Why You Should Keep a Separate Bank Account for Your Business

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bank-account-uae-dubai

If you’re a small business owner, having a separate bank account is not only considered vital, but is also seen as one of the most effective budgeting techniques you can try. Not only will it make it easier for you to keep track of your business income and expenses, but it’ll also make the job easier for your outsourced bookkeeper. But is this the only reason to keep a separate bank account for your business? Not by a longshot. Here are a few more reasons.

 

· It’s required by the FTA if you’re incorporated. Is that a good enough reason for you? We thought so. Forget about whether or not you’re the only person in the company and you’re able to differentiate your business transactions on a personal account. Whether it’s just you, you and a partner, or a small corporation doesn’t matter. To ensure you’re not breaking any rules with the FTA, get yourself a separate business checking account.

It shows the FTA that you’re a legitimate business. Even if you’re not incorporated and you aren’t legally required to have a separate checking account for your business, doing so can accomplish the sometimes tough task of proving to the FTA that you’re legit and that your business isn’t just some surreptitious way to play the system. Having a separate business bank account isn’t the only thing the FTA looks at, but it can help keep you off their radar. It can also help greatly if you’re ever audited, because you’ll be able to provide the FTA a clean record of your transactions without having to sort through your personal finances.

· It makes you look like a bona fide professional. Now, having a few business cards and a check that has the letters “LLC” immediately after your name won’t attract business any more than a fancy pair of shoes will attract the person of your dreams. What it does, however, is legitimize you in the eyes of customers, suppliers, and potential investors as the real deal – and let’s face it, sometimes these things can help.

 

Outsourcing your accounting doesn’t mean you’re off the hook for keeping accurate financial business records. It just means you’ve now got someone on the case who knows what they’re doing, allowing you to spend more time running your business instead of data entering dollar amounts and trying to figure out what those figures mean with regard to the health of your business. An outsourced professional bookkeeping service can also offer guidance on budgeting techniques that can save your company valuable money and effort in the long run.

 

To learn more about how outsourced bookkeeping works, visit alyaauditors.com

How Long Should You Keep Business Records in UAE?

Auditing Firm in DXB

Many businesses aren’t sure how long records must be saved in the paperless era. Record-keeping is a boring, but important business activity, and if you make the wrong choices, you risk litigation, succession planning problems and the wrath of the tax man. Understanding how long should you keep business records will help you avoid these problems.

The General Rule

The Internal Revenue Service has established some basic record-keeping rules for tax documents. Outside the tax arena, there’s remarkably little guidance about how long you should keep business paperwork. Most lawyers, accountants and bookkeeping services recommend keeping original documents for at least five years. As a rule of thumb, five years is sufficient time for defending tax audits, lawsuits and potential claims.

Specific Documents

  • Business Tax Returns and supporting records must be kept until the IRS can no longer audit your return. In most cases, the IRS can audit you for three years after a filing, but that time period extends to six years if the IRS suspects you made a “substantial error” on your return.
  • Payroll tax records, including time sheets, wages, pension payments, tax deposits, benefits and tips must be kept for at least four years after the date the taxes fell due or the date you actually paid them, whichever is later.
  • Current employee files should be retained for at least seven years after an employee leaves, is terminated or retires. However, if an employee suffers a work-related accident or files a claim against the business, it’s advisable to retain your records for up to 10 years after the claim is resolved.
  • Job applicant information must be kept for at least three years, even if you didn’t hire the applicant.
  • Ownership Records, such as business formation documents, annual meeting minutes, by-laws, stock ledgers and property deeds, should be retained permanently.
  • Accounting Services Records should be retained for a minimum of seven years. Accountants, being a conservative bunch, will often recommend that you keep financial statements, check registers, profit and loss statements, budgets, general ledgers, cash books and audit reports permanently.
  • Operational Records, including bank account statements, credit card statements, canceled checks, cash receipts and check book stubs, follow the seven year rule.

These periods are not offered as final authority, but as a guide. Your CPA, outsourced accounting service or tax attorney may recommend a different approach based on the rules of your industry and the specific needs of your business.

Audit Firms in Dubai

Auditing does not need to be an unwanted process. With one of the top audit firms in Dubai, like Alya Auditors., you can be sure that your audit process will not be as tedious or tensed as what you have been accustomed to.

