You are not alone if you doubt the cost-effectiveness of accounting companies. In fact, many of the business owners get the impression that bills of outsourcing companies will be far more than recruiting a full-time accountant for the company. While this could be true in many situations, the results are otherwise in case of many other companies. If you too are one of them who think this way, maybe you are overlooking some obvious ways in which accounting services in UAE helps save money.

Does outsourcing your accounting services in UAE save money?

1.     Lower administrative costs

In most cases, when businesses compare hiring full-time accountants to hiring an accounting company in UAE, they are just comparing accountant salaries with accounting firm fees. Instead, consider the time and money spent on training those employees, the bonus or incentive you pay, other administrative costs related to overseeing them etc.

2.     No chance of fraud

We hear cases of fraud and embezzlement every other day. Given that an accounting firm’s goodwill seriously depends on their work, it’s least likely that they will stake it by allowing any wrongful act. As professionals, they will be taking the responsibility of your finance seriously.

3.     Specialized services at lower additional cost

The members of an accounting firm deal with typical financial aspects on an everyday basis. So, you can trust that the ‘professionals’ there aren’t for just name’s sake. They totally know every bit of what they are doing and how to do what they have to do. The best part is, if you were to hire an equally qualified full-time accounting staff for your organization, you would end up paying way more. This is true especially if you need a controller or senior finance officer to ensure meeting of standards, analysis of statements etc. Seriously, why pay more when you can have professional services at a lower cost?

4.     Increased productivity

A great thing about outsourcing specific tasks of your business is that you get more time to pay attention to critical parts of your business. That undivided attention can make some serious improvements in the productivity of your business. Ultimately, greater productivity means better business and more profits.

5.     Smarter investment decisions

The details financial report prepared by experienced professionals can be of a lot of help while you make important investment decisions. Besides, many of the top accounting firms offer financial consultancy services too. You will be free to discuss your financial situation and potential investments opportunities before you with them.

6.     More potential clients

When you hire some of the top accounting service companies in UAE, you get an opportunity of finding some long-term, high-end clients. Getting such contacts through good firms can be obviously beneficial when you are having a start-up or small scale business.

Controlling Accounting costs

While accounting related tasks are mostly inevitable and quite important in nature, there are a few points where you can save money. Here are a few quick tips for you to begin with!

Tip 1: Don’t go crazy after the ‘big firms’…

…if you are trying to work with a budget. Several new entrepreneurs have the agenda of hiring the best. What they forget is the best doesn’t always have to cost a lot of money. Many small and medium scale accounting services in UAE offer the same, standardized accounting services just as ‘big’ accounting companies do. You can contact a few such accounting companies, compare the service package and the rates quoted. This way, you might be able to find a reliable service at a competitive price.

Tip 2: Choosing the pay-structure

While you consider various accounting companies in UAE, carefully consider their pay structure. Some companies charge on the basis of time- that is, every time you call them for any work, or every minute they spend doing any work of yours, you’re getting billed. On the other hands, there are companies that have a fixed rate for every kind of work they do and the service they offer. Choosing the billing method that is more beneficial and budget-friendly to you may depend on a number of factors. So make sure you discuss and clarify with the accounting company representative.

Tip 3: Select the services needed carefully

New and excited entrepreneurs have got this habit of getting unnecessary services despite that they clearly don’t need them. An example is when all you need is basic bookkeeping or just a tax accounting service in UAE, but you end up buying a package of advanced accounting and auditing. What would that be for? You simply end up paying for the service you barely need. So be sure of the services you need in advance and pick only ones that you actually need.

Tip 4: A full-time bookkeeper as well as accounting firms only if needed

This part can be considered as an extension of the previous point. Several of businesses hire full-time or part-time bookkeepers while they already have a contracted accounting firm in UAE. Once again, see the necessity of the services that you are hiring. Weigh the cost against the use and requirement.

Conclusion

From the discussion above, we can conclude that, yes, outsourcing the financial aspects to accounting services in Dubai can be cost-effective. As you saw above, in a majority of scenarios, hiring accounting companies can benefit in several ways. However, you need to still note that the cost-effectiveness can depend on many variables too. The business’ position, the accounting service provider that you hire, the type of services you decide to get etc. can influence the ‘cost-effectiveness’ too. While it is an important decision, it is still your decision to make.