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How Can Audit Firms Help Startups?

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How Can Audit Firms Help Startups?

How Can Audit Firms Help Startups

Startup owners may have many great ideas, but that does not mean they have enough cash to chase their dream business. And no startup can sustain a shortage of money in the long run. Attracting investments from others becomes crucial in such a situation for your startup to progress to its next level. Read How Can Audit Firms Help Startups? to know how audit firms in UAE can help. 

A strong business idea is not enough to attract investors to put money into your business. This is where audit firms in Dubai can help you earn the trust of the investors to convince them that your business is a feasible investment option. 

Startup owners and entrepreneurs need to understand that investors rely on the opinion of audit firms in Dubai to make a decision. Most investors will look critically at certain things before they decide to invest money in your business. Only with the help of audit firms can startups meet those requirements demanded by the investors.

Let us see how audit firms in Dubai can help startups:

How Can Audit Firms Help Startups?

Audit firms can help startups with a lot of things. Listed below are some of the ways audit firms can help startups:

Audited Financial Statements

If your startup lacks audited financial statements, you are non-existent in the eyes of the investors. Your chances of getting financed will be too low without the help of an audited financial statement. With the help of an external audit, you can provide the investors with the highest level of assurance that your company’s financial statements are stated fairly in all material respects. To give the investors a better idea of your financial position, the audited financial statement should be prepared according to local and international standards like the International Financial Reporting Standards (IFRS). 

Investors check financial statements to check key financial metrics such as the cash flow from operating activities, ratios such as price to earnings, net income, liquidity, and return on investments. This enables them to decide whether it’s a viable option to invest in your company. Audit firms in UAE help prepare audited financial statements according to the IFRS and other accepted accounting standards.

Helps to Ensure Compliance

Investors will never put their valuable money in a company that has failed to comply with the rules and regulations of the United Arab Emirates Government. Even though UAE has an open economy, they have implemented certain mandatory regulations from 2018 onwards. Every company in UAE is required to comply with the regulations such as Anti-Money Laundering and Combating Financing of Terrorism (AML-CFT), Value Added Tax (VAX), Economic Substance Regulation (ESR), and Ultimate Beneficial Ownership (UBO). 

Moreover, relevant companies will have to comply with the UAE corporate tax from 2023 onwards. Investing in those companies that have flouted these regulations will put the investors in huge legal trouble. Audit firms can help you to evaluate your company’s compliance status and carry out remedial measures. 

Reduce the Likelihood of Fraud

Investors also check your audited financial statements to ensure that no fraud is involved in your business. Getting your books of account audited by audit firms helps you to identify if your company is involved in any fraudulent activity. 

An audit is essential for your business to uncover the weaknesses of your organization’s internal procedures and controls. This also helps you to determine any fraud activity committed by your employees, leading to recommendations for training or improvement. 

Organizational Review

An external audit helps the auditor to delve deeper into the business and understand its operations. Auditors in Dubai help you in identifying the areas of your business where systems or management need improvement or find where investment opportunities exist. Leading audit firms will have a lot of experience in auditing the books of accounts of similar clients, maybe by size or industry of operation. Such auditors will be experts in spotting opportunities as well as risks.

Increases Transparency and Credibility

An audited financial statement helps to increase the transparency and credibility of the figures which are being submitted to prospective investors. It helps you in speeding up the due diligence process which takes place once your business is investment ready. With the help of an audit, you can add a layer of assurance early on to your startup business. This means less work and debate about the worth of your business. Hence, it provides the investor with enough confidence in the quality of your company’s financial statements to invest their valuable money in your company. 

Hiring the best audit firms helps you to build up enough investor confidence for your startup. Gaining the confidence of investors is crucial for early-stage startups to progress their businesses to the next step. However, if you want to attract the interest of the best investors, you need to hire the best and most experienced audit firms in Dubai such as A&A Associate

A&A Associate, in Dubai and the United Arab Emirates, is a registered auditing service in Dubai with 15 years of experience. As rules and regulations keep changing from time to time, we can help to keep you updated about the changes and prevent any legal troubles that may befall you. 

Contact us for our services and take full advantage of your consultations to help your business grow! 

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