Ever since the introduction of VAT and related policies, more and more businesses at small and medium enterprises are realizing the need for hiring general as well as VAT accounting services in Dubai. Actually, there are several plus-sides of hiring accounting teams. In addition to taking down the burden of a department, accounting services can also be cost-effective, when hired thoughtfully.

We are assuming you too have been toying with the idea of hiring accounting services in Dubai. If so, you will surely be also wondering about the costs that could be involved in the scenario. Well, it’s fair that you are considering. Before taking any decision in business, it is obvious for business owners to consider the cost involved. That is, especially, for the decisions that involve some considerable amount of investment.

Factors influencing the cost of  accounting services in Dubai

To say, hiring an accounting service may cost you something between 10000 AED to 25000 AED per year. There are numerous things or factors upon which the cost so involved can be dependent. The rate that any accounting company will quote you may somewhat vary on the basis of these.

1.      Size of your entity

The size of your business and the complexity of operations will surely affect the accounting rate that you get from accounting service providers. It is an obvious thing that the rate quoted to a shop owner with some basic purchase-sales transaction will not be the same amount quoted to an internationally operating business.

As the size and structure of an organization grow there would be several kinds of transactions taking place in different dimensions and departments. Ultimately much more time and skills would be needed to record, summarize and analyze them. Also, companies operating at a bigger scale may need more reports and statistical data, consultancy and planning services, etc. from the accounting company they hire. Understandably, the cost involved will be more in such a scenario.

2.      The accounting company in Dubai that you hire

The amount payable or the cost involved in hiring an accounting service company in Dubai can also depend on the company that you hire. The accounting companies operating on a large scale or that are high in demand would understandably charge much higher. Big Four firms can be an example here. On the other hand, an accounting company that is operating on a smaller scale or are just starting up might charge you less for similar services.

Well, the point here is that the costs of outsourcing your accounting and financial task can somewhat vary from company to company. Another example here is, accounting firms that prioritize business clients over individual clients may not offer as attractive quotations to individual clients as firm prioritizing individual clients may offer. There can be many such factors. Before you finalize one service provider, you may want to compare a few accounting companies in Dubai. You can possibly find the same services at a lower cost.

3.      Type of services needed

You can fully or partially outsource the accounting tasks. For example, you may choose to get only internal auditing, financial statement preparation and analyzing services from an accounting company. The quote you receive might be lower since you are asking for limited services. If, on the other hand, you feel it appropriate to get the accounting firm to handle bookkeeping, legal formalities, auditing and everything related, you should expect a higher quote. Likewise, the cost involved would be higher in case you are looking to get additional or special services like financial consultancy, accounting system installation, etc.

Thus, in short, the expenses that you are supposed to bear will depend on the service that you are looking to get.

4.      Your turnover and transactions

Where transactions and turnover are high, the accounting charges will be obviously high. The VAT and other taxes imposed while your business operates in UAE depend on the scale of operation, the number of transaction and the overall turnover. These factors can also influence the cost of accounting too. Greater transactions= greater workload= greater costs.

5.      Outsourcing the task or hiring full-time employees

Though it seems like hiring full-time bookkeeper or accountant is better for business. But, in the context of the business as well as expenses involved, hiring an accounting company is going to be beneficial. Actually, the decision is largely personal and dependant on several other factors. However, given that we are talking costs, outsourcing will cost less in long-run (when done carefully, we must add). This is because, you save the training and salary expenses, the bonuses or other facilities provided to a full-time employee. The costs involved in hiring an accounting term will be less in long-term on the other hand as the costs would be divided among the clients of the accounting firm.

Should you hire accounting services in Dubai?

Anyway, why should you hire an accounting service in Dubai in the first place? Many business owners wonder if hiring an accounting firm will actually be worth it. While, again, this is a personal decision to make, there are actually many benefits of hiring a good accounting service in Dubai. To begin with, as you saw above, there is a good chance that you can save some bucks in the long run. In addition, you get far more experienced professionals at your disposal handling your accounts more efficiently. Besides, you can rely on them for valuable suggestions, financial strategies, and relevant reports.

Let’s say you are having a sudden boom in your business. You don’t have to spend time and resources to hire a whole bunch of employees. You will already have an accounting firm and the group of professionals there to immediately meet your requirements. The best part is, you save the administrative time otherwise used in overlooking the finance department.