The main reasons for accounting and bookkeeping in Dubai are to make sure accurate records of all transactions are preserved, and financial reports are drawn up that will assess the current financial health of the business, as well as guide it into the future. However, trying to achieve this in-house can prove both difficult and expensive. Increasingly, companies are therefore considering the benefits of outsourced accounting and book-keeping services in Dubai when it comes to ensuring they get the right results.
What is Outsourced Accounting?
Not all businesses are created equal. As a result, their focuses, intentions, and approaches to business differ. The same applies to accountants and bookkeepers, whose training and experience have prepared them to excel at using certain systems and deal with particular sections of their profession. Hiring individuals to form the perfect and cohesive accounting team for a specific business may, therefore, result in high costs and little cohesion if the approaches taken by the individuals hired do not coincide.
However outsourcing the accounting side of the business to outside operations that focus purely on accounting and bookkeeping, makes it possible to find a ready-built team. And it could offer a one-stop service that fits the requirements perfectly, provided its staff has the correct training, skill sets and approach to handle accurate monthly and year-end financial reports. Outsourcing could also run alongside a small accounting and or bookkeeping in-house operation, to bring about the best outcome.
4 Benefits of Outsourced Accounting and Bookkeeping in Dubai
There are a number of benefits to outsourcing. These include:
- Reducing the risk of fraud or mistakes by ensuring that the same person who handles the reconciliation of the bank account is not the same one who handles the payments of bills.
- Knowing your accounting service is up to date: Accounting and bookkeeping services in Dubai focus entirely on the financial side of businesses. It is, therefore, more likely that they will make sure their staff is kept up to date with changes in their profession and taking refresher courses where necessary.
- Making Sure Your Accounting is Accurate, on Time, and Relevant: When using an in-house accounting system, the chances are that there could be delays caused by conflicting demands placed on the shoulders of one or two bookkeepers and a single accountant. Everyday bookkeeping duties like data entry, paying bills, recording invoices and conducting reconciliations, are all vital to the financial survival of a business in the information they provide.
However, they take a great deal of time out of the working day and might leave little chance for interpreting the information provided by creating financial reports which allow for assessment of the current and forecast of the future outlook of the business or making sure the VAT is handled on time. And very often in-house bookkeepers and accountants have other roles in the business, too.
- Freeing Uptime to Attend to Other Parts of the Business: Business owners using outsourced accounting are freed of the responsibility and time involved in finding and hiring the right staff and paying their salaries, bonuses, annual and sick leave once they have been hired. This leaves owners free to concentrate on running the business.
There are not many cons to the idea of outsourcing bookkeeping and accounting in Dubai, but one is very important: Outsourcing should not involve passing over the reigns of any business finances completely to an outsider. This could be counterproductive if it results in separating the owner or CEO from the business. Choosing a company like Xcel Accounting to handle outsourcing is essential, and ongoing interaction with the outsourcing company is vital.