Month: May 2023
Trends that are expected to dominate the UAE Business Environment in 2023
Midhun Menon P
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Over the last two years, the world has seen some significant changes, and while 2022 has been an interesting year for the global economy, it is important to look ahead and analyze what the next disruptors will be and how businesses can capitalize on the next big thing.
Since the COVID-19 pandemic, the world has changed dramatically. The pandemic altered the entire landscape of several industries, causing businesses as we know them to collapse. Many people were unable to weather the storm of the health crisis, which wreaked havoc on businesses and economies worldwide due to widespread lockdowns. A variety of factors, including the shift to remote work and a lack of infrastructure to support it, hampered business continuity.
Such problems were not encountered in Dubai because it had the necessary high-tech infrastructure, but they were encountered in many countries around the world, including developed nations. With 2022 now past the halfway point, it is critical to consider what the next dominant trends will be as we look ahead to the rest of the year and plan for a prosperous 2023.
Hybrid work
The first dominant trend on the list is hybrid work. As the world slowly returns to normalcy following two years of agonizing uncertainty and unprecedented challenges caused by the pandemic, many businesses are confronted with the reality of Employee attitudes are changing, with many choosing to work remotely.
The pandemic taught businesses that their employees did not need to be physically present in the office to do their jobs. Employees were able to work from home with the proper cybersecurity protocols and technology in place. Employee attitudes shifted as many realized the benefits of working from home. Working remotely not only allowed people to develop a better work-life balance, but it also helped reduce costs because they did not have to commute, ensured greater flexibility, and reduced overall turnover in workplaces, all of which led to increased productivity.
This is a long-term trend. While employers recognized the benefits of remote work for their employees, they also recognized the need for some in-person meetings to help boost employee morale, collaboration, and communication. The hybrid work model, when planned strategically, can strike the right balance for both employees and employers.
Many people have shifted to the hybrid work model because of the numerous benefits and positive outcomes it provides.
Sustainability
Throughout 2022, sustainability emerged as a prominent business trend, and it is expected to become even more dominant in 2023.
Sustainability has perhaps become one of the most defining trends of our time. The world is beginning to take appropriate action as the effects of climate change continue to affect the planet, with many of the world’s largest companies issuing sustainability reports and setting their own sustainability goals.
Many businesses have jumped on the climate action bandwagon by setting their own net-zero emissions targets and focusing on more natural solutions.
NFTs and Cryptocurrency
One of the most significant revolutions of our time, cryptocurrency provides several benefits, including lower transaction costs, ease of cross-border transactions, anonymity, and customer privacy protection.
Depending on corporate and government acceptance, cryptocurrency use could remain a major trend in the UAE’s business ecosystem.
NFTs have also grown in popularity, and many believe that this isn’t just due to marketing. According to Bloomberg Business, the global market for NFTs was worth nearly $40 billion in 2021 alone, and it is expected to grow even more this year, becoming a major business trend in 2023, especially as the metaverse grows in importance in the global business environment.
Metaverse
The metaverse, one of the most novel trends of our time, is expected to become a significant part of the global business landscape by 2023.
The metaverse, a virtual world where customers can use their avatars to work, play, and shop, has become very appealing to many customer services and eCommerce businesses.
The metaverse’s full potential has yet to be realized. The metaverse will resemble a new digital reality where businesses can set up their own company and deliver new experiences to customers, with the potential to disrupt brands and companies. Businesses will be able to deliver immersive AR and VR experiences, which will be a huge opportunity not only for the gaming industry but also for digital marketplaces.
Automation
Automation is viewed as both an opportunity and a threat by businesses all over the world because it saves money and generates more revenue.
Automation saves time, boosts productivity, ensures compliance, cuts down on errors, and standardizes processes. This is not a new trend, but it will continue to dominate the market as companies strive for greater efficiency.
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Top Artificial Intelligence Technologies for UAE Companies
Midhun Menon P
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
With innovative technologies, artificial intelligence has transformed the way we live. AI has taken over every industry and is having a significant impact on every aspect of society. In 1956, the phrase “artificial intelligence” was coined at a conference. Interdisciplinary information technology and natural language generation technology emerged from the conference discussion. The internet has contributed to the rapid advancement of technology. Artificial intelligence was a stand-alone technology thirty years ago, but it now has widespread applications in all aspects of life. Artificial intelligence, or AI, refers to the process of recreating human intelligence in machines.
