Accountancy and bookkeeping are not simple and easy in UAE as before because many changes have been made and new tax laws, including VAT and cooperate tax law, regulated by the Ministry of Finance and Federal Tax Authority, and an Anti-money laundering law has been implemented in UAE under the regulatory on UAE central bank. In addition, the Ministry of Economy regulates Ultimate Business Owner (UBO). For all these regulations and cooperate tax laws, you need to have professional and qualified accounts to follow and maintain their books of account as per International Accounting Standards followed by the UAE Federal Tax Authority, Ministry of Finance, UAE Central Bank, and Ministry of Economy to avoid and save financial penalties.
UAE Ministry of Finance and Federal Tax Authority imposed many financial and tax law, which is required by International Monitoring Funds and other countries’ tax regulatory authorities to regulate and documents the UAE economy; in 2018 federal tax authority (FTA) imposed a 5% value added tax for all natural persons and legal persons, as you know that natural persons consider Sole establish companies, other UAE national and other countries investors those who have commercial properties and getting rent on it, so those investors think as natural persons, it means they have commercial income without having commercial trade license. And the other hand, commercial enstatites include limited labilities companies, general partnership companies, cooperation, shareholding companies, etc., except medicines, children’s school tuition fees, public transport, like taxis, Metro, Air transport, Rail, etc.
From 2020 onward Central Bank of UAE will regulate anti-money laundering regulation AML in the UAE. for those companies who engage in a high volume of cash transactions like Gold & Jewellery, precious stones, loose diamonds business, Real estate developers, and brokers, Audit & Accounting firms, Banks and money exchanges companies and cooperate, service provider, they have to register their companies with UAESB/AML.
The central concept to avoid and make sure money is clean and will not involve or used for any illegal activities, and there are valid reasons are available if money received in their account or transferred from their account; if anyone is unable to provide proof of funds which they received or share they will have punishment for money launder in UAE, for example, a person transfer money without money trail or illegal sources and buy assets in UAE with money laundering money, in that case, there is life imprisonment for ten years and penalties from AED 100,000.0 to AED 500,000.00
From July 2023 onwards UAE Ministry of Finance implementing a 9% cooperate tax on all commercial entities, except those companies that engaged in mining, petroleum, natural resources, earning from investment, dividend income, personal income from real estate, charities, federal and emirates governments, social securities and retirements pension funds, etc.
Filing cooperates tax returns is not so simple it purely technical and needs to fill in correct financial information. The threshold is AED 375,000.00 for a minimum profit above this amount; companies have to pay 9% to cooperate tax, but calculating this profit is not so simple because many taxable expenses have certain limits beyond this limit, which will add back in profit.
For example, charities and donations have some limitations. Cooperates could not give charities and assistance as per their will if they want to do charities and donations. They have to do with UAE government-approved charity organizations only if some person or company will do charities or assistance that is not listed. That amount will add back in profit or will not be considered expenses.
Similarly, entertainment and gift expenses also have some limits; cooperate can’t cross boundaries set by the authorities; otherwise, governments put fines and penalties. To avoid all these financial penalties and fines, you need to have a qualified professional account that is cost-effective for your organization and might sometimes be over your budget because a qualified accountant will demand a high salary. So, the best option is to outsource your accounting department to a qualified accounting firm. Still, before outsourcing your accounting department, you should ensure that the following qualities and abilities must be met.
Once you outsource your account department, you must check your qualities before signing a contract with an accounting firm.
Accounting Company Profile.
The first step is to choose the accounting firm for your accounting department to take care of your accounts per the authority’s tax law and regulations. Then, see the profile of the company and do due diligence, like how long this company has been in the market, how many qualified accountants they have, how many clients are in its portfolio, who is their clients, and how big this company is, see the clients review for this company and then you decide to select company.
The second step is to check the accountant’s profile, check their qualification, professional experience, how many clients they are taking care of, how big the company accounts, how much accounting software can manage or handle, is they have a relative field or industries experience or not, knowledge of business and industry, for example, hotel industry or gold industry business to a deferent business other than trading or retail business, in gold business accountant must have gold business experience otherwise they cannot control and handles their accounts, they must knowledge of fix or unfix gold transaction and gold market exchange rate and pure gold conversion into jewellery form, they must recognize 18K/21/22K gold jewellery otherwise they will mix up all calculation. The hotel industry also has very different accounting systems, there is so much room for booking, check-in, check-out, cash control, cash flow management, etc., so before outsourcing your accounting department, you must check the accountant’s profile and face-to-face interview to cross-check and understanding that you are doing to handover your accounts department in right people.
