How Internal Audit can Improve your Business

How Internal Audit can Improve your Business?

What is an internal audit?

An internal audit is an independent evaluation of an organization’s operations, processes, financial controls, and risk management systems conducted by internal auditors who are employees of the organization. The main objective of an internal audit is to ensure that an organization’s operations comply with its policies, procedures, and regulations, and to identify opportunities for improvement in efficiency and effectiveness.

How Internal Audit can Improve your Business

Internal audits can cover a wide range of areas, including financial reporting, compliance with laws and regulations, operational efficiency, risk management, and information technology. Internal auditors typically use a variety of methods, such as interviews, document reviews, and data analysis, to gather information about an organization’s activities and evaluate its systems and processes.

The findings and recommendations of an internal audit are typically reported to the organization’s management team and board of directors. The results of an internal audit can help an organization to identify areas where it can improve its operations, reduce risk, and enhance its overall performance.

Internal Audit Process

The internal audit process typically involves the following steps:

  • Planning: The internal auditor identifies the areas to be audited and develops a detailed plan for conducting the audit.
  • Fieldwork: The internal auditor collects and analyzes data through interviews, document reviews, and other methods to evaluate the effectiveness and efficiency of an organization’s operations and controls.
  • Testing: The internal auditor performs tests to determine whether the organization’s controls are operating effectively and in compliance with relevant policies and regulations.
  • Analysis: The internal auditor analyzes the data and test results to identify areas of weakness or risk, and makes recommendations for improvement.
  • Reporting: The internal auditor prepares a report that summarizes the findings and recommendations of the audit, which is presented to the organization’s management and board of directors.
  • Follow-up: The internal auditor tracks the implementation of recommended improvements to ensure that they are being implemented effectively and that the organization is achieving the desired results.
  • Continuous Improvement: The internal auditor also looks for opportunities to improve the internal audit process itself, such as by incorporating new technologies, improving communication, or enhancing the skills and training of internal auditors.

Assessment Techniques

Internal auditors use a variety of assessment techniques to gather and evaluate data during the audit process. Here are some of the most common assessment techniques used in internal auditing:

  • Interviews: Internal auditors conduct interviews with key personnel to gather information about an organization’s operations, processes, and controls.
  • Document reviews: Internal auditors review documents such as financial statements, policies, procedures, contracts, and other relevant records to assess compliance with laws and regulations.
  • Observation: Internal auditors observe organizational processes and operations to assess compliance with policies, procedures, and regulations.
  • Testing: Internal auditors perform testing to evaluate the effectiveness of internal controls.
  • Data analysis: Internal auditors use data analysis techniques to identify patterns and anomalies in data that may indicate risk or weakness in an organization’s operations.
  • Risk assessment: Internal auditors conduct a risk assessment to identify and evaluate risks associated with an organization’s operations.
  • Benchmarking: Internal auditors compare an organization’s operations, processes, and controls with best practices and industry standards to identify areas for improvement.
  • Sampling: Internal auditors use statistical sampling techniques to select a representative sample of data for testing or analysis.
  • Walkthroughs: Internal auditors perform walkthroughs of an organization’s processes to gain a better understanding of how they operate and identify areas for improvement.
  • Technology-based techniques: Internal auditors use technology-based techniques such as computer-assisted auditing tools and techniques (CAATs) to automate the audit process, analyze data, and identify risks and opportunities for improvement.

Analysis Techniques

Internal auditors use a variety of analysis techniques to evaluate the data gathered during an audit and to identify areas of risk or opportunity for improvement. Here are some of the most common analysis techniques used in internal auditing:

  • Trend analysis: Internal auditors analyze historical data to identify trends in an organization’s operations or financial performance.
  • Ratio analysis: Internal auditors use financial ratios to analyze an organization’s financial performance and compare it to industry benchmarks.
  • Regression analysis: Internal auditors use regression analysis to identify relationships between variables and to predict future outcomes.
  • Gap analysis: Internal auditors use gap analysis to compare an organization’s current performance to its desired performance or industry benchmarks.
  • Root cause analysis: Internal auditors use root cause analysis to identify the underlying causes of a problem or issue and to develop effective solutions.
  • Risk assessment: Internal auditors use risk assessment techniques to identify and evaluate risks associated with an organization’s operations.
  • Process mapping: Internal auditors use process mapping to identify inefficiencies or gaps in an organization’s processes and to develop solutions to improve efficiency.
  • Benchmarking: Internal auditors use benchmarking to compare an organization’s operations, processes, and controls to best practices and industry standards.
  • Scenario analysis: Internal auditors use scenario analysis to evaluate the potential impact of different scenarios on an organization’s operations or financial performance.
  • Simulation modeling: Internal auditors use simulation modeling to simulate different scenarios and evaluate the potential impact on an organization’s operations or financial performance.

Reporting Procedures

Reporting is a critical part of the internal audit process, as it communicates the results of the audit to the organization’s management and board of directors. Here are some of the common reporting procedures followed by internal auditors:

  • Drafting the report: Internal auditors prepare a report summarizing the findings of the audit, including any weaknesses, risks, or opportunities for improvement.
  • Reviewing the report: The report is reviewed by the internal audit team and may be reviewed by the organization’s management and board of directors.
  • Issuing the report: Once the report is finalized, it is issued to the organization’s management and board of directors.
  • Presenting the report: Internal auditors may present the report to the organization’s management and board of directors, providing additional context and answering any questions.
  • Follow-up: Internal auditors may conduct a follow-up audit to evaluate whether the organization has implemented the recommendations in the report and whether they have been effective.
  • Reporting to external stakeholders: In some cases, internal audit reports may also be shared with external stakeholders such as regulators, investors, or auditors.
  • Confidentiality: Internal auditors must maintain the confidentiality of the information gathered during the audit process and ensure that the report is only shared with authorized stakeholders.
  • Tone and clarity: The report should be written in a clear and concise manner, with a professional tone, and should avoid technical jargon or unclear language. The report should be tailored to the audience, with different versions or summaries provided for different stakeholders.

How can TallyPrime help?

TallyPrime is a comprehensive accounting software that can help organizations streamline their financial and accounting processes. Here are some of the ways TallyPrime can help:

  • Financial management
  • Inventory management
  • Tax compliance
  • Payroll management
  • Banking and finance
  • Reporting and analysis
  • Multi-user access

Overall, TallyPrime can help organizations save time and improve accuracy in their financial and accounting processes, enabling them to focus on their core business activities.

 

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5 Things To Know About Corporate Tax UAE

5 Things To Know About Corporate Tax UAE

UAE Corporate Tax Defined

Corporate tax in UAE is a federal tax imposed on the profits earned by companies operating in the country. The tax is currently set at a rate of 5% on the taxable profits of companies, with some exceptions for certain industries and government-owned companies.

5 Things To Know About Corporate Tax UAE

Companies that are required to pay corporate tax in UAE include those that are tax residents in the country, meaning they are either incorporated in UAE or have their management and control based in the country. Non-resident companies may also be subject to tax if they have a permanent establishment in the country.

The taxable profits of a company are calculated by deducting allowable expenses and losses from its gross income. The allowable expenses include items such as salaries, rent, and depreciation, while the allowable losses may include bad debts and inventory write-downs.

Companies that are liable to pay corporate tax in UAE must register for tax, obtain a Tax Registration Number (TRN), and file their tax returns annually. Failure to comply with tax regulations can result in penalties and fines.

It is important for companies operating in UAE to seek professional advice to ensure compliance with tax laws and to properly manage their tax liabilities.

Registration for UAE corporate tax

Companies that are required to register for corporate tax in UAE should follow these steps:

  1. Obtain a Tax Registration Number (TRN): Companies that are liable to pay corporate tax in UAE must first obtain a TRN. The application can be submitted through the Federal Tax Authority (FTA) website, and the TRN is typically issued within a few days.
  2. Register for tax: Once the TRN is obtained, the company must register for tax with the FTA. The registration process can be completed online through the FTA’s e-services portal.
  3. Maintain records: Companies must maintain records of their financial transactions and tax-related documents for a period of at least 5 years. The records should be accurate, complete, and in compliance with the tax regulations in UAE.
  4. Submit tax returns: Companies must submit their tax returns annually through the FTA’s e-services portal. The tax returns should be filed within 4 months from the end of the financial year.
  5. Pay tax: Companies must pay their corporate tax liabilities within 30 days from the date of the tax assessment. The payment can be made online through the FTA’s e-services portal or through other designated channels.