There have been a number of companies from various industries that Alya Auditors auditors in Dubai have audited. We have experience and knowledge in our sleeves.

You can contact us today and book a free consultation with one of our auditors in Dubai for you to find out more about the audit.

Economic Substance Regulations in UAE

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​ As part of the UAE’s commitment as a member of the OECD Inclusive Framework, and in response to an assessment of the UAE’s tax framework by the European Union (“EU”) Code of Conduct Group on Business Taxation, the UAE introduced a Resolution on the Economic Substance (Cabinet of Ministers Resolution No.31 of 2019, the “Regulations”) on 30 April 2019.  Guidance that provides further clarity on the application of the Regulations was issued on 11 September 2019. The Regulations require UAE onshore and free zone companies and other UAE business forms that carry out any of the “Relevant Activities” listed below to maintain an adequate “economic presence” in the UAE relative to the activities they undertake. 

 
Relevant Activities:
  • Banking Business
  • Insurance Business
  • Investment Fund management Business
  • Lease – Finance Business
  • Headquarters Business
  • Shipping Business
  • Holding Company Business 
  • Intellectual property Business (“IP”)
  • Distribution and Service Centre Business​
 
 
The Regulations provide a definition to each of the above Activities. The provisions of the Regulations shall not apply to Companies in which the Federal Government of the UAE or the Government of any Emirate of the UAE, or any governmental authority or body or any of them has at least 51% direct or indirect ownership in their share capital. The Regulations apply to financial years commencing on or from 1 January 2019. Entities that are governed by the Regulations will need to submit a notification to their Regulatory Authority (defined under Cabinet Decision No (58) of 2019 issued on 4 September 2019) from 1 January 2020 onwards, and prepare and submit to the same Regulatory Authority an economic substance declaration  within 12 months from the end of their financial year (e.g. 31 December 2020 for entities with a financial year ending 31 December 2019). An entity is not required to meet the economic substance test and file an economic substance declaration for any financial period in which it has not earned income from a Relevant Activity. Failure by an entity to comply with the Regulations shall result in administrative penalties, spontaneous exchange of information with the Foreign Competent Authority (as defined in Article 1 of the Regulations), and potential suspension, revocation or non-renewal of its registration.

The Economic Substance Regulations

1.Why has the UAE introduced Economic Substance Regulations?

The UAE introduced Economic Substance Regulations to honour the UAE’s commitment as a member of the OECD Inclusive Framework on BEPS, and in response to a review of the UAE tax framework by the EU which resulted in the UAE being included on the EU list of non-cooperative jurisdictions for tax purposes (EU Blacklist). The issuance of the Economic Substance Regulations on 30 April 2019 (the Regulations), and the subsequent release of the Guidance on the application of the Regulations on 11 September 2019, was a requirement for the removal of the UAE from the EU Blacklist on 10 October 2019. The purpose of the Regulations is to ensure that UAE entities that undertake certain activities (see question 4) are not used to artificially attract profits that are not commensurate with the economic activity undertaken in the UAE.

2.What is the first reportable Financial Year?

The Regulations apply to financial years starting on or after 1 January 2019. Example 

1: A UAE company with 1 January 2019 – 31 December 2019 financial year: First assessable period would be 1 January 2019 – 31 December 2019. Example 

2: A UAE company with 1 April 2019 – 31 March 2020 financial year: First assessable period would be 1 April 2019 – 31 March 2020. No need to comply with the Regulations for the period 1 January 2019 – 31 March 2019.

3.Who are the “Regulatory Authorities”?

The Regulations are administered by the Regulatory Authorities listed in Cabinet Resolution No (58) of 2019 Determining the Regulatory Authorities Concerned with the Business Mentioned in Cabinet Resolution No (31) of 2019 Concerning Economic Substance Regulations 

Does your business fall under Economic Substance Regulations in the UAE?

If your business falls under the entities with the above-mentioned activities in the UAE, then you may need assistance to determine the applicability if Economic Substance Regulations is relevant for you as you need to analyze the implication of this new regulation in the UAE.

The team at Alya Auditors will assist you in providing preliminary assessments of your company’s current compliance obligations, and assist with possible future strategies, in response to this new legislation.

