Month: June 2022
Internal Audit Services UAE
June 30, 2022
Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Mobile:- +971 55 807 4568
Email:- dubai@hlbhamt.com
A good internal auditing system ensures better management of an enterprise by improving its governance, risk management, and management controls.
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IFRS 17: Insurance Contracts in UAE
John Varghese, Managing Partner
Phone:- +971 4 327 7775
Mobile:- +971 50 749 0576
Email:- dubai@hlbhamt.com
A slew of new reporting and compliance rules are gripping the globe in this period of globalisation and international trade, prompting a substantial shift in the way insurers do business. One of the most significant and far-reaching revisions in many years will redefine insurance accounting. The present standard, IFRS 4, will be replaced by IFRS 17 beginning in 2023. For insurers, IFRS 17 constitutes a significant reform initiative that extends across accounting and actuarial departments. With multiple workflows and initiatives, it will have an influence on insurers’ procedures, personnel, and technology.
Why IFRS 17?
The first unified accounting standard for the whole insurance industry is IFRS 17. Making it simpler to analyze financial statements released by insurance firms is the goal. Additionally, it will improve the industry’s accounting processes’ compliance with those of other industries.
IFRS 17 introduces unprecedented degrees of openness, providing users with more information than ever before about an insurer’s financial condition. More data on the revenue of new and existing firms will be available to investors.
Significant Impacts of IFRS 17 on today’s Insurers
- The impact of utilizing current market discount rates will vary, but it will almost certainly be considerable, leading to higher volatility in financial performance and equity.
- If premium claims and expenditures are considered, projected cash flow estimates can be more accurate.
- For analysts and users, new views are available. The new International Financial Reporting Standards (IFRS 17) will transform the way analysts analyse and compare firms.
- Only revenue, expenditures, and other insurance-related functions are documented.
- Drives business communication and optimizes financial reporting status
- The manner in which progress is conveyed will vary as a function of new presentation regulations.
- Financial risks and investment income will be provided independently from insurance outcomes in order to provide a comprehensive understanding of profit factors.
As per existing accounting regulations, the assessment of insurance contracts is usually evaluated from previous factual data available at the commencement of the insurance term. IFRS 17 requires a forward-looking assessment based on best-estimate cash flows. It is primarily interested in the revenue generated by portfolios. It lays forth guidelines for locating, evaluating, presenting, and revealing insurance contracts.
- With a primary focus on technology, data, activities, and people, insurers must take advantage of this chance to simplify their business.
- Insurance companies will be able to achieve real economic gains while adhering to proposed laws by using a methodical strategy that blends accounting, actuarial, and reporting activities.
- Insurance companies must devote considerable resources and technological facilities to IFRS 17’s complicated standards in order to fulfil a timeframe that is nearing.
IFRS 17 will strengthen reporting quality, making the insurance industry more invested and enhance collaboration between insurers and investors. Insurers will spend a lot of time and effort in the coming years evaluating, comprehending, and applying the new standard to their insurance contracts and reporting. The new norm will promote worldwide uniformity and enable insurers to compare their policies more easily.
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How to build a successful Automation Strategy in UAE
Midhun Menon P
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Implementing an intelligent automation strategy in your organization can provide numerous advantages.’ Several critical elements and aspects will determine whether this initiative succeeds or not. It is necessary for the proper combination of people, processes, and technology, guided by the appropriate automation strategy.
Pillars of Automation Strategy in UAE
When we talk about automation Strategy, we normally talk about the six pillars on which it should be built.
Process excellence
This means the business processes are Efficient and undergo regular improvement. A well-executed operational excellence strategy aims to go above and beyond customer expectations by improving corporate procedures and culture. According to the institute of operational excellence, every employee can see the flow of value to the customers and fix the flow before its breakdowns.
Automation governance
Which specifies the monitoring, management, and re-architecting of automated systems. Bottlenecks in the business process are eliminated, resulting in lost time and revenue for the Improvement. the enhanced production and compliance, as well as a better customer experience and market position, were all impacted by the greater efficiency and control.
Data Governance
This includes management principles, access and usage decision rights, and data resource security. Data governance enables greater significance of data in an organizational context and hence it is extremely essential. It offers confidence and understanding to an organization’s data, speeding digital transformation across the company.