According to the Gartner report, artificial intelligence adoption increased from 4% to 15% between 2018 and 2019. Numerous new and emerging technologies are incorporated into artificial intelligence. Everyone is racing to implement artificial intelligence for operational excellence, data mining, and so on, from start-ups to large corporations. Let us look at the most recent artificial intelligence technologies.
Most recent innovations in Artificial Intelligence
Generation of Natural Language
Machines process and communicate in ways that the human brain does not. Natural language generation is a popular technology for converting structured data into the native language. Machines are programmed with algorithms that convert data into the user’s preferred format. Natural language is a subset of artificial intelligence that enables content developers to automate content creation and delivery in the format of their choice. To reach the targeted audience, content developers can use automated content to promote on various social media platforms and other media platforms. Human intervention will be significantly reduced as data is converted into desired formats. The data can be represented graphically in the form of charts, graphs, and so on.
Speech Recognition
Speech recognition is another important subset of artificial intelligence that involves computers converting human speech into a useful and understandable format. Speech recognition enables communication between people and machines. The technology understands human speech and translates it into several languages. Siri on the iPhone is a classic example of speech recognition.
Virtual Assistants
Virtual agents have evolved into useful tools for instructional designers. A virtual agent is a computer program that interacts with people. Chatbots are used as customer service agents in web and mobile applications to interact with humans and answer their questions. Google Assistant can help you organize meetings, and Amazon’s Alexa can help you with your shopping. A virtual assistant also functions as a language assistant, taking cues from your preferences and choices. IBM Watson understands common customer service questions that are asked in a variety of ways. Virtual agents also serve as software-as-a-service.
Management of Decisions
Modern organizations use decision management systems to convert and interpret data into predictive models. Enterprise-level applications use decision management systems to receive up-to-date information and perform business data analysis to help organizations make decisions. Decision management aids in making quick decisions, avoiding risks, and automating processes. The decision management system is widely used in the financial and healthcare sectors, as well as in trading, insurance, and e-commerce.
Biometrics
Deep learning is another branch of artificial intelligence that operates based on artificial neural networks. This method teaches computers and machines to learn by example, just like humans. Because neural networks have hidden layers, the term “deep” was coined. A neural network typically has two to three hidden layers but can have up to 150 hidden ones. Deep learning works well when training a model and a graphics processing unit with large amounts of data. Algorithms work hierarchically to automate predictive analytics. Deep learning has spread its wings in a variety of domains, including aerospace and military applications to detect objects from satellites, worker safety by identifying risk incidents when a worker comes into contact with a machine, cancer cell detection, and so on.
Machine Learning
Machine learning is a subset of artificial intelligence that enables machines to understand data sets without being explicitly programmed. The machine learning technique aids businesses in making informed decisions by analyzing data using algorithms and statistical models. Machine learning is being heavily invested in by businesses to reap the benefits of its application in a variety of domains. In healthcare and the medical profession, machine learning techniques are required to analyze patient data for disease prediction and effective treatment. In the banking and financial sector, machine learning is required for customer data analysis to identify and recommend investment options to customers, as well as for risk and fraud prevention. Retailers use machine learning to forecast changing customer preferences and consumer behavior by analyzing customer data.
Robotic Process Automation
Robotic Process Automation is an artificial intelligence application that allows a robot (a software application) to interpret, communicate, and analyze data. This artificial intelligence discipline aids in the automation of repetitive and rule-based manual operations.
Peer-to-peer Network
The peer-to-peer network connects different systems and computers for data sharing without requiring data to be transmitted through a server. Peer-to-peer networks can solve the most difficult problems. Cryptocurrencies make use of this technology. The implementation is cost-effective because individual workstations are linked, and no servers are installed.
