- Article
- September 4, 2019
Typically, small-sized accounting firms are more forward-leaning as compared to larger accounting firms. Smaller-sized and more nimble accounting companies these days are introducing AI to their businesses nowadays. This means that they have a big chance of easily outsmarting the larger accounting companies if they remain slow in implementing AI into their accounting services.
The positive news is that the innovations and development in AI and applying machine learning technologies and AI into bookkeeping, is becoming a reality with majority of accounting software companies which are currently offering competencies for automating data entry jobs, reconciliations or even more with their online accounting and bookkeeping services.
By next year, it is possible that accounting jobs such as audits, tax, payroll, banking, etc. would become fully automated by using AI-based technologies and that would disrupt the accounting field in a big way like it has never happened in the last 500 years, thus opening up huge opportunities but some serious challenges also.
Why AI and Machine Learning?
The impact of AI in the near future would be the most significant and huge technological transformation till date. Accounting companies that lack or don’t accept AI implementation particularly in their bookkeeping and accounting processes would not remain competitive in the future. This technology is advancing very fast. The abilities and capabilities of what all AI can achieve today is momentous in terms of both accuracy and cost savings.
AI and machine learning result in:
- Greater employee satisfaction
- More robust recruitment process
- Delighted and happy clients
- Top-quality service offering
What is the Impact of AI and Machine Learning?
Companies which go ahead and implement AI and machine learning will be the only ones who would remain competitive in the accounting field.
In the coming three years, if you still haven’t employed AI technology in your accounting processes, then you would not stay competitive. For example, the companies who have implemented a service such as Vic.ai successfully are now pricing their accounting services differently.
AI and machine learning are primarily altering the way in which outsourced accounting services are assessed, priced, purchased by clients, and also delivered to clients.
AI and Cloud Software
Nowadays, it is getting next to impossible to charge higher hourly fees for any repetitive tasks. If your company is depending on offshoring and RPA, then that is considered as an old way of operating and doing things. AI services is expected to bring more accuracy and even faster turnaround.
AI applications such as Vic.ai work impeccably with traditional cloud accounting systems — enhancing and automating the human element in the equation. Even AI is continually learning and expanding over time. Thus, there is no need for replacing current accounting systems.
You would probably deploy various different AI systems in your software stack in the coming few years. However, the good news is that most of the AI systems usually plug into your fundamental software stack.
Bookkeeping
If you are looking at more practical manner of implementing AI, then bookkeeping jobs stand out. If one uses the best technology available, then invoicing and bank coding is just a matter of reviewing the AI as compared to actually performing the task. This, no doubt, is a stepping stone to thorough automation that we would see soon in future.
Employing AI for tasks such as invoice processing or bank coding involves a phased two-step approach:
- The AI gives suggestions (The accountant determines if there is a need to accept or correct the given suggestions.)
- Once trained, the AI codes would cost automatically (The accountant would then only need to provide feedback in case the AI is below a specified confidence level.)
Changes that come with AI
The procedural changes that AI is fetching may eventually trigger some controversy regarding the security of things due to the transition. However, as accounting benefits would still be felt as the final approvers of all the jobs that are performed by AI, they can keep control of any delicate or sensitive information that they want. Therefore, if all the information is backed up in the cloud, then they’re good to go.
Accounting is a very important part of any company – may be big or small. Due to the continuous evolution of technology nowadays, it’s imperative for any industry to update itself on the latest innovations and technologies if they want to stay ahead of their competition.
AI is revolutionizing the world today, and in particular how data is being handled or used. The potential of AI in the accounting field is immense. The value of AI is predicted to reach the $400 billion mark by 2020. In addition, almost 49% of all paid activities are expected to be automated by AI.
Automating the entire AP workflow
AI technology has already reached quite close to automating the entire AP workflow without any human intervention.
These days, AI and machine learning is being integrated into AP process for automating the entire workflow, which would be able to read invoices, extract the needed data, code the invoice to the accurate general ledger accounts, and then approve the whole process, and finally pay the invoice.
