As a business entity owner, it's common to devote most of your time to managing accounting and bookkeeping services. Nevertheless, handling payroll and invoicing can be stressful if you do it alone. Consequently, other back-office tasks are often left unattended and neglected. Outsource Bookkeeping Services in UAE can be an effective way to deal with the arduous task of handling records of financial statements. But, that’s not the only impetus for outsourcing bookkeeping services, it offers a wide range of other benefits too. To your luck, Farahat & Co lists down the top reasons why you should outsource bookkeeping services.
Top 6 Reasons to Outsource Bookkeeping Services
Most entity owners turn to outside experts to relieve accounting and financial burdens off their shoulders. This happens especially when businesses get busy as the tax season approaches. Apart from being experts in the field of managing, proper tax and cash flow outsourcing bookkeeper services can help companies save time and cost in many ways.
1. Save Money and Free Up Time
Outsourced bookkeepers are cost-effective. They work remotely so the company can save on staffing, training, insurance, and the overall payroll cost. In contrast to a part-time in-house worker, the payroll is costly.
Being a business owner, conducting bookkeeping services by yourself is a tedious job. It often leaves other parts of services neglected. So, outsourcing an expert to deal with financial processes is much more efficient.
Additionally, outsourcing accounting services can generate potential growth in business by being cost-effective and saving money that can be used in investment for growth.
2. Make Administrative Work Easier
Outsourcing is a fast way to recruit external experts in the relevant field. They don’t usually need training because they can provide more professional in-depth financial reports including cash flows and balance sheets.
If your goal is to grow your business, then outsource a bookkeeper with a deeper knowledge pool of recording financial reports. It can help you relieve the administrative burden.
3. Make Tax Season Stress-free
Not having all of your bookkeeping together and up-to-date reports all around the year will make the tax season a headache for you. Bookkeepers work throughout the year to inform you about how much tax you owe when the season arrives. It helps you prepare your taxes on time.
4. Streamline Processes Using the Latest Technology
Outsourced bookkeepers use advanced technology. Technology can automatically import transactions and streamline complex financial data. Outsourced bookkeepers can make use of digital platforms. Thus, they can record financial transactions efficiently and accurately at any time of the day anywhere in the World.
5. Guaranteed Trust and Credibility
Hiring an outsourced bookkeeper means placing trust in him for accurate and secure financial records. Placing trust in them means granting them access to sensitive financial information. With an outsourced bookkeeper, your financial information will remain secure and private. Hence providing you with accurate records throughout the year.
6. Reduce the Probability of Errors
When hiring an in-house bookkeeper, you need to carefully clarify their experience and expertise in the field. Such as how much training would an in-house bookkeeper need or how early can they adjust to the business environment.
Outsourcing a bookkeeper means reducing many common errors produced by in-house bookkeepers or business owners. As they are already trained and hold vast knowledge in this field of bookkeeping.
Things You Need to Know Before Outsourcing Bookkeeping Services
Responsibilities of an outsourced bookkeeper
Bookkeepers are responsible for keeping organized company records of financial statements and transactions. The CPA supervises the information to ensure the company’s financial position is on the right track. It should maintain accurate financial records consisting of:
- Invoice and Expenses
- Cash flow
- Finance and bank statements
- Bank reconciliations
- Monthly reports
- Payable and receivable accounts
Bookkeepers perform the preliminary functions of keeping an online accounting program or accounting book. They store all the above information needed by the accountant to analyze at the end of each period.
How Do Outsourced Bookkeeping Services Work?
It’s always easier and less stressful to share your work with company members or much better to hire a bookkeeper. The bookkeeper will perform bookkeeping tasks on your behalf out of the office.
Outsourced bookkeeping involves a third party accessing the company’s financial documents, payrolls, cash flow, and expenses. It helps to generate financial statement reports and make sure your ledgers are well-organized and up-to-date. This, along with other essential tasks is checked thoroughly. Though, the workload may differ between small and large business entities. The process carried out by bookkeepers is generally the same involving:
- Gaining access to accounts
- Categorize transaction reports
- Send financial report for review
Virtual or Local Bookkeeper: Who should you prefer?
When searching for an outsourced bookkeeper, one can select either a virtual bookkeeper or a local one. This depends on the company’s accounting service criteria.
A typical virtual bookkeeper is someone who works remotely and utilizes current technology. Being able to use the internet to access accounting profiles provides you with the latest and most accurate financial reporting. You can get accurate details on the online accounting program. Whereas, a local bookkeeper tends to meet people face-to-face. They may conduct bookkeeping with paper and pen, taking control of the tasks by hand.
What is the charge for outsourcing bookkeeping services?
An outsourced bookkeeper can cost you anywhere from $500 to $2500 depending upon the business particulars and the type of expert you hired. While outsourced bookkeeping services are becoming popular amongst many business owners, the price they charge also scales with the size of a business firm.
How Can Farahat & Co Help you?
Farahat & Co. is a reputable and trusted Tax Agent in Dubai, we have over 35 years of experience, with immense expertise in various fields. Our bookkeeping services in Dubai are available to companies throughout the emirate. We can assist you in managing your accounts more efficiently. Our team can assist you with understanding the accounting side of your company and planning and budgeting. Upon explaining its impact on your business, we can offer you the solutions you need.
Read More : When Choosing Among Bookkeeping Firms