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Susceptible to cyber-attacks, and Accountants must now consider cyber security as part of their day-to-day work.

“Accountants are well placed to advise on the steps a business should take to protect itself – cyber security isn’t just about technology and computers: it involves people, information, systems, processes and culture too”

John Berriman – PwC

Almost every week, another high-profile cyber security breach affecting firms all around the world is reported. And the number of events is rising: according to a recent global survey performed by PwC, the number of assaults reported by midsize businesses – those with revenues of between £64.5 million ($100 million) and £645.6 million ($1 billion) – increased by 64 percent in 2014 compared to 2013.

These attacks cost a lot of money. According to PwC, a single data breach costs US businesses more than $500,000 on average. According to John Berriman, chairman of PwC’s cyber security practice, “the average cost of the most severe cyber security breach for a big organization now starts at £1.46 million, although that figure doesn’t take into account the impact a breach has on an organization’s reputation and relationship with its stakeholders.”

According to PwC research for the UK’s Department for Business, Innovation and Skills, smaller businesses are just as likely to be harmed, with the cost of a serious breach ranging from £65,000 to £115,000 in the UK.

Cyber criminals are particularly interested in accountants and other financial institutions. Financial institutions, according to PwC, are almost 30% more likely to be targeted than other businesses.

‘It’s because they deal with high-value business data and sensitive financial information on a regular basis,’ Frank Morey, CEO of security company Virtues Risk Management, explains. ‘There have been a series of targeted attacks against the industry, the most recent of which was the Morgan Stanley breach, which exposed the personal information of 900 of its high-net-worth clients online.’

Kaspersky Lab, a Russian security firm, reported the largest organized cyber-attack on financial institutions to date earlier this year. A global gang of cyber hackers entered more than 100 banks and other financial institutions in 30 countries, stealing £645.6 million ($1 billion) in total from the banks rather than their clients.

Accountants, both in practice and in industry, must be able to recognize and respond to cyber security threats, rather than ignoring the matter in the mistaken notion that cyber security is the realm of their IT departments or that their company’s software would protect them from intrusions.

‘While products like SAP and Oracle have built-in cyber security features that can reduce the risk of data breaches, it’s still critical that you remain vigilant in your daily job,’ says Phil Sheridan, managing director of Robert Half UK.

Cyber Attacks

‘Hacking and phishing assaults are frequently launched by an employee clicking on a link in an email,’ explains Matt White, senior manager in KPMG’s cyber security division.

Another typical way for malware to enter an organization is through opening suspicious email attachments. ‘Word, Excel, and PDF documents all make it simple to embed harmful code that can subsequently be abused,’ explains Greg Sim, CEO of security technology firm Glass wall Solutions.

In fact, while cyber-attacks are becoming more sophisticated, lax security knowledge among personnel is the leading cause of security breaches. One example is bad password behavior. According to Medium, a password management company, 90 percent of employee passwords are so predictable that they can be broken in six hours. Furthermore, 18% of employees disclose their passwords with coworkers.

Many employees have their work emails redirected to their personal email accounts. However, because personal email services do not have the same security protections as corporate email services, hackers frequently hunt for corporate data through personal email, which is easily available to them.

Cyber security

While no company is immune to cyber-attacks, there is a lot that can be done to prevent them.

‘Anything linked to the storage or transfer of data – how it is safeguarded and accessible, or how it is prevented from being accessed,’ explains White. ‘Different nations have different policies and laws about how information and data is used, with many “internet-related services” crossing several borders, so it’s not that clear,’ he adds.

Accountants can assist their clients in this area.

‘Accountants are ideally placed to advise on the steps a firm should take to defend itself – cyber security is about people, information, systems, procedures, and culture as well,’ adds Berriman.

PwC is attempting to raise awareness and prepare businesses.

‘For example, our Breach Aid event response service assists organizations in preparing for and responding to large incidents, as well as the legal and regulatory consequences of a breach,’ Berriman notes. ‘We can also monitor, analyses, and respond to threats on our clients’ networks and systems thanks to our London-based cyber security labs.’

Accountants can also take steps to protect themselves and their firms.

‘To be prepared for a wide range of risks, accountants must understand their firm’s IT security policies, including policies and processes for ensuring safe online practices, as well as procedures for reporting and dealing with breaches,’ Brown writes.