This actually seems like one area where we are underestimating the power of AI on outsourced accounting. It not only impacts how a team is built or the kinds of clients one works with. It also impacts the complete business model, how the product is marketed, how services are sold and delivered, and how they are priced.
One of the biggest advantages that are observed already with some early adopters is very advanced thinking and disruptive changes for how all of it is amalgamated and packaged for clients.
One way to determine how crucial this is for your company and the potential it has to impact the productivity and cost savings is by analysing the total volume of monthly invoices that you are processing currently for a typical client. You could also hire professional accounting and bookkeeping services in Dubai to do this analysis for your firm.
- Article, U.A.E
- August 26, 2019
Dubai has been continuously serving as one of the biggest business hubs worldwide welcoming entrepreneurs, freelancers, industrialists and international investors to set up their corporate space. As more and more corporates set up their business in the country, there has been a proportionate increase in the need for accounting and auditing services in Dubai. These services are essential for every organisation, irrespective of their nature and size.
Moreover, a good audit firm can be extremely beneficial for an organisation as it provides helpful information that not only increases the organisations value but also the credibility of its financial statements. In this article, we will walk you through the necessary details regarding the audit services and how you can choose the best audit firm in Dubai UAE to accelerate the performance of your organisation.
Why Does a Company Need Auditing Services?
Auditing refers to the inspection and assessment of the company’s accounts and all its internal and external matters so as to identify whether all the business transactions conducted by the company are ethical or not. The need for auditing arises because of the following reasons:
- Accountability
Auditing establishes accountability and keeps a track of who is accountable for what. This helps stakeholders to take better business decisions.
- Reliability
Auditing establishes trust and confidence of the financial institutions, tax officers and the company management in the activities of the company.
- Review
Auditing involves conducting a comprehensive review of the financial statements and provides an overall report on the business health which helps to resolve the present as well as future issues.
- Boosts Investment
Audited financial statements attract investors’ attention as they boost the credit rating and creditworthiness of a company.
The above-mentioned points highlight the importance of auditing for an organisation. Outsourcing the auditing and assurance services is very fruitful. We will tell you how.
Why Outsource Audit Services in Dubai UAE?
- Hiring an external audit firm saves cost to the company as compared to maintaining an in-house department for audit and spending on the training and recruitment cost.
- External audit increases the confidence of outsiders in the financial statements of the business.
- The company gains access to highly skilled professional auditors who have sound knowledge regarding the audit process.
- Hiring an external audit firm reduces the chances of financial frauds within the organisation.
What to Look for When Choosing an auditing Firm in Dubai UAE?
- Expertise
While outsourcing auditing services to a third party, it becomes vital to evaluate the strengths and weaknesses of the audit firm before handing the sensitive company information to them.
- Experience
An experienced audit firm who is well versed in providing audit and assurance services and familiar with all the operations of your business is able to handle and make an audit report with more efficiency and accuracy as compared to others.
- Qualification
It is of paramount importance to ensure that the audit firm you are hiring is properly qualified for the job. In order to ensure this, you may review the certifications of the audit firm before hiring them.
- Reputation
It is advisable to hire an audit firm that enjoys a solid reputation in the market. It not only delivers satisfactory results to the business but also gains clients trust in your company. Moreover, an audit firm carrying a bad reputation can adversely harm your business.
- Flexibility
While hiring an audit firm, ensure that you hire an all on one audit firm who can handle a diverse range of audit-related errands. This is especially important because when you hire different firms for different jobs, it becomes extremely tedious and hectic. Moreover, hiring a single firm for all the jobs can cut down on your time and cost.
- Transparency
For an audit firm, it is extremely important to build a strong foundation of trust in order to maintain a long-term relationship between the company and the audit firm. Therefore, it becomes important to choose an audit firm that is transparent in the quality control procedures it follows. In addition, the audit firm should be able to understand the company requirements and maintain complete transparency during the audit process. Even the smallest inconsistency in the audit should be communicated by them to the management before it escalates into a larger issue.
