Wouldn’t you want to have the ability to finally reduce the time that’s spent on maintaining administrative tasks and focus on increasing the company profits? Now might be perfect to contract a vendor for accounting and bookkeeping service in Dubai.
How does accounting outsourcing in Dubai benefit businesses?
As your company grows, it’s the perfect time for you to outsource time-consuming administrative tasks. There’s quite a number of benefits when contracting out and outsourcing accounting and bookkeeping in UAE.
- Stable cost reduction – as you hire third-party specialists, during the initial stage, you will acquire some additional costs. However, you would quickly realize that outsourcing accounting and bookkeeping in Dubai is more cost-effective in the long term in comparison to retaining an accounting department in-house.
- Improved cash flow – in return for the company’s outsourcing investment albeit not involving a significant amount of money, there are savings from other areas including savings in having to pay less rent for a smaller office, lower labor costs, and elimination of needing the right technology and infrastructure for carrying out accounting and bookkeeping tasks. This can positively impact the business by having more resources to innovate, expand the business operations, invest in other parts of the business to gain a competitive advantage against the competition, and allocate more budget towards more valuable projects.
- Prevent fraud – yes, you’ve read that right. Although some may think having a third party processing the books of a company is a threat to its security and confidentiality, it’s actually quite the opposite. Accounting fraud happens internally. Outsourcing accounting and bookkeeping in Dubai, or anywhere in UAE for that matter, means a business gets to utilize an effective system for checks and balances. This is to ensure that no single person has full control over a company’s financial transaction.
- A different perspective – having accounting and bookkeeping in-house can become purely routine. It is very easy to overlook the possibilities for improvement that can positively impact a company’s bottom line. Since external accountants and bookkeepers in Dubai, UAE are working with several different kinds of businesses, the outsourced specialists can extend your horizons as to how you can improve your systems, save time, minimize taxes, and improve cash flow.
- Save both time and effort – this is quite a common advantage of outsourcing administrative tasks to third-party professionals. Time is a scarce and critical resource of a business owner. It is, therefore, essential to minimize the time that is spent on back-office tasks and to put more focus on the core functions of the business. Saving time and energy through accounting and bookkeeping services in Dubai, UAE will allow you to work under lesser pressure, have less stress in meeting reporting deadlines, have fewer workloads and pressures, and assign more time-consuming administrative tasks.
Read also: Why a Business Needs a Trademark in UAE?
Are there downsides to outsourcing accounting and bookkeeping in Dubai?
While there are a lot of reasons as to why your business should outsource its accounting and bookkeeping obligations, there’s also a few negatives. They are as follows:
- You are still ultimately responsible – should there be something bad that happens with the company books or maybe a contracted worker fails in paying taxes on time, your business will be responsible for rectifying the mistakes. Make sure you have insurance for mistakes that are committed by external parties and only hire a reputable outsourcing firm that you fully trust.
- Risk of hiring the wrong contractor – when contracting a critical job to a third-party vendor, there is always a chance for the process to not go the way you would’ve wanted it to. Ask your mentors, advisors, and fellow entrepreneurs for some recommendations and only approach a service provider of accounting and bookkeeping outsourcing in Dubai that is established with a well-reputation.
Should I ask my outsourced accountant/bookkeeper in Dubai to help save money?
Some outsourced accountants and bookkeepers in Dubai, UAE do more than just complete tax return filing and manage company books. The best accounting professionals to outsource to are the ones that are proactive in saving your business money. This is why it is very important that before you choose an accountant, you ask if their firm can suggest ways in saving your business some money.
For instance, what’s the proportion of the operating costs of the business that the professional thinks can be offset against local tax? Maybe a percentage of the phone bills, rent, car costs, and other expenses can be offset. Ask as well the implications for doing so. An accounting professional should warn you with regard to the pitfalls.
If you want to speak to seasoned accountants and bookkeepers in Dubai, call us here in FAR Consulting Middle East. With over three decades of maintaining excellent operations across the UAE, we can assist you with all your accounting and bookkeeping tasks.