Handling your Bookkeeping: Should you Outsource or Learn the Skill?
The decision to go for DIY or outsourced solutions is one every business has to often deal with. Small businesses find it more difficult to outsource bookkeeping since they have to consider saving to the last penny. Having limited resources is their biggest challenge and they have to consider all the pros and cons of either outsourcing or doing their books in-house
Good financial records are essential to any growing business. These financial records are the go-to sources to check if the business is making profits or bleeding money hence the need to have accurate information on the financial standing of the business. There are several aspects to consider before making the decision to outsource or do your own bookkeeping. Let’s take a closer look at each option to determine the pros and cons.
Outsourcing to a Bookkeeping Company in UAE
Creates time for core tasks – Sorting through all those receipts and invoices can be a tedious and overwhelming task. Plus, this is a daily or weekly task depending on business to business. For growing businesses, this time can be better used to interface with clients if all the work was delegated to a professional individual or expert companies like PushDigts. This could be the time spent on improving the running of your business, helping clients who might have tight deadlines, or improving the customer service so that your business gets more leads and strong referrals.
Access to current tools and software – Another huge benefit of outsourcing is that whoever is doing the work is probably using the latest software and systems. Professional bookkeepers always deploy the latest tools and analytic methods, meaning that your business data will be generated, stored, and shown in the most efficient method. The data is also more concise, meaning you can make more solid decisions based on highly accurate and reliable numbers.
No worries about external audits – This is an extremely important point which majority of the clients underestimate or fail to consider completely. Outsourcing your accounting to an audit firm in Abu Dhabi or Dubai or any other state of the UAE takes the whole internal and external compliance burden off of your shoulders. It is in auditors’ interest to a) keep your books in order as another team from the same firm will be auditing those books and b) complete audits in a matter of days without using any resource from client’s side as one of the firm’s teams would have prepared the books of accounts.
This is a win-win situation where your books will always be in order and your audits will always be done on time. This means you can always submit audited financials to authorities on time (such as free zones) and use this information to make important business decisions.
Doing it yourself; learning the skill online
Cost-efficient – While outsourcing the bookkeeper might look like the easiest and best option, it might not be the most cost-effective choice. Such financial services can be costly at times especially for a business looking to cut down on costs. However, keep in mind that poor in-house bookkeeping can also be very costly to your business.
More control over financials and the business – If you commit yourself to learn about bookkeeping, you will be able to have knowledge of the various financial aspects of your business and how you’re performing. With this knowledge at your fingertips, you know exactly what needs to be done financially and make adjustments accordingly.
The time investment to learn the skill – Taking over your bookkeeping is no easy feat. You will probably need a proper education. That means juggling 2 or more responsibilities which can lead to burnout and fatigue. It also means that you have to invest financially in the learning exercise, which is not always possible considering that bookkeeping sometimes requires several trained specialists to conduct.
Depending on your business’s current position. All the above will play a crucial part in deciding what works best for you. Just make sure you’re prepared to deal with the pitfalls of your choice, whether in-house or using a professional bookkeeper in UAE. Good luck!