According to Top Audit Firms in Dubai maintaining books of accounts and having audited financial statements has become more crucial than ever with implementing the new rules and regulations within the UAE. Except for a handful of free zones, the submission of certified financial reports was never required on the mainland and free zone within Dubai. However, when the corporate tax goes into effect on June 1, 2023, all businesses must keep their books of account. Sure of them must have verified financial statements to claim tax exemptions.
Most SMEs avoid annual audits conducted in Dubai except for legally required or demanded from lenders or investors. The majority of SME owners worry about the possibility of having their accounts scrutinized by Top Audit Firms in Dubai. However, audits are a way to assure your lenders, investors, and the authorities in charge of your company's financial health. Auditors in Dubai assist you in ensuring that you adhere to the required regulations for compliance and safeguarding your company from fraud. These tips will help SMEs to survive audits within the UAE:
Get Organised Quickly
When you sign up with audit companies located in Dubai, they will provide you with an agenda of what you need to bring a couple of months prior to the date of the audit. It is recommended to go through the list, collect the required documents and store them in convenient storage space. It could be a central storage device or drive, management software or a physical file cabinet. Ensuring that documents are saved in a format approved by the auditors is essential.
Maintain Orderly Records Via Routine Upkeep
The financial statement review is quicker if the auditors begin with precise and uniform data. However, the auditing process will be slowed if auditors must comb through a mess of records or search for reconciled entries. This can be avoided by keeping up with crucial accounting processes, such as maintaining your accounting documents in order.
Refrain from reconciling bank account balances or adjustments to inventory until the final moment. Collect as much information as you can including figures, dates, client engagement dates, justifications for changes, etc., and make them available to auditing staff in Dubai. You could transfer the task to an accounting and bookkeeping company if this is difficult. This will help save time for the auditor and minimize the disruption to your employees.
Keep Auditors Informed
When you have chosen the best one of the many audit companies in Dubai, it is crucial to maintain contact with them all year round. Additionally, contacting the auditors before signing an important contract or undertaking anything unusual is essential. If auditors have previous information, it can help them save time and allow them to aid you in arranging agreements effectively.
Use The Right Tools
Utilizing the right tools improves efficiency and also saves auditors time verifying figures. For example, a firm with a point-of-sale system that immediately transfers transactions to the ledger account is more efficient than one that does not have one. Reliable accounting software and system allow auditors to view and report in real time. This is crucial for saving time and showing auditors that there is nothing to cover up.
Automated bookkeeping can be used if your business is expanding and your bookkeeping is getting more complicated. With the proper assistance, you can provide innovative methods to your table.
Separate personal and business accounts
All business owners, not just those with small-sized businesses, must maintain their corporate accounts distinct from personal ones. If you're yet to adhere to this critical accounting rule, you should begin to implement it immediately. This could ensure clarity and clarity, whether intended or not while you prepare your audit.
Keep an Audit Trail
For SMEs to navigate through an audit, preparing an audit trail or audit log is required. A trail of audit is a chronological document that records the history and specifics of a financial transaction, work-related stage, product development or entry in the financial ledger. An audit trail can give you a written history of an event so that auditors can effectively manage it while tracking any financial data. Audit trails indicate that the company's finances are appropriately managed.
Read more: Auditing Firms in Dubai Freezones