For more details on "Economic Substance" read
Source  :  Ministry of Finance Website

Tips On Finalizing Year-End Accounts, Prepare Schedules and Financial Reports

Accounting Companies in dubai uae

Accounting services and requirements are some of the inevitable business demands. This is why accounts professionals are on high demand in business places. When it comes to balancing business books and financial statements, there is never a more dreadful time than end of the year.

During this period, payroll professionals are required to perform more than the usual fortnight, weekly and monthly tasks. On one side, all books and records should be reconciled to finalize the end of year. On the other, preparations for the next year should be in place already.

However, there are various techniques that seasoned payroll professionals use to lessen the effort and time consumed in finalizing a business’ account.Here are few insights to help you achieve ease during the process.

1.Don’t wait for the final payroll to reconcile payment salaries

Reconciling employee earning before the end of year is often the best path to take. It simply gives you enough room to counter check records and make necessary amendments to employee earning.

The advantage is that you can make these adjustments after the original summary is out thus saving you the hurry when it is time to produce the final reports.

2.Find out exactly what is to be included in end of year

Many small business owners get stressed simply because they never have the right clues on what to include. It is important to remember that you do not necessarily need to include everything as it is.

For instance, dropping cents and reporting whole dollar values will give you ease when balancing the books. Include salary sacrifice made towards reportable employer super contribution (RESC) and those paid towards employee termination payments.

3.Find out what not to include

Since you now know what to include, it is still important to know what is irrelevant in final summaries. Ensure you make adjustments to employee earning and remove all the negative amounts before producing payment summaries.

You should not include superannuation contribution guarantee (SCG) amounts in your final summaries.

4.Review your final payroll processing and pay dates

Payrolls processed and paid on or after 1st July will usually appear on the next end of year summaries. If you intend to reconcile all records before opening new books, make sure they are processed and paid by 30th June.

If you use electronic payments, the dates should be those specified on the transaction.

5.Issue payment summaries by 14th July

It is always recommendable to issue payments to payees, workers and employees before 14th July. More importantly, you should consider how your business will distribute these summaries.

If you are using manual prints posted to your employees, give time for delivery. If you use electronic means,ensure they know the steps to access those details online.

6. Consider paying superannuation guarantee contributions early enough

Once the super funds receive payments, they proceed to count SCG contributions and this order of events cannot be changed since receiving payments triggers counting the contributions.

For instance, businesses were required to pay contributions for the 4th quarter (April – June 2015) by 28th July. However, employees may want to make payments as early as 30th June for various reasons.

7.Speak to your employees and find out their arrangements

Following on early SCG contributions, it is upon the payroll account professionals to find out how many employees want to make SCG contributions by given dates.

They may want to take advantage of voluntary after-tax contributions as provided for in government schemes. Just make sure you schedule everything giving sufficient time for the employees to receive their payments.

8.Reap from deductions, rebates and , write-offs by 31st March

It is a wise decision to contact your account manager and discuss all your business deductions, rebates and write-offs before 31st March.

Ponder action plans for scrapping worthless stock and equipment and review asset registers to track your company’s equipment utilization (purchased, sold, disposed…). This will help you refine the records and reconcile all data accurately.

9.Have a keen eye for changes in compliance

Each year comes with various compliance changes which are very important to keep up to date with. Failing to follow compliance can result in penalties. Although years con go by without major changes, tracking emerging policies should never be oversight.

Changes may also be implemented in stages, which is why you need keen watch.

10.Create and backup a separate copy of the account

Regardless of the effectiveness and security your accounting services and systems depict, it is still very crucial to take time and create a backup. This is important whether you work on your desktop or rely on cloud storage.

Create an accounting system that stores files on the 2019/2020 year only then save it somewhere else even offline if you wish to. Ensure the backup is safely stored and protected from competition or other people who may use the data to affect your company.

11.Make preparations for the new financial year

As the end of year closes and summaries are reported, it is also the time for reassessing your business plans to determine if you are in the projected paths as you prepare for the coming financial year.

Review your accounting services and software considering cloud accounting solutions and emerging technologies that can be of benefit to your business.

Meet with your trusted advisors and discuss your business’ progress focusing on topics such as benchmarks and KPI performance as well as budget.

