How cost-effective is it outsourcing professional services like bookkeeping in the UAE?
Keeping properly maintained financial records is very essential for any business – large or small, and especially if you want to ensure long term growth. Whether you own a startup or a successful SME, accounting and bookkeeping must be part of your business strategy and forward planning.
To put it simply, bookkeeping involves keeping records of the financial affairs of a business including all financial transactions, however minor, that take place throughout the day. Records are maintained for VAT reporting and submissions, but are also integral to future business loans, business sale or business owner exit planning. It is no longer an option for businesses to maintain adequate financial reporting.
While the business is still young, maintaining financial records might be a shared task or an ‘add-on’ responsibility for staff – given that they have adequate training and are committed to the ongoing task. These do become more challenging and time-consuming as the business grows. It is recommended that staff are well versed in the most efficient accounting software – and cloud based applications are a further recommendation.
Companies are then faced with two options. Hire an in-house and suitably qualified team to undertake the different accounting duties, including bookkeeping, auditing and tax accounting or they outsource.
In-house or Outsourcing?
What determines the ideal solution is the size of the company. For large and successful corporations, bringing in a finance team to work on the accounting services is a must. For startups and SMEs, opting for hiring an in-house team could be a costly exercise.
Why is outsourcing accounting services the ideal solution for startups and SMEs?
- Cost-effective on many levels:
The cost borne when hiring in-house is double the cost of outsourcing. Engaging an experienced accountant is time consuming and costly – if you want the the right knowledge to help your fledgling business successfully navigate the first few years of growth.
The relationship between the accountant(s) and the business owner should be built on trust. This is such an integral role within any company. Outsourcing places responsibility within the terms and conditions of the client contract directly on the service provider – in terms of maintaining records correctly.
- Up-to-the-minute in real time, anytime and anywhere:
Thanks to the remarkable technological progress and applications available via the cloud, SMEs and corporations alike, have the same access. A business owner or nominated staff member can access and provide data to their outsourced accounting team in real time, anywhere using highly secure and fast uploading technology. You don’t have to invest in hefty software bills or for that matter, pay for software packages when you may only use one or two items.
- More flexibility:
Accounting is a very broad term that includes several specific functions. The type and size of a company determines whether all branches of accounting or only specific ones should be managed by an outsourced team. Outsourcing agencies provide businesses the opportunity to specifically define tasks. There is also a room for extending the contract to include other accounting activities while the business is growing, with both profits and overheads increasing. An Accountant can guide the business owner based on regularly financial health checks.
- Temporary and one-time tasks
On occasion, a business owner might only require adhoc assistance. For instance, the implications of value-added tax initiated in the UAE in January 2018 required companies to seek professional assistance. Business owners had to produce accurate financial reports quickly to determine their compliance for VAT payments. Many outsourced this task to accounting firms.
At CREATIVE ZONE, we provide our clients with all the support they need to manage their tax and accounting activities. Our team of highly-qualified accounting advisors have experience in a wide range of financial reporting services including Accounting, Bookkeeping, Auditing and VAT registration and Tax Returns filing.