Deep Learning Platforms
Deep learning is another artificial intelligence branch based on artificial neural networks. This method teaches computers and machines to learn by example, just like humans. Because neural networks have hidden layers, the term deep was coined. A neural network typically has two to three hidden layers but can have up to 150 hidden ones. Deep learning works well when training a model and a graphics processing unit with large amounts of data. Algorithms work hierarchically to automate predictive analytics. Deep learning has spread its wings in a variety of domains, including aerospace and military applications to detect objects from satellites, worker safety by identifying risk incidents when a worker meets a machine, cancer cell detection, and so on.
AI-optimized Hardware
In the business world, there is a big demand for artificial intelligence software. As the demand for software increased, so did the demand for hardware to support it. A standard chip cannot support artificial intelligence models. A standard chip cannot support artificial intelligence models. A new generation of artificial intelligence chips for neural networks, deep learning, and computer vision is being developed. AL hardware includes scalable workload CPUs, special-purpose built-in silicon for neural networks, neuromorphic chips, and so on. companies such as Nvidia and Qualcomm. AMD is developing chips capable of performing complex AI calculations. These chips could benefit the healthcare and automotive industries.
To summarize, artificial intelligence is a computational intelligence model. Intelligence can be defined as structures, models, and operational functions that can be programmed for problem-solving, inference, language processing, and so on. Many industries are already benefiting from the use of artificial intelligence. Artificial intelligence companies should conduct pre-release trials to eliminate biases and errors. The models and design must be robust. Businesses should continuously monitor artificial systems after they are released in various scenarios. Organizations should develop and maintain standards, as well as hire experts from various disciplines to improve decision-making. Artificial intelligence’s goal is to automate all complex human activities while eliminating errors and biases. To know more about AI Technologies, please contact our experts today!
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An overview of KSA GOSI Portal Monthly process
HLB KSA Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 55 971 5959
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
GOSI, or the General Organization for Social Insurance, is a major government entity in the Kingdom of Saudi Arabia (KSA) that implements the country’s Social Insurance Law. They generally specialize in collecting employer payments, obtaining legal social insurance coverage, and paying benefits to insured individuals or their family members. GOSI is a financial is a financial organization based in the capital of Riyadh that is governed by a board of thirteen directors.
In this article, our team is providing an overview of monthly process and activities relating to KSA Gosi portal.
Percentage of GOSI applied to Saudi Nationals
Total GOSI percentage for Saudi nationals is 21.50%. Please find the below break up;
Employer’s Contribution
- Unemployment Contribution = 0.75%
- Retirement Contribution = 9%
- Compensation and Disability Plan = 2%
- Total Employer’s Contribution = 11.75%
Employee’s Contribution
- Unemployment Contribution = 0.75%
- Retirement Contribution = 9%
- Total Employee’s Contribution = 9.75%
Percentage of GOSI applied to Expatriates
The employer is responsible for paying a 2% GOSI contribution. However, there is no GOSI Contribution fee to be paid by an expatriate employee in Saudi Arabia.
For more information about GOSI, please refer the following link. GOSI Contribution
Standard Monthly Activities and Process
All the activities relating to social contribution i.e. GOSI can be completed through the online portal. Once the company registered with GOSI, they will get their own username and password to perform all the GOSI related activities through online. It is the responsibility of the company to complete the below process monthly through GOSI online portal,
- Register new hire (KSA or GCC National) if any.
- De-register or terminate leaver (KSA or GCC National) if any.
- Update contractual salary changes if any.
- Generate GOSI invoice and pay the amount.
GOSI Portal Login Process:
Website link for GOSI Portal access is https://www.gosi.gov.sa/en/Login
Once you update user credentials and click on login, GOSI portal will send an OTP to the authorized person’s mobile number. Enter the OTP and login into the portal.
Step 1: Register new hire (KSA or GCC National), if any.
- Go to contributor services – click on Register contributor-add Saudi or GCC nationals in GOSI portal.
Note:- All expat employees other than GCC nationals will be automatically added to GOSI portal once their visa is issued. No further action required from company side in relation to adding them in GOSI portal.
Step 2: De-register or terminate leaver (KSA or GCC National) if any.
- Go to contributor services – click on contributor list-Select employee from list- Click on the Terminate employee from the option.
Step 3: Update contractual salary changes if any.
