6 Reasons Why Companies Should Outsource Accounting & Bookkeeping Services in UAE
Accounting and bookkeeping are the strongest pillars that help businesses stay afloat and grow amid the highly competitive ecosystem existing in the UAE. Outsourcing to an accounting firm could help businesses to increase their profitability by reducing costs and minimizing risks. The UAE Commercial Company Law 2015 and the UAE VAT Law mandates that the companies in UAE are required to keep proper books of accounting for at least 5 years from the end of the financial year of the company.
Why Do the Businesses Feel the Need to Outsource Accounting & Bookkeeping Services in UAE?
Outsourcing is the process of assigning the responsibility of internal processes to an outside entity that provides services related to the specific process. The need to hire services from an outsourced accounting firm in UAE becomes a necessity as businesses nowadays are facing a myriad of challenges like inadequacies in management, employees with insufficient experience and skillsets, outdated technology, and new regulations in UAE. Moreover, with the implementation of VAT since 2018, the relevance of proper accounting has increased in the UAE.
How Outsourced Accounting Firms Can Help Businesses in UAE?
1. Boosting Profitability
Entrusting accounting companies in the UAE to conduct accounting services provides businesses with adequate time to focus on their core business competencies. Outsourcing is a great way to eliminate the time-consuming processes of hiring, training, managing, and reviewing the performances of internal accounting staff. Companies can concentrate on spending more time in increasing the client base and unveil new projects that can add more efficiency and increase profitability.
2. Reduction of Overhead Expenses
Entirely depending on internal staff for accounting functions leads businesses to incur unnecessary overhead expenses. Deploying resources internally for conducting the accounting process causes unnecessary expenses related to salaries, payroll taxes, benefits, training, and recruitment. To eliminate these overhead expenses, companies can avail of the services of the outsourcing partner.
An outsourced accounting firm can offer foresight into future costs and revenues, and check for compliance with financial regulations. It can provide access to accounting and bookkeeping expertise that the business without spending much expense on it.
4. Help with Better & Quick Decisions
An outsourced accounting service firm’s help becomes crucial when businesses are faced with the task of dealing with laws, regulations, processes, and adoption of new technologies to make the accounting process efficient. Quick decisions have to be taken and implemented following changes in regulations and technology ecosystem. Outsourced accounting companies in UAE provide the companies with access to accurate financial information.
5. Cash-Flow Management
Businesses could improve their operations by improving cash flow management with sound advice from accounting & bookkeeping firms in the UAE. A cash flow statement provides companies with data about cash inflows received from its current operations and other investment sources. The Cash flow statement provides information about the cash made by the company through operations, investment and financing. Many times companies do not maintain cost-centre accounting, due to which they are unable to focus on most profitable cost-centres and may end up on losses. Outsourcing to an accounting firm could help companies avoid this big mistake.
6. Help in Adapting to New Technologies
Digitalization has brought in immense changes and challenges to the system of accounting and bookkeeping. Automation of the accounting and bookkeeping process has revolutionized the accounting activities by giving access to real-time data and the ability to make bulk corrections in the financial report. Companies may struggle with re-skilling their staff to adapt to the advances in technology. However, outsourcing the services to an accounting firm may give businesses access to new technologies to improve their financial records.
Why Should You Outsource to Jitendra Chartered Accountants?
Jitendra Chartered Accountants (JCA) is a committed Accounting & Bookkeeping firm based in Dubai & operates across the UAE. We do not only maintain the books of accounts, but also provide a platform to drive profits, improve cash flow, and grow the businesses. JCA’s clients run their businesses with peace of mind as they are assured efficiency and financial astuteness, which a company needs to succeed. JCA also offer Auditing Services, Financial Advisory Services, Tax Consulting Services, Internal & External Auditing services for Companies operating in UAE.