Financial statements handling in UAE involves a lot of complexities. Therefore, it is advisable to hire an experienced and reputed audit firm who is well-versed with the rules and regulations and help you provide accurate and error-free audit reports. IMC Group offers a complete range of audit and assurance services along with outsource finance and accounting services in Dubai to meet the varying business needs of its clients in the dynamic global environment. Our audit experts take care of your audit processes and help you prepare your audit reports in a hassle-free manner. For, further information, you may get in touch with us.
- Newsletter, Singapore
- August 14, 2019
MORE than 40 new standards for budding areas like drones, video analytics, and additive manufacturing would be developed in the coming year, as the Singapore Standards Council (SSC) has decided to step up its efforts on standardisation to keep pace with economic transformation and all the new technologies.
Last year, the industry-led SSC issued 19 new standards for supporting such nascent fields; for example a technical reference on some data interchange for last-mile delivery by using parcel locker networks, and some other technical reference for autonomous vehicles.
Enterprise Singapore (ESG), which supervises the implementation of the Singapore Standardisation Programme steered by the SSC, said that it would also enhance industry collaboration by pulling in more new industry experts who can lead and assist the development of the new standards. This is especially going to be important for nascent areas where better collaboration and discussion are required for identifying the unaddressed and new needs for standards development.
As of now, around 2,000 standards partners are taking part in the Singapore Standardisation Programme, thus representing a diverse array of stakeholders from academia, industry, and government organisations.
SSC is also going to strengthen its contribution and involvement in international fora, so that it can continue to advance Singapore’s interest in standards. As of now, it participates in technical committees which develop international standards in fields such as artificial intelligence, blockchain, circular economy and smart manufacturing.
Additionally, SSC is spearheading the development of some new standards by the International Standards Organisation for cloud computing, bunkering, and water efficiency.
These standards are a set of specifications that are designed to improve and foster innovation, market acceptance, and quality in several products, materials, methods and services, which are reviewed once in a period of five years. While it is voluntary to comply with the Singapore standards, it is mandatory when these standards are utilised by the government bodies in regulations or administrative needs for safety, health or other environmental issues.
ESG was of the view that disruptive developments could cause economic displacement and also offer opportunities for various new business models to flourish, and standards function as guides for best practices, aiding businesses to navigate better and respond to the disruptions.
- Newsletter, U.A.E
- August 14, 2019
The Dubai International Financial Centre (DIFC), which is the leading global financial hub in this region, has announced new licensing classifications to make it simpler and more reasonable for companies and businesses to set up their base in the centre and do company registration in Dubai.
The following four new licencing categories have been introduced under the new Operating Law and Regulations: short-term licences, commercial permissions, restricted licences, and dual licences.
All the four new classifications have been introduced with a reduced licence fee and enhanced flexibility, thus permitting more firms to set up and do business out of the centre and do best company formation in UAE.
Khalid Al Zarouni, who is the Senior Vice President & Registrar of Companies at DIFC Authority, was of the view that the new categories of licences and fees launched under DIFC’s Operating Law and Regulations are a boon and a first of its kind in this region. This will enable all the businesses in DIFC to expand, while also boosting a better and specialized portfolio of businesses to set up in the financial centre.
The new amendments to the licencing regime are a response to market demand and to demonstrate the DIFC’s obligation to offering a nurturing business environment that is well balanced with suitable levels of protection, in compliance with international best practices.
Key highlights of the new four categories
Here are the major highlights of the four new licencing categories:
Short-term licences
Under this category, the retail businesses and all other non-financial companies would be now able to run their businesses out of the DIFC with flexible rates and shorter timeframes. This also includes a reasonably-priced registration fee of $100 and the licence fee between $300 to $5,100 as per the duration.
Restricted licences
This category of licenses is meant for companies interested in creating or testing new and innovative products or services in the DIFC. Companies getting this licence would benefit from a decreased registration fee of $100 and an annual licence fees that could range from $1,000 to $4,000. The objective is to offer better flexibility for innovation, advancement, testing and also access to the DIFC ecosystem, including incubator and accelerator programmes.
Commercial permissions
This category would permit both DIFC and non-DIFC companies like retail outlets, event companies, training providers and educational service providers to perform or run their main business activities in the DIFC at reasonable rates. Fees for commercial permissions vary between $100 to $2,000, depending on the activity and the duration.