If there is any salary change, please update the changes in the GOSI portal on a monthly basis. Please follow below steps to update salary
- Go to contributor services – click on Manage Wage-update new salaries wherever applicable
Step 4: Generate GOSI invoice and pay the amount
Generate GOSI Bill from the portal to get the total invoice amount for the month. GOSI bill will be generated on 1st of every month. Details of the GOSI bill break up can be generated from the GOSI portal in “xlsx” format.
Reconcile the bill, ensure all employees are showing in the GOSI bill and confirm their contribution amount. If any difference, check latest salary got updated in GOSI portal or not. For further clarification, employer can contact GOSI directly and ask for assistance. GOSI will not answer to a third party. Employers need to contact GOSI directly for clarification.
How to pay monthly contribution to GOSI
Company can deduct the employee portion through payroll and pay the total contribution i.e., both the employer and employee contribution to GOSI Authority. Companies can use the SADAD platform through their online banking portal to process GOSI payments.
Frequently Asked Questions
What is the deadline for paying the GOSI contribution?
The deadline for completing the GOSI payment is the 15th of the following month. I.e., the last date for paying the January contribution is the 15th of February.
Does a company get any invoice from GOSI regarding the total contribution due for the month?
Yes, companies can generate monthly invoices from the GOSI portal. Break up for the total invoice amount is also available in the portal.
What is the base amount for calculating GOSI?
The GOSI contribution is always calculated on the Basic Salary + Housing allowance.
Is there any maximum limit for GOSI Base amount?
The maximum base amount for calculating GOSI is SAR 45,000/-. If any employee’s basic plus housing allowance is more than SAR 45,000/-, then GOSI contribution is calculated against SAR 45,000/-.
How to enable SADAD platform in Company bank and Pay GOSI contribution?
Step 1: Contact Company bank relationship manager, request to enable SADAD payment system in bank portal.
Step 2: After enabling SADAD payment platform, enter GOSI subscription number and pay the monthly contribution amount to GOSI directly from Company bank account.
Payroll Service in KSA
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
To know more about our payroll process in KSA, Click here
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A Guide to Mandatory Employee Benefits in UAE
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 55 971 5959
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The benefits granted to employees in the UAE are as follows:
- Contractual Salary
- Other Benefits mentioned in Employment agreement.
- Statutory Leaves
- Weekly Holidays
- Public Holidays
- End of Service Gratuity
- Health Insurance
- Overtime if applicable
- Repatriation ticket
- Social Contribution for GCC nationals
Contractual Salary
The employees must be paid salary at least once a month. Private sector employers should ensure to pay their staff salaries as specified in employment contract.
Other Benefits mentioned in Employment Agreement
The employees must be paid other benefits specified in employment contract. For example, Transport allowance, commission, one month salary as bonus as specified in contract.
Statutory Leaves
Employees are eligible for statutory leave mentioned in UAE Labour law. Please see below.
Annual Leave
Article 29 of the new UAE Labor law states “The employee must be granted an annual leave for each year of service which may not be less than:
- Two days per month in respect of any employee with more than six months and less than one year of service.
- Thirty days per annum in respect of any employee whose period of service exceeds one year.”
For more details, please read our blog: Annual Leaves in UAE
Maternity Leave
A female employee working in UAE shall be entitled to maternity leave as given below.
- 60 days out of which 45 days at full pay and 15 days at half pay .
- After completion of the 60 days paid leave, a female employee is entitled to take unpaid maternity leave for a maximum period of 45 days. This leave can be continuous or taken in non-consecutive days.
For more details, please read our blog: Maternity Leave in UAE
Parental Leave
A Parental leave for a period of (5) five working days is entitled for the employee (either the father or the mother), who has a newly born child, in order to take care of his/ her child and the employee is entitled to such leave for a continuous or intermittent period, within (6) six months from the date of the child’s birth. Weekends and public holidays are not considered for parental leave.
For more details, please read our blog: Parental Leave in UAE
Sick Leave
As per UAE labour law Sick leave is granted for 90 days per annum (calendar year) at the following rate after the end of the probationary period, the worker may be entitled to a sick leave.
- The first 15 days: with full pay.
- The next 30 days: with half pay.
- Any subsequent period to a maximum of 45 days: without pay.