It is important to note that failure to register for corporate tax or comply with the tax regulations in UAE can result in penalties and fines. Companies should seek professional advice to ensure compliance with the tax laws in UAE.

5 Things To Know About Corporate Tax UAE

  1. Tax system: UAE has a federal tax system, where each Emirate is responsible for implementing its own taxation policies. However, in 2017, the UAE introduced a federal corporate tax of 5% on the profits of all companies operating in the country, with some exceptions.
  2. Exceptions: The federal corporate tax in UAE does not apply to companies engaged in certain activities such as oil and gas production, and companies that are at least 51% owned by the federal or local government.
  3. Tax residency: In order to determine the tax liability of a company in UAE, the concept of tax residency is used. A company is considered tax resident in UAE if it has been incorporated in the country or if its management and control are based in the country.
  4. Tax returns: Companies in UAE are required to file their tax returns annually, even if they have not generated any profits in the country. The tax returns should be filed within 4 months from the end of the financial year.
  5. Penalties: Failure to comply with the tax regulations in UAE can result in penalties and fines. For example, failure to file tax returns on time can result in a penalty of AED 1,000 for the first month, followed by AED 100 for each subsequent day of delay. Additionally, intentional tax evasion can result in a penalty of up to AED 50,000 and imprisonment for up to five years.

Faq’s:

Q: Which companies are exempt from corporate tax in UAE?

A: Companies engaged in certain activities such as oil and gas production, and companies that are at least 51% owned by the federal or local government are exempt from corporate tax in UAE.

Q: How is a corporate tax in UAE calculated?

A: Corporate tax in UAE is calculated on the taxable profits of a company, which is determined by deducting allowable expenses and losses from its gross income. The tax rate is currently set at 5%.

Q: When are corporate tax returns due in UAE?

A: Corporate tax returns in UAE must be filed annually within 4 months from the end of the financial year.

Q: What are the penalties for non-compliance with corporate tax regulations in UAE?

A: Non-compliance with corporate tax regulations in UAE can result in penalties and fines. For example, failure to file tax returns on time can result in a penalty of AED 1,000 for the first month, followed by AED 100 for each subsequent day of delay. Intentional tax evasion can result in a penalty of up to AED 50,000 and imprisonment for up to five years.

Q: Can companies offset losses against their tax liability in UAE?

A: Yes, companies in UAE can offset their losses against their taxable profits for up to 5 years, subject to certain conditions and limitations.

 

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Cloud-based Tally Software

All you have to know about Cloud-based Tally Software!

All you have to know about Cloud-based Tally Software!

Tally Accounting software has been used by many businesses today. It has made
business and accounting processes simpler than ever! Tally software handles your
business’s accounting and tax management, inventory management, purchase
management, sales management, invoicing, payroll, etc.

Cloud-based Tally Software

With technology playing a vital role, businesses should derive tech-savvy solutions that
yield more benefits for better functioning. Cloud technology has been one of the
extensive technology solutions for businesses. It has facilitated organizations with easy
solutions for storage, networking, and remote access and developed virtual locations at
ease.

Let’s take a look at the top 7 reasons why you need to use Tally on a cloud server:

  1. Access from Anywhere: Tally hosted in secured Data Centers can be accessed
    anytime, anywhere.
  2. Any Device: Tally on the cloud comes with RDP (Remote Desk) protocol and you can access it using any device OS – Windows, Mac, Linux, and iOS devices.
  3. Say goodbye to local hardware: You don’t have to worry about system updates, failures, maintenance, etc. No matter what, your Tally Data on the cloud will always be stored and available for you.
  4. Super secured: Your data will be safe and secure with security measures in place to keep your critical data safe from all threats and malicious files.
  5. Own your data: You will be entitled to own the data hosted in your Tally on Cloud with XcellHost Cloud. No one can access your confidential data other than you.
  6. Local Printing: Tally Cloud allows you to print hard copies of your data from your printer.
  7. No CapEx: No physical assets are needed! You can now save your capital expenditure for more important aspects of your business.

