Top 6 Advantages of Outsourcing Accounting and Bookkeeping in the UAE
Accounting & Bookkeeping are essential elements of running a business. Many businesses consider it a complex task and others ignore its importance, however a prudent business understands the value of robust Accounting & Bookkeeping systems.
While your core business activities require your attention, strong Accounting & Bookkeeping practices ensure that the organisation has a sustainable future. Every transaction conducted, and every penny spent needs to be recorded so that a good entrepreneur knows exactly what income and expenditure commitments have been made and are scheduled and when.
A systematic Accounting & Bookkeeping process which is free of errors saves a lot of stress for auditing purposes and will ensure that end of your figures is accurate and meets legislative requirements.
Increasingly businesses are beginning to understand the importance of strong Accounting & Bookkeeping processes. So, they look for professional outsourced Accounting & Bookkeeping services that appear to be not just cost-effective but also a more systematic as long as are carried out by accounting professionals.
The Introduction of VAT in the UAE has Increased the Need for Meticulous Accounting and Bookkeeping
Businesses with inadequate financial records are disadvantaged in many ways:
- Lack of access to important financial information for making critical business decisions
- Difficulty in achieving financial sustainability
- Poor company valuations leading to lack of interest from investors
- Unreliable cashflow / working capital figures hinder short term decision making
- Non-compliance to legal duties and responsibilities
There are a number of ways that well-structured Accounting & Bookkeeping systems can add value to the company and help business owners make comprehensive business decisions and enjoy higher returns.
Top 6 Advantages of Outsourcing Accounting and Bookkeeping in the UAE
| IN-HOUSE ACCOUNTANT | OUTSOURCED ACCOUNTING |
|---|---|
| Significant Operational Costs Reduction | |
| Employment expenses will include Residence visa, Medical Insurance, Emirates ID, payroll, Annual ticket, Annual bonuses, Sick leaves, Annual vacations, Public Holidays, Team buildings, Education, Trainings and development expenses, Gratuity, etc. | Outsourcing provides a team at a fixed price for a specified period of time. All employment costs are borne by the provider |
| To minimise expenses most of SMEs usually hire only one Accountant to conduct basic operations. |
Access to a team of experts who have greater market experience and a bigger knowledge base for improving the profitability of a business. |
| The total expenses for hiring and payroll will start from AED 150,000 for a not-qualified Accountant and will rise up to AED 500,000 per year for a professional Accounting Specialist. | Packages for outsourcing a whole team of Accountants, Finance Professionals, and Internal Auditors start from AED 50,000 per year. |
| Avoiding Hiring Incompetent Staff | |
| Recruiting the right person to meet the needs for a business when the recruitment is carried out by someone who has no Finance expertise. | A specialised Accounting & Bookkeeping service will have a thorough recruitment process which specific accounting tests to validate competencies and knowledge. |
| Enjoying Benefits of Professional Software | |
| Businesses will need to purchase professional Accounting software, licences with annual renewal costs, IT support. Native businesses may be duped into purchasing ineffective programs and products. |
A professional team will usually operate with the latest and most effective software programs available on the market. |
| Effective Risk Management | |
| In-house Accounting and Bookkeeping services often experience backlogs due to absenteeism, vacations, seasonal fluctuations and end of financial year. | Outsourcing services are the resources and manpower to manage changes in demand and volume. Outsourcing saves a considerable amount of time and allows business owners focus on the revenue-generating tasks. |
| Add Value to Your Business | |
| Selling a healthy business can often take 2 — 3 years of preparation and can require specialist accounting and legal expertise that may not be available in-house. | A specialised Accounting & Bookkeeping company may have extensive experience in supporting businesses through the transition of ownership, supporting owners through the processes to ensure the best valuation and terms agreed. |
| Fraud Check | |
| In-house Accountants may lack accuracy or may commit fraud because there is no accountability of cross checking work and transactions. | Outsourcing teams rely on their reputation and have their own checking processes in place to ensure that work is carried out is accurate and to the highest standard. |
Pay only for the work done while enjoying the professional deliverables from the whole Accounting team.
Most small businesses do not require extensive Accounting work. Outsourced Accountants are usually more skilled experienced in using advanced tools and Accounting processes. Competition in the outsourcing industry drives continuous improvements in performance and quality of services.
Though the UAE market is oversaturated with Accounting professionals, recruitment is a long process. Hundreds of CVs are reviewed with only a couple of candidates shortlisted that meet the requirements of the business. New staff need to be inducted, may require training, a probationary period which can end up in unsatisfactory performance of the employee or the employee choosing to leave at short notice, all potentially leading to losses in time and money for the business.
Outsourcing Accounting and Bookkeeping services, no matter how big or small the business is, there is access to a team of professional Accountants enabling better performance for the business allowing entrepreneurs and owners to focus on core business needs.
Are you Getting Your Money’s Worth?
Anyone running a small or mid-sized business in the UAE with less than 15 employees needs to invest between AED 150,000 and AED 500,000 per year to employ an Accounting Specialist.
Outsourcing Accounting & Bookkeeping in Dubai will offer you access to a team of highly qualified professionals with over 10 years of experience at reasonable fees. Does that sound interesting?
Reach our Specialists for a kind expert advice: +971 4 4327436 or +971 55 1479 576 (available on WhatsApp)
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