Dual licencing
This kind of licence helps non-financial and non-retail entities that are licenced by the Dubai Economic Department, and having an affiliate in the DIFC for operating from the centre. These would include law and audit firms, family businesses, consultancy firms, holding companies and corporate service providers, who would get advantage from an annual fee of $1,000.
- Newsletter, U.A.E
- August 14, 2019
UAE is cutting down or withdrawing a range of federal government fees for the purpose of easing the cost of doing business in the country and increase its appeal to prospective investors.
A statement issued by the Ministry of Finance recently affirmed that the cabinet has announced a decision to withdraw or cut down some specific charges on approximately 1,500 federal services under three ministries by up to 50 percent. The reduced fee would come into effect from this month onwards.
Around 1,200 fees have been decreased or withdrawn at the Ministry of Interior, 80 fees at the Ministry of Economy and almost 200 fees at the Ministry of Human Resources and Emiratisation.
“These decisions are expected to further enhance the business environment in the UAE, empower entrepreneurs and encourage them to create new investment opportunities in the UAE,” the Ministry of Finance’s statement quoted.
This amendment will also help in the creation of additional jobs in the country while strengthening its competitive ranking and position as a global business hub. It will also help in enhancing the rate of company formation in Dubai and company formation in UAE.
Fees being cut down by the Ministry of Interior includes the fees of issuance or renewal of various security licenses, surveillance systems licences, and security guard licenses. The list of withdrawn fees also includes business and other industrial licensing services.
Fees will be cut down at the Ministry of Economy for renewal of registrations of foreign subsidiaries, registration or renewal process of foreign trademarks, the procedure of sale or acquisition services for international companies and dispute services.
The list of cancelled service fees includes the ones imposed on requests for detailed information, requests for registration or renewal of an agent, and fees for other additional services in an effort to “reduce (the) financial burden on companies operating in the country”, as per the statement.
The decreased fees in the Ministry of Human Resources and Emiratisation is going to include the issuance and renewal of the work permits, the alteration or change of employment contracts and training permits that are issued within the country and also for work permits issued outside the UAE.
The Ministry of Finance also mentioned that it would carry on reviewing all the fees for federal services and devise policies to decide the fees charge and the effect these have on the market.
So if you are looking for professional advice for your company or need good business setup consultants in Abu Dhabi, please get in touch with us, and we would be glad to help.
- India, Newsletter
- August 14, 2019
India has moved up five places in last one year and has reached to the 52nd position on the Global Innovation Index (GII), 2019. If we compare the last year’s data, India has gone up by 29 places in the last five years, thus reaching this rank.
Switzerland continues to top this list and Israel has for the first time found its way in the top ten.
India’s 2019 position in GII signifies the highest jump or move by any of the major economies in the world. India also continues to remain on the second position in terms of the innovation quality amid middle-income economies.
The ranking also represents that India has been able to sustain its leadership ranking as the most innovative country in the Central and South Asia region each year starting since 2011.
India also ranks 15th in the global companies’ R&D expenditures, due to its good and consistent performance in critical economic indicators like productivity growth and exporting services such as information and communication technologies this year.
Piyush Goyal, the Commerce and Industry Minister, said at the launch of the Global Innovation Index 2019that enabling and expediting entrepreneurship through innovation is a very important component under the vision of new India by the year 2022. India’s continuous rise at the global innovation index is an evidence of its people’s entrepreneurial prowess and the rate and success of company formation in India.
He also said that “Innovation does not come new to India and we are seriously looking at increasing our spends at R&D. Right from establishing hundreds of Atal Innovation Labs to Mangalyaan and Chandrayaan, this new approach and engagement adopted by the government have become the new hallmark of India as we move towards a more prosperous country.”
With consistent top ranking of our nation in GII, it is the best time to try your entrepreneurial journey. But in case you don’t know where to start or how to register a pvt. Ltd. company in India or how to go about company formation in Mumbai, then do get in touch with us and we would be glad to assist you.
