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WHY YOUR BUSINESS SHOULD OUTSOURCE ACCOUNTING IN THE UAE AND SAUDI ARABIA

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This article has been researched and written by the Business Development Team at Creation Business Consultants. AI has not been used in generating this article.

The first consideration businesses must make while growing and developing within the competitive and ever-changing marketplace in the UAE and Saudi Arabia (KSA) is deciding whether to outsource the accounting functions of the business or manage the accounting in-house.

Outsourcing accounting services in Saudi Arabia has grown in acceptance, with many management teams looking to streamline their operations to focus on the core elements of their business, improve profitability, and cost containment. While outsourcing is a popular choice, it is not always a straight-line decision. In this blog, we will discuss the reasons pushing management to consider outsourcing the accounting function in the UAE and KSA, and how Creation Business Consultants can ensure compliance, effectiveness, and a strong and sustained future growth.

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KEY REASONS TO OUTSOURCE YOUR ACCOUNTING FUNCTIONS IN THE UAE AND KSA

There are several reasons outsourcing accounting functions is the right choice for most companies in the UAE and KSA, especially for companies that lack in-house resources or don’t have a strong enough business case for having an in-house accounting and finance team. Strong and qualified outsourced accounting service providers can provide expert knowledge, efficiencies in resources, starch up the scalability process, and compliance with local VAT and income tax laws. We suggest that outsourcing is the right choice for many companies for these reasons:

1. Cost Savings

Outsourcing can provide businesses, especially those businesses that lack the means to hire and maintain an in-house accounting staff, significant cost savings over time. Businesses can avail of professional accounting services on a flexible basis and only pay when they need, without needing to hire full-time staff members or spend time and money training them.

Example: For small and medium-sized enterprises (SME) in the UAE, outsourcing accounting can help them save on the costs of payroll, office space, and accounting software, and can be a profoundly beneficial prospect for start-ups struggling to find rent money while spending every last riyal toward growing their presence in the marketplace.

2. Access to Specialized Expertise

While outsourcing, businesses are now also given the opportunity to tap into an entire network of specialists with knowledge in bookkeeping, tax filing, financial consulting, complying with local requirements like VAT and Zakat, and any other bookkeeping services related to accurate financial reporting. The outsourced firms themselves also have vast experience with the region’s financial systems, which could help businesses avoid ultimately detrimental, costly mistakes.

Example: If a business is expanding into KSA, they will benefit from outsourcing accounting if they partner with a team that understands the Zakat calculations and tax laws in KSA, for instance, preventing any errors that may result in non-compliance fines.

3. Scalability and Flexibility

As a business grows, so will its accounting requirements. It’s important to think about flexibility, and outsourced solutions can allow you to adjust and scale your services as needed. If you just need to scale back bookkeeping assistance or need more comprehensive financial analysis, outsourcing accounting services will allow you to develop a custom solution that can scale with your business.

Example: For example, if your transaction volume has increased from seasonality of sales, accounting services would be able to scale at a rapid pace with no concern for hiring additional staff.

4. Compliance with Local Regulations

It’s no easy task getting your head around the regulatory environment in the UAE and KSA, and particularly when considering the compliance around taxes in both these jurisdictions and where your business may be examined: for instance, VAT in the UAE and Zakat in KSA, both of which have their own legal tax requirements. Outsourcing to accounting services can help ensure that your firm doesn’t misstep in complying and still remains obedient to the company’s tax/compliance laws, use cases to avoid costly mistakes and audits.

Example: In terms of the UAE, with the VAT changes taking place recently, businesses have to stay on top of the latest developments. An outsourced accounting firm, and specifically a firm that has Tax Consulting Services, would be able to ensure that your tax filings are accurate and compliant with the latest updates.

5. Increased Efficiency and Focus on Core Business

Outsourcing accounting allows business owners and/or managers to concentrate on what they are supposed to do best, which is growing the business. Outsourcing with an accounting firm allows business owners and managers to avoid having to deal with endless bookkeeping, tax compliance, analysis or other aspects of financial management. They can deliver all these duties to a detail-oriented expert company, freeing up valuable time to focus on strategic planning and other core business matters.

