Life of a small business owner is no less than a juggler. As a business owner we must juggle multiple priorities – bring in business, take care of the bills, follow-up on payment to name a few. We are also the manager of our business. Accounts unfortunately gets left behind, especially if you are not a number person. Even if you are a number person and love accounts, overloaded with work, Accounts slips down the priority list.
As a business owner we should all remember that Finance is backbone of any business. As you start your business you need to know the direction your business is heading. What is the amount of profit your business is making? Where are you spending most of your money? To have a Self-Sustainable business you need to be both profit and cost conscious.
Here are few reasons why Outsourced Accounting Service is becoming increasingly popular in UAE.
It saves the cost of a business:
In the initial stages of business, it is difficult to hire a full-time accountant. The fixed cost involved for a full-time accountant would include his basic salary, housing allowance, annual airfare, gratuity and leave salary. Hiring an outsourced accountant is certainly a more cost-effective solution for your business where you pay only for services availed.
The accountant you may hire may be an account graduate, with a year’s experience. This accountant may help you entering data, especially when the volume is high, yet they will lack the expertise of a qualified Accountant. The outsourced accountant will be qualified and with years of experience in the relevant field.
Areas of Business can be outsourced:
For a larger organization they can think of outsourcing a part of their business. Payables and Receivables can be outsourced to a consulting firm, while they keep the key finance with themselves for better control.
The business owners and CEO of a company should mainly be focused on business development and core business activity, which will bring them more business. Finance, which is a core activity should be left to the expert. As a business owner he should monitor the cost and profitability of the business and always seek advice for the consultant.
Taxation and Regulatory requirements:
In UAE the regulatory controls are getting stricter. The introduction of VAT and ESR the regulations are just the harbinger. The laws are complicated and difficult for a junior accountant to handle, so it is always advisable to take expert advice on all regulatory issues. If you have already engaged external outsourced agent for your accounting work, you will always have expert advice from team experienced in multiple scenarios.
Best IT Software:
Choosing the right accounting software can be really challenging. Options vary from Excel, Zoho, Quickbooks, Peach tree, SAP, Oracle. Having the right consultant will help you choose the right software and help you manage your books accurately.
With VAT introduced in UAE, accuracy is not a choice anymore. Incorrect filing of returns or inaccuracy in maintaining the financials results can have significant monetary implication. Having experts overviewing the books, the accuracy is guaranteed. Also, experts ensure all costs and sales are accurately entered.
Small business organizations and SME’s find it difficult when an employee decide to leave. There is no assurance of continuity. It gets really challenging to recruit someone new and train them. Relationship between an outsourced accountant and the business organization is long term partnership. It removes the headache of business organizations of hiring and yet having perfect accounts in place.
As your business grows with your passionate effort, you must keep a watchful eye on profitability and cost control. While you focus on your business growth and goals, we are here to help you manage your finances and accounts at a reasonable rate. Need help contact us at firstname.lastname@example.org