Both TallyPrime and Tally ERP types of software have cloud-based features. Let’s take
a look at the features of Tally on the cloud:

Secure Infrastructure and Accessibility

Being ISO 270001 certified with Multi-tier security infrastructure, Tally on cloud hosts in
tier 4 Datacenters. Your Tally Data is safe and secured with our server as we assure you
that your tally account is accessible only to authorized users. It supports all versions of

The tally from Tally erp6x to Tallyerp 9 and TallyPrime is also accessible from any
device be it a laptop, PC, iOS device, and even mobile phone.

Automated Backups along with real-time syncing

Tally on Cloud assists you with fully customizable automated backups at regular
intervals and also maintains real-time syncing of all the entries and transactions
recorded from different locations.

Virtual Firewall

Next-generation firewalls combine application awareness and deep packet inspection
to give organizations more control over applications while also detecting and blocking
malicious threats.

Endpoint & Multi-layer Security

Tally on the cloud allows you to block cyber threats before they compromise your system
through its traffic filtering capability. Also, with cloud EDR you can prevent ransomware
attacks and threats that are estimated. You are also availed of encrypted backups at
regular intervals. With an enhanced anti-DDoS solution & multiple ISO/IEC
certifications, we cover every aspect of security and business continuity.

Best performance with 99% up-time SLA

Tally on Cloud provides close to 99% up-time SLA which ensures the smooth functioning
of your tally account when used in different locations. We guarantee that all critical
infrastructure components will be available 100% of the time in a given month,
excluding scheduled maintenance.

Protected VPN

Tally on the cloud allows remote users to access Web applications, client-server apps, and
internal network utilities. IPsec security method is used to create an encrypted tunnel
from one customer network to the remote site of the customer.

With these features, Tally on Cloud comes with amazing benefits that supersede itself
Tally on-premises. cloud solutions like Tally on the cloud could turn out to be a major players in today’s business functions. Tally on cloud prices is reasonable with these

efficient features it offers, being a game changer for your organization’s practices.
Let’s take a look at how Tally on Cloud can boost your business spectrum:

  • You can centralize the data and your business operation without the need for synchronization.
  • Get rid of slow performance, data corruption, data rewrite, malicious threats, etc
    without any stress or tension.
  • Every three hours, your data will be backed up automatically.
  • You can use your own configurations or customization files.
  • The data that you upload will be under your control. You can upload and
    download it whenever you want.
  • You can also create and maintain unlimited companies and users in Tally.
  • You can export any tally report to your local hard disk anytime, anywhere.

Start using Tally on the cloud from today and get its universal benefits for better
productivity and functioning of your business!

Start today. Start Now.

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TallyPrime Silver & TallyPrime Gold

TallyPrime Silver And TallyPrime Gold

TallyPrime Silver & TallyPrime Gold features explained

Are you a Business owner who wants to fix the accounting and business
management of your entity or an individual who wants to learn or work for your
entrepreneurship by finding the right software that matches your requirements?

TallyPrime Silver & TallyPrime Gold

Then this blog is just for you! Chaturvedi software house LLC from Dubai, UAE
offers the right business management and accounting software solution called
“Tally software” that will help you to,

1. Manage your business’s accounting structure
2. Obtain secure Data management solutions
3. Get the best User experience
4. Manage tax returns and review tools for compliance

Any many more!

Our most-wanted versions of tally software recommended by our business
clients are “Tally ERP9” & “TallyPrime” software. Tally ERP9 is the most common
version of Tally software and TallyPrime is the advanced version of Tally ERP9
software.
In this blog, you will be exposed to TallyPrime features under the TallyPrime
silver and TallyPrime gold categories. Let’s get started!
Firstly,

What is TallyPrime?

TallyPrime is a business management software, that takes care of your
accounting like Sales, purchases, receivables, and payables tracking; Inventory
management like Order processing, and inventory tracking; Payroll
management, Bank transactions, Statutory Compliance, etc.

