8 Reasons Why You Should Outsource Your Financial Services
Delegating bookkeeping and accounting facilities to outside experts helps organizations focus on other aspects of the business.
Every business requires financial operations for it to run successfully. Outsourcing your financial services is the process of delegating specific bookkeeping and accounting operations to a company outside of your business, to capitalize on benefits that were previously unavailable.
In the UAE, after the introduction of the 5% Value Added Tax (VAT), it is compulsory for companies to maintain a record of its financials. Under Article 26 of the Federal Law, a business is obligated to maintain detailed accounting records for a period of five years, which can be requested to be disclosed at any time. UAE property firms are also required to keep financial records for a period of 15 years.
With paperwork, certificates, rules, and regulations to be mindful of, there are many benefits to outsourcing your financial services to a specialized firm.
1. Monitoring of rules and implementation
In the UAE particularly, with the introduction of VAT, young companies may not know the financial legalities of running a business. Keeping track of all accounting and transactional paperwork is much easier when it’s outsourced to a professional financial accounting firm who know the ins and outs of the system.
2. Better use of company staff
If you’re working with manpower constraints, you might struggle to handle the workload required for accounting and bookkeeping. By outsourcing to a specialist finance company, it frees up company personnel from mundane day-to-day accounting operations and redeploys them towards work that adds value and brings in more business.
3. Benefit from the experts
For businesses that don’t have access to good accountants, outsourcing your financial services to a professional external company ensures timely, accurate and error-free bookkeeping. Avoid giving this work to someone within the organisation that doesn’t have the expertise. It’s likely to result in more issues than you’d like to imagine.
4. Advanced technological know-how
As with every other field, technology is making an impact in the accounting sphere as well. Within a business, prioritising a budget exclusively for the latest financial applications is an expensive, and at times, limited-use investment. However, financial accounting institutions regularly invest in the latest technological applications, as they cater to multiple clients with different accounting and bookkeeping needs. This allows them to provide financial services for cheaper than what it might cost a business to hire and maintain its own in-house accountants.
5. Companies benefit from flexibility and scalability
By outsourcing your financial services to a specialist accounting firm, you can benefit from a solution that is customised to your requirements. An external service provider can scale the financial and accounting processes up or down depending on what you need.
Experienced, professional finance and accounting companies follow strict standards of client confidentiality. You can rest assured that your finance and account data is secure.
7. 24/7 Operations
Outsourcing financial services to an external service ensures that all deadlines are met, and that all transactions are detailed and recorded in real time for complete accuracy.
8. UAE Financial Records and Requirements
Within the UAE, outsourcing to a professional finance and accountingfirm becomes all the more important, as there are many records that may be called upon by the authorities for scrutiny and verification. Failure to show documented proof of taxes etc., may result in fines and penalties between AED5,000 to AED500,000.
Some of these documents include:
· Sales invoices
· Purchase invoices
· Debit or credit notes
· Import/ export records
· Accounting books
· Zero-rated/exempt supplies
· Purchases records of goods issued free or
allocated for private use
· Records maintained by the taxable person
Working in the finance and bookkeeping landscape of the UAE, MZ Auditing's professionals are trained to help companies manage and maintain their accounts for business and taxation purposes. For more information on the portfolio of services offered, clickhereorget in touchto find out more.