‘Accountants may also require additional cyber awareness training. As with most things, prevention is far preferable to cure.’ For information visit https://hmaa.ae/businesses-are-increasingly-susceptible-to-cyber-attacks/

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How To Use GIBAN To Make VAT Payment

The FTA has created a new form of paying tax: GIBAN, to make it easier for VAT-registered individuals to pay their taxes. This is in addition to the e-Dirham and credit card payment options that are already available. Let’s look at what GIBAN is and how to use it to pay VAT.

What exactly is GIBAN?

Every taxable individual under VAT will be assigned a GIBAN (Generated International Bank Account Number), which is a unique IBAN (International Bank Account Number). A taxable person can use the GIBAN to transfer funds from specific UAE financial institutions. Fund transfers between bank accounts will be processed more quickly if you use GIBAN.

What is the procedure for obtaining a GIBAN for a taxable person?

Based on the TRN, each taxable person will be assigned a GIBAN (Tax Registration Number). In the FTA e-Services portal, the GIBAN will be presented in the person’s dashboard.

Which tax obligations can be settled with GIBAN?

GIBAN can be used to pay back unpaid VAT and Excise taxes, as well as penalties.

As a result, the FTA has made it easier for taxpayers to pay their taxes by introducing the new GIBAN payment option. Taxpayers can avoid the 2-3 percent costs charged by credit cards by paying with GIBAN, which ensures timely transmission of funds to the FTA. For more information visit https://hmaa.ae/how-to-use-giban-to-make-vat-payments/

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How can you protect your finances in 2023 from economic slowdowns?​

One of the scariest worries that may unnerve businesspeople around the world is the prospect of an economic slowdown. As one of the top accounting firms in Dubai, we can attest that the majority of small business owners don’t have a reliable plan in place to deal with potential downturns in the economy. You need to plan ahead for your finances in case of inflation, rising interest rates, or major world events that could affect your supply chain (remember the pandemic). So let’s look at what you can do to get ready for an economic slowdown:

You must pay close attention to the needs of your clients and partners during uncertain times. It’s not as difficult as you may think. Calling your most significant clients over the phone will help you do this. These discussions will assist you in understanding how the market for your products or services is evolving and the necessary steps to be taken. You must also discover the solutions to the following important questions:

Do your customers reduce or change their orders?

Is it necessary to investigate new markets?

Exists a danger to your suppliers that could have an impact on your purchases?

Examine your production schedule and concentrate on efficiency

You may decide to review your production plan as a result of the discussions you have with your clients and suppliers. It will assist you in ensuring that the products or services you create will find a market. Additionally, you should be careful to maximize output while reducing unnecessary costs. Additionally, you should compare the success of your business to internal benchmarks or goals, such as industry standards. Business owners can increase their output by cutting down on delays, enhancing quality, and eliminating other wasteful practices. You can consult accounting firms in Dubai to evaluate the performance of your company using important financial parameters.

Streamline your financial operations

Entrepreneurs need to have a firm understanding of how their company is performing at any one time throughout economic downturns. This understanding shouldn’t be arrived at based on speculation or an intuitive sensation. In order to track the financial success of your company and identify any issues that may need to be resolved, it is critical to have genuine data and a method that explains how the results change over time. Utilize accounting services in Dubai to get reliable financial information.

Budget and make financial estimates

The data you gathered can be used to make a forecast in the following step. One essential component of sound financial management techniques is the creation of an exhaustive annual budget. Only if the budget includes an income statement, a cash flow statement, and a balance sheet will it be considered comprehensive. Most importantly, there must be a connection between all three statements.

As your projections represent predictions of future income, cash flows, and financial status, this is significant for the company. These predictions can serve as an early warning system that enables you to get ready for fluctuations in cash flow, probable decreases in investments, or increases in operational expenses.

