The benefits of outsourcing Accounting and Bookkeeping far outweigh the advantages of getting an in-house department doing equivalent work. A shrewd businessman knows that when the business has expanded to a particular limit he cannot afford to spend longer looking into the finance flow and commitments