Technical skills
Hiring, training, and supporting the professional provides success, and the more information your staff has, the more it will be helpful for the company in long run. By giving your staff technical skills training, you’re assuring them that they have the knowledge and competence to complete their everyday jobs to the best of their abilities.
Automation Application Governance
Selecting the right tool for the right process is also very important. Efficiency automatically increases when your staff has access to the exact data, they require to do their tasks. Workers usually select repetitious and uninteresting tasks to be done by automation.
Sustainable Deployment
Maintaining the right automated applications and documentation helps keep the company running effectively and efficiently. Making your firm more sustainable will allow you to earn more money and increase your profit line. Reduced operating expenses, more inventive methods, a better reputation, and more new consumers who value sustainability all contribute to sustainable firms earning more money.
Steps of implementing a good automation strategy in UAE
Select the right business process Automation
A poor choice of the automation process is responsible for the failure of the entire business project. Identifying a solid use case from the start is crucial to your digital journey’s success. While choosing a business process, keep the following points in mind
Consider the format data documentation process
Choose RPA processes that rely on digital, organized, standardized inputs. More sophisticated instances involving unstructured data can be considered for Intelligent Automation.
Check Whether the process is rule-based, or judgment based
For process automation, Rule-based is perfect for robotic process automation, while for Intelligent Automation, it is possible to automate judgment-based processes, too.
Considered the type of Data used
Intelligent Automation can be utilized for procedures that manage non-digital data in various forms and convert it to digital format, While RPA Works better
Determine who the most important stakeholder is
Getting the appropriate person is one of the most important aspects of any venture’s success. Automation is no different, when creating an automation plan, you must identify the right team composition and the right person to implement it. And ensure that you have a qualified team member to fill these positions.
Automation Team
RPA developers, Machine learning Engineers, and Data Analysts are among those accountable for the project’s deployment and effective competition.
Information and security team
The IT Information Team will provide direction on how Intelligent Automation will interact with existing technology.
Infrastructure Support Team
Running servers & machines that an automation project requires. You should also make sure that from the start of the project, all stakeholders are aware of the advantages that automation.
Plan the Automation project Correctly
After defining the business process and selecting the team, the next stage is developing an automation strategy. Developing a project implementation plan is the most important part. To do it right, you‘ll need to dig deep into the process and gather the requirements.
Set the project aim
Collect high-level requirements, and prioritize their delivery with an automation strategy
Kick-off meeting
To get everyone on the same page and identify roles on the project.
Testing &production
Implementation of the automation solutions’ design construction.
Implement
To verify that automation produces the intended outcomes, testing and production are required for the automated method being rolled out.
Automation can standardize your company’s response to customer issues, the business process is a set of activities that help to reach a specific goal. Automation is usually touching multiple IT Systems. We can help you achieve digital transformation in your company by automating various aspects of your business processes thereby allowing you to reallocate your resources to perform other high-value tasks and along with it achieve greater customer satisfaction.
Get in touch with our automation experts, today!
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ERP Focus Areas UAE - Select the Best ERP Solution for Your Business
June 15, 2022
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
We re-engineer the best-suited enterprise business solutions that would elevate technology, strategy, and implementation capabilities of your company.
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UAE Tourism Sector Growth
HLB HAMT News Team
Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
In Q1 of 2022, the UAE’s tourist sector surpassed a significant growth landmark, demonstrating its regional and worldwide strength.
Over the previous year, the UAE carried out one of the world’s quickest immunisation programmes, which aided economic recovery and promoted tourism. The UAE government has also made several efforts to help the tourist sector recover faster.
Dr Ahmad Belhoul Al Falasi (the UAE Tourism Council chairman and minister of state for entrepreneurship and SMEs) stated that; “the UAE’s competent leadership’s unconditional support and directives, as well as its involvement in this essential industry, which is regarded as one of the future sectors and a major emphasis area in the UAE’s development blueprint for the next 50 years, contributed significantly to the tourist sector’s rise.”
