How Can Audit Firms in Dubai Help Startups to Attract New Investors?
No startup can sustain a shortage of cash in the long run. Startup owners often have great ideas, but it doesn’t mean they may have enough money to chase their dream business. Attracting investments from outside becomes critical in such a situation for a startup to progress to the next level. However, a strong business idea may not be sufficient to pursue the investors to put money into your business. This is where audit firms in Dubai can help you to earn the trust of the investors and convince them your business is a viable investment option.
Entrepreneurs must understand that investors will rely on the opinion of auditors in Dubai to make an investment decision. Most investors will look at certain critical things before deciding to put money in your business. Only an audit firm can help you meet most of such requirements demanded by investors. Let’s see how audit firms in Dubai can help startups attract investors from outside.
1. Help with Audited Financial Statements
If you lack audited financial statements, you do not exist in the eyes of the investors. It means your chances of getting financed will be too low without an audited financial statement. An external audit provides the investors with the highest level of assurance that your company’s financial statements are fairly stated in all material respects. An audited financial statement prepared as per local and international standards such as the International Financial Reporting Standards (IFRS), gives the investors a better idea of your company’s financial position.
By looking at the financial statements, investors will check key financial metrics such as the cash flow from operating activities, net income, and ratios such as price to earnings, return on investments, and liquidity. It will enable them to decide whether it is viable to invest in your company. Audit firms in Dubai help you audit your financial statements as per the IFRS and other accepted accounting standards.
2. Help to Ensure Compliance
Investors will not put their valuable money in a company that has failed to comply with the laws and regulations of the UAE government. Even though it’s an open economy, the UAE has implemented certain mandatory regulations from 2018 onwards. The companies are required to comply with regulations such as Value Added Tax (VAX), Anti-Money Laundering & Combatting Financing of Terrorism (AML-CFT), and Ultimate Beneficial Ownership (UBO), and Economic Substance Regulations (ESR).
Moreover, relevant businesses will be required to comply with the UAE corporate tax from 2023. Investing in a company that has flouted these regulations will put the investors in big legal trouble. Audit firms in Dubai can help you to evaluate your compliance status and carry out the remedial measures. Your business will be investment-ready once you implement the key audit recommendations.
3. Reduce the Likelihood of Fraud
Investors check your audited financial statements to determine if any fraud is involved in your business. Getting your books of accounts audited by qualified audit firms in Dubai will help you to identify if any fraudulent activity is involved in your business. An audit is essential for you to uncover the weaknesses of your organisation’s internal controls and procedures. It will also enable you to determine any fraud committed by the employees, leading to recommendations for further training or improvement.
4. Helps in Organisational Review
An external audit will allow you, the auditor, to delve deeper into your business and understand its operations. Auditors in Dubai can identify the areas in your business where systems or management can be improved, or where investment opportunities exist. Leading audit firms in Dubai will be having experience in auditing the books of accounts of similar clients (whether this is by size or industry of operation). Such auditors will be able to spot opportunities as well as risks.
5. Increases Credibility and Transparency
A financial statement audit will increase the credibility and reliability of the figures being submitted to prospective investors. It will speed up the due diligence process that will take place once the business is investment-ready. An audit adds a layer of assurance early on to your startups. It means less work and debate about the value of your business further down the line and provides an investor with confidence in the quality of your company’s financial statements.
Hire the Best Audit Firms in Dubai, UAE to Attract Investments
Hiring the best audit firms in Dubai is essential for startups to increase investor confidence. Gaining the confidence of investors is critical for early-stage startups to progress to the next level of their business. However, to have better results, it’s imperative to hire experienced auditors in Dubai such as Jitendra Chartered Accountants (JCA). JCA is one of the leading audit firms in the UAE with over 20 years of experience. We have served clients from a wide range of industries and have clients of exemplary reputation. Hire our qualified auditors to have a peaceful annual audit and attract potential investors.