Financial Reporting & Compliance- why this can give your business a competitive edge
For many companies operating in the UAE, maintaining a set of commercial books and financial reports has often been overlooked as a management reporting tool particularly for SMEs. Unless your business has mandatory requirements imposed by your special trade license obligations or you have business requirements to present a set of audited accounts, you may not have maintained a set of commercial books.
In reality these accounts may not provide the required detail for your business to make insightful management decisions. An annual set of accounts may give you a rear-view picture of your business performance, however they usually lack the detail and frequency for you to measure your performance and make important decisions during the year when they may matter the most.
As of January 1, 2018 through the introduction of VAT, the Federal Tax Authority (FTA) has compelled the preparation of financial reports pushing businesses to be more mindful of their books. This is an ideal opportunity for many businesses to adopt a financial reporting model and improve their competitiveness.
In this paper, we discuss the opportunity for businesses to take advantage of the compliance requirement from the Executive Regulations and implement a reporting model that can build competitive and business advantages.