The Art Of Bookkeeping
Bookkeeping is simply a process of recording daily all the financial transactions of a business. Without proper bookkeeping, it will be difficult to keep track all the money coming in and going out of your business.
Many small business owners in the UAE usually like to do in-house. This is a good option if you have the skill. However, it is challenging to set up a proper bookkeeping system and run it by yourself as a business owner, having to handle other aspects of the business like sales, purchases, and growth in general.
Here’s a look at some of the benefits of and considerations involved with hiring an external bookkeeping service for your business.
- Outsourcing bookkeeping services help you comply with accounting and tax rules.
- Outsourced bookkeepers also ensure that your company is presented with information that is relevant to your current status. They ensure that information is complete and accurate.
- A bookkeeper also keeps records of every transaction and records the payroll of employees.
- When you hire a third-party bookkeeper, you need not worry about competence in dealing with your money. In outsourcing bookkeeping services, you get to rely on people who are licensed, knowledgeable, and publicly acknowledged as a trustworthy service provider in the field.
- Hiring bookkeeping services also allow you to present a cohesive report of your finances to investors. It is difficult enough to convince these stakeholders in investing in your business. With the help of bookkeepers, they can easily see why your venture is worth every penny.
Consistency is Key
One of the benefits of outsourcing bookkeeping services is never having to worry about deadlines. Instead of putting all your time and effort adjusting and reporting your financial
Running a business is not an easy task. There are a lot of tasks and management work that need to be done. Without proper organization skills, your business could fail for simply missing out on important details about your finances. Luckily, you can outsource bookkeeping services to help you make business decisions that drive success. The importance of bookkeeping cannot be undermined as it is the fundamental tool to sustaining a business venture.
When you own a small business, it is imperative that you keep a good set of books that are consistently and contemporaneously updated. It’s important to know how much money your business is bringing in along with how and where the money is being spent. Compare your results to industry standards to determine where you need to improve your business model. You should also compare this year’s sales and expenses to the prior year(s) to note your progress in the business world. Reviewing this year’s balance sheet accounts to prior years will also help establish profit and sales goals.
Why do you need professional bookkeeping?
If you’re operating in UAE, or pretty much anywhere else in the world, bookkeeping is very important for your business. You might think that you don’t need bookkeeping if you’re a small business or a startup, but those are exactly the types of businesses that could benefit the most from professional bookkeeping help.
There are many reasons why, but let’s take a look at some of the most important ones.
Bookkeeping lets you keep track of your revenues and costs, as well as cashflow. Having this information can help you find ways to cut costs, increase revenues and make better business decisions overall. It can also prevent you from going out of business due to cash flow problems, which is one of the biggest threats for small companies.
Bookkeeping can also help you avoid any fines that would be the result of not doing proper bookkeeping. It’s very important to stay up to date with the current laws so as to avoid any unnecessary costs.
By keeping your books in order, you will look much better in the eyes of the banks and lenders. They have to consider the financial health of a business, on the basis of which loans are granted, considering the revenue earning capacity of the organization. All this is impossible without the existence of a proper accounting system.
Financial statements represent your business in front of stakeholders such as investors, creditors, debtors, the government, customers, and employees. Your accounts are a representation of your business to these stakeholders which are directly impacted by the company’s financial position.
Bookkeeping can help you make a precise budget plan which, if utilized properly, can make your business run optimally. A good budget can help you plan a strategy as well as save money for expansion plans. It also sets warning signals in case of unusual expenses.
Without proper bookkeeping & accounting, your business will lack proper guidance and direction. Small and big businesses alike should maintain accounts to keep a tab on their financial position.
Outsourcing Means Coordination
Bookkeepers also initiate checks and balances on your finances. One of their functions is coordinating with members of the management from different departments to verify the authenticity of accounts.
Good bookkeeping services play an important role in your business’ ability to grow and meet its goals. When you have this bookkeeping service in place from the beginning your business is in a better position to make qualified decisions as it moves forward towards a successful future.
5 Reasons you should Outsource Your Accounting and Tax Returns
Are you searching for better approaches to develop your primary business activities? If that’s the case, probably the most effortless choice any entrepreneur can make is outsource their bookkeeping tasks. There are many reasons to do this other than simply being released from the burden of accounting. Let’s investigate a couple:
1. You Can Concentrate On What Matters the Most.
Unless you have an accountant’s license, it’s unlikely that your main competency is accounting. You are an expert in your industry and focusing more on growing your business and less on doing everything would free up valuable time that you can then use to get ahead of the competition.
By outsourcing your bookkeeping, accounting and tax preparation work, including tedious tasks related to bills, payroll, mandatory declarations, and other ancillary issues, you will have more time to spend on daily operations and bring in new customers.