- Article, U.A.E
- July 31, 2019
SME companies in Dubai or small and mid-size businesses have played a key role in encouraging the private sector and expanded the economic system. But now the question is if the year 2020 would enhance the financial impact of SME businesses located in Dubai and create new business opportunities for SMEs operating in Dubai?
The UAE economy is nurtured by SME firms in Dubai in a big way. As per current data, small and mid-size enterprises represent almost 96 percent of the total number of registered companies in Arab.
Next year, or 2020, is expected to bring a huge transition in the country. Some studies say that in 2020, there will be huge foreign investments by multinationals and many big corporate giants would enter the region. Due to this, the SME firms are anxious that their commercial characteristics would be sidelined. They also think their business opportunities would be restricted.
But UAE has done its ground work. After 2009’s economic downturn, UAE has prepared itself to deal with any global financial crisis such as fluctuations in economy, reduction of oil prices, etc. This is because of segregated business communities, business modules being based on knowledge, and investments in innovation-focused sectors which are majorly controlled by SME firms in Dubai and UAE.
There are over 4 lakh SMEs in Dubai which contribute around 60 percent of the GDP of UAE, and this figure has been rising with each passing year. In only Dubai, there are over 95 percent SME firms which add to the robustness of the economy.
UAE believes that the SME businesses in Dubai and in other parts of the region are its backbone. Thus, with the upcoming commercial plans for 2020, UAE has made it compulsory to integrate the SME firms through several programs. It is planning to adapt an approach where SME firms in Dubai and UAE get more flexibility and get equal opportunities to participate.
According to the latest reports, no advanced payment guarantees, no tender bonds and other similar leverages have been appointed for SME firms who are looking for collaborating on various government platforms. The SME sector is all set to almost 245,000 new jobs in the coming years particularly in tourism, event and hospitality sectors, which are set to grow by Dh143 billion. Besides, even IT start-up firms and consultancies will benefit hugely in 2020.
Do you want to take an approximation of how your company would fare in the year 2020? Or are you thinking if this is the right time for company formation in Dubai? Do get in touch with us and our professionals would guide you for business setup in Dubai free zone.
We at IMC, have the best experts of the industry who can help you with any assistance you require regarding company formation in Dubai or UAE. Just get in touch with us and we would offer you comprehensive solutions for business setup in Dubai free zone.
- Article, U.A.E
- July 23, 2019
Thinking of getting your business license renewed? It isn’t so tough now. Business licenses are renewed annually in Dubai, which can be now done in three simple steps. This is because of the new measures taken by DED or Dubai Department of Economic Development.
DED has come out with various initiatives such as registered agents and smart electronic services who help you with renewal. You can also just send an SMS and get renewal of your business license. With online renewal process, delays are also reduced and one ends up saving time and effort.
The three easy steps with which you can renew your business license are:
Check the tenancy contract’s validity: Your tenancy contract should be valid for a minimum of one month; and it’s better if it’s longer. Place of business is also of significance; hence, check the validity of your firm’s tenancy contract so as to avoid delays in getting the renewal.
Approvals needed for all business activities: Each particular business activity has selective requirements and could ask for certifications or licenses from specific authorities. For example, a car rental business or a private car service requires an approval from the Dubai Road and Transport Authority or RTA; however, a private medical clinic requires a certification from the Ministry of Health and Prevention from Dubai. So you need to get requisite approval from the business activity from the required judicial or government department before applying for the renewal of the business license.
Finally apply for renewal of your business license: Gather all the certifications and the duly-filled application for trade license renewal in Dubai. You can then submit your application to DED in various ways:
Offline Renewal: DED can renew your business license by offline modes like business service provider, law firms, authorised service agents, happiness lounge, etc.
Online Renewal: DED’s website and e-Services especially for the business customers on which they can do the renewal online. Getting the renewal done online saves time and effort and requires minimal paperwork.
Auto-renewal method: The Economic Department has started an auto-renewal process by which the renewal can be fast-tracked. The investors who want to renew their license only require to send an SMS along with their license number to 6969. The renewal cost is sent via SMS and the fee can be paid both offline and online.
