How to Create a Strong Internal Audit Structure for Your Business?

Internal audit in Dubai

Regular internal audits can help the organization make better decisions for the future and leverage success. That is why a robust internal audit structure is essential to ensure smooth functioning within the organization.

Theinternal audit in Dubairelies on a range of factors that governs the functioning of different departments, process, payroll system, the performance of the staff, etc. With internal audits, you can put the correct measures in place and ensure the company is working towards the intended goals.

Organizations either employ a team of auditors to carry out internal audits or enlist the help of professional companies for the audits. In both cases, the auditors identify the weak areas and suggest ways to strengthen them. They also identify and mitigate risks to ensure the company is using all its resources optimally. Building a robust internal audit structure will allow you to make most of the audits and remain competitive in the market. But the only question is how you strengthen the audit structure for your business? Some steps and measures allow you to do the same, and we have listed the most effective ones in this article, have a look!

Build a Strong and Clear Reporting Structure

Every internal audit team must follow a clear and defined reporting structure. Thus, you should ensure no conflict affects the communication and performance of the audit team. If you are hiring a company for an internal audit in Dubai, you should develop channels of communication that have no interruptions. Since your in-house team will be working closely with the audit team, it is crucial to ensure the departments work in sync and deliver the reports on time. Additionally, ensure the audit reports are concise and used to make significant business decisions.

Better Engagement in the Strategic Planning Process

The audit team will be responsible for identifying risks and managing them, strengthening the internal control system along operational activities. In addition to all these critical tasks, the team will create a strategic planning process. That means along with internal audits in Dubai,you also use their expertise in improving the governance of all the business activities. That way you can leverage the professional experience in your scope of work and plan your business journey accordingly. Since the team has experience and expertise, they will take all the essential factors into account and ensure all the plans are strategic and in line with your organizational goals.

Adding Value to Business Operations

The audit team must align its process with the organizational goals and objectives. Doing this allows you to put all your efforts in the right direction. In addition to finding the loopholes and weak processes, an internal audit team will also help you identify missing opportunities based on the goals. Hence, they will be able to contribute to giving the right directions and improving the functionality of the business. Adding value to business operations is also a significant aspect of internal audits. That is why when you decide to get an internal audit in Dubai, look for a team that possesses the relevant expertise and experience to support your business in expansion.

Internal audit Dubai

Commitment from Your Internal Audit Team

The in-house audit team often makes mistakes in the process and operations. It is one of the significant reasons why companies prefer to collaborate with a trusted partner to get aninternal audit in Dubai. However, since internal audits help you improve your business operations, you must look for a team that will spend time and effort in the process.

Thus, you should enlist the help of a firm that has the experience and is willing to put resources into your audit. Commitment is vital to building a robust internal auditstructure for your company. The team must also highlight the positive aspects of the business process to boost the team’s confidence and keep them motivated.

Adopting Data Analytics

Data analytics during an internal audit in Dubaican bring a massive difference to the effectiveness of internal audits. With data analytics, auditors extract useful information, which helps identify and analyze patterns. That will ease detecting inconsistencies easier and allow them to generate better insights from the collected data. Thus, data analytics is the key to improving accuracy during internal audits. It also allows them to generate and share the audit reports faster.

Final Words

Internal audit is the best way to reduce the chances of failure and increase the efficiency of business operations. Since the outcome is dependent on the expertise of the audit team, it is essential to enlist the help of a trusted audit firm. HALSCA is one of the top firms that offer services like VAT registrations and internal audits in Dubai. Look at their website to browse their services or contact their support team at sholy@halsca.com.

VAT Registration in UAE: Documents & Information Required

VAT Registration in UAE

With the changes in the system, the United Arab Emirates has now implemented the Value Added Tax (VAT). That has made it crucial for every company to get VAT Registration so they can pay accurate taxes. You pay VAT at a rate of 5% on goods and services. However, there are some exceptions, such as healthcare, simple food items, and education. You can have a look at the guidelines and governing implications on VAT via the official website. That allows you to understand the process of registration and also assists you in calculating the tax amount.

However, if you need some help with the registration process, contacting a professional company will be the best decision. A trusted agency will make the process of VAT Registration in the UAE much easier. Also, with their help, you can understand the updated guidelines and ensure you pay the correct amount depending on all the latest protocols. It will ensure there are no mistakes during the tax calculation and prevent hefty fines. If you want to know about the documents and VAT registration process, we have listed all the essential information in this article.

Who Should Register for VAT?

The new amendments mandate the companies to register for VAT if they have an annual turnover of more than AED 375000/-. Thus, all individuals and companies should register for VAT if their annual turnover is more than the set amount.

This threshold is the same for all individuals and companies. The companies operating before the implementation of this law must go through with the VAT Registration. New companies, on the other hand, must take care of the registration when establishing the company.

The VAT is an indirect tax added to goods and services that a company provides to its customers. This tax applies to both companies and individuals. Once the company or individual has registered, they need to submit a return to the FTA (Federal Tax Authority). It is submitted periodically on a monthly or quarterly basis. The company or individual pays all the tax collected. The VAT implemented in UAE is similar to VAT in Europe, you can acquaint yourself with the process from other countries too.

The final consumer pays the VAT. You can any amount claim back any amount that you pay. However, not all services are part of the VAT system. Some services such as transport, finance commissions, school fees, and interests are exempt. In addition to all these exemptions, Free zone companies are not always an exception. Some companies that have a turnover above the threshold are mandated to go through VAT Registration. Companies that are manufacturing supplies for foreign companies can apply for an exemption.

Thus, you will need to read up on all the guidelines before you register for VAT. The information makes the registration process simple and allows you to expand your business as well. Before you go through the VAT registration process, you will need a ton of documents. All of these documents are fundamental for the registration process. Thus, you should keep soft copies of all these documents. When you are filling out the application, you will be required to upload copies of all documents for verification. We have listed out all the essential documents below, have a look to be prepared.

VAT Registration UAE

Documents Required For VAT Registration

You will require soft copies of all these documents while filling the application. All of these documents are essential during the registration process.

  • Documents help identify the authorized signature like a copy of passport, Emirates ID.
  • Company’s or individual’s turnover for the last 12 months in AED.
  • A copy of the trade license of the company.
  • Description of all business activities.
  • Details of the bank account.
  • A range of supporting documents for 12-months sales.
  • If applicable, you will also need all supporting documents for customs registration in each Emirate.
  • Expected turnover of the company in next 30 days.
  • You will need to share information if you are expecting to deal with GCC customers or suppliers.
  • All the other official documents that authorize the entity to conduct activities within the UAE. These documents include Articles of Association, power attorney, certificate of incorporation, etc.
  • The estimated value of both exports and imports for one year to every GCC country.

Companies can also register voluntarily if they want to go through the VAT registration. Companies that have a turnover of more than 187,000 AED can register voluntarily for VAT.

Final Words

VAT registration requires a lot of work and effort. You will need to be aware of all the guidelines to ensure you follow the process correctly. If you think you need some help with the process, you should enlist the help of a professional company. HALSCA is a professional accounting firm that can help you with VAT registration in UAE. They employ a range of professional accountants who can make the process easier for you. Browse their website to learn more about their services, or contact their exceptional team at +971 55 651 9937.