TallyPrime also helps in vital decision making which is simplified for business
owners to provide critical reports. Tally Prime also provides essential reports
such as all Financial reports, Cash-flow reports, Cost center reports, Inventory
reports, Accounting reports, and many more detailed reports. Under Tally Prime
software, there are two main categories/subscriptions according to the number
of users who will be entitled to manage the software system.

TallyPíime Silveí TallyPíime Gold
Tally Prime Silver is a license for one compuľer Sysľem Tally Prime Gold is a perpeľual license for mulľiple compuľer Sysľems in a LAN

Once you choose who is going to manage the software, the next step is to utilize
the features!

Exquisite Features of TallyPrime software

Simple Accounting Management – Under accounting management, you will
be able to,
a) Prepare a pre-defined and flexible chart of accounts
b) Maintain Group & ledger management
c) Get multi-currency support
d) Retract post-dated transactions

Flexible purchase and sales management – you will get the benefits of,
a) Preparing billing formats, multiple price lists & discount management,
multiple addresses
b) Process sales & purchase orders
c) Complete track of receipt (GRN) and delivery not (DC)

Ingenious Inventory Management – Under this feature, you can manage,
a) Unlimited stock groups and categorization
b) multi-locations/godowns and batch management
c) Alternate & compound units of measure
d) Manufacturer and expiry date management
e) Flexible units of measure
f) Multiple stock valuation
g) Item cost tracking

Credit & Cash Flow management – Make your organization run with the flow
of,
a) Receivable & payable management
b) Ageing analysis
c) Credit control utilities
d) Cash and fund flows
e) Cash flow projections and,
f) Interest calculations

Banking – This feature allows you to,
a) Auto-configured cheque printing
b) Chequebook management
c) Auto Bank Reconciliation (Auto BRS)
d) Post-dated cheque management
e) Payment advice & deposit slip
f) E-payments

Manufacturing & Job work – With this feature, you will be able to create,
a) Multi-Bill of material (BOM)
b) Manufacturing Journal
c) Job order processing
d) Job work reports

Statutory Capabilities – This important feature helps you to manage,
a) VAT compliant and error-free invoicing
b) Invoice printing in different languages
c) VAT computation report

Business Reports – You will be able to,
a) Discover easily, do more with Go To/Switch To options
b) Tailor-made reports with a Change view option
c) Basis of value and exception reports

All the reports that are made are saved automatically. Under business reports,
the 4 major reports that you can create are

1. Accounting reports like ledgers, cash/bank books, purchase/sales
registers, and bills both receivable and payable
2. Financial reports like Balance sheet, profit & loss A/C, trial balance, and
ratio analysis
3. Inventory reports like Stock summary, aging analysis, movement
analysis, stock transfers, order & batch summary, and many more
4. Management control reports like a cost center, cost category, cash flow
report & projection, comparative reports, etc.

Cost control and Cost Analysis – You will be able to maintain,
a) Cost center and profit center management
b) Set budget & track variance
c) Business forecasting using scenario management

Data Exchange Capabilities – Get the benefits of,
a) On-demand data synchronization
b) Export reports in different formats in different formats like MS Excel, PDF,
JPEG & HTML
c) Export & import of data through XML
d) Tally ODBC
e) Upload data to the HTTP web server

Internet-based Capabilities
a) Secure remote access
b) E-mailing of invoices & reports
c) License & user management
d) Tally reports in the browser and many more

Payroll Capabilities – With this feature, you can get the benefits of,
a) Pay slip printing & emailing
b) Employee category-wise pay slip sheets & pay structure management
c) Employee profile, group & category reports
d) Attendance recording & pay process
e) Payroll accounting & exception reports
f) Payment Advice

Data security capabilities – You will be able to manage
a) Data Backup & Restore
b) Multiple security controls
c) User management
d) Password policy management
e) Tally Vault
f) Tally Audit

Delightful User Experience – You will be able to experience the best user
interface with,
a) Easily configurable ledgers and vouchers with more details
b) Feature enablement and ledger creation
c) Consistent top menu that helps with multitasking and better navigation
d) Contextual right bar that helps you to get used to and take advantage of
the product
e) Easy troubleshooting
f) About page for easily getting support

TallyPrime offers many more features as you discover our platform. You will able
to get the right support and the best user experience with unimaginable
benefits for you and your organization. So what are you waiting for? Check out
our website and connect with us to make your financial & business management
simplified!