Dubai Accounting firms can assist you You just went over some of the crucial steps you need to take as soon as you sense the economy is shifting. To carry out any of these tasks effectively, you could need the help of accounting firms in Dubai like HMA AUDITING OF ACCOUNTS. In the UAE, HMA has a team of highly qualified chartered accountants who can help business owners with their accounting needs, including keeping financial records, planning for UAE corporate tax, registering for VAT, completing VAT returns, ESR, AML, and UBO, among other things. Entrepreneurs can successfully accomplish their business objectives while feeling at ease by utilizing JCA’s reliable accounting services in Dubai.for more information visit https://hmaa.ae/how-can-you-protect-your-finances-in-2023-from-economic-slowdowns/

Website: www.hmaa.ae || Email: dubai.office@hmaa.ae || Phone/WhatsApp: 00971 52 837 0245

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How Do Islamic Banks Work?

Islamic Banking refers to a system of Banking or Banking activity that is based on the principles of the Shari’ah (Islamic rulings). According to the principles of Shari’ah the bank is not allowed to enter into or any act that involves (give and take of) interest. The prohibition on paying or receiving fixed interest is based on the Islamic tenet that money is only a medium of exchange; it has no value in itself, and therefore should not be allowed to give rise to more money, via fixed interest payments, simply by being put in a bank or by lending to someone else. 

Hence, a frequently asked question is – how do Islamic banks make money if they cannot charge interests? The principal means of Islamic finance are based on trading, hence, banks can profit from the buying and selling of Shari’ah Compliant goods and services. Islamic financial institutions trade in Shari’ah-compliant investments with the money deposited by customers, sharing the risks and the profits between them. 

Several structures that help Islamic Banks make profit are:

IJARA

Here, the bank buys an asset on behalf of the customer and leases it out to the same customer. Ownership of the asset remains with the bank, which is also responsible for its maintenance. The lease agreement is made for a certain period and after the time period gets over (and all the lease is paid off); the asset is transferred to the customer.

Murabaha:

Here the bank acts as an intermediary and buys an asset like motor vehicle. This property is then sold to the customer at cost plus profit which is known and agreed. The customer pays back the value in deferred payments. 

Wakala:

The term wakala is used in Islamic finance to describe a contract of agency or delegated authority pursuant to which the principal (muwakkil) appoints an agent (wakeel) to carry out a specific task on its behalf. Here, the bank works like an individual agent. The bank lends its expertise and manages investments of the customer on behalf of the customer for a particular duration, in order to generate an agreed upon profit return.

Salam:

As per the Salam structure, the Bank pays a purchase price to the customer for an upfront purchase of a fungible commodity which will be delivered on a deferred basis by the customer.  The commodity that is to be delivered to the Bank will be purchased by customer through a commodity broker and the Bank in turn, will assign another commodity broker to sell the commodity.

The above-mentioned points help a bank generate revenue through Islamic Banking. These days, more and more people are moving towards Islamic Banking and consumers worldwide are appreciating the principles of Islamic Banking. 

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8 Qualities of a Good Accountants You Should Always Remember

A good accountant should have a diverse set of abilities that enable him or her to profit from even the most complex accounting systems. The most, if not all, accountants have specific traits and features that can help them provide the finest services to their clients.

There are several factors that might assist you in determining the attributes of an accountant that your company requires. This article might assist you in determining the qualities of a competent accountant

Some of the qualities to look for while hiring accountants are listed below:

1. Well-organized

A skilled accountant should be able to maintain your accounting records up to date at all times. Based on the papers they’ve kept during the month, they should be able to show you how much revenue you earned and how much revenue you spent at the end of each month. They should be able to utilize these documents to demonstrate whether or not you generated a profit.

Furthermore, the accountant’s ability to stay organized will make it simple for you to obtain financial records whenever you need them, ensuring that your company does not incur fines as a result of misplaced or missing documents.

2. Does seem to be Up-to-Date with Accounting’s Latest Trends

The ability to stay up with the current accounting trends is one of the most significant attributes of a professional accountant. As a consumer and a business owner, you should only work with an accountant who is up to date on current industry trends. Because trends change frequently, having this quality is critical for a company’s success. Being out of touch with these trends can have a negative impact on your company’s everyday operations.

An accountant who knows the current trends in accounting can give an unbiased advice that’ll help your business improve and flourish in the long term.

3. Patient

A skilled accountant must also have a lot of patience when it comes to dealing with clients. Completing accounting chores and explaining the full process to consumers takes a long time, which is why you should only work with an accountant that is patient all of the time.

It will be difficult for you to get your business’s bookkeeping properly or learn how accounting works if your accountant is impatient. For more information visit https://hmaa.ae/