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Sep 2018
Whether upcoming companies or already establish one, all companies require accounting services, especially in a place like Dubai. Considered as the financial hub and one of the most vibrant cities in the Middle-East, it has witnessed an influx of finance companies in UAE causing a greater need for accounting & financial services in the area.
In today’s world, accounting and bookkeeping services play an essential part in the business environment. This business function not only provides you with useful information about your company’s financial health but also assists you to plan your future corporate strategy. To get your accounting and bookkeeping services outsourced, one should first know the benefits of the service.
Why does a Business Require Accounting and Bookkeeping Services?
To understand the requirement of Accounting and Bookkeeping Services in an organisation, let’s have a glance at the following points:
- It documents an analyses all the inflow and outflow of cash taking place in the business, includes processes like tax filings, payments to the creditors, loans taken, etc.
- Help in preparation of the business valuation report
- To understand the financial health of an organisation
- It helps in further business planning
- Proper maintenance of accounts book can help in the audit process
All the businesses registered in the UAE need to follow a set of Generally Accepted Accounting Principles. Not following these can spell certain doom for the company. The various accounting and auditing in Dubai can help you to shape your business in a better way.
What Is Outsourcing?
It is a procedure in which an individual or any business entity is hired, either internationally or domestically, and this outside party oversees and manages certain specific business activities for the business. This process is also known as Business Process Outsourcing(BPO), and the provider of the outsourcing facility is known as the service provider. In other terms, outsourcing is an agreement between two parties where the first party hires another company and devises a contract by which the second company administers the workings of the internal activity of the first company. In recent years, there is a substantial rise in the outsourcing of accounting and financial services. To understand the manifold benefits of the accounting and bookkeeping services keep on reading the article.
Benefits of Outsourcing of Accounting and Bookkeeping
If you are an entrepreneur or own a business, you already have many things on your mind. From developing your business to following the various rules and regulations of the government, there are a lot of necessary steps that you need to take in a fixed amount of time. Add to this the pressure of managing and keeping track of all the finances of the business correctly and the result would be pretty disastrous. This is where the services of the finance and accounting outsourcing companies will help you to a great extent. These services minimising the cost and enhance services and thus add value to the operations of the company. The significant benefits of outsourcing the accounting and bookkeeping process are:
1.Saves Money and Reduces Overhead Costs
This function would remove the costs related to the hiring and training of an accounting and bookkeeping staff. The overhead cost of providing a salary and maintaining the office space for the team would also be eliminated.
2.Minimizes Time
The company providing the outsourcing services consist of knowledgeable people who help in providing increased efficiency which would free up your time to focus more on other issues of the company.
3.Provides Expert Services
The outsourcing service provider comprises a team of proficient and skilled people who contribute with excellent service.
4.Provides tax and audit-ready financials
The hiring of such service provides us with the benefit of having the financial reports prepared in a quick and orderly fashion.
5.Develops Proactivity and Scaling
The freed up time would enable a company to perform more tasks and also help in the growth of the business.
6.Improves Financial Processes
Since the business will have quick access to all the necessary financial reports, it could take swift business decisions and could check and revise the various business processes.
7.Focus on the Core Business
The company would be able to concentrate more on the core business functions and could utilise its resources in a better manner.
These are some of the main benefits that a business can avail by outsourcing the function of accounting and bookkeeping instead of having a complete in house department for this function.
Precautionary Measures to Be Taken While Outsourcing
We now understand that outsourcing of accounting and bookkeeping provides many benefits to a company. Nevertheless, outsourcing could be a risky venture for a business if it does not follow specific measures while availing the outsourcing facility. Some of the precautions which need to be taken while availing the financing and outsourcing services are:
- To check the compatibility, visit the outsourcing company.
- The methodology used for the implementation of the work should be decided.
- Full transparency of the business proceedings is necessary
- The expectations of the hiring company should be properly conveyed.
- Security of the data provided to these outsourcing companies should be a top priority.
- Perform periodical checks as to the proper functioning of the business
Outsourcing of a business’ accounting and bookkeeping services have their share of risks and benefits. If you have plans to set up a company in Dubai or already have registered business in Dubai, you should look into the outsourcing of the accounting and bookkeeping services.
JAXA Auditors is considered as one of the leading chartered accounting firms in UAE. Our expert consultants are familiar with all the legal proceedings and will help you all the way through. We also can assist you with any supplementary services or counsel in your business setup process in Dubai. Contact us today – we’d be glad to assist!