WHAT IS THE IMPORTANCE OF A PAYROLL SYSTEM?

 The payment of the salary is something serious and must always be in a timely manner, since on the one hand the adequate fulfillment of this activity works as a motivation for the employees, in addition, it avoids dissatisfaction due to not receiving the payment of their job. In order to comply, there are tools such as a business management system that makes work easier, faster and more reliable.

 BENEFITS OF GOOD PAYROLL MANAGEMENT

 When companies have good Payroll services in UAE, work flow is efficient, there is productivity and confidence. In addition, organizations prevent problems with the treasury because by having good payroll methods they comply with the requirements of fiscal regulations.

 In order to achieve these advantages, the ideal is to implement SAP Business One Cloud , this system has different modules including one dedicated to payroll management. This software makes work more efficient as it minimizes errors, at the same time automates activities, saving time and effort.

 For the implementation of these systems to be a success. It is a Dubai company and specialized in distributing Auditors in UAE; offers the perfect support to implement in your organization for small and medium businesses.

 The benefits of using business software is that employees will get paid for their insurance benefits in accordance with the law, and will not risk losing them due to non-payment.

 With the use of payroll management, it is also ensured that there are no errors in the calculation process and that the fees and compensation of the employees are made on time. The program is efficient in its activities, it is also simple to use and can be used by payroll managers, human resources and even by employees in its self-service option.

 In addition, the time spent on tasks will be much less, therefore, the calculations will be made without investing large amounts of hours. This means that there is more productivity on the part of those in charge.

 It is very important to have a good payroll management since if employees have their payment late or incorrectly, they can make them feel upset and question their financial future in the company. This is an element so that the work environment begins to become negative, dissatisfied and distrustful.

 Now you know, a business software gives the security of being able to fulfill a payroll well done and on time. In addition, it leaves time for those in charge to allocate part of their day to other activities that have to do with operational processes.

 For greater security, companies like AAA-CAS with the experience of their consultants offer security, minimizing risks and guarantee that you will obtain the value that ERP Software solutions in Dubai  offers for your business management. Implementing these systems is simple if you have the best advice so that important processes such as payroll are well done, minimizing errors and time in their execution.

Read also: What is and what the role of external auditing in your company

What is and what the role of external auditing in your company

 

Learn about the role of external auditing and see how it can benefit your company.

 It is essential to submit any and all companies to the evaluation processes of how their resources are being used in order to improve them. In view of this, external Auditors in UAE, or independent auditing , as it is also known, emerged as part of the evolution of a company .

 It acts to ascertain all the internal procedures and policies defined by the company, making it possible to see whether the accounting and internal control systems are being effective and carried out within criteria that are healthy for the company's financial life.

 The external auditor works independently, with no employment relationship, and his attention is focused on the reliability of the accounting records. Most of the time, he also works in partnership with the internal auditor, to test the efficiency of the systems used.

 External and internal audits are usually linked to the accounting field and have common interests and a strong connection between their work. Usually, the internal audit works more as a coordination within the company, while the external audit seeks to prove the financial statements and, for this, it uses the results of the internal audit . Thus, these two areas should seek to unite their work to make better use of resources, benefits and skills.

 The work of verifying the equity and financial situation of companies is extremely important for future investors of funds and other business partnerships. As a security measure against the possibility of manipulating information, future investors demand that these statements be examined by a professional independent from the company and of recognized technical capacity.

 Qualified professionals,  must have an obligation to meet the company's needs with regard to the reliability of financial information, in addition to reviewing operations and internal control , generating reports and reports that prove their real financial situation. .

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 Do you have anything to add about the importance of external auditing? Share your opinion!

Specific Audit of Financial Controls

 Understand how the specific Audit of Financial Controls works.

Characterized by the careful verification of documents, reports and internal controls, the Specific Audit of Financial Controls allows verifying the veracity of the information and numbers managed by the financial department of a company, used by the administrators in their analyzes to make important decisions related to the conduct of the Business.

The starting point for carrying out this type of audit is a survey of the existing financial documentation, such as sales orders, receipts, invoices, purchase quotations, bank statements and any other record associated with the company's accounts receivable and payable. This survey consists of supporting documentation, for accurate checking of the numbers presented in the auxiliary reports developed by the finance department.

Any divergence or inconsistency identified can be considered as a risk factor in relation to the veracity of the financial figures, which may therefore reflect on the management of the business.

Another important phase is the evaluation of the information system modules used to generate these data, with adherence tests, also considering their integration with the other modules used by the company's key departments.

This specific audit must also pay attention to compliance with the rules and policies established by management for the proper functioning of the financial department, verifying, for example, whether employees are performing their tasks in accordance with the department's procedures manual and whether their achievement demonstrates weakness for the occurrence of errors and fraud.

This type of specific Auditors in Dubai, focused exclusively on the financial controls of the company, should not be confused with the audit of the financial statements , performed with the purpose of verifying whether the financial statements prepared by the company are in accordance with the accounting practices adopted in the United Arab Emirates.

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Why hire an independent audit for your company?

 The need to hire an independent audit arises from the watchword of any business - trust.

 No investor or financial institution will invest money in a business that does not present reliable financial and accounting information. The independent audit serves to examine this information and issue an opinion on its reliability.

 In addition, an independent audit can help the entrepreneur to understand the main risk factors of his business from an operational, accounting and financial point of view, and to attest to the information, so that the organization has more secure subsidies for decision making. .