2. Lower Costs
With outsourced bookkeeping, you can save up to 40% of the costs compared to the cost of an employee since you don’t pay for any benefit packages, training or equipment.
The more money you save by outsourcing, the more you can reinvest into running your daily operations and improving your core business.
3. Better Quality of Work
With outsourcing, you hire a group of focused professionals who have a thorough understanding of the accounting standards, tax laws, payroll accounting. proper reporting and records management. Our expertise helps improve your business processes and avoid any unnecessary penalties.
4. Scalability
In-house bookkeeping teams could sound great, but scalability soon becomes an issue. If you’re running a small business and it takes off quickly, you’ll find yourself unable to hire good accounting staff fast enough. New hires also need training which incurs additional costs.
On the other hand, if the growth slows or stops, you might need to lay off some employees. Hiring an outsourced bookkeeping partner in UAE allows you to scale up or scale down without worrying about such things.
5. Better Security
By transferring your in-house accounting functions to a professional outsourced accounting services provider, your financial security is improved, as the professionals employ firm standards regarding accuracy, confidentiality, and redundant data backup.
Another big advantage is protection from employee fraud which is a massive problem, especially in small businesses where sometimes one person handles all accounting tasks.
Which accounting tasks should you outsource as a small business owner?
When it comes to bookkeeping tasks, not all are created equal. There are accounting tasks, month-end tasks, and accounting that requires the expertise of a professional accountant.
If you own a business, you know what it’s like to wear many hats, and your time gets pulled in many different directions. When it comes to finances, there is an easier way to handle your internal accounting by having an outsourced team perform accounting tasks that need to be completed on a daily, weekly, monthly and annual basis.
Here is a list of the top tasks that your business should outsource:
- Bank & credit card reconciliations
- Data entry
- Payroll journal entries
- Timesheet entry for payroll
- Monthly inventory reconciliations
- Accounts Receivable – invoicing
- Accounts Payable – paying bills
- Filing of VAT tax
- Booking prepaid accruals: insurance, deposits, rent and retainers
Benefits of Outsourcing Accounting Tasks
Save Time: A company has limited resources and bookkeeping is time-consuming and difficult to manage with day to day activities of the business. And, bookkeeping adds a lot of unwanted pressure and leaves less time for management to work on important issues, that’s why it is better to use outsourced bookkeeping services.
Save Cost: By using outsourced bookkeeping services you can save money on paying full-time or part-time salary and other benefits to account personnel. And, you also save on lost productivity costs that come along with hiring employees on a payroll basis as by outsourcing you only pay for what you need.
Accuracy: Outsourcing bookkeeping service ensures a high level of accuracy in account maintenance as it is highly knowledgeable and experienced staff in their team and it provides accurate results in a cost-effective manner.
Better Technology: Having access to the latest technology in bookkeeping and payroll can be an expensive affair for small scale or medium scale companies. That’s why you should outsource bookkeeping service as they use the latest technology and the security levels are quite high along with sufficient privacy and backups for the worst-case situations.
Flexibility: Outsourcing your bookkeeping gives you the freedom to hire bookkeeping services only when you require it. And you don’t have to pay salary and benefits to full-time or part-time accounting personnel throughout the year.
Why outsourced bookkeeping services are becoming increasingly popular in the UAE
There are many reasons why companies outsource some of their functions, and bookkeeping seems to be the one that gets outsourced more and more as we’ve been seeing recently in the UAE. There are many reasons why that is the case and in this article, we’ll go over some of the reasons that we think contribute the most to the increase.
1. Outsourcing your bookkeeping is very cost-effective
Hiring an outsourced bookkeeping & accounting service is cheaper and more cost-effective than hiring in-house staff to handle the finance function. By outsourcing, you don’t have any attributed overhead costs that hiring an employee would generate. You also get a whole team’s worth of expertise instead of relying on just one person to stay on top of all your financials. That can be very significant, especially for a smaller business or a startup since it reduces the risk of unreliable financials which can really hurt businesses just starting out.
2. More time to focus on your primary business activities
By outsourcing your bookkeeping operations, you free up valuable time that can be better spent elsewhere. Poring over the books on back-end office operations can be a huge hassle that takes away precious company time. This time can be better spent on daily operations and efforts to bring in new customers, especially during these uncertain times.
3. Health concerns
Outsourcing your bookkeeping means that you don’t have to deal with any in-person meetings. That’s becoming increasingly important considering the current health crisis, which will have a lasting impact on how business in UAE is done. Business owners are realizing that when they outsource, they not only get better quality accounting at a lower price, they also stay safe.
Ready to save some time and money and make your business environment safer at the same time? Get in touch with us and we’ll help you achieve that with BookRobo outsourced bookkeeping services.