IATA Yearly audit report submit service
The tourism and travel industry is one of the largest industry sectors around the world. The International Air Transport Association (IATA) regulates the aviation travel industry worldwide. Entrepreneurs aiming to become a travel agent or start a travel agency business can obtain an IATA accreditation or registration.
The IATA registration will boost the travel business revenue. The IATA-certified travel agency businesses can issue airline tickets on behalf of airlines. Thus, it simplifies booking processes and cuts travel agency businesses and airline expenses. All years IATA travel agents required financial audits. zoo Travel Technology providing this service from Bangladesh. We are more than 10 years of an experienced team who works with travel inventory and technology.
Travel Agency Audit Report To Submit IATA | IATA Financial Report Submit
The new criteria adopted by IATA require all accredited agents, or those seeking accreditation, to provide audited accounts. The audit requirements apply for all accounts provided to IATA on or after 1 June 2013 and apply to all agents, including small companies, sole traders, and partnerships.
The IATA criteria require audited accounts covering at least 12 months of trading to be provided by all agents that want to apply to become accredited by IATA.
Under the IATA criteria, financial information extracted from the agent’s audited accounts is then used to evaluate the agent by applying a set of financial tests that are expressed as follows:
‘(a) There must be positive Net Equity.
(b) Profitability: the accounts must show that the Agent and their registered Parent Company(ies), as applicable, have made a profit before tax at the end of an accounting period.
(c) Liquidity: the accounts must show a positive liquidity ratio i.e. current assets must exceed current liabilities at the end of an accounting period.’
Additionally, there must have been no defaults against the agent’s IATA license in the previous 24 months.
An agent accredited for more than two years and failing to pass any of the criteria must provide IATA with financial security calculated following the local criteria rules. Agents accredited for two years or less must provide financial security in any case.