 The independent audit is not exclusive to large companies. Although it is mandatory for some sectors, large or public companies, small and medium entrepreneurs can also enjoy the benefits that it brings to the business.

 The lack of accounting and financial control is the main reason that leads companies to close their doors. The independent audit helps the entrepreneur to overcome the lack of obstacles, and give more security to the information he provides to the tax authorities, creating the foundation for the company to survive in an increasingly competitive market.

 If your company intends to expand its business, it is important to prepare as soon as possible to meet the future needs of the enterprise. The independent Auditors in Dubai  helps prepare your business for the future, strengthening your business in the process of corporate governance.

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Read also: DISCOVER 7 ADVANTAGES OF PERFORMING INTERNAL AUDIT IN YOUR COMPANY

 

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For the market and the community, an audited company demonstrates its results with a high level of information and confidence, making its participation in the development of the country clear, becoming much more reputable and with greater credibility.

DISCOVER 7 ADVANTAGES OF PERFORMING INTERNAL AUDIT IN YOUR COMPANY

 

Compliance is no longer an ideal and has become a reality in many United Arab Emirates companies. More and more managers understand the need to take measures to find and combat unethical behavior  and corruption in organizations. However, it is still common for there to be confusion between these processes and internal audit.

Even some industry professionals ( compliance officers  and auditors) often confuse the areas, believing that just one of them is enough. Hence the importance of delimiting the performance of these functions. Both are essential for the smooth running of the company and, therefore, must be carried out separately.

In this post we explain what an internal audit is and what are its 7 main advantages. Read on and find out why you should do it in your business!

After All, What Is An Internal Auditor In Uae?

It is an independent activity, the objective of which is to add value to the company, through an evaluation and consultancy work. Internal audit is an objective, systematic process, used to assess corporate governance, the use of internal controls and risk management.

Its purpose is to assess the organization in a systemic way. The audit verifies whether the controls adopted are sufficient to resolve operational problems and threats, among other issues that can damage institutional efficiency and image.

WHAT IS THE DIFFERENCE BETWEEN AUDITING AND COMPLIANCE?

First of all, we must understand that compliance  means being in compliance with something, be it a law, a rule or an internal regulation. Thus, it consists of an attitude, a way of acting or a set of actions that involves all those belonging to the organization.

Thus, we cannot say that internal audit and compliance are the same, but that they are complementary. After all, both seek the best functioning of the company.

However, compliance is involved with the definition and establishment of rules, risk management and the awareness of employees and managers. While the audit seeks to analyze the controls and processes used, seeking to identify points for improvement or that generate growth opportunities, detecting irregularities in the organization.

In other words, compliance is concerned with implementing fraud detection and prevention tools. The internal audit, on the other hand, checks whether these standards are being well applied, according to samples and punctual and scheduled checks.

Another fundamental difference between compliance and internal auditing is the involvement of managers. If, on the one hand, they actively participate in the process of establishing rules and standards, on the other, they must be left out of the audit, in order to guarantee the exemption of the process, even if they are responsible for it.

Finally, it is also worth noting that the audit can be considered a response to the risks to which the company is exposed. Because internal controls must ensure that the organization is in compliance with the law. That is why, although they are not the same thing, they are codependent activities.

WHAT ARE THE ADVANTAGES OF CARRYING OUT THE INTERNAL AUDIT?

Given these concepts, we can now talk a little about the benefits of internal auditing. Obviously, they can vary according to the size, the area of ​​operation and the peculiarities of your organization. But in general, we can highlight the following 7 advantages.

1. Ensures the use of controls

The first advantage is related, precisely, to the application of internal controls. There is no point in investing in their implementation if they are not used well, as this way, it will not be possible to achieve the expected results. Thus, internal audit is a process of verifying the instruments used to control the company's processes, whatever they may be, and their effectiveness.

2. Check the application of policies

Likewise, internal policies must also be followed to the letter, not only serving as an ideal. The audit has the mission to reveal how much they are being respected and put into practice, as well as their effects on the organization's routine.

3. Evaluates the effectiveness of the standards

In addition to policies, standards must also be verified. While compliance is in charge of determining which ones are pertinent and creates means for inspection, the internal audit must certify if they are being met. In other words, together, these two instruments are fundamental for ensuring compliance, avoiding fraud and other problems arising from unethics or  corruption.  within the organization.

4. Anticipates and seeks to solve problems

In assessing policies, controls and standards, the audit is able to identify real or potential problems that may put the company at risk. So it is a way to prevent these problems from arising and, at the same time, to minimize their effects. It is good to remember that such occurrences can be quite harmful if they are not resolved in time, since they have already been subjected to a whole previous process of  analysis of compliance risks .

5. Identifies possibilities for improvement

The audit does not serve to identify only problems. On the contrary, it is easier to find points that can be improved or contribute to the growth of the company. That is why it is usually carried out before major changes, such as a merger or acquisition process.

6. Increases the reliability of the company

Like compliance, internal audit is a way to increase the trust of customers, suppliers, employees and others involved in the business. It is a way to seek transparency and maximum efficiency in processes, showing different audiences how important this is for the organization.

7. Contributes to decision making

Finally, it is important to highlight how much internal audit contributes to decision making, not only by pointing out opportunities. The fact is that having an external view - since managers do not participate in it - is a way of going further, of perceiving and foreseeing different scenarios and possibilities, something so important for decision-making.

Finally, the internal audit is the ideal tool to identify the effectiveness of all forms of control and the use of the proposed rules and policies. Therefore, it is worthwhile to know a little more and carry out this type of activity in your business.

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