Before you sign the contract with an accounting firm, you must have to check for that company and their account field experience; if they have the same field experience, then you sign the contract; otherwise, it is not advised able to sign the contract with those companies who have no understanding for the same field because they will give you wrong information and can’t control and handle the system.
Accounting Software Knowledge.
There are many accounting software available in the market, and some companies use their customized software or ERP system for the whole company; this is very important that outsourcing companies should have hand on experience in handling or working on it. Accounting software generates all financial statements, including MIS reports, for management, so accountants must have the knowledge to operate that software and how to create reports as per company management. If they don’t know how to get notifications, they will sever and not get the results you are required to.
Accounting companies must emphasize matters for material misstatement or entity internal control; if you appoint a qualified and experienced accounting firm, their accountant will emphasize weakness in internal control, and they will advise you on how to improve and make a robust accounting system that will help you to improve your operation.
Control and avoid financial fraud.
Mainly in the company, their accountant is involved in financial fraud due to a lack of segregation of duties; the same accountant handles cash, issues cheques to suppliers, makes salaries, draws money from the bank, and deposits money into the bank and no one can check their work, due to weak internal control accountant easily manipulate records and no way to find out what was happened in the company. Outsources give you picas of your mind. You can avoid all these issues very easily because an accounting firm has no right to control cash or to right or issue cheques, so same time, internal audit work is also going on.
Why Vista Vision Auditing and Chartered Accountants?
Vista Vision Auditing and Chartered Accountants Dubai, United Arab Emirates, was established in 2012. It started its operations in Mozambique as Vista Vision Audit and Accounting Services Mozambique Lda under the same umbrella of leadership, experience, and expertise in the local and international market. We provide highly professional services through our qualified and experienced professional auditors and accountants, financial consultants, tax consultants, and specialities in other assurance services.
The industries’ exposure relay on Capital and Financial Markets, Construction and Civil Engineering, Manufacturing, Hospitality, and Services. The clients included Private Companies, Non-Governmental Organizations, and Family and Owner Managed businesses. Our commitment to our clients has enabled the firm continued growth and success in developing and maintaining strong professional relationships.
We believe our unique combination of technical expertise and our philosophy of total client commitment throughout all phases of the engagement provides our clients with the highest quality service and products available.
Our main aim is to offer our clients services of the highest standards through our specialized departments and to add value to their business activities. This is achieved through the in-depth knowledge of our client’s activities together with the experience and know-how of our people.
Tax consultancy and compliance check in taxation, Vista Vision Auditing & Chartered Accountant. Dubai has extensive experience preparing tax planning, implementing, assessing, verifying, and monitoring compliance with tax obligations. The primary purpose of this action is to scope the onerous taxes solutions.
Rigorous and timely fulfilment of tax obligations associated with the increasing scope and complexity of tax rules require companies to update their strength in tax matters constantly. Such skills are essential to prevent the worsening of the consequences of failure in this area.
Vista Vision Auditing & Chartered Accountant. Dubai can find the necessary solutions to help carefully comply with the tax rules. Our tax experts work in partnership with our customers to help them with tax compliance and the correct calculation of taxes.
The VVAS aims to provide independent, objective assurance and advisory services to optimize operational efficiency and cost controls and improve the underlying control infrastructure. We help companies to accomplish their strategic objectives by bringing a systematic, disciplined approach to evaluating and enhancing the effectiveness of risk management, control, and governance processes.
Internal Audit acts as an essential element of the total risk management function and, to that end, also facilitates the Enterprise Risk Management program. Vista Vision Auditing & Chartered Accountant. Dubai oversees the program and reviews the assessment of the risks in each area and the proposed mitigation strategy. In addition, it determines what adjustments, additions, or changes are appropriate the scope of our work is to determine whether the company’s risk management, control, and governance processes are adequate and functioning to ensure:
We hand-pick the best talent available and nurture and empower them through training and providing them with broad exposure across sectors, service lines, and geographies. Vista Vision Auditing and Chartered Accountant. Dubai is structured to be a “great place to work”; hence, we retain our best employees to serve you now and in the future.
Over the years, we have been known for the quality of our people, experienced and dedicated professionals who have found the proper ground for further development. Combining specialist skills, sharp industry insight, and relevant local knowledge, our professionals are also valued for the exceptional proximity they have built with our valued clients.
We have grown consistently to have a team of over 15 professionals from diverse cultural and academic backgrounds. This multicultural workforce confers to the firm a unique, open corporate culture that allows us to rapidly assimilate clients from diverse social, economic, and geographical backgrounds.
Regular in-house training on emerging industry and regulatory issues further ensure our people keep abreast of significant developments in their specialist field.