Why Should You Outsource Your Accounting Operations

Opening a business is not easy, but when you have decided to start a new company, you first find a proper accountant to keep financial records because the accounts department is the critical factor in your business. The accounting department will not generate revenue for your business but will save you money.

A qualified professional accountant is not readily available in the market and is not financially affordable for small and medium entities because it is very cost-effective. Sometimes qualified professional accountant’s cost is more than the overall operational cost of the entity.

Still, every entity needs an accountant for its accounting department to record accounting data and keep records. Unfortunately, those unprofessional accountants do not follow International Accounting Standards (ISA). As a result, their accounting treatment for financial transactions is often wrong.

That results in companies having inaccurate financial information, so management makes a bad decision. Sometimes they open new branches for their business because their accountant gave them false projections based on financial data which they prepared. Opening a new business or unit is not difficult, but retaining a company or department or staying in the market is very hard because when you open a new business or attachment without proper financial projection, you will face big cash flow problems.

Before starting a new business, we should calculate the net present value (NPV) for the target year and the internal rate of return (IRR) on their investment for the decision. It will help to decide if we open the new business or not because the net present value (NPV) will give you a better picture, for example. For example, if you want to open a new business segment, let your spouse rent a Car Business, and the initial investment is 1.0 million, and the project is five years. You have decided that after five years, you will close the operation with the profit for the business first year being 150k, the second year being 200k, the third year 225k, the fourth year 250k, and the final fifth year 275k plus 400k for sale cars. In that business projection, you need to know, “What will be my investment value after five years and what will be the internal rate of return?”

That calculation will give you a clear picture to decide whether to open a new business or branch or not. similarly, if an entity wants to calculate project or entity growth rate, profit ratio, equity debt ratio, quick ratio, working capital ratio, current ratio, etc.

These financial indicators are supported by management to take the right decision for the expunction of their business. Unfortunately, all these are unable to understand Jr. Accountant or average bookkeeper. For this, you need a highly qualified professional accountant.

From July 2023 UAE government has announced a 9% cooperate tax for all-natural persons engaged in the business. That includes Sole Establishment companies, Unincorporated partnerships, undertaking activities requiring a license, and legal persons, including companies/other legal Entities incorporated in the UAE and permeant established foreign companies. Taxable income up to AED 375,000 rate of Tax is 0% or Taxable income above AED 375,000 a 9% (on portion of taxable income exceeding AED 375,000)
UAE Government has mentioned that there is no intention to individual personal income (both UAE Nationals and UAE residents) like salary or other real estate investment or dividends. Therefore,) cooperate tax is not applicable, the investment in real estate. Legal Persons (LLC, Private Shareholding Companies, Public Joint Stock companies, and other entities with separate legal entities) incorporated in the UAE cooperate tax will apply. Transaction from Free Zone to business outside the UAE will consider zero rate tax.
Capital gain, Interest, royalties, and dividends and from owning shares in mainland UAE companies’ payment by mainland group company to free zone person shall not be a deductible expense for the mainland entity.

Therefore, from July 2023 onwards, for all companies, including small and medium and Free zone companies, an annual Audit is mandatory, To avoid any financial penalties and fines from the UAE Ministry of Finance. Companies should maintain their financial records properly as per government law because tax issue is a very sensitive, and a slight mistake or negligence from your account will face significant financial losses.

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. That 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 taxless 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.
We also regularly partner with the best external service providers whenever skills are required outside the traditional Audit & Advisory Services space.

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