Financial data forms the foundation for major management choices – pricing, expansion planning, expense reduction etc. Accounting, bookkeeping and compliance take up countless hours across most organizations. Outsourced accounting services allow enterprises to hand over these critical but non-core responsibilities. Specialized providers manage end-to-end needs more efficiently while business leaders focus on progress.
This article will elaborate on 5 specific benefits of outsourcing accounting for companies based in the UAE:
1. World-Class Accounting Expertise Without Inhouse Overheads
2. Increased Efficiency and Cost Optimization
3. Internal Resource Alignment With Growth Priorities
4. Granular Financial Insights for Informed Decisions
5. Hassle-Free Maintenance of Compliance
World-Class Accounting Expertise Without Inhouse Overheads
Outsourced accounting firms employ professionals with stellar qualifications and expertise. Their personnel are vastly more qualified than most enterprises can afford to maintain internally.
Typical credentials include:
- Certified Public Accountant (CPA) or Chartered Accountant (CA) degrees
- Training in International Financial Reporting Standards (IFRS)
- Background in taxation, audit, business analysis and strategy
Beyond paper qualifications, the accountants have hands-on experience across diverse industries. They are familiar with the accounting systems and software tools matching world-class corporations. Personnel are continually upgraded on emerging technologies, new regulations and best practices.
The teams provide the caliber of service seen in large company finance departments. But they extend the same capabilities to mid-size enterprises as outsourced partners. Firms can leverage the expertise minus inhouse overheads like:
- Salaries and bonuses of finance personnel
- Training programs and seminars
- Office space and equipment costs
- Accounting system license fees
Pricing is based on work delivered rather than vague retainers. Companies pay only for actual time and output without fixed overheads. This leads to significant cost savings even after partner fees.
Increased Efficiency and Cost Optimization
Specialized accounting providers hone their processes over years of focused experience. They continually integrate new best practices and automation tools as they emerge. Some optimizations include:
- Bookkeeping automation to reduce errors and manual work
- Cloud-based accounting platforms for easier collaboration
- Advanced business intelligence for insights
- Streamlined workflows for standard tasks
- pecialized staffing for peak period support
The combination of technology and team alignment leads to maximum efficiency. This gets passed to clients via reasonable fees relative to top-tier expertise received. Enterprises leverage optimized accounting without inefficiently replicating similar inhouse.
Cost savings extend beyond pure fee avoidance on core accounting functions. For example, advisory services on areas like tax planning, financial modeling etc. cost a fraction of large strategy firms.
Internal Resource Alignment With Growth Priorities
Even with capable finance personnel, accounting duties divert focus of senior management. Strategic thinking gets diluted across repetitive transactions, compliance filings and data collation. Relying on an expert external team lifts this burden from critical decision makers.
Time savings mean leaders can finally steer their attention towards priorities moving the needle – new markets, product improvements, expansion planning etc. The bandwidth can also get channeled towards building core operational capabilities. For instance, quality management, supply chain improvements and customer service focus.
Enhanced direction by leadership has a force multiplication effect on company growth. Expert accounting guidance prevents growth plans from being blindsided by cash constraints. Or strategic goals diluted by tactical finance issues.
Together with leaders, professionals below the C-suite also refocus on key responsibilities. Sales and HR staff align more tightly rather than worrying about accounting drudgery.
Granular Financial Insights for Informed Decisions
Most outsourced accounting engagements provide detailed analytics beyond basic statements. Customers receive segmented analysis on:
- Historical performance vs targets set
- Cost drivers and profitability by product lines
- Customer cohort tracking and lifetime values
- Cash flow forecasts and working capital needs
- Customized KPI dashboards
Informed decisions require an accurate baseline. Outsourced services furnish this through granular accounting intelligence rather than aggregated monthly data dumps.
Business leaders can leverage extensive info to:
- Set pragmatic growth and cost goals
- Identify poor performing areas needing intervention
- Reward star contributors appropriately
- Assess expansion opportunities confidently
- Allocate resources optimally between divisions
This prevents growth decisions based on guesswork or gut feel. And helps scale the enterprise through reliable data and analysis.
Hassle-Free Maintenance of Compliance
Corporate accounting spans a myriad of guidelines set by governing agencies, including:
- Income Tax Law
- Federal Tax Authority
- Department of Economic Development
- International Financial Reporting Standards
- Local business regulations
Keeping up with updates across authorities like these is nearly impossible while handling day-to-day activities. Non-compliance often means painful fines or business interruptions.
However, for outsourced experts, regulation compliance is a core competency across client engagements. Specialist teams continually track rule changes across taxes, reporting, payroll etc. Customers can be rest assured accounting processes satisfy requirements dictated by various bodies.
This also frees up leadership bandwidth previously spent worrying about compliance pitfalls. And provides confidence that all filings are handled accurately without penalties.
Conclusion
Maintaining robust accounting capabilities is non-negotiable for enterprising growth – but rarely a core competency. Outsourced accounting services let UAE firms access top-tier finance expertise as operational partners.
The multitude of benefits translate into informed strategic planning, cost optimization and risk mitigation. Companies can accelerate expansion with confidence in compliance and cash flows. Leadership simultaneously retains focus on building the core business.
Evaluating options early allows organizations to select providers matching unique needs and growth stages. The right outsourced accounting relationship provides a strong foundation for ambitions of scale.
FAQ’s
A full service outsourced accounting provider will handle all mandatory government filings on behalf of the client company. This includes income tax returns, VAT returns, economic substance filings, statistics bureau reports and other statements stipulated locally. Partners with relevant licenses can also represent for tax assessments and audits.
Standard agreements provide key reports on monthly profit & loss statements, account reconciliations, receivables tracking, payables status and cash flow forecasts. Additionally, quarterly presentations would cover expense analysis, financial ratios, risk assessments, budgets vs actuals and other management essentials. The depth and frequency of reporting can be customized based on unique client needs.
-Cash Flow Analysis for insight into future capital requirements
-Identifying areas of excess or shortage of working capital
-Recommending adjustments in credit period offered to customers/requested of suppliers
-Advising on the appropriate levels of inventory & receivables
-Providing audit support for better borrowing rates
