Be aware of these when Outsourcing Business Accounting Functions

Accounting and Bookkeeping can be considered as some of the core functions which a business should perform. The bookkeeping function forms the foundation for the various financial and planning processes of the company which are furthermore refined by the accounting function. It is vital for a business to take the help of outsourced accounting services so that it can properly focus on the developmental activities for the business and are able to put into use the maximum potential of the business to increase profitability. These processes are more important in the UAE as the number of business in the area are gradually increasing in the jurisdiction.

Though there are many things to know while outsourcing the functions of a business and these can be easily found out via a simple internet search, there are specific essential characteristics and features which need to be kept in mind before you hire the services of any such firm.

Features to be kept in Mind

The following are some of the features that an entrepreneur or a businessperson must keep in mind which availing the services from outsourced accounting firms. These are mentioned below:

1. Experience

This is one of the most essential features that need to be checked by an entrepreneur before availing of outsourced accounting services. The more experienced the firm has, the more accurate and correct services it would be able to provide. Experience is an important parameter on which you can judge an outsourced service. An experienced firm will also know what hurdles to anticipate while performing the accounting function and will take decisions accordingly which would help ease the process of the final report making.

2. Review

Before choosing a firm, an entrepreneur must inquire about the firm from anywhere possible such as friends, business partners, business peers, the internet, etc. They should read as many reviews as possible as these reviews will form a critical factor in deciding the correct firm for the company. With the advancement in technology, checking the reports can be done online while sitting in your house. One also needs to take care that there may be firms that post excellent reviews about themselves in forums through different email ids. Performing such acts will provide you with false information about a firm and would ultimately lead to your loss.  

3. Cost

A business must properly utilize its finances, and thus it should choose a firm that would provide cost-effective outsourced accounting solutions. If the cost of the services of the firm are higher than what is specified in the budget of the company, in such a case availing the services of the accounting firm would prove to be counter-productive for the business. The management should take care the total cost of availing such services should not exceed the total profits of the company.

4. Reliability of the Firm

In today’s world, financial records are one of the most closely guarded records. If such sensitive data comes into the wrong hands, in such a case the business may end up being bankrupt. Thus it is suggested that such services should only be availed from firms having a good reputation and which can be vouched for by a peer or friend. This would provide peace of mind to the service receiver.

5. Privacy

It is possible that sometimes the service provider would put in a lot more effort than needed and to see its efforts being realized, it may try to implement some decisions on its own. This may lead to a lack of coordination and would ultimately hugely affect the company. Before availing of such services, it should be checked appropriately that the chosen firm provides total privacy to the business 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. Accessibility

The outsourced accountant should be accessible 24X7. The company might require specific information at any point in time, and if it is unable to contact the outsourced accounting department, it may result in the downfall of the company. The amount of information that is provided and is analysed by such an outsourced firm is also a critical factor in choosing an accounting firm.

7. Other Functions

There is some firms present that provides additional facilities and services along with accounting and bookkeeping functions. Some firms help in filing taxes, providing VAT consultation, etc. The additional services of these firms help in the development of the business while not spending extra funds. These types of firms can help you save many funds.

In UAE, while hiring an accounting service provider, it is necessary to keep the above mentioned key points in mind as they would help the business to find a suitable firm that provides outsourced accountancy services. If these factors are not looked upon, then the business could end up in deep trouble. If you are in need of complete peace of mind, you need to be extremely careful while availing of the accounting services from an outsourced firm.

“JAXA Chartered Accountants” would provide you with reliability along with professionalism and will help the business by providing various other services such as VAT consultancy, Payroll service, etc. For more information on the various services provided by “JAXA Chartered Accountants” feel free to contact us, we would be happy to help!