- The article 31 of the UAE labor law states the following about sick leave:
For more details, please read our blog: Sick Leave in UAE
Bereavement Leave
Compassionate or bereavement leave may be granted to employees to mourn the death of a close relative. In UAE, a private sector employee is eligible to:
- 5 days – death of spouse
- 3 days – death of a parent, child, sibling, grandchild or grandparent
Compassionate or bereavement leave starts from the date in the event of the death of a family member.
For more details, please read our blog: Bereavement Leave in UAEStudy Leave
Employees in the UAE can avail a paid leave of 10 days to appear for examinations, provided they are studying in one of the certified educational institutions in the country. Only employees who were part of the company for at least 2 years can apply for study leave.
For more details, please read our blog: Study Leave in UAESabbatical Leave
The national worker shall be entitled to a sabbatical paid leave to perform the national service, in accordance with the legislation in force in the state.
Weekly Holidays
it is a common practice in UAE that companies are providing two days weekly off to their employees even though it is not mandatory. Standard weekly off days are Saturday and Sunday.
RFor more details, please read our blog: Weekly Off in UAE
Public Holidays
Every Employee is entitled to the national holidays that are announced by the UAE Government. An Employee is entitled to be paid a daily wage for national holidays.
If an employee work in public holiday, entitled with 150% off overtime.
Here is a list of public holidays in UAE
- Gregorian New year: 1 January
- Eid Al Fitr: From 29 Ramadan to 3 Shawwal
- Eid AL Adha from 9 to 12 Dhu al Hijjah
- Islamic New Year
- Prophet Mohammed’s birthday
- National Day
Note: Islamic Holidays are determined according to moon sighting
End of Service Gratuity
Article 51 of the new UAE labor law Federal Decree-Law No. 33 of 2021 states as follows regarding End of Service gratuity:
A full-time foreign worker, who completed a year or more in continuous service, shall be entitled to end of service benefits at the end of his service, calculated according to the basic wage as per the following:
- A wage of (21) twenty-one days for each year of the first five years of service;
- A wage of (30) thirty days for each year exceeding such period.
Employee’s most recent basic salary as the base amount for calculating gratuities.
For more details, please read our blog: Gratuity Policy in UAE
Health Insurance
The health insurance law requires the employer to offer a minimum level of healthcare coverage to their employees without deducting the premium amount from them or reducing their salary to compensate for the premiums.
While organizations are accountable for the health insurance of their employees, this responsibility does not extend towards their employee’s dependents. In cases where family members are not insured by a company, the employee may avail a separate policy for their benefit.
Overtime
When an employee works extra hours than the normal working hours, those extra hours are considered as overtime and the payment made for the extra hours worked is known as overtime payment. As per UAE labor law, overtime is calculated against employee’s basic salary.
There are 2 types of overtime as mentioned below;
- 125% applicable for additional daytime working hours.
- 150% applicable for night hours, weekly off and public holidays. The time between 10 PM and 4 AM will be taken into consideration while calculating night hours’ overtime; workers working based on shifts shall be excluded from this overtime. Also, work performed during the weekly off day or during the official holidays is also compensated with another day off or 150% of overtime.
For more details, please read our blog: Overtime Calculation in UAE
Repatriation ticket
Employe is bears the repatriation expenses of the worker to his place of recruitment or any other place that both parties had agreed upon, unless he/she has already joined the service of another employer or unless the reason for terminating the contract was attributed to the worker, then that the latter shall be liable for incurring those expenses.
Pension/Social Contribution
Pension is provided to eligible Emiratis and other GCC nationals working in the UAE.
GPSSA (General Pension and Social Security Authority) was established in the UAE under Federal Law No. 6 of 1999 to provide pension and social security for the citizens of the UAE. The GPSSA Law applies to all UAE citizens who work in the government or private sectors in Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Um Al Quwain. The percentage of contribution to UAE national is
- Employer Contribution = 12.5%
- Employee Contribution = 5%
- Government Contribution = 2.5
For more details, please read our blog: Social Contribution in UAE
Abu Dhabi pensions
In Abu Dhabi, Abu Dhabi Retirement Pensions and Benefits Fund manages pensions on behalf of Abu Dhabi-based and employed UAE nationals. However, it does not manage pensions for GCC nationals and this responsibility lies with GPSSA. The percentage of contribution to UAE national is
- Employer Contribution = 15%
- Employee Contribution = 5%
Pension for GCC nationals
A GCC citizen who works in another GCC country, has the right to enjoy pension in the same ways as he/she would enjoy if working in his/her own home country. He/she is eligible to receive pension as per the respective law of his/her country. The employer’s in the UAE are liable to mandatory subscription for their GCC employees according to the social security law in their home countries in terms of registration and subscription provided that the same may not exceed the subscription share designated for the employers to UAE nationals working for them and the GCC employees assume the contribution variances if any.
Payroll Process
The process of payroll is little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
To know more about our payroll process, click here
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Maintaining Your Finances in Check: Accounting Review Services in Dubai
Vimal Kutty
Phone:- +971 4 327 7775
Mobile:- +971 56 147 0259
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The success of every firm depends on the integrity of its financial accounts, and regulatory compliance is a requirement. Accounting review services are crucial to the evolving corporate environment since they guarantee financial correctness, and legal requirements, by streamlining accounting procedures.
Making your accounts review accurate is essential since the new federal corporate tax system will be introduced in the UAE on or after 1 June 2023. A careful review of your accounts will also assist you in making your accounts comply with regulatory standards.
Accounting review service providers in Dubai assist firms by conducting a comprehensive review of their financial systems and processes to ensure IFRS compliance and minimize legal and financial risks. These accounts advisory services may also help businesses identify opportunities to optimize their accounting processes and improve their financial performance.
Importance of Accounting Review Services in Dubai
Verification of Financial Statements
An accounting system lets you generate your statements with a simple click button. Thus, you can review your financials and solve issues beforehand. Accounting review services enable an independent professional third party to thoroughly inspect the financial statements of businesses to ensure accuracy, completeness, and adherence to regulatory guidelines. It helps to ensure that the financial statements are accurate of the company.
IFRS Compliance Requirements
Accounts review services help companies ensure compliance with various regulatory requirements. IFRS (International Financial Reporting Standards) compliance is crucial for accounting. IFRS sets out the principles and rules for financial reporting that companies must follow to ensure financial statements are accurate, comparable, and reliable. Non-compliance with these standards will call for the qualification of the audit report and will face challenges for consolidation, availing bank facilities, etc.
Identification of Errors and Fines
To ensure the accuracy and integrity of financial statements, it’s crucial to identify and correct errors early on in the process. Accounting review services can play a vital role in this regard by detecting issues related to transactions, incorrect calculations, or accounting practices. By conducting a review at monthly or quarterly basis, companies can correct any errors before submitting their financial statements to regulatory authorities, thereby avoiding potential fines and penalties imposed by the Federal Tax Authority (FTA) for violations of accounting regulations. Hence reviewing your accounts can help avoid fines from various authorities like FTA for the VAT, Ministry of Economy for ESR and UBO, etc.
Enhanced Decision-Making
Accurate financial statements can provide stakeholders with reliable information and insights that help in making important decisions. Accounting review services can ensure that the information provided in the financial statements is accurate, enabling stakeholders to make informed decisions.
Internal control system
A strong internal control system is crucial in ensuring the accuracy, completeness, and integrity of financial information. By building and maintaining such a system, companies can accurately report their financial data, prevent fraud, and comply with regulations. In this context, conducting regular accounts review services can be highly beneficial. By identifying potential loopholes in the internal control process, these reviews can help companies strengthen their internal control system.
Cash Flow Management
Accounting review services can play a vital role in cash flow management by providing a thorough and objective analysis of a company’s financial statements. These services help identify any discrepancies or inconsistencies in financial reporting, which can have an impact on cash flow. It lets you record payables and receivables before cash changes hands. By identifying and resolving any financial reporting issues, accounting review services can help ensure that a company’s financial information is both reliable and precise. This, in turn, can help to have an accurate cash flow statement by providing a more detailed picture of the company’s financial position.
Bottom Line
In conclusion, accounting review services in Dubai are essential for businesses to ensure compliance, accuracy, and reliability regarding their financial statements. It provides credibility and transparency that aid decision-making and helps companies maintain a good reputation.
HLB HAMT to Assist!
HLB HAMT offers comprehensive accounts review services in Dubai, UAE, to help businesses ensure the accuracy and completeness of their financial statements. Our team of experienced professionals conducts a thorough review of financial systems and processes, including accounting records, transactions, and supporting documents, to identify any errors, discrepancies, or non-compliance with regulatory requirements.
Other Service Offerings:
I. Bookkeeping Services
HLB HAMT offers expert bookkeeping services in Dubai, United Arab Emirates, to guarantee the precision and completeness of financial records. They assist firms in maintaining their books of accounts by documenting transactions, resolving account balances, and creating financial reports.
II. CFO Services
To assist companies in managing their financial operations and achieving their financial goals, HLB HAMT provides CFO services in Dubai. They collaborate closely on financial planning, budgeting, cash flow management, and financial reporting with their team of seasoned CFOs, empowering businesses to make wise decisions and raise their financial performance.
III. Sales Audit
Sales audit services help to ensure the accuracy, integrity, and compliance of financial transactions. In UAE, audit services help businesses assess their sales performance, identify potential risk areas, detect fraud, and improve their financial reporting. It is essential to choose a reputable sales audit firm in UAE to ensure an effective sales audit process tailored to the specific needs of your business.
To schedule a consultation and start down the path to a more stable financial future, contact us right away.
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Monthly Tax insights and updates – April 2023
May 11, 2023
The month of April brought a new wave of tax and compliance updates that businesses need to be vigilant about. From the news on GCC regions to updates in compliance regulations, HLB HAMT’s tax and compliance experts have got you covered.
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Understanding Financial Feasibility in Project Management
Mudasir Fanasmiya
Phone:- +971 4 327 7775
WhatsApp:- +971 56 219 1607
Mobile:- +971 55 807 4568
Email:- dubai@hlbhamt.com
A feasibility study is conducted to evaluate the practicality of a project or system by identifying its strengths, weaknesses, opportunities, and threats in the natural environment. The study aims to assess the resources required to carry out the project and its potential for success. The two criteria used to assess feasibility are the cost required and the value to be attained.
The primary objective of a feasibility study is to provide an unbiased evaluation of a proposed project’s technical, economic, financial, legal, and environmental aspects. This information helps decision-makers determine whether to proceed with the project or not.
Parameters for Financial Viability Assessment in New Projects
To assess the financial viability of a new project, a cost-benefit analysis is conducted to determine its viability, cost, and benefits before allocating financial resources. This process serves as an independent project assessment that enhances project credibility by enabling decision-makers to evaluate the positive economic benefits the proposed project can provide.
For a new project, the following parameters can be used to determine its financial viability:
- The project’s anticipated total cost
- Project financing details, including the capital structure, debt to equity ratio, and promoter’s percentage of total cost
- Investment already made by the promoter in a different company
- Projected cash flow and profitability
To determine the financial viability of a project, a thorough financial analysis is conducted which includes the following:
- Computation of Pro-forma Financial Statements
- Capital Budgeting
A. Computation of Pro-forma Financial Statements
Pro-forma financial statements depict the financial projections over the forecast period. These statements play a crucial role in understanding how the business will be performing financially and help in quantifying the financial milestones over the projected period. Following are the Pro-forma financial statements:
- Pro-forma Balance Sheet: Reports the firm’s financial position at a given point in time.
- Pro-forma P&L Statement / Income Statement: Summarizes the financial performance of the company over a specified period.
- Pro-forma Cash Flow Statement: Provides aggregate data regarding all cash inflows & outflows.
B. Capital Budgeting
Capital Budgeting is a crucial planning process which is used for decision making of the long-term investment. It helps in deciding whether the projects are fruitful for the business and will provide the required returns in the future years.
Following are the major techniques used in capital budgeting decisions:
- Profitability Index
- Payback Period
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Return on Investment (ROI)
Bottom Line
A feasibility study is a crucial step in assessing a project’s viability. A feasibility study that evaluates a project’s viability, costs, and advantages must consider its financial feasibility. Making informed decisions regarding project management and resource allocation requires having a solid understanding of financial feasibility.
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