Always keep your training-related SOPs ready because presenting detailed guidelines in written form will not only leave a positive impact on new employees but also standardize orientation, regulate training, make them more productive, and let each employee learn the same information in the same amount of time without wasting resources. You can save big on training costs with SOP, as well.

During training, company standard operating procedures will provide them with a chance to settle in quickly and understand important facts about the company. These instructions make it easier for new hiring to comprehend how their duties need to be done while taking the pressure off of your shoulders of spending long hours training your new team.

On the one hand, Human resources standard operating procedures will surely not be used as a substitute for training. On the other hand, documented components can be best used as reference guides giving spare time to the supervisors to judge their abilities.

With a well-oriented standard operating procedure training file, you can expect your new recruits to complete assigned tasks efficiently without repeating important details again and again. You only need to hand them your SOPs to study while training completion!

  1. Enhance Autonomy 

SOPs give a sense of autonomy to the employees. As they will have the guidelines in hand already, they won’t be running back and forth to their managers to seek permission to make profitable decisions. They get freedom from asking for “reassurance” all the time and “excessive reliance” on supervisors.

Companies that make SOP checklists are better at cultivating self-confidence!

  1. Straightforward Audits 

If your SOPs provide a clear image of all the auditing procedures, regulatory policies, and practical procedures, the company can successfully conduct a strategic internal audit to remove inefficiencies and improve the company’s workflow. Moreover, it will also highlight the areas that need utmost development.

Having technical SOPs and management SOPs will provide the guiding principle necessary to steer the accountants and managers in the right direction.

  1. Safe Yourself from Knowledge Loss

Having computerized or printed SOPs accessible to everyone and securely kept either on data-encrypted servers or in the cloud will prevent your company from experiencing a loss of knowledge.

The knowledge exits from the same gate your key employee or manager exits because generally, the essential details are only saved in THAT worker’s head instead of in manuals. It can severely put your central business processes at risk. To make sure that your organizational knowledge stays and is resourcefully transferred to the substitutes, document each & every essential instruction. You better save them on editable standard operating procedure software to avoid surprises.

Comprehensive, well-written SOPs are the key to running valuable business smoothly despite new hiring!

well-written SOPs

  1. Improved Employee Management

A perfectly detailed SOP improves staff management and eliminates any kind of uncertainty to minimize the occurrence of avoidable blunders in the first place. You can use SOPs as a fundamental tool to not only evaluate the employee’s performance but also to bring areas of improvement to their notice. When you provide SOP, you give your team the competence, dependability, and predictability they must be looking forward to succeeding.

Monitor and boost your team’s performance with the help of SOPs!

  1. Save Company’s Resources

One of the most significant advantages of using SOPs relies on their cost-effectiveness. It optimizes costs by reducing certain types of waste, including:

  • Defects
  • Overproduction
  • Waiting
  • Not utilizing talent
  • Transportation
  • Inventory excess
  • Motion waste
  • Excess processing

If you present the instructions to the employee regarding his task, there are lesser chances for him to do it unfairly, wasting effort or resources on needless processes.

  1. Performance Enhancement 

Why SOP is important?

With the help of SOPs, workers will be able to grasp the nature of their duties and fulfil them responsibly, showing consistency in task completion as they will be already aware of the expected results through provided guidelines. Step by step instructions helps to meet quality standards and get rid of delivering subpar results.

Developing standard operating procedures enhances productivity by eliminating the guesswork from day-to-day operations by ensuring that each employee understands the methods, rules, and events associated with their professions.

  1. Guaranteed Employee Safety 

How can you make new talents work for your company? By offering the maximum care because employee safety is an undeniably important factor, regardless of the nature of your business.

First, you can promise that you will be offering a safe workplace by providing them SOPs mentioning all the clauses per the standards. Second, when employees are familiar with the company operations procedures and standards that must be followed inside the office, the environment becomes safe and secure because SOPs will make your workforce stay compliant with the company as well as government mandates to avoid hefty fines.

Minimize Variability & Maximize Quality with Profits Plus

SOPs are the cutting-edge business practice to reduce workflow chaos and ambiguity!

It is time to pay extra attention to writing an SOP, but if you are drowning under work pressure, let Profits Plus help you develop or update your existing SOPs. We counsel the best in creating a comprehensive, step by step, the ultimate guide for employees.

You can avail strategic and competitive benefits from our well-documented SOPs. We suggest policies while keeping the purpose of standard operating procedures in mind.