How Accountants Can Increase Your Margins in 2021?
UAE is one of the most lucrative places for doing business. Entrepreneurs, investors, and businessmen from all over the world can be found here, all of them waiting to seize new opportunities and expand their business empires. Being in control of your financials means that you are in control of your business. Whether it’s a big or small venture, your business needs a strong financial backbone. Otherwise, it won’t be too long that you have to liquidate your company.
But how can accountants help to increase your margins?? Normally an accounting firm can help you improve your cashflows, thin out cost centers, and increase the overall efficiency of your business machine. But let’s look at the 10 best ways that audit firms in UAE use to accelerate their client’s growth.
1. Digitization of Financial Management
Accounting software has become far more advanced than spreadsheet software. There are numerous accounting software solutions that can help you completely digitize your financial management. This can help you generate and share invoices faster, send and receive payments electronically, and more.
Despite being a diverse business region, not every company in the UAE has become completely digital. Many companies still rely on dated methods of accounting. The right Dubai auditors can help you pick, implement, and get used to the perfect software for your company.
2. Meet Legal Auditing Requirements Confidently
In the UAE, an annual audit carried out by an external auditor is a legal requirement. It helps keep businesses under check and reduce the chances of foul play. An audit can help businesses get a better understanding of their financial position as well. External auditors in Dubai can produce in-depth reports that provide you with valuable information, improving your decision-making ability. And since they are based in the UAE and are well-versed in the legal requirements of the region, they can produce valuable insight that foreign firms are unable to identify.
3. Analyze Your business’ Health with Internal Audits
Fulfilling legal requirements isn’t the only reason why businesses perform audits. An audit is a highly useful tool that helps business assess their internal performance. Experienced auditors can dig deep into your company and analyze your company’s health. They can reveal financial and managerial weaknesses and provide recommendations for improvement as well. Businesses that perform annual internal audits are able to improve their survivability and accelerate growth in the long-run.
4. VAT and Tax Consultancy
Tax and VAT became compulsory in the UAE only 2 years ago. A lot of businesses are still in the process of getting used to this new concept. New regulations are always disruptive, but they need to be adopted as quickly as possible. Otherwise, your business can end up on the wrong side of the law. UAE’s accounting firms are small and flexible. Meaning that they can adopt newer regulations faster, and help larger businesses do the same. With their help, you can meet legal requirements better.
5. Company Formation Services
The UAE is a business hotspot for many reasons, one of them being a business-friendly environment that makes establishing a new business easy. Tax reliefs, developed infrastructure, support from the authorities, the list of benefits goes on and on. However, setting up a business requires planning, local and global expertise, and a list of requirements that must be fulfilled. In order to set up your business in the UAE, you need professional guidance. Auditing companies offer services for company formation and Liquidation in UAE. Their expertise allows you to layout the foundation of your business in the correct way, greatly increasing the chances of your business surviving and growing its first few years.
6. Improve Your Accounting and Bookkeeping
The idea of improving your accounting and bookkeeping ability while also reducing accounting and bookkeeping costs sounds ridiculous. But it is possible; the best thing about auditing firms is that you can outsource your financial operations to them. You can avail of the services of experienced accountants who are well-versed in all the latest practices, without actually having to hire them. Some of UAE’s best auditing firms are capable of providing customized accounting and bookkeeping services to every client.
7. Providing Assurance to Stakeholders
Larger companies have more stakeholders to answer to. in order to remain successful, these companies need to provide assurance to their stakeholders. This is usually done in the form of an external audit. Accounting companies perform this audit and share insights gained from the audit with stakeholders. These insights highlight a company’s profitability, management effectiveness, and its overall health as an organization. The information gained from an external audit can be highly useful for the company as well as it highlights weaknesses and potential setbacks that need attention.
8. Specialized Accounting Services
Providing businesses with accounting services is the bread and butter of auditing firms. And since providing accounting services is the core of their business model, they specialize in their work. These companies make an added effort to stay updated on the latest accounting practices. They adopt the latest accounting technologies available and are able to adapt really quickly. Being able to provide the latest and best accounting services is crucial to their survival. This makes auditing firms’ services really great quality-wise.
9. Access to Experienced Human Resource
Good quality human resource costs more. This cost barrier prevents a lot of small and medium-sized companies from hiring employees that can grow their business. auditing firms help companies bypass this barrier. Companies that do not have the resources needed to hire a full-time CFO or experienced finance team can outsource these positions to auditing firms. They can hire experienced CFOs with flexible salaries. Businesses can reap the benefits of quality human resources at a fraction of the cost.
10. Cost Reductions in the Long Run
Reducing cost centers is crucial to long-term success. The right accounting companies can provide businesses with the skills and resources needed to make this happen. They can help you digitize your accounting management, helping you save money without cutting corners. And their outsourcing services let you utilize the best that UAE’s accounting industry has to offer at a very low cost.