The challenges in the process
If there is a delay or non-renewal of business license in Dubai, the company could have to pay a penalty and can also be blacklisted. The company’s plans to set up their business in the region in future could also be ruined. Therefore, many entrepreneurs feel that appointing an expert service provide in UAE is an easier and safer option.
If your documents are not in proper order, then the renewal of business license can take more time. You should be confident about your tenancy contract’s validity and have all your certifications in place. As running around various government agencies can be gruelling, many business owners find it easier to outsource this task.
So if you need assistance in getting your business license renewed or are looking for business setup consultants in Dubai or business setup in Dubai free zone, then get in touch with us. We can also help you with hassle-free process during company formation in Dubai.
- Article, Saudi Arabia
- July 16, 2019
The hospitality sector is ever evolving. Hotel industry being a part of it, is seeing a continuous and rapid transformation to lure the customers. In fact, for luxury hotels it is very important to keep a pace with the changes if they want to stay ahead in the market.
The hotel business in Saudi Arabia has a huge potential and it offers numerous opportunities to foreign companies looking to expand their business in the Kingdom. So taking advantage of doing business in Saudi Arabia, expanding your hotel business in the Kingdom is the right thing to do.
Why Saudi Arabia?
- Saudi Arabia is one of the friendliest countries in the world. The regulatory environment is favourable for doing business and the country holds a high position in the World Bank Group ranking. Moreover, Saudi Arabia is one of the favourite destinations for investors to put their money. In addition, it is one of the fastest growing economies of the world and most sociable place on the planet.
- The hotel industry in Saudi Arabia is expanding at a rapid pace. The demand for hotels is increasing for business as well as religious travellers. In fact, the country is garnering interest from many international hotel groups leading to construction of new hotels across the Kingdom. The hotel industry expansion in the country can be seen from the fact that approximately 6,500 guestrooms are currently in the development stage. This ensures that the investment in the hotel industry will continue in the years to come.
- Hajj and Umrah pilgrims make Saudi Arabia a lucrative place for entrepreneurs to set their hotels. Makkah, the holy city has the largest number of new hotels and accommodates millions of travellers every year.
After reading the benefits of expanding your hotel business in Saudi Arabia, if you have decided to enter the new market, the first question that you might be having is how to register a company in Saudi Arabia. To assist you in this regard, IMC Group is always at your service. We guide you during the entire process of registration and setting up a hotel in the country.
Here is how to go about setting up a business in Saudi Arabia:
- Get SAGIA Entrepreneurial License
The first step is to obtain the Saudi Arabian General Investment Authority (SAGIA) Entrepreneurial License. This license provides many incentive benefits to new companies. In addition, with this license, the new companies can leverage the services of the small and medium-sized business. Based on vision 2030, SAGIA aims to attract investors and entrepreneurs from across the globe to set up their own projects and businesses. Without SAGIA license, you would not be able to do business, set up a bank account and sponsor shareholders. IMC Group helps you in getting the license in the shortest time period.
- Incorporation Process
The next step is to complete all the incorporation formalities. The process includes signing the Article of Association and notarizing the documents. After 30 days of recording the Articles of Association, apply for the registration in the Commercial Register. The Ministry of Commerce and Investment issues the commercial registration. IMC Group assists foreign investors to complete their incorporation process. In addition, IMC Group applies for other licenses required by your business for various activities. To further ease your task, we take complete care of the renewal of your investment licenses.
- Office Setup
The last step is to set up your office in the country. With just 500,000 SAR, you can set up a branch office in the Kingdom of Saudi Arabia. IMC Group assists you in setting up the branch office in Saudi Arabia. With the help of our local expertise and knowledge about the country, you can offer unique services to your international and domestic travellers through the office.
The hotel industry of the Kingdom is growing rapidly and you must join the race to take advantage. You can enter the hotel industry in Saudi Arabia through a partnership with the local player. This will not only ease the process of hotel set up but also help you in giving better services to your customers. IMC Group is at your service to develop the local partnerships. Saudi Arabia is a country with strong values, customs and religious belief. IMC Group understands this fact very well. By establishing your business through us, you can be assured that your hotel business will follow the cultural adherence and a vision that will put you ahead of your competitors.
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