9 Ways Outsourced Accounting Firms Help Logistics & Cargo Businesses in UAE
Exposure to high supply chain risks and a highly competitive business environment are the top factors that make accounting necessary for the logistics industry. The UAE has been ranked among the top logistics players globally owing to the country’s wide infrastructure, connectivity by air, sea and road, latest and modern IT systems at all governments and efficient regulatory system among many other factors. Complying with these regulations could help logistics companies to achieve their business goals and a reputed accounting firm in Dubai & UAE could serve as a reliable partner in this process.
Chartered Accountants in the UAE recommend logistics companies to outsource the services of accounting firms to avail the following benefits.
1. Asset & Liability Management
The logistics companies need to ensure that the various assets of their business are properly accounted for. It is critical for companies to make sure that a proper balance has been maintained between assets and liabilities. Accounting firms in the UAE ensure that the assets and liabilities of the companies are properly accounted for thereby helping them achieve business stability and growth.
2. Efficient management of Resources
Accounting firms in the UAE help the logistics companies to maintain a record of the resources which are vehicles and employees. This helps such businesses to ensure the proper usage of the resources thereby preventing its wastage. Minimizing the wastage of resources means the companies can have control over the costs they incur.
3. Freight Bills Management
Freight is the most important keyword for all the businesses operating in the logistics industry. Since freight account for the biggest chunk of the costs incurred, the companies need to maintain records of freight bills and invoices. The freight bill carries all the vital information on the transaction that happened while transporting the goods. Accountants in the UAE use the freight bill as a supporting document and help the logistics firms with efficient accounting of freight management.
4. Cash Flow Management
Logistic companies need the help of the best accounting companies in the UAE to better understand the major cash flow drivers in their business. Normally, the logistics company will be required to pay instantly or with a minimum credit period to transport companies but from their customers, they receive money based on long credit period terms. Proper cash flow management is the key to the growth of any organization including logistics firms. Outsourcing a UAE accounting firm will help the companies effectively manage the cash flow and implement a proper strategy for supply chain management.
5. Accounting & Bookkeeping Software
Hiring an accounting firm would help logistics companies devise the best accounting process in their firm. To have accuracy in the financial data and balance sheets, the companies need to have the best accounting software. Accounting firms in the UAE can recommend the best available software for companies. Marg, Quickbook are some of the best software suggested by Chartered Accountants in the UAE.
6. Better Management of Invoices
Logistics businesses often deal with a slew of invoices on a day-to-day basis. This makes companies more vulnerable to errors that may impact their growth prospects. An efficient, UAE-based accounting firm would help the companies ensure that the invoices are in agreement with the available data while preparing the books of accounts.
7. Check on Third Party Logistics
Logistics businesses often outsource their distribution and warehousing businesses to third Party Logistics (3 PL) providers. Outsourcing such services to 3PL providers would help the logistics companies save time and focus on their core competencies. Logistics companies can enlist the services of accounting firms in the UAE to monitor the services provided by the 3PL companies that the charges and invoices received are as per the agreement or not.
8. Identifying Supply Chain Risks
Logistics companies are prone to operational risks, which calls for the need for efficient management of the supply chain. Identifying the risks and streamlining their supply chain management is a crucial task for logistic businesses. Accounting firms offer their services to the companies in the UAE to identify the risks in their business.
9. VAT Related Matters
At presently, after more than 2 years of VAT implementation in the UAE, many logistics companies have either not understood correctly the concepts of zero-rating and 5% or they are not keeping proper documentation for the services related to international transport which end them paying a heavy penalty to the Federal Tax Authority (FTA). Here, the reputed accounting firm who are also Tax Agents can help them to maintain proper documentation and can also advise on various scenarios related to logistics for VAT purposes. And the approved TAX Agent can help in compliance with Tax Laws. Also, nowadays, accounting and tax compliance go hand-to-hand.
Why Choose Jitendra Chartered Accountants?
As an industry facing tough competition, companies in the logistics sector are advised to enlist the services of the best accounting firms in the UAE. Jitendra Chartered Accountants (JCA) is a leading accounting firm in Dubai, UAE that has helped businesses in various industries maintain their books of accounts in compliance with the local and international regulations. JCA’s qualified and experienced team of Chartered Accountants ensure that the financial statements and reports of companies comply with the International Financial Reporting Standard (IFRS). And being the approved TAX Agent we can help in compliance with Tax Laws along with our bookkeeping services. Being the best accounting firm in the UAE, JCA is committed to address key issues faced by the company including cash flow management, planning & forecasting of budgets and help the business grow.