How can start-ups in Dubai attract new investors with the help of Audit firms?
Finance is the lifeblood of every business concern. Even if the entrepreneurs have innovative ideas but lack adequate funds, then such innovative ideas cannot be converted into any business concern. For the smooth flow of business and survival in the most competitive market, finance is very important. Start-ups in the initial stage may not have adequate resources to conduct the business and they may also lack sufficient capital to float the company. In such a situation, they will have to rely on external investors who may either provide sufficient seed capital or venture funds. But even relying on them won't provide them with investment if the requirements of the investors are not met. Here are the circumstances where audit firms play their part of the role. Below are some strategies through which the audit firms help new start-ups to gain investments:
- Providing accurate and error-less audit reports
Proving audit reports is the prime objective of the auditors. They always focus on providing the clients with the most accurate reports and information to paint a clear picture of the firms. Through this function, the auditors provide investors with the true picture of the firm, and the investors can get an idea regarding the financial position of the start-up and its viability, which may increase their confidence and may get them ready to invest without any hesitation.
- Provides the base for convincing the investors
The entrepreneur may find it difficult to convince and induce the investors to invest in the business concern as they may demand strong shreds of evidence of the feasibility and viability of the start-up. It's here that the auditors may provide adequate evidence based on facts and accurate data that may be used to convince the investors.
- Providing elaborate details about the type of transactions and risk involved in the business
Investors are always in search of opportunities that involve less risk and where they can earn a sufficient rate of return. Auditors having thorough knowledge of the start-up can provide details regarding the types of transactions which are conducted by the start-up and the degree of risk which may be involved in the business, based on which the investors may decide to invest.
- Providing details regarding cash flow and profit or loss incurred by the start-up
Investors are always attracted to start-ups that have high growth potential and have a smooth cash flow in the financial year. The audit reports prepared by the audit firms in Dubai may highlight the profits that the firm is capable of earning based on which the investor can ascertain the amount of return it can earn. As a result, auditors offer investors a high rate of return on their investment.
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- Ensuring the compliance requirements
Auditors not only revolve around the financial aspect of the start-up or the firm but may also evaluate its compliance structure regarding different laws such as VAT laws, AML-CFT laws, etc., which ensure if the start-up is on the right track or not. This compliance analysis provides the investors with the confidence that they may not be troubled in the future concerning the legal matters of the firm.
- Maintenance of transparency and trustworthiness
Investors become part of the start-up after they make any investment in the firm. Hence, they have the right to know each and every detail of the firm and its work. Such details are provided by the auditors to the investors as per their needs, and they also present the data and report in a very simplified form, which helps the investors understand the inner picture easily, as the numbers themselves speak everything accurately in its nature.
- Provides investors with a gist of operation in a business organization
Auditors dig deep into the firm's operations and create a summary report regarding its work and detect if all the operations are performed wisely. This deep supervision ensures if the organisation is working as per the plan and if it is moving in the right direction or not. Investors will always look for an opportunity to conduct due diligence before investing their money, hence auditors perform this function on their behalf and provide them with the information they need.
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How can CDA help?
CDA is one of the best auditing and accounting firm in Dubai and provides the best auditing services to its clients. It renders a full package of auditing and accounting services along with VAT return filing and other compliance services with its well-experienced team. CDA can help you attract potential investors by performing a strict audit and bringing out important highlights of your firm, which may automatically convince the investors to invest. To explore more about CDA approach us NOW.