Conclusion

There are various other tips on finalizing year financial statements and preparing for the new financial year. Small insights like paying superannuation on employee holding account, reviewing variations of PAYG, claiming expenses, staying on top in record keeping and planning your expenditure are all important.

The ultimate goal is to ensure everything is reported correctly. Sufficient preparation for the coming year is in place and the effort/time spent in the processes involved is reduced. You can always hire third party outsourced professionals to help you finalize the summaries.

Make sure you choose credible licensed approved  professional Chartered Accountant Firm in Dubai   to offer these services in Dubai,UAE.

For More details contact us .

8 Biggest Lies On Accounting Services

Accounting Firms in UAE,Dubai

If you want to manage your accounting in your business, you may want to hire the best accounting service today. This type of service is very useful to support your finance or management system in your business.

When you look on the market in Dubai, you can find many types of accounting services in this country. Therefore, you need to compare some available companies for looking at their features and benefits for all customers. This article is going to show you top 8 biggest lies in
this industry.

Some companies may provide these lies to their customers, so you have to be careful with these companies.

1. Accounting is a complicated procedure

Some accounting service companies claim that the accounting can be considered as a complicated procedure. However, you should never trust this idea. In fact, accounting is an easy way to manage your finance situation in your own company.

When you hire the best accounting service company, you should be able to take a good care of your accounting process in your business easily. Because of this reason, you need to select the best service that comes with a lot of experience in this industry.

You need to hire the best accounting service that can complete your accounting requirements quickly.

2.Expensive accounting service

Some people believe that hiring an accounting service is an expensive part in the business. This is believed to be one of the biggest lies on the accounting industry.

When you look on the internet, you can find some services that are offered at very reasonable price. You don’t need to spend your money for hiring any of these services.

Some companies are ready to provide you with free quotation for all customers. This quotation includes all important details about the service, such as contract period, labor cost, accounting management cost, and many other important factors.

3. No warranty in the accounting service

This is another common lie that is given by some accounting services in Dubai. Some companies claim that they are unable to provide warranty for all customers. However, you should not worry about this situation. You can still get the best accounting service that is offered with its warranty.

This warranty can make sure that you can complete your accounting project properly.When the company cannot complete your accounting project on time, this company is going to refund or redo your accounting project completely. This warranty is very useful to ensure the quality of this type of service.

4. No need to hire experienced accounting service

When you want to select the best service to support your business needs, you should never believe with this idea. It is important for you to select the best accounting firm that has enough experience in this industry. It is a great idea to select the right accounting firm that has few years of
experience.

Experienced companies usually have high quality and proven services for all customers. Therefore, you are able to rely on the performance and quality of these experienced companies. They will be able to complete any problems or issues that may occur on the accounting process.

5. All accounting services are similar

This is another common mistake that you should avoid, especially if you want to hire the best accounting service for your business. You should realize that not all services are created equal.

Some services are able to provide high quality service for all customers, while some other services cannot help you with your accounting process in your business.

Because of this reason, you have to compare some available services in Dubai. You should take a look at all necessary factors, such as available services, license, experience, and many other essential factors.

6. Instant result from this service

You should realize that there is no instant result from this accounting service. This type of service is going to take your time for taking care of your accounting process. It is very important for you to keep calm and be patient with the whole accounting procedure.

Some companies are able to complete your accounting requirements in a few weeks, while some other companies may need to spend a few months for completing your accounting process. However, you can still hire the best service that can provide complete details, so you can monitor the progress easily.

7. No complete report from this service

Not many people realize about this lie from this accounting industry. Some accounting service companies cannot provide complete report for all clients. However, you should not worry about this situation.

You can contact the best accounting service company that can provide complete report for all customers. This complete report may include all important details about your accounting or finance system in your business.

You can use this report to discuss with all members in your company, so you are able to improve your business performance easily.

8. No backup for your accounting data

Some companies don’t want to provide backup for all customers. They claim that they are unable to provide complete backup, in order to secure all of your data completely. This is one of the biggest lies on the accounting industry.

You can contact some companies that can provide full backup for your data. This backup is very important to help you secure all important and necessary data files for supporting your business performance. Securing all of your data is very important to avoid losing any important data from your company. You may need to open any data files in the future.

