In-house accounting V/s Outsourced Accounting: Key Insights for UAE Businesses
CEOs and entrepreneurs often choose the traditional method of sticking with in-house professionals when it comes to accounting services in Dubai. Even the startups that boast of a futuristic business idea go for recruiting in-house accountants. However, outsourcing to accounting firms in Dubai is often considered the right step towards smarter financial management.
We have often noted that entrepreneurs of startups and SMEs find it hard to choose between an in-house accountant and accounting firms in Dubai. Even though outsourcing minimises the cost burden for small businesses, entrepreneurs face the dilemma as they are unaware of the benefits of outsourcing. Therefore, read the rest of the blog to understand whether In-house accounting or outsourcing is better for your company.
1. The Cost Benchmark
Cost is the prime concern for SMEs as well as early-stage startups while determining the type of accounting services they require. Hiring an in-house accountant is costly in terms of salary, and added benefits, including health insurance, sick leaves, perks etc. Furthermore, the challenge of finding an accountant with the desired skill set may prove to be tougher for entrepreneurs.
If cost is the most significant benchmark for determining the desired mode of accounting services in Dubai, outsourcing wins the war against in-house hiring. You don’t need to pay a fortune to outsource the best accounting services in Dubai. All the accounting firms in Dubai charge only for the specific services they provide, which will help startups reduce their expenses significantly.
2. Assurance on Quality of Services
SME owners recruit in-house accountants thinking that their services would be available readily. The business owners can meet them personally inside the office and get things done fast. However, the quality of services provided by the accountant may vary depending upon his or her experience and skills. If your accountant is not competent enough, your organisation is bound to suffer.
On the contrary, when you outsource your accounting services in Dubai, a team of highly qualified professionals will be looking after the books of accounts of the company. The best accounting & bookkeeping firms in Dubai are composed of experts with sufficient knowledge, skills, experience, and a keen eye for detail. The quality of the company’s accounting system will improve once you get access to a team of talented professionals.
3. Service Delivered Beyond Working Hours
An in-house accountant is your employee, and such a professional’s availability is limited to the working hours mentioned in the employment contract. Even if he or she is the best accountant in the world, ultimately it’s a 9 to 6 job. In case you need to meet any urgent accounting requirement, you have to wait till the next day.
As opposed to this, the service of outsourced accounting firms in Dubai can be availed beyond the typical working hours if you require. Outsourcing has proven to be viable for businesses that work beyond normal hours such as restaurants, web-based service providers, cinemas, e-commerce firms etc.
4. Minimising the Risk of Fraud
When your accounting is handled by one or two employees, the internal controls within the organisation will be weak. You will be facing a higher risk of fraud when a single employee is handling the accounting of the entire company. The risk of fraud increases if the same person is paying the bills and reconciling bank accounts. The employee can commit fraud and easily cover it if there is no separation of duties.
Separation of duties is where outsourcing differs from in-house accounting. Accounting and bookkeeping firms in Dubai exercise rigorous checks while providing financial statements for the companies. In most accounting companies in Dubai, at least two sets of people will be reviewing each step. To make the scrutiny stringer, accounting companies employ different levels of staff on a single account. One employee will review the work done by the other to make sure there are no discrepancies or errors.