COMPARISON TABLE: OUTSOURCING VS. IN-HOUSE ACCOUNTING

FACTOR	OUTSOURCING	IN-HOUSE ACCOUNTING
Cost	More affordable for small to medium businesses due to fewer overheads, such as salaries, benefits, and infrastructure	High costs due to salaries, benefits, office space, and other overheads
Local Expertise	Access to experts with specialized knowledge in local regulations (VAT, Zakat) and financial management	High local expertise, but requires hiring and training specialists, which can be costly
Scalability	Easily scalable; outsourced firms can adjust their services to meet growing business demands, without hiring additional staff	Limited scalability; additional hiring or restructuring may be required for growth
Compliance Risk	Lower risk of non-compliance with local laws due to the expertise of outsourced firms in handling complex tax regulations	Potential risk if internal team lacks updated knowledge or capacity to handle changing regulations
Data Security	Outsourcing firms often implement robust security measures to protect sensitive financial data	Greater control over data security; however, requires investment in security infrastructure and training
Control and Transparency	Less control over day-to-day operations, but transparency is ensured through regular reporting and communication with the provider	Full control and direct access to financial data, but with the responsibility of managing the processes
Flexibility	High flexibility with a variety of services and the ability to scale up or down depending on business needs	Less flexible; internal team may be constrained by resource limitations or capacity
Access to Technology	Outsourced firms often use advanced, cutting-edge financial software and tools, reducing the need for in-house IT investments	Must invest in accounting software, technology infrastructure, and ongoing maintenance
Risk of Errors	Lower risk of errors due to dedicated experts who handle accounting functions across multiple clients with specialized knowledge	Higher risk of errors if the in-house team lacks sufficient expertise or capacity
Strategic Guidance	Outsourcing firms often provide proactive financial advice and strategic insights to help businesses optimize their financial operations	Limited strategic guidance: in-house teams may focus on daily tasks and compliance, without offering long-term planning
Turnaround Time	Faster turnaround for tax filings, bookkeeping, and financial reports due to the outsourced team’s focus on financial tasks	Potential delays due to internal capacity constraints, holidays, or multiple responsibilities handled by the in-house team
Global Reach & Expansion	Ideal for businesses looking to expand internationally as outsourcing firms typically have experience dealing with multi-country regulations	May face challenges expanding into new markets without hiring new staff with expertise in international accounting laws

WHY CREATION BUSINESS CONSULTANTS IS THE BEST CHOICE FOR OUTSOURCED ACCOUNTING

At Creation Business Consultants, we provide outsourced accounting services designed for companies in the UAE and KSA. The outsourced accounting team consists of qualified accountants who hold relevant qualifications and possess local knowledge of tax law so that your financial activities are totally compliant and scalable. Here are several reasons why you should choose to engage with us to manage your accounting requirements:

1. Local Expertise

We leverage significant knowledge of the tax environments of the UAE and KSA to ensure compliance with all financial regulations, including VAT and Zakat.

2. Cost-Effective Solutions

When you outsource accounting to us, you don’t incur a detrimental, expensive in-house hire but retain your own professionally qualified expertise engaged to suit your business.

3. Comprehensive Security

Our proven state-of-the-art, high-value security approaches will ensure financial data remains sensitive and complies with data protection best practices and all local laws.

4. Scalable Accounting Services

From bookkeeping to reporting, as your business grows, we will grow too, with flexible services that we can scale to tick some of your boxes.

5. Strategic Financial Guidance

Our outsourced accounting offering doesn’t just stop at tallying numbers. It’s important for our developing business to see the big picture and for us to guide them on what their business might look like next, from tax planning, to looking at opportunities that may offer variance cost savings.

CONCLUSION: WHY OUTSOURCE YOUR ACCOUNTING FOR LONG-TERM SUCCESS

As the business world in the UAE and KSA is changing with many accounting function benefits, such as cost savings on audit pricing and outsourced support personnel, outsourcing your accounting functions will also ensure compliance, mitigate risks and accelerate growth. Outsourcing has the advantages of providing specialist knowledge of local tax laws and financial regulations to ensure your business is meeting all of your accountant’s key performance indicators and applying local tax law.

Creation Business Consultants will help you know that your accounting operations are in good hands, so you can focus on growing your business and getting ready for long-term success.

Contact us and discover how our outsourced accounting services can improve your financial processes and grow your business! Contact us via email [email protected] or call Saudi Arabia +966 56 865 2329, UAE +971 4 878 6240 today.

Jonathan Morgan,
Business Development

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