SMaintaining books of accounts and submitting audited financial statements has become more essential than ever with the implementation of new rules and regulations throughout the UAE. Except for a few free zones, offering the financial information audited was optional on the mainland and Auditing Firms in Dubai Freezones. But, once the corporate tax comes into effect on June 1, 2023, all businesses will be required to keep their books of accounts, and some may have to certified financial statements to be eligible for tax exemptions.
If it’s not legally required or a mandate from lenders or investors, Most SMEs prefer to refrain from undergoing annual audits conducted Auditing Firms in Dubai Freezones. Most SME owners are worried about the possibility of having their accounts scrutinized by audit companies in Dubai. But audits can reassure creditors, investors, and the authorities in charge of your company’s financial health. Auditors in Dubai assist you in ensuring that you comply with the obligatory regulations for compliance and safeguarding your business from fraud. These tips will help SMEs to survive audits during an audit in the UAE:
Get Organized Quickly
Audit companies located in Dubai, after you have hired them, will provide you with an agenda of what you need to bring a few months before your scheduled audit. So it is recommended to go through this list, assemble the necessary documents, and store them in a convenient place. It could be a central storage device or drive, management software, or a physical cabinet. It is essential to ensure that documents are kept in a format that auditors regulate.
Maintain Orderly Records Via Routine Upkeep
The analysis of financial reports is more quickly completed if the auditors start with accurate and consistent information. But, the audit may be slowed down if auditors must comb through a mess of records or search for items that need to be reconciled. Avoiding this by keeping up with crucial accounting tasks like keeping your documents organized is possible.
Refrain from reconciling bank account balances or making adjustments to inventory until the final minute. Collect as much information as you can, including figures, dates, client engagement dates, justifications for any adjustments, etc., and make them available to auditing staff in Dubai. If it is an overwhelming task, it is possible to outsource the work to an accounting and bookkeeping company. This will help save time for both you and the auditor while the possibility of less disruption to your staff.
Keep Auditors Informed
When you have chosen the best one from the many audit companies in Dubai, Staying in contact with them throughout the year is highly recommended. Contacting the auditors before signing an important contract or undertaking something unusual is also essential. If the auditors can access preliminary information, it can help them save time and allow them to aid you in arranging agreements effectively.
Use The Right Tools
Using the right tools increases efficiency and reduces the time spent by auditors checking figures. For instance, a company with a point-of-sale system that immediately transfers transactions to the ledger account could be more efficient than one that does not have one. Reliable accounting software and system allow auditors to view and run real-time reports. It’s essential to save time and show auditors that you have nothing to cover up.
Automated bookkeeping can be used when your company is growing and your bookkeeping is becoming increasingly complicated. Artificial intelligence and auditing are vital components of the accounting process. With the proper assistance, you can provide new ideas on the market.
Separate Personal and Business Accounts
All business owners, even entrepreneurs with small businesses, should maintain their accounts for business distinct from their private funds. You should begin practicing this important accounting rule immediately if you still need to follow it. It can help eliminate confusion and discrepancies, whether intentional or not, while you prepare your audit.
Keep an Audit Trail
The preparation of an audit trail or audit log is essential for SMEs to be able to navigate through an audit. A course of audit is a chronological document that records the history and specifics of a financial transaction, work-related stage, product development or financial ledger entry. Maintaining an audit trail will give you a written account of an event to help the auditors efficiently manage it when tracing financial information. A course of audits is significant evidence that you have financial data and your company is handled correctly.
Hire the Best Audit Firms in Dubai, UAE
Audits are an anxious time for small-sized businesses. However, entrepreneurs can easily handle them by following the guidelines in the blog. In addition, hiring the top auditing companies in Dubai like Jitendra Chartered Accountants (JCA), could make a significant difference. JCA is among the leading auditing firms in Dubai with many years of expertise. In addition to audit services within Dubai, JCA also offers customized services like accounting, tax advice for corporations VAT compliance Economic Substance Regulation (ESR) services, and Anti-Money laundering compliance services.
Audit Cycle Have Four Phases?
Planning and Preparation of Audit
The auditor and the lead auditor the client and the manager of audit programming organize all the work that needs to be done beforehand by the parties involved including the auditor as well as the lead auditor and the client, to ensure the auditor’s audit is consistent the purpose of the client or objective. The audit phase commences when the choice to carry out or participate in the audit is made. It ends when it begins auditing the company.
Execution of Auditing
The fieldwork portion during an audit is called the phase of execution. It is the phase of the audit that collects the information and starts from the moment. So you arrive at your audit location until after you leave. Audit management on site, conducting visits to the site of the auditee. But the auditee, knowing the procedures or system and process controls and ensuring. So they are in operation, and communicating with staff members. And sharing with your auditee is all elements of the audit process.
Reporting of Audit Conducted
The primary goal of audit reports is to provide the audit and its investigation’s conclusions. The message must give precise and clear information which can serve as a tool. So for management to address critical organizational issues. The audit process could be concluded when the chief auditor has issued the report. Because after any follow-up actions are completed.