With the UAE evolving as a global investment destination and entry to the Middle East and Northern African markets, many Multinational companies and banks have started their branch office in the country. In addition, the free-market economy of the UAE has provided numerous opportunities to entrepreneurs, and many small companies cater for the consumers with their products and services.
Accounting is an integral part of the business. The accounting department handles and records the day-to-day transactions, vendor accounts payable, client accounts receivable, staff payroll, periodic financial reporting to the company’s management and many other services. For entrepreneurs and small businesses, maintaining separate accounting departments may not be financially feasible and increases overhead costs. Outsourcing accounting services can fill the space and help companies without financial worries.
Outsourced Accounting Services
Outsourced accounting services provide a complete and full-fledged accounting department experience for small businesses and entrepreneurs. In addition, outsourcing the company’s accounting function will help save many monetary capital and resources for the company. Therefore, most start-ups and small companies with a minimal budget always prefer this method.
In the digital era, other essential benefits of outsourcing the accounting functions will ensure the company focuses on the business’s set area of Key Performance Indicators (KPI). Outsourcing accounting will further help the company’s management save the company’s time and significant resources.
Need for Outsourcing Accounting Services
- A small business with limited resources will find it challenging to find a full-time employee who is suitably qualified to carry out accounting functions.
- A company registering continuous growth always looks to scale the existing bookkeeping and accounting activities.
- A small business will not require a permanent bookkeeper but mainly needs a qualified person with more skills than the office manager can provide to accounting.
- At times, temporary services may be required by companies like assistance in creating the end of the year reports or if the permanent employee is on holiday, maternity leave, etc.
Advantages of Outsourcing the Accounting Services
Below are some of the benefits of Outsourcing Accounting Services in the UAE:
Freedom
Entrepreneurs can invest their time and energy in running the business while the external accountant takes up the responsibility and handles its accounting. The accounting is processed as its relevant records are available. Company management can communicate with the accountants with all requirements, and the external accountant team will work on the received data simultaneously, ensuring company accounting is current and up-to-date.
Time Savings and Eliminate Hiring Costs
The accounting department in companies involve costs and may prove too expensive to hire, train, and maintain for many businesses. Outsourcing the accounting functions to qualified external accountants eliminates hiring and training costs. The same capital is redeployed to work closer to achieve company goals.
Business As Usual
Companies always face the risk of knowledge loss when key accounting personnel leaves the business due to any reason. However, the is a minimum risk of knowledge loss and enhance continuity in outsourced accounting.
Accounting Expertise with Audit Proof Records
Companies can mitigate risks by hiring expert accounting services in the UAE, ensuring smooth sail through an external audit if one ever arises. Additionally, external accountants will keep company records in line with all necessary UAE regulations to ensure compliance.
Easy Account Scalability
External accounting companies in the UAE are usually backed up in capacity and availability to scale services significantly to client companies without any delay. In situations where the work exceeds the number of functions for one employee, they can easily be deployed with the extra workforce to stick with the timelines without the hassles of a rigorous recruitment process.
Sound Advisory Services
External accountants are qualified experts who can advise making accounting more efficient in the company as the outsourced account might work with a couple of other businesses and propose an excellent experience from another client in matters related to taxation, accounting software or other financial advice.
Latest technology & Better security
Professional accountants use the latest technology in transforming business processes through systematic Accounting Software. Company accounting data is stored on safe and secured servers using cloud storage, protecting against theft, data loss, and other possible disasters affecting the company business.
Avoid Fraud
To detect financial fraud in the company’s accounts, a qualified consultant with continuous involvement and years of experience must figure out the potential defects. Accounting firms in the UAE can assist businesses to figure them out and provide effective solutions for the resolution.
