- April 4, 2021
- Posted by: Simply Finance
- Categories: Accounting, Outsourcing
Hiring an accountant is daunting for many small companies, start-ups, and entrepreneurs. Especially if they have the required skills to prepare financial statements for their business, manage bank account operations, analyse financial data, and prepare incoming invoices.
Finding a skilled and eligible individual at a fair price has become much more difficult in recent years.
Accounting is outsourced by more than a third of small businesses. Surprisingly, most small businesses that outsource do not feel comfortable doing their own accounting. Despite popular belief, accounting and bookkeeping do not have to be performed inside the company. However, you must decide if you have the requisite skills and experience to perform this work. Also, does the team have enough expertise to manage the expanded accounting responsibilities? To sum it up, 62% of all small companies say they are overpaying their taxes.
As a result, you might want to consider contracting accounting services to a firm that has the necessary experience and qualifications. Even, which company is better at doing the same job in terms of quality and cost? Many executive directors have found different benefits of outsourcing bookkeeping and accounting services for the same reason. Importantly, outsourcing such services should have no negative consequences for the company, its staff, or its customers.
As a result, we’d like to share the top seven advantages that our clients in Dubai and UAE have already realized as a result of outsourcing bookkeeping and accounting.
Outsourcing Accounting and Bookkeeping Services Has 7 Benefits
1. Accounting Facilities That Save Money
In general, most companies regard outsourcing as an additional and therefore needless expense to their operations. It is not at all the correct interpretation. In reality, it’s the polar opposite. Our clients who outsource accounting are looking to cut costs while maintaining high quality.
Outsourcing will save a lot of money because most businesses can sell their services at a cheaper rate (typically due to lower labor costs at their location). Furthermore, outsourcing saves you money on full-time or part-time employee wages, taxes, office supplies, and benefits. You just have to pay for what you require. Hiring full-time workers would not result in a decrease in productivity costs.
2. Minimize the amount of time and resources expended on recruiting processes
If you look at the photo, you can see that the recruiting process is a complicated one. It requires time to handle it, from developing a recruiting plan to interviewing candidates. The recruiting process takes time and money for your business, and you’ll have to set aside time for yourself or an employee.
Many businesses underestimate the time spent searching for a competent accountant. And costs and time are inextricably linked. It has to be compensated for in terms of business process outsourcing savings.
3. Save your time
When your company expands, you’ll find that you’re spending more time handling your finances and less time scaling it. As a result, outsourcing administrative activities such as bookkeeping and accounting helps you to concentrate your time, energy, and money on developing business strategies.
4. Accountants and bookkeepers with vast experience
You will be able to employ a specialist with a higher degree of experience at a lower cost through outsourcing.
To remain competitive in the industry, outsourced bookkeeping and accounting service companies must constantly develop their skills and qualifications. Imagine working in an office of 50 employees. They will be able to quickly share emerging accounting trends, solutions, and resources. To add to that, great accounting firms have more comprehensive access to training and courses, and they participate in them on a regular basis.
Furthermore, outsourcing to an accounting company helps you to work with a team of accountants. For example, Simply Finance receives a team of accountants for a fixed price. There isn’t just one person who can perform a number of tasks.
By carefully selecting an outsourcing business, you can rest assured that your accounting is in the hands of a reputable and competent firm.
5. Accounting Scaling Made Easy
Accounting service providers have the capacity to quickly scale your offerings without causing any latency. If the bookkeeping and accounting duties, for example, surpass the amount of roles that a single person can handle, you can easily hire more people. Without having to go through a lengthy hiring process.
In addition, accounting and bookkeeping services are billed on an hourly basis. It means you can increase or decrease the number of hours without interruption.
6. Automation technologies are number six
Accounting automation software is used by most companies to save time. It will save you time, but most importantly, it will lower the risks. Accounting automation eliminates human error. Second, accounting software offers real-time reports to accountants. They aid in detecting and addressing possible issues at an early stage. Third, it would lower the chances of internal fraud.
The majority of accounting service providers are well-versed in automation software like Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP, and others.
7. An accountant is your advisor
A good accountant will often give suggestions for enhancing accounting performance. He can work with a couple of companies at a time and suggest a great experience from a previous client. Whether it’s taxes, accounting software, or even financial advice, we can help.
When Is It Time To Outsource Your Accounting?
Outsourcing accounting, in our experience working with numerous Dubai and UAE businesses, works well when:
- A small business does not need a full-time bookkeeper, but it does need someone with more qualifications than the office manager or receptionist.
- A organisation of any size would struggle to find a full-time employee with the necessary skills at a reasonable price.
- A growing business is still searching for ways to improve its accounting and bookkeeping services.
- Temporary services are needed, for example, extra assistance with end-of-year reports or if a full-time employee is on vacation, maternity leave, or other leave.
Even if you employ a professional and competent employee, you’ll always need someone (usually the executive director) to be involved in the process when it comes to authorizing invoices, making deposits, checking time sheets, and so on.
Until you outsource, there are five things you can look for.
Once you’ve made the decision to outsource, the next move is to find an outsourcing firm that suits your priorities and objectives, but most importantly, can meet your needs and requirements. When it comes to outsourcing bookkeeping and accounting services, we agree that consistency and productivity should come first. However, there are a few more significant aspects to remember.
1. What accounting services do you require?
Is it to handle the account payable and receivables, or to plan end-of-month reports, balance sheets, payroll services, and reporting to authorities? Perhaps you need assistance in preparing bank reconciliations and analyses, or simply entering data into accounting software? Whatever it is, you must have a good understanding of what you do yourself, what your in-house staff is responsible for, and what you want everyone else to do.
2. Price range that is competitive
Every accounting and bookkeeping firm has its own payment system – some charge by the hour, while others bill on a monthly basis. As a result, you should choose the payment term that best fits your needs and budget, but don’t make your choice solely on the basis of cost-effectiveness.
Check to see if the organisation you’re considering recruiting has the requisite expertise, integrity, and credentials. Remember that you can still get referrals from former or current customers, check out their industry credibility, financial stability, and, most importantly, their ability to deliver high-quality, reliable performance.
4. Data safety
Data security, in our view, is critical when outsourcing accounting services online. The trustworthy firm safeguards the privacy of its clients’ information and ensures that each transaction is secure. It’s crucial because you’ll be sending them not only cash flow information, but also sensitive information.
5. Service level agreement that is flexible
Accounting and bookkeeping service providers must demonstrate their ability to adjust to the changing needs and requirements. We strongly advise that you read the terms and conditions before signing the contract so that you know how to cancel the agreement if you are dissatisfied with their work.
Clients who chose to outsource their accounting duties gain substantial benefits. Cost-effectiveness comes first, followed by contract versatility and scaling the number of roles. Accounting and bookkeeping are critical aspects of business, but they are also challenging. It takes time and a certain level of expertise. Without accounting experience, you could make several mistakes, resulting in a decline in your company or even bankrupt.
Simply Finance is a reputable accounting firm serving small and medium-sized companies in Dubai and the United Arab Emirates, with over 500 clients. You will read more about our accounting and bookkeeping services or send a quote request.