Last Updated on
What is bookkeeping?
Bookkeeping is the legitimate process of recording your company or business’s financial transactions. From purchases of the small stationery to purchases of the raw materials required for the business, sales, income tax returns, receipts of payments done to employees, or other organizations, all are recorded in this process of bookkeeping.
Is there a real necessity to have a bookkeeper?
Running a business in the UAE requires you to keep in record every transaction of your company right from the petty expenditure on stationery to the huge amounts invested in your projects, the revenue generated, and the tax paid. All this is required to help you understand how your business in the UAE is working, whether you are making a profit, or you are losing your own money in it. Moreover, if you do not pay your taxes correctly or if government agencies find any breach of laws in your balance sheets, then be ready for its repercussions. So, you do require to have someone or some firm to do this task for you and your company because this task which rather seems to be an easy one is not so in reality. After all, it requires you to add transactions into the record daily and in a correct manner, abiding by the rules of the UAE.
Who exactly is a Freelancer?
A freelancer is a person working for himself or herself and not for a company or firm. They are people who offer services that any other employee would offer except for the fact that they have more freedom than your employee, and to be precise; you cannot actually call them your employee. They get the option of working from home, to choose their working hours, to choose their period of working and many other specifics which might change from field to field. They have got the relevant skills and in most cases the required experience as well but they are generally people who don’t want to work in an office environment or as an employee to others and believes in working and managing on his or her own or sometimes they just work as a freelancer to gain experience in the field.
Things you get from both the Freelance Bookkeeper and the Firms in the UAE
Even though what the two have to offer you are quite different, but they still share some basic services and duties which are fulfilled by both of them, which includes:
- Data entry skills
- Highly attentive to details
- Proficiency in using Microsoft Excel
- Basic knowledge of accounting
- Organizational skills
- Knowledge of software required for bookkeeping
Additional Services offered by Firms in UAE giving bookkeeping facilities
Following are the services offered by bookkeepers in Dubai: –
- Data entry and its organization
They perform proper entry of data and transactions into the records with complete efficiency.
- Preparation of charts
They review the company financially and creates charts and graphs for better understanding.
- Online Services
They convert all paperwork into an online form so that data can be added online, and it becomes easily accessible to the company without the fear of loss of the book.
- Prediction and Projections
They help the company identify the sudden requirements of cash beforehand, so the company is ready for it.
These companies have highly educated and experienced professions who are in this field of economics and can help your company to understand finances more accurately.
Factors to understand the difference
It more or less depends on you and your company’s needs to decide to go with either a freelance bookkeeper in Dubai or with a firm to manage your records. So here are some factors considering which you can decide whom to choose: –
It kind of entirely depends on how vast your company is and how much resources it possesses. If you are running a business on a comparatively smaller scale or you have just started it with some minimal finances to back you, then it would be difficult for you to hire a firm for bookkeeping because firms generally charge a higher fee as compared to a freelance bookkeeper who charges less because they work from home and also because they have less to offer than a firm.
- Schedule and Timings
Freelancers generally choose their work timings, and for a simple reason that they work for multiple companies, they need to manage their time properly and so they might not be available at all hours of the day and especially when an emergency demands him or her. This is not the case with firms where the firm has several bookkeepers, and in some cases, they have single bookkeepers managing books of a single company or client itself, thus making him or her available mostly at all times during working hours and surely in case of an urgent situation.
If there happens to be an issue in the books and your company is in some kind of danger, then can you question that freelance bookkeeper who is almost a stranger to you. But if you are working with a firm, then you can easily question them and their authority, and they surely would have to take responsibility for that error in your books.
Bookkeeping is not a kind of course or degree or any branch of studies where one person gets a certificate or any other document to acknowledge his or her skills. So sometimes it becomes easy for people to claim that they know bookkeeping, but in reality, they have either extraordinarily little knowledge or, in some cases, zero knowledge about it. But this is not the case with firms where you can be sure that the firm people working on your company’s books are efficient and professional enough to handle them carefully and return your work without any faults in them.
With the difference between a freelance bookkeeper in UAE and a bookkeeping firm in UAE clear in front of you, making a choice will now be relatively easier for you.