Accounting & Statutory Finance
From an operational perspective, our accounting service will include full finance function support:
- Annual accounting contract
- Quarterly/Annual Forecast
- Financial reporting and consolidation
- Backlog accounting jobs
- Ongoing Bookkeeping
- Training of new accountants
- Shared accountants / Part-time accountants
- Ratio analysis
- General ledger maintenance
- Intercompany reconciliation
- Budgeting & cash flow management
- Profit and loss and annual audits
Statutory Reporting Support
Our team of finance professionals can also provide full support in preparation for the statutory audit, including:
In-house vs Outsourced bookkeeping and accounting services
Accounting is the heartbeat of any business so this department duly needs significant consideration. Every business is exposed to different challenges so there is no rule of thumb to dictate accounting and finance strategies. An ongoing debate regarding set up of permanent accounts department VS outsourcing has always confused business owners. It is important to understand that for some businesses, in-house bookkeeping is a necessary evil. Businesses who can avail any of these need to analyse both monetary and non-monetary aspects while decision making.
1. Monetary Aspects:
UAE labour laws are stringent and greatly protect employees from exploitation. Basic salary and basic rights definitely squeeze out finances. Comparing cost of outsourced bookkeeping to in-house bookkeeping can provide you a logical basis to make the right selection.
|Cost||In-house Bookkeeping||Outsourced Bookkeeping||Winner|
|Setting up accounts department||Yes, of course, proper workplace equipped with latest systems||Zero cost||Outsourced bookkeeping|
|Visa fees||Sunk cost of approx. AED 7000 to be paid on behalf of employees for 2 years||No visa fee headache||Outsourced bookkeeping|
|Salary||AED 5000 is the minimum pay scale for an accountant to start with||Outsourcing companies charge AED 2000-3000 for such basic services||Outsourced bookkeeping|
|Availability||Round the clock availability during office hours||As per schedule, however, accountant can be accessed via email and phone any time||It’s a tie|
|Annual leaves||1 month paid leave||No such payment as services can be hired on daily, weekly or monthly basis||Outsourced bookkeeping|
|Medical leaves||12 annual medical leaves||Not required||Outsourced bookkeeping|
|Medical Insurance||Minimum cost of AED 2000 per year||Responsibility of outsourcing firm||Outsourced bookkeeping|
|Risk factor||High due to single point failure||Very low since outsourcing firm cannot back out from their responsibilities easily||Outsourced bookkeeping|
|Internal Control||More internal control as you’ll directly be managing in-house accountant||Less||In-house Bookkeeping|
|Standard of service||Reasonable since you can only appoint an early accounting bird with AED 5000||High due to senior level expertise||Outsourced bookkeeping|
|Flexibility in appointment||Hiring in-house accountant means all related expenses for minimum 2 years according to UAE labour law||Highly flexible, as per your discretion||Outsourced bookkeeping|
2. Non- monetary Aspects:
Non-monetary aspects equally require strong evaluation while comparing In-house vs outsourced bookkeeping and accounting services. Sometimes extra finances trade-off with added value. So overall impact should be observed keeping both monetary and non-monetary aspects under consideration. Below are important non-monetary aspects to consider for.
Outsourcing companies are target and task oriented. They possess expertise in financial reporting irrespective of any other factor. Focus on core accounting & finance duties enable them to efficiently carry out financial reporting. In-house accountants are sometimes substituted for other tasks as well. Assigning other irrelevant tasks ultimately burden them with pending works. All this result in a total mess. In-house accountants many times window dress financial reports instead of processing the remaining financial records. Transparency is greatly questionable in such circumstances.
Cost of outsourced bookkeeping is definitely balanced out with the high level of expertise. Experience matters a lot in accounting and finance. You can hire much experienced CA level staff in the less budget from Executive Business Services than employing the full-time employee. In many cases, actual skills are revealed at finalization of accounts. Erroneous and improper month-end or quarter-end reporting can literally ruin all your efforts. By contacting the most reliable accounting and finance outsourcing company you can be stress free.
Internal controls only work when there is a counter check. Vesting entire accounting & finance responsibilities in one or two hands is basically an invitation to fraud. The key solution to this risk is segregation of duties. Peer review can further alleviate the issue. Unfortunately, small businesses deter such arrangement. The alternative route is to consult an outsourcing company. Workflow is designated among different tiers with the intention to cross check the performance. This ensures mitigation of fraud to the maximum.
No hidden charges:
Cost of outsourced bookkeeping is clear and precise with mentioned duties and tasks. Contrary to this, hiring a permanent in-house accountant will not only cost you the basic salary but also other associated allowances. Many times businesses miss this very basic calculation while estimating their working capital and ultimately face cash flow constraints.
Level of advice:
A pro advice can never be compared to junior level staff. Years of experience coupled with continuous training is definitely a big advantage to outsourcing companies. A junior accountant definitely lacks farsightedness when interpreting the forecasted cash flows and financial statements.
From the above discussion, it is evident that outsourcing is a favourable choice if the cost of outsourced bookkeeping is decent. Equipped with financial intelligence, Executive Business Services aims at translating numbers to meaningful results. Providing controller level expertise, we work to streamline your business goals and operations. Contact us today to know more about our outsourced bookkeeping and accounting services.