How Outsourcing Accounting Services Helps Startups Or Entrepreneurs in Dubai?
Compiling appropriate accounting records is naturally an imperative aspect for all successful businesses. Accounting Services is the procedure of meticulously recording accounting transactions and conducting constructive analysis of the results to take rewarding decisions. Nevertheless, the provision of Accounting Services enables a company to manage its financial progress and closely inspect the cost & benefits of various decisions upon the business. It includes a broad range of tasks, responsibilities, and functions which ultimately dwell around business finance, covering its uses and sources. Here is a list of fundamental Accounting Services required by businesses of all industries:
- Bookkeeping and Data entry services
- Transaction Processing and Bill payment
- Preparation of periodic financial reports e.g.: Profit & Loss Statement, Statement of Financial Position, Cash Flow Statements, Aged Creditors/Debtors Reports, etc.
- Providing advice on financial strategies
- Ratio Analysis showing business performance and how it could be improved
- Planning and filing for Taxation such as VAT
- Cash Flow management
- Payroll distribution and compliance services
- Managing Payables and Receivables Accounts
- Budgeting and managing business costs, revenues, debts, etc.
- Evaluating and planning the use of fixed assets
How would Accounting Services help start-ups and entrepreneurs in Dubai?
In a burgeoning economy like Dubai, businesses must ensure to make the most out of their available capital investment and flow of funds, not only for major lucrative firms but especially for new startups who have freshly set foot into the vast market. Accounting services in Dubai bring copious benefits to different organizations but prominently they contribute to the following:
- Allows the business to make smart and informed decisions based on past performance, which is recorded and classified in the financial reports of the business
- Enables businesses to set prices with a generous profit margin by estimating and calculating costs
- Prediction and Budgeting of future opportunities, costs, and revenues which accommodate measured business growth
- Tracking, controlling and reducing business expenses, maximizing revenues and managing business assets
- Healthy cash flow ensuring no cash is tied up in the business and eliminating cash shortages
- Financial advice to increase business profitability by identifying areas which negatively impact the business
- Enables businesses to measure progress, set objectives and grow systematically
- Maintain accurate accounting records to file for VAT Return
- Enabling efficient use of investment capital by concentrating funds on actions which matter hence providing high rate of return
With that said, businesses have two options to select from when seeking to receive Accounting Services: either to employ a full- or part-time qualified Accountant or to outsource business Accounting Services to an Accounting and Audit firm. The latter option, however, is relatively more benign to the business with its benefits outnumbering the costs of selection.
Build an effective business system
Outsourcing your accounting services to a professional and established accounting firm will help you build an effective business system from the very start which will rid the business from future costs of inefficiency and the time that would be spent to change an accounting system. Moreover, accounting firms are familiar with the operations of organizations in different industries and the latest accounting laws and standards, therefore they are more reliable to:
- Establish appropriate formats for business financial reports
- Implement suitable costing procedures
- Institute effective payroll system
- Adopt correct depreciation method and rate for business assets
- Select the best supplier deals and term of contracts
Scale-up with the companies needs
Accounting firms are sure to meet the company's needs promptly with potent results. They compose of various professionals in the field with more than one individual to work on the required tasks. Additionally, Accounting firms have adept experts with different levels of qualification which guarantees quality results for your business. Overall, they are an entire organization whose operations are concentrated on delivering the best accounting services to clients and working to maintain client satisfaction.
Saving on the processing time
Outsourcing Accounting Services ensures that the company (client) receives the results promptly on a scheduled date and time. They implement the most sophisticated software to ensure that processing is done swifter and exact. In addition, a section of the company’s operations is withdrawn out of the firm’s management which leads to a substantial reduction in the processing time as there are less departments to manage and control.
Reduction of Risk and High Level of Accuracy
Accounting firms are certified and licensed organizations who employ qualified employees and train them to become competent agents in the accounting sphere. The company data is managed and processed by top-skilled accountants and it passes through several stages of verification before finalization. Therefore, there is a lower risk of errors and higher level of accuracy in maintaining accounting records and taking financial decisions.
Furthermore, on top of Accounting services, Outsourced accounting will benefit through:
- Setting up internal control procedures which include the seven mechanisms/ principles that facilitate the integrity of business financial information, promote accountability and prevent fraud.
- Improve the organizational hierarchy by:
- Delegating tasks befittingly
- Providing detailed guidelines to managers of what is due from them
- Managing and monitoring all the accounting operations of the business
- Helping the business structure an organizational hierarchy which demonstrates a clear picture of the management reporting levels and chain of command
- Maintaining Financial discipline by conforming all the business spending and savings with the given targets in a manner that helps to achieve short- and long-term monetary objectives.
- Cost control in other departments by forecasting appropriate budgets, negotiating the best supplier deals and utilizing economies of scale to reduce business expenses in all departments, hence maximizing profits.
Ultimately, start-up businesses are more vulnerable to financial issues and shortages which may lead to closure of the business. It is because they are exposed to higher capital expenditure, lower popularity and have no previous retained earnings or revenue reserves. Therefore, it is a feasible solution for start-ups to outsource their accounting services in order to avoid the costly salaries of hiring a separate accountant.
Risks faced by startups and ways to overcome the same:
- Start-ups lack knowledge about the new market such as supplier prices, competitive prices, customer demand, and market opportunities
- They are unfamiliar with the tax system in the market such as VAT laws and regulations on certain products
- They are encountered with high competition who have a prosperous brand name, loyal customers and reasonable pricing, therefore available business funds must be utilized very efficiently.
Solutions to guide Start-ups away from possible risks
- Market feasibility study which is an assessment tool for identifying potential markets and the pros and cons of possible business ideas and projects.
- Trend analysis which gives an idea of the developments of the market in the future by analyzing what happened in the past.
When seeking for Accounting Services, you as a business owner, will encounter many options to select from. How to make the right choice? Many factors exist, but what persists is the level of dedication and professionalism Accounting Firms serve to their clients.
Why choose CDA Accounting & Bookkeeping Services LLC
CDA is a group of qualified professionals who hold certification in ACCA and similar standards. Our experts are Big 4 experienced and have served in top auditing firms in UAE. They exceed in providing Accounting Services and have prolonged experience with handling financial issues and operations. They are familiar with the most profitable financial strategies, most recent accounting standards and have worked with businesses from diverse industry backgrounds.
We offer professional yet personalized services to businesses, providing a singular approach to each of our clients. Our staff are well trained and fully dedicated to the jobs they undertake ensuring to take all precautions to deliver outstanding results. We guarantee that outsourcing your Accounting Services to with us will bring exceptional rewards to your firm and maintain the safety of your accounting records.
CDA also delivers a wide range of business services that include CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services and Tax filing Services in Dubai.
Feel free to contact us. Our experts will give you one-hour Free Consultation to drive away your reservations!