Accounting and auditing are two essential aspects that keep the business running. Accounting of the payables, receivables, credits, debts, etc. will give statistical data about the financial health of the firm. Hence, every business organization must comply with accounting requirements.
On the other hand, auditing is the method to ascertain the perfection of the accounting process. Both internal and external audits are conducted by business entities to check for the correctness of calculations, money held and expenses. The external audit is of ample importance that will elude the possibility of miscalculations, bring out data about pending payment due to the government, and any kind of fraud happening in the company.
When it comes to business hubs like Dubai etc, you can find a lot of professional auditing and auditing firms that offer impeccable services. If you are looking for audit firms in Dubai, London, or any other countries to manage your business finance, choose the one that offers exceptional auditing services in operational and financial reporting. The success of your company will depend on your financial management. A meticulously prepared financial analysis report will aid you in identifying the strength of the business. It could be used for planning new ventures, expansion schemes, and new recruitments.
Having said that, let us look into detail why the external audit is essential for your business.
Laws of the Land
There are governmental guidelines and federal laws that stipulate certain payments to the government. This includes VAT, income tax, certain fees, and so on. The external auditor or auditing agency will examine every detail about the turnover in the specified period or fiscal and calculate the amount to be paid to the authorities.
The external auditors will inspect the documents, certificates, and statements based on the agreement concluded with the company.
Your account statements, including expenditures and receivables, have to be subjected to a thorough inspection to discover the possibility of any fraud. Any irregularity in the financial data will indicate that the employee (s) of your company may be involved in the fraud.
Overlooked discrepancies in financial statements could be indicative of some misdeeds in the organization. Such acts can affect your profit and sink your company. The external audit is vital for keeping your firm healthy and growing.
The Federal Tax Agency in the UAE can carry out financial inspection anytime they want. They can be at your doorstep without any prior intimation. The company must be ready in all respects to present all the financial documents to the FTA. Accounting firms, which provide proper financial record maintenance and customer support is essential. Improper financial data can result in trouble for you during such inspections.
Besides the above-mentioned, any anomaly observed, including mathematical errors, non-compliance, or improper tax filing, non-adherence of government regulations can land you in trouble. The FTA can charge you with a heavy fine or cancel your license. Thus causing embarrassment to your organization and affecting your credibility adversely.
Inputs for Improving Financial Management
The external auditors will be experienced professionals with several years of experience. They can provide your accounting team with valuable inputs concerning the calculation of various financial data, new regulations for tax/ VAT/other fees, a better methodology for bookkeeping and auditing, new software for accounting, and many more.
You can also request a professional agency for training your team of accountants. Their proficiency in the field of auditing and accounting will be beneficial for educating the accounting team at your company.
Quality Control of Procedure
The internal audit team at your organization will be following a particular procedure for auditing and accounting. However, they will be blind to the flaws related to the procedure being followed. Getting external auditing services in Dubai will help to keep a bird’s eye view of the process. Thus, they can guide your team about better audit and accounting methods, implementation of new guidelines, and identification of errors in the methodology followed etcetera.
Point out the Problem in Your System
By closely observing and scrutinizing the existing conditions at your firm, the external auditors will narrate you the exact problems in it. The problem may be unfavourable for your development and expansion plans. Resolving the subject issue will be constructive for your firm.
The external auditing agencies have ample experience to point out the wrong practices that are detrimental to your business. You can follow their guidance to turn your business towards a positive path. Hence, the money spent on external auditors is not a loss, but a multiplied gain.
External audits are essential for your business in every aspect. It will ensure that your business is on the right track. They can be of great help to progress your business.
Most of the successful firms have recognized the benefits of external audit. To be precise, the external audit by an independent agency has been one of the reasons for the success of those companies.