Outsourced accounting in UAE has become all the more common among small businesses today. The advantages that used to be only enjoyed by large corporations have become available for smaller enterprises. With a remote and reliable team of accounting and bookkeeping specialists, business owners and CEOs have direct access to trained, knowledgeable staff. This results in businesses running better, growing faster, and making more money. Accounting outsourcing in Dubai, in particular, brings about significant cost savings as opposed to building and maintaining an inhouse accounting department.
Advantages and Disadvantages of Outsourced Accounting in Dubai
More focus on the core business functions, solving capacity issues, and cost savings are the primary drivers for outsourcing accounting in Dubai/UAE. Leading organizations make use of outsourced accounting and bookkeeping in UAE not only to improve business results but also to drive a huge, transformational change.
So, is it right for your business to acquire an outsourced accounting service in UAE? As with any great business decision, it’ll start with weighing all the advantages and disadvantages. Being aware of outsourced accounting’s pros and cons will help in evaluating whether or not your business will benefit from this popular business solution.
Pros: Outsourced accounting in Dubai is more cost effective
Hiring a team of outsourced accountants in UAE is the more cost-effective option in comparison to hiring an inhouse staff for handling the business finances. Through outsourced accounting in Dubai/UAE, you won’t have the attributed overhead costs which hiring several employees would generate, including vacation days, sick days, health insurance, and essential equipment for the staff to use. Also, with having the expertise and experience of an entire team at your disposal, you reduce the risk of having unreliable company books and non-compliance to applicable regulations. This becomes more important as your business grows and becomes established in the country.
Cons: Accounting outsourcing in UAE may have hidden costs
This is especially if you hire a newly established outsourced firm. With paid services, there is a tendency for scope creeps to happen. It is where a single task ends up snowballing into several ones. This results in extra costs for your business to settle. This can be avoided if you hire seasoned, established, and reputable accountants in UAE. They will help ensure that your monthly or annual relationship with the outsourced accounting team is crystal clear.
Outsourced accounting service in Dubai that is provided by well-reputed providers can also help ensure your expectations on the service are set at the very beginning.
Pros: Outsourced accounting in Dubai is a proactive approach
As the owner of a small business, you did not go into business just for you to oversee the books. What’s likely is you want to be running your business while focusing on the implementation and/or formulation of multiple growth strategies. Accounting outsourcing in Dubai lets you do just that. Your outsourced accounting team can spot warning signs or red flags and notify you regarding cash flow issues and company expenditures. Having trained eyes monitoring your company finances will bring you peace of mind and confidence in making intelligent financial decisions.
Cons: Accounting outsourcing in Dubai can give you less control.
The proactivity of outsourced accountants comes with a caveat. It’s not possible for you to walk to the next room and ask accountants on one financial event which took place. It is, however, possible that you call your outsourced accounting team for information. Excellent outsourced accounting services in Dubai will let you receive monthly reports and weekly updates.
For some business owners, giving up a certain level of control, most especially on the books of account, can feel uncomfortable. Start out with a clear and in-depth onboarding process and make sure you define policies, roles, and procedures. Set expectations, and make sure that communication with your outsourced team is timely as these are the key to a successful relationship with your outsourced accountants in Dubai.
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Pros: Accounting outsourcing in UAE reduces the likelihood of fraud.
Fraud is a very unfortunate circumstance experienced by many small to medium-size businesses, most especially where only one person is managing the company books. Without the proper checks and balances, it can be easy to manipulate numbers and fake expenses on the books can go unnoticed for years.
There are multiple signs which indicate fraud. If you outsource accounting and bookkeeping in Dubai, you have several pairs of eyes for transactions. Several people also create reports, providing you with better internal controls. Although fraud can’t be ruled out one hundred percent, an entire dedicated team that has the specific expertise you need for accounting best practices is more effective in spotting anomalies. This is especially in comparison to just having a single person handling the company finance.
Here at FAR Consulting Middle East, we’ve helped hundreds of for-profit and nonprofit organizations gain peace of mind and efficiency in managing company finances. Call us today for more information on outsourced accounting in UAE.
