Benefits of outsourcing your Accounting Functions

The recent changes in the UAE, with respect to Value Added Tax, introduction of Corporate Tax in 2023, and Commercial Laws, The Federal Tax Authority (FTA) and the UAE government have established clear guidelines on the upkeep of corporate accounts and financial information as well as compliance with International Financial Reporting Standards (IFRS). It is imperative that every organization comply with the recent and upcoming changes and ensure following reporting standards as well as reliability in the accuracy of financial data.

Based on the recent developments, outsourcing accounting in Dubai and the rest of the UAE has become a commercial strategy that helps a wide range of organizations. Businesses can benefit much from outsourced accounting & payroll services, with working with subject-matter experts, reducing manpower, etc. With more than 100 Financial Accounting Firms emerging in the UAE over the past two decades, organizations are looking for the top accounting firms to perform bookkeeping, audit, accounting functions and keep their business running.

Here are some of the benefits why you should outsource your accounting functions.

1.      Access to Financial Expertise and Advisory

One of the reasons why outsourcing accounting functions to a third party would be beneficial is the possibility of accessing services from professionals with high level expertise. The hiring process in accounting firms is solely to recruit professionals with high degree of qualification, so that the firm stays competitive in the market. With the help of these professionals, organizations can depend and trust the services provided by these accounting firms.  

2.      Cost Saving Services

Another reason why organizations need to outsource their accounting functions. By outsourcing, companies can save a lot of money on paying salaries, taxes, office supplies and more. It is also important to note that though third party accounting firms do reduce organizational costs, they must also ensure they do not reduce their quality of services. It also helps in avoiding turnover problems and staff time off.

3.      Timely and Quality Reporting

While outsourcing accounting services to third parties, organizations must keep in mind the access they will get to tools, processes and business intelligence from these accounting firms. With the time-to-time training of these professional individuals or accountants, these members tend to stay updated on the recent trends, current reporting standards and understand the need for quality reporting. Outsourcing significantly reduces costs as well as ensures timely reporting.

4.      Increased Scalability and Security

Organizations that have rapidly grown their business in the past few years understand the importance of efficiency and the necessity of increasing growth. Outsourcing accounting and finance related functions can give the companies the ability to scale up when there is significant amount of workload especially during peak seasons and be profitable along the way. Risk is reduced significantly and accounting firms offer security in handling client’s data integrity and confidentiality.