As per tourist statistics for the first quarter of 2022, the nation’s hotel businesses welcomed approximately six million guests who spent 25 million hotel nights, an increase of 10% over 2019. The average length of hotel visitor stays increased by 25% during the same period. Furthermore, throughout this same period, the country’s hotel occupancy rate increased by 80%, making it one of the highest in the world. In addition, inward tourism movements from overseas markets returned and recovered in Q1 2022, with hotel businesses in various emirates hosting approximately four million tourists.
The travel and tourism industry, one of the most impacted by the pandemic outbreak, has experienced a surge in international visitor arrivals, which has doubled this year, indicating that the sector has recovered. Events such as Expo 2020 Dubai and the “world’s coolest winter” campaign also show tourists’ rising trust in the UAE and its image as a secure and welcoming city offering a diverse and memorable visitor experience.
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‘Hybrid’ work mode – Revolutionary approach to work-life balance
HLB HAMT News Team
Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
Email:- dubai@hlbhamt.com
Employees worldwide have adapted to the routines of obligatory remote work since the Covid-19 outbreak, which disrupted our lifestyle. As organizations around the globe strive to figure out the right course of action for their workforce, it’s evident that many employees might not want to turn the tide where it was usually.
As the new normal becomes embedded in our way of life, the only paradigm that will last is one that provides people with freedom and liberty and enterprises with flexibility. We wanted to know how remote work culture evolves into a “hybrid work culture.”
What would a hybrid work culture be?
The term “hybrid” is essential to define the more adaptable future of the corporate industry, as it embraces a wide range of technologies. When it comes to hybrid mode, you have greater flexibility by combining office-based and remote personnel and offer all employees the autonomy they need to be effective. It gives them more freedom to accommodate jobs around their other commitments.
Let’s have a quick rundown of the key insights in a hybrid work model.
- This working paradigm is a location-flexible approach that allows individuals and their employers to mix onsite and offshore work as they see appropriate.
- In a hybrid work situation, issues of impartiality and complete equality must be deeply analyzed.
- Hybrid work schedules consist of sitting in an office with the perks of working from home.
- Enhanced work-life harmony is a critical component of every productive workplace.
- With a hybrid working model, the company can use young talent or sources from a global workforce on the recruiting side.
Bottom Line
It is becoming evident that as businesses and ordinary life gradually return to pre-pandemic levels of participation, the term ‘office’ will be considered a state of working rather than a physical location. The hybrid work model will forever transform the working environment in the foreseeable future. It is high time that organizations must quickly recognize that the well-being of their workforce is a core goal of business and must guarantee that their employees’ work is inspiring and engaging, regardless of when or where it is completed. A method developed along these grounds will influence the future, with firms ready to take the risk of reaping the rewards.
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Why ERP Projects Fail in UAE?
Midhun Menon P
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Enterprise resource planning (ERP) is a sort of software that businesses use to handle day-to-day operations like accounting, procurement, project management, risk management, compliance, and supply operations. The major benefit of ERP is that it provides complete visibility into the core business processes. ERP systems optimize through superior resource tracking and reporting, database management and data sharing, and result in an overall improved information system.
One in every four ERP implementations fails due to poor planning and refusing to change existing business practices. Furthermore, such failures have an impact on the chief level management’s willingness to approve such projects. These are the issues that most businesses face and are the prime reasons why ERP implementations fail.
Reason for failing ERP project in the UAE
Unavailability of skilled personnel
Most businesses underestimate the resources necessary for ERP deployment. Most organizations should have a thorough awareness of the project’s internal and external resources. For internal resources, the organization should have a solid timeline on the commitment required from their top resources that will be using ERP, usually those in Finance, Accounting, or Human resource department. For external resources, the organization should find out the consultants and contractors, and the duration, skills, and infrastructure required for the successful implementation of the system.
Reluctant to Change
Sometimes ERP systems will be used for a long time in a company. A lot of things can go wrong while implementing ERP in an organization. Most employees will have had one or two instances of ERP implementation in their careers. While implementing ERP in your company, both internal and external managers should have prior experience with the process. Another issue we usually see is the reluctance of certain employees to change from the existing processes. They will be so familiar with the current system that it will be difficult for them to accept a new system suddenly.
Able Project Owner
The success or failure of the implementation of an ERP project entirely depends on the project owner or Manager from your side. Project managers have more responsibilities. The project managers should have the ability to get into the details of implementation while keeping their perspective on overall business goals. Most successful ERP implementations are led by project managers that actively participate in the selection and implementation both.
