KEY REASONS TO OUTSOURCE YOUR ACCOUNTING FUNCTIONS IN THE UAE AND KSA
Outsourcing accounting functions offers several benefits for businesses in the UAE and KSA, especially for those without the resources or need to manage an in-house finance team. By partnering with a qualified outsourced accounting service, businesses can access specialised expertise, increase scalability, and ensure compliance with complex local tax regulations. Outsourcing accounting functions provides businesses with many advantages in the UAE and KSA, especially when the business does not have the need or resources, such as employing an in-house finance team. An outsourced accounting service allows the integration of subject matter experts, scalability, and compliance when navigating complex and dynamic local tax regimes. This is why outsourcing to an accounting service provider is often the right option:
1. Cost Savings
You are more likely to save money on overhead by outsourcing. You will not need to employ full-time employees, you will not have to spend money to train them, and you can use your professional services only when you need them, while only paying for the services that you actually use.
Example: By outsourcing accounting services, small- and medium-sized businesses in the UAE enjoy savings on payroll, office space, and software. This can be extremely helpful to newer businesses or young organisations running on limited budgets.
2. Access to Specialized Expertise
When your business outsources, you gain access to a range of experts who have specialist knowledge in different areas such as bookkeeping, tax filing, financial consulting, and compliance with local regulations, like VAT and Zakat. Outsourcing firms within the UAE and KSA often have a wealth of experience with the local financial systems throughout the region, which can help prevent costly mistakes.
Example: A business entering KSA would benefit from outsourcing its accounting department to a team that clearly understands KSA’s Zakat calculations and tax laws, which would prevent compliance-based mistakes that could end up costing you fines.
3. Scalability and Flexibility
As your organisation expands, you will likely want to scale your accounting needs as well. Outsourcing gives you the flexibility to do so. Whether you require occasional bookkeeping support or more comprehensive financial analysis, outsourcing firms can provide customised solutions that grow with your business.
Example: If your company experiences an increase in transactions from the seasonal sale of a product, the accounting service you have outsourced can quickly be adjusted to accommodate the volume without the need to go through to process of hiring new people.
4. Compliance with Local Regulations
The comprehension and compliance of are such for the direct operating tax regimes of the UAE and KSA. Hence, an offshore tax jurisdiction may apply only in these countries when doing business, e.g., VAT under the UAE and Zakat under KSA. Outsourced accounting will help them stay in line and with the least risk of mistakes, costly fines, and/or an audit.
Example: With the latest amendments to VAT in the UAE, keeping up is very important for businesses to maintain compliance. An outsourced accounting office that understands and specialises in Tax Consulting Services will make sure that your business is filing all of its taxes properly and is compliant with the existing laws.
5. Increased Efficiency and Focus on Core Business
With accounting services in the hands of others, the business owners and management can go back to what they do best: growing their company. While outsourcing the financial management, the business owners or manager will now allocate their time and resources only for strategic decision making and core activities that will advance their business, rather than spending time on bookkeeping, tax compliance, and financial analysis.
COMPARISON TABLE: OUTSOURCING VS. IN-HOUSE ACCOUNTING
