In the long term, no startup can afford to be cash-strapped. Although many startup founders have amazing ideas, this does not guarantee that they will be able to pursue their ideal firm. In such a setting, attracting outside investment is vital for a firm to proceed to the next level. A solid business idea, on the other hand, may not be enough to entice investors to invest in your company. This is where audit firms in Dubai can assist you to gain investors’ trust and persuade them that your company is a suitable investment option.
Entrepreneurs must recognize that while making an investment decision in Dubai, investors will rely on the advice of auditors. Before opting to invest in your company, most investors will look at a few key factors. Most of the requirements needed by investors can only be met with the assistance of an audit firm. Let’s look at how Dubai audit companies may assist startups in attracting outside investors.
Assist with financial statements that have been audited
From the perspective of investors, you don’t exist until you have audited financial statements. It means that without an audited financial statement, your chances of getting funded are slim. An external audit provides the highest level of assurance to investors that your company’s financial statements are accurate in all material respects. An audited financial statement prepared in accordance with local and international standards such as the International Financial Reporting Standards (IFRS) provides investors with a more accurate picture of your company’s financial situation.
Investors will examine important financial parameters such as cash flow from operating activities, net income, and ratios such as price to earnings, return on investments, and liquidity in the financial statements. It will help them assess whether or not investing in your firm is a good idea. Audit businesses in Dubai can assist you in auditing your financial accounts in accordance with the International Financial Reporting Standards (IFRS) and other approved accounting standards.
Assist in ensuring compliance
Investors will not put their hard-earned money into a company that has broken the UAE government’s laws and regulations. Despite its free economy, the UAE has adopted a number of obligatory rules beginning in 2018. Value Added Tax (VAX), Anti-Money Laundering & Countering Terrorism Financing (AML-CFT), Ultimate Beneficial Ownership (UBO), and Economic Substance Requirements are among the regulations that corporations must follow (ESR).
Furthermore, beginning in 2023, relevant enterprises will be compelled to pay UAE corporation tax. Investing in a corporation that has broken these rules might land you in serious legal danger. Audit firms in Dubai can assist you in determining your compliance status and implementing corrective actions. Once you adopt the key audit recommendations, your company will be investment-ready.
Decrease the Chances of Fraud
Investors Examine your audited financial statements to see if there is any evidence of fraud in your company. Having your books of accounts examined by experienced audit firms in Dubai will assist you in determining whether your business is involved in any fraudulent activities. You’ll need an audit to find out where your company’s internal controls and processes are lacking. It will also allow you to identify any employee fraud, allowing you to make recommendations for more training or improvement.
Assists in the review of the organization
An external audit will enable you, the auditor, to learn more about your company and its operations. Auditors in Dubai can help you find areas in your organization where processes or management may be improved, as well as places where you could invest. Leading audit firms in Dubai will have expertise in assessing similar clients’ books of accounts (whether this is by size or industry of operation). These auditors will be able to identify both opportunities and risks.
Enhances trustworthiness and transparency
The credibility and dependability of the data presented to potential investors will be enhanced by a financial statement audit. It will hasten the due diligence process that will take place once the company is ready for funding. An audit adds a layer of certainty to your startup’s early stages. It implies less labor and argument regarding the value of your firm down the road, and it gives an investor trust in the accuracy of your financial records.
To Attract Investments, Hire the Best Audit Firms in Dubai, UAE.
For startups to get investor confidence, they must hire the best audit firms in Dubai. For early-stage entrepreneurs to advance to the next level of their business, they must gain the trust of investors. However, professional auditors in Dubai, such as Intellect Chartered Accountants, are required to achieve better results (ICA). With over 20 years of expertise, ICA is one of the leading audit firms in the UAE. We’ve worked with clients from a variety of industries and have a long list of satisfied customers. To have a smooth annual audit and attract potential investors, hire our expert auditors.