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Dec 2019
Outsourcing is when you make a contract with an outside provider of various services to conduct some of your company’s recurring internal activities. Outsourcing can include financial bookkeeping, accounting, and reporting, and analyzing to increase efficiency and at the same time, reduction of the costs of your business. The reasons for outsourcing include cash flow management, reducing operating costs, and perfect capital investments. Access to more affordable technology, intelligence, and expertise can accelerate the growth of the business exponentially. Along with that and improved and brilliant business consultancy protect the company from malfunctioning activities.
Accounting and bookkeeping are two crucial parts of a successful business. Bookkeeping involves collecting the data and recording every data of the business in an organized manner. Bookkeeping should be brief and accurate so that the further process of accounting can be done easily. Bookkeeping is not very technical so keeping a bit knowledge about the organization and collecting the data according to that refers to the bookkeeping. Financial decision is not part of bookkeeping. An accountant or sometimes the management usually oversees bookkeepers’ work. There are certain cues that you should give a glance at while considering the outsourcing of bookkeeping services.
1. Reliability of the Firm
The main thing one should consider before outsourcing bookkeeping service is the reliability of the organization with whom the outsourcing contract has been made. Both accounting and bookkeeping services you find on the web have a transparent background check to make sure that you’re not giving away your valuable financial information to some fake scam artist. Thus, it is always suggested that you should make contact with the reputed organization to deal with your cash flow management.
2. Experience
Experience and qualifications are two much-needed entities for the bookkeeping services. A bookkeeper has to make a record of all the data and all the financial transactions so the accuracy of the services should be taken care of. The more the experienced firm, the more the skills and accurate the data handing will be. Moreover, an experienced organization will have brief knowledge about the avoidance of hurdles or trouble and according to that, the bookkeeper would make the right decision for your company.
3. Cost-Effectiveness
Before setting up a business, the owner must be aware of his cost of expenses, demands, and necessity. Outsourcing of bookkeepers may demand some extra money but that should be in the budget of the company. You should have the right price. Buy when it is low and dodge if it is high. If possible, negotiate money with the outsider. You have to find the best offer that best offers at the lowest price but the reliability should be there.
4. Accessibility of the Bookkeeper
The outsourced accountant should be accessible at any time when the company requires it. The company might need some specific requirements, some confidential records information on different transactions at any point in time, so the accessibility of the bookkeepers should be necessary. If at some point in time the company is unable to contact the outsourced accounting department, it may result in the brand degradation of the company. The accessibility of a bookkeeper is a mandatory requirement.
5. Transparency
Whether it could be accounting or bookkeeping the transparency of all the transactions is mandatory. The concerned employees should know about the cash flow management structure. Before availing bookkeeping services, it should be properly analyzed that the chosen firm provides total privacy to the business outside the organization, and it has the sole right to take the last decision. The company should be in the loop of the hired firm, and the firm should not make decisions on behalf of the company.
6. Miscellaneous
Accounting and bookkeeping are two significant services that help the organization in every aspect. The tax handling process can be a troublesome process but with the help of these two services, the process can easily be served. Bookkeeping also helps in the VAT registration process. Moreover, bookkeeping also helps in payroll services and helps to make a track on the expenditure and income record. It also prevents the extra baseless expenditure to happen. These firms help to make an appropriate saving of funds.
We at JAXA provide accounting, bookkeeping, and auditing services in Dubai and the rest of the UAE for organizations of all sizes. Apart from these, tax handling process, VAT registration and business consultancy are our services that you can avail if you are running your business here. Contact us to know how you can benefit by joining hands with us.