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In any organization, accounting and bookkeeping are two of the most complicated and crucial tasks that helps in determining the financial health of the company. Bookkeeping is an essential element of maintaining accounts of a business entity and is vital to generate monthly and quarterly management reports that will help you guide the company properly. Although these two functions do not contribute anything to the core activity of the business, it ensures that all things are kept properly under check. If it is not maintained properly, there will be absolute disruption of business. And with the introduction of VAT in KSA, there is a whole lot procedure for calculation of output VAT, input VAT and the tax payable. This has made Accounting in KSA a very cumbersome process.
To handle this ever increasing complexity of financial transactions, a qualified in-house accounting department is essential. However hiring such talent is a costly affair and that is where our experts step-in. Personnel in audit firms handle book-keeping and accounts of various organisations of various sizes. Since they are well experienced and well qualified, CA firms ensure the accuracy of maintenance of records of businesses. Keeping all the issues in mind, outsourcing of accounting functions is the right solution to your business.
Outsourcing of accounting functions:
When the accounting functions of an organisation are performed outside of the organisation by a third party instead of being provided by an in-house accounting and bookkeeping department, it is known as outsourcing of accounting functions. Outsourcing of accounting functions might be done to an individual or might be done to a firm. Since outsourcing of accounting functions supply deep attention to the developmental activities of the organisation, it is highly profitable to any company, especially a start-up. It helps to release the resources which were till then been utilized by the separate in-house accounting and bookkeeping department as well.
Advantages of Outsourcing Accounting Functions
Outsourcing of the accounting functions are really cost-beneficial for a business organisation and offer various advantages to the company such as:
- Specialised Focus: Utilising the specialities of the experts in the particular field is a major advantage of outsourcing of the accounting functions to a third party.
- Cost Reduction: Availing the accounting and bookkeeping services of a CA firm reduces the cost of hiring and training of an in-house accountant and the prices related to the salaries, benefits and office spaces of the in-house accountants. Thus, it helps the businesses to focus only on the core activity and thereby give increased productivity of the organisation.
- Expert Advice: Audit firms are experts in book keeping and accounting in KSA. The data of your organisation is handled by skilled professionals who realize their work and the responsibility attached to it. Hence, you can be free and not be bothered about errors in tax payments and other related compliances.
- Faster Business Decisions: Since the businesses need not concentrate on hiring and training of right personnel for the right activity, this frees up their time and helps them to concentrate on their core business activity.
- Risk Minimization: Non-compliance of tax regulatory matters can prove to be very costly to the companies. Outsourcing accounting functions to audit firms can help companies to minimize risk of making errors and help in maintaining accurate business records. This also helps in greater transparency, efficiency and reliability among the investors.
- Additional Services: A lot of CA firms in Dubai not only provide accounting services but also various other services to the companies. They can assist you to be compliant with the principles and regulations of the government. This helps in better compliance of the overall financial regulatory framework.
- Technological Assistance: The cost of finance software is huge and is irrelevant to the business of the company. Audit firms use latest technologies and provide you with constant support and regular updating of the principles and regulations. You are able to access the right and updated data from anywhere and reduce any damage or loss caused due to any delay.
- Security of data: The major concern in outsourcing accounting functions by many companies is the safety of their accounting data that are being outsourced. In case of breach, the data isn’t secure if it comes into the incorrect hands due to any spillage in the process of outsourcing. Reputed CA firms take the matter of security very seriously and hence consider it of utmost importance. They have a tightly secured environment where you’ll provide them with confidential data and also employ various other security measures like storing data in servers all across the world, using state of the art security systems, etc.
Outsourcing accounting functions in KSA have many more advantages which will benefit businesses and audit firms both ways. It helps keep a correct record of all the transactions which might be very helpful, especially during tax filing.