Strategy without proper vision
A successful implementation should be done in a systematic manner. The implementation strategy should be in line, it should work with the overall goal and targets of the company. Sometimes lack of a clear strategy leads to challenges in implementation. In a business process, a good strategy is very important, and more importantly, should be crystal clear in the approach so much so that most of the issues and challenges faced by the company and its employees must be addressed through the strategy.
Your business can expand through ERP software in UAE
Enterprise Resource Planning software enables businesses to streamline and automate their processes, resulting in leaner, more accurate, and more efficient business operations.
Enterprise Business Consultants in UAE
Our certified ERP consultants can aid you in finalizing the vendor and the software that best fits your current business processes and align with your future goals as well. We help your build a strong and long-lasting relationship with your vendor partner for years to come. We will help train your employees and make them aware of the advantages and ease of work while using the new system. Apart from going through a lot of processes which include cross-checking the vendor’s presence and expertise in handling your industry’s problems and needs, their technology direction & support system, and the overall cost of ownership. Based on all these factors, we can guide you through the vendor evaluation and ERP product selection process.
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RPA in UAE; Should I Automate or Wait?
Midhun Menon P
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Automation is a word, that always invokes mixed feelings in us humans, while most people would see automation as a way of making their tedious jobs lighter, there will be some who feel that automation is taking away their jobs for the future. But the bottom line is that automation, especially AI-powered automation is here to stay and the early you adopt it, the better it will be for your future goals. As technology is evolving day by day, AI-powered Automation is also providing some innovative outputs regularly. There are two options for an organization, either sit on the bank and see others zoom past you or be part of the flow by adopting automation and innovating.
The Starting Point
So, how do you start, we would advise you to first identify processes and tasks that are usually time taking and occupies a lion’s share of your employee’s daily timesheet. The automation should potentially emulate human actions and eliminate any manual errors in the high-value tasks thereby streamlining your business processes. With Basic Robotic Process Automation (RPA) tools, you can automate a lot of your routine mundane tasks such as data entry, invoice processing, document management, client communication etc. Software Robots or Bots as it is generally called can improve organizational efficiency and free up your employees to focus on high-value tasks.
The Approach
Now, that you have identified your tasks to be automated, you can either go for full automation which will completely automate your systems and processes, but your team should invest more and the commitment needed is much higher. What we suggest is to take the middle path, and start with RPA that automates basic components and situations rather than going for a full-fledged one straightaway. You need to decide what level or what all processes are right for the company to automate. It may have to link with a lot of your company departments, right from the front office to the highly complex production works.
The Adoption
If you are not able to identify the correct processes yourselves, you can always hire an RPA solution expert like HLB HAMT. They will be able to find the gaps in your existing system and also select the best process to automate in your company. An expert will be able to define a proper strategy pertaining to your processes, and this involves the usage of AI, data flow, workflow management, etc. BOTs can be developed and implemented and your employees will be trained for its usage so that even in future you will not have to be dependent entirely on the vendor
So, should you really automate or wait?
Automation tools like RPA can handle high-value tasks and critical processes faster and more accurate than manual or legacy systems. The COVID-19 situation and the subsequent recession have made companies adopt digital transformation, especially RPA for streamlining their process flows. According to Gartner, 90% of the large organizations will have adopted RPA based solutions in some or other form by the end of Q4 2022. The biggest attraction towards implementing RPA is that it costs one-third the amount of an off-shore employee and one-fifth of that of an on-shore employee. As I had mentioned earlier in this blog, stay in the bank or move with the flow, you know which one to pick now.
Get in touch with our RPA consultants for more information!
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A virtual Event on Latest Updates on Corporate Tax in UAE
June 4, 2022
Phone:- +971 4 327 7775
Mobile:- +971 50 677 5860
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The UAE is new to corporate tax and, as such, businesses will require the assistance of an expert tax team.
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Accounting & Advisory services UAE - Features & Benefits of outsourcing Accounts
June 2, 2022
Phone:- +971 4 327 7775
Mobile:- +971 55 971 5959
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
In this video, we discuss about the benefits of outsourcing accounting services for business processes in Dubai.
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