There are many other lies about accounting industry in Dubai these days. It is important for you to hire the best accounting service that is available in this country. Selecting the best service can help you take care of your business easily. Hiring high quality accounting service allows you to manage your finance and money in your company properly.

You may want to hire the best accounting service that is offered by reputable company these days. You can find reputable accounting service firm
in Dubai,UAE easily.

6 Reasons To Hire Us As Your Forensic Accounting Firm

Forensic-Accounting-Firms-in-Dubai-uae

It can be quite challenging when you need to find a good forensic accounting firm in Dubai.

Prior to choosing a firm for the forensic accounting, you must make sure that you have considered some factors.

We are among the leading firms in Dubai and here are some of the reasons why you need to hire us as your preferred forensic accounting firm.

1. We Are Trustworthy

We value our clients and we make sure that they have received the most reliable services required.We aim mostly at making our clients feel comfortable while working with us.

Trust is a very vital aspect that needs to be considered when dealing with any forensic auditing & accounting firm in Dubai,UAE. It is also an aspect that we highly value, since we deal with legal matters at our firm.

A forensic accountant will be hired to carry out deep analysis and scrutiny on financial aspects, which needs fidelity.

We always want the clients to feel comfortable hiring us for the sake of carrying out the necessary services.

We usually take time to explain to the clients bout our company and all the skills that we possess, for the sake of making them trust in us.

2. We Are Experienced

Another important aspect that too many people ignore, yet is very important is the year of experience of a given firm.

A firm must be able to have extensive experience in their field for the sake of being able to carry out their job as required.

We have been in the field of forensic accounting for quite some time now and it is through this that we have earned more knowledge in the field.

Our accountants have a longer certification period, being able to carry out deep job specifications. We are able to handle deep cases relate to forensic accounting.

3. We Have Enough Proficiency

The expertise of a firm is another aspect that you must consider when you are looking for a forensic accounting firm in Dubai,UAE.

Other than the years of experience in the field, the firm must also have enough knowledge about the topic. It is not only about what they have experienced throughout their years of operations.

Also, it is required that the firm must understand what they are doing in the field. Our firm has a deeper know-how in the field, which is a great aspect that contribute to the many cases we
handle.

We are able to take care of several cases that relate to the forensic accounting. For that, we will be able to handle whichever case that is put on the table.

We have a record of all the cases that we have handled, both the successful and the unsuccessful. The successful cases that we have in our records total to about 85%. This is a clear indication of our ability to handle cases with the right skills.

We will always be ready to provide the clients with all our most recent reports. This is only as a
proof that we have handled real cases.

4. We Are Always Available

We are dedicated to serve our clients in the expected manner and always be there in case of any
problems. This is another factor that matters most when you are in search of a forensic accountant.

You must ensure that you find a firm that will always be there whenever you need them. We are not
just physically available, but we also avail ourselves through the phone and the internet.

We have an ever active email account that will be responded by our trained personnel. This will take the shortest time possible when you need your answers urgently.

The phone line is also ever active and for that,we are available to our clients whenever they need us.

5.We Are Affordable

A forensic accounting firm must be fair to the clients, in terms of charging them with reasonable prices. The price quotation of the firm must be within the reach of the average client.

We are considerate of our clients and we ensure that we have provided them with prices that do not care them away.

We only charge fees that relate to our service quality. We are not too high, neither are we too low, but we charge reasonable fees, which match the quality of services that we offer to our clients. This is another aspect that make us a favorite of many people.

6. Informative

We do not just offer the forensic accounting services, rather we also provide our clients with the right information that relate to the field. We will guide them in understanding the forensic accounting perfectly and ensuring that they know what it entails.

Our accountants help to educate the clients on when and why they need forensic accounting. This is an aspect that is vital, since the clients need to understand what it entails and how helpful it is to their organization.

We are basically valuable to our clients and not only in terms of serving them and representing them in court, but also educating them with the right information.

It is vital that the forensic accounting firm to be open enough and loyal to their clients in order to ensure that they get the best services.

We ensure that our clients receive the highest degree of services. In addition, we ensure that they get help whenever they need it, by contacting us whenever they have a problem.