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Tally ERP 9 to TallyPrime

Tally ERP 9 to TallyPrime

Tally ERP 9 to TallyPrime – Upgrade to better functioning!

Are you using Tally software or beginning to think of using it for your Business Accounting practices? Then this blog is just for you! Tally software has upgraded its features from Tally ERP9 to TallyPrime – a much more powerful business management software with advanced features and accounting, inventory, banking, taxation, and payroll with remote access capabilities. For beginners who are thinking to start using Tally software for their business, here’s a brief introduction to Tally software and how it’s efficient for your organization.

Tally ERP 9 to TallyPrime

Tally accounting software provides a complete solution to all the problems that real businesses have to encounter. It is designed to simplify complexities and manage the day-to-day activities associated with an organization. It provides the best usability interface for inventory management, outsourcing payroll, stock management, invoicing, purchase order management, discounting, stock valuation methodology, etc. When using Tally, you can track every transaction detail and maintain an accurate classification of accounting details. You will be able to manage finances from any part of the world using its respective currency hassle-free. Thus, Tally software is flexible, affordable, reliable, secure, and easy to use.

One of the popular versions of Tally software is Tally ERP9, used by various business owners across the globe. Some of the critical features of Tally ERP9 are,

  1. It is also called multi-lingual software as it supports multi-languages for users. All of your accounts can be maintained in one language and reports can be viewed in another language as per your
  2. You can create and maintain accounts for up to 99,999
  3. With the payroll feature, you can automate employee records
  4. You can generate consolidated financial statements as per the needs of your

And many more!

With the recent update in the Tally ERP 9 software, the introduction of TallyPrime to the business world has created a huge impact on the user experience, adaptability aspects, and functioning. Let’s take a look at the difference in features between Tally ERP 9 and TallyPrime software to help you choose the best for your practices.

 

Tally ERP 9

TallyPíime
You can view reports with only menu based navigation option You can navigate to any report from any screen using ‘Go to’’, which acts as a powerful tool to search and discover
Switching modes might be time-consuming You can slice and dice your reports and look at them the way you want using the ‘Change Mode’ and ‘Basis of Value’ option
You can view the exceptional details for pre-defined reports available under the ‘Exception reports’ section You can view reports in TallyPrime under the option of ‘Exception Reports’ which highlights the details that stand out
The Flow-based data entry system will enable you to run through every field to update occasional details related to Ledger/Stock Item, etc. ‘More Details’ in TallyPrime makes it easy to update the occasional details without disturbing your regular flow of data entry
You can Copy Paste using: Ctrl + Alt + C & Ctrl + Alt + V You can Copy and Paste either using:

Ctrl + Alt + C & Ctrl + Alt + V or using Ctrl + C & Ctrl + V
You can renew your license by

Go to Gateway of Tally > F12: Configure > Licensing > Renew TSS

 You can renew your license by

Press F1 (Help) > Settings > License > Manage License
You need to open multiple instances of Tally ERP 9 to multi-task You can multitask without opening multiple instances without losing or stuck in between any progress

 

With these specific features under tally ERP9 and TallyPrime, you get to choose which type of software would suffice with the right benefits as per your requirements and your company functions.

We all know that most businesses today want to leverage cloud accounting or computing space that facilitates access to data and applications on the go. With this in mind, TallyPrime software also indulges cloud accounting and can be accessed anywhere using client applications too.

Take a look at the benefits of TallyPrime on the cloud.

TallyPíime on Cloud – Benefits

  1. Remote Access – You can enable remote access of TallyPrime 24/7, from anywhere with a computer or any device using
  2. No Dependency – There’s no dependency on location, or time, or You can access or work on TallyPrime at any time.
  3. Centíalize the Data – Centralize the data and your business operations without the need for
  4. Tally peífoímance – The performance will be improved more than ’
  5. Risk Management – Get rid of risks like computer crashes and system
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