In today’s competitive business environment, rigorous planning and strategic needs to be applied to all possible domains to sustain in the competitive market. One of the core pillars that depicts the complete scenario of business is accounting, which is regarded as the language of business. Any business entity irrespective of the size and nature needs to compute accounting transactions as it records the outflow and inflow of cash. Being a business investor or owner, it is essential for you to understand that recording business transactions will help you to track the business growth. However, there are numerous ways to refine these recordings, and one such way to get ahead with is an audit. This guide will help you to understand how to improve accounting and generate revenue backed by audit.
A Gist About Audit
The concept of audit revolves around the word “scrutiny.” The whole idea behind the implementation of the audit process is to understand whether the business activities are carried out legally or illegally. Under the umbrella of audit, there exist two types, namely: Internal Audit and External Audit. Both the process aims at improving the overall structure of a business entity covering the internal as well as the external business scenario. Since we are here to understand the impact on the Accounting domain, let’s assume it with the help of different situations.
Scenario 1: Pre-Audit Process
Imagine a scenario where you have not infused the concept of audit in your company. Here, the ideal situation is that you end up dealing with numerous business transactions which get recorded accordingly. Now, there exist a probability of loopholes present in your business books, and you are not aware of it. This would ultimately end up portraying incorrect numbers that would affect the ultimate records like balance sheet, profit and loss statement etc. Even, your future business planning might turn out to be a game-changer and lead your business towards loss as it is built on the roots of false figures. Even if the projections aren’t made at the initial stage, delaying the audit process will hamper your business growth at a later stage and might also lead to a company liquidation, an ultimate end.
Solution: Implement the Audit Process
Since you have figured out the loopholes or the wrong direction where your business is heading, it is advised to proceed ahead and implement the audit process. As mentioned in the initial part of this article that the audit process focuses on resolving the errors present, applying them at the earliest will help you to bridge the gap. The external audit process carried out by an external auditor turns out to be a mandate that is expected from each business to carry out once in a year. After critical scrutiny covering all possible aspects, you will be issued an audit report that holds an audit rank, which defines how well your company performs.
Scenario 2: Post-Audit Process
Once the process gets conducted, it is expected to implement the suggestions provided by an external auditor. By implementing them in your business, you will gradually turn your business in the right direction. The core business records will get rectified; bank statements will get reconciled, etc. Even when it comes to tax and vat payments, you will have better clarity on the VAT Return Filing. Implementing these processes will help you to understand your financial position in a better way. Additionally, you will be able to come up with better business planning options and maximize growth opportunities. The process turns out to be more fruitful if you have an experienced guide by your side who can help you to connect the dots effectively and take necessary measures.
Are you wondering whom to contact? Well, don’t worry. Your guide is just below.
JAXA Chartered Accountants| Your Accounting and Audit Guide
Since inception, JAXA Chartered Accountants have been helping numerous clients in the UAE to simplify their accounting, audit, tax and VAT services. Being recognized as JAFZA and DAFZA Approved Auditors, JAXA turns out to be the first choice of business entrepreneurs, investors, and professionals. Our accounting and audit experts are well-versed with the relevant process to be carried out. By understanding your business needs, they provide tailored solutions accordingly. If you hold any doubt or wish to speak to our experts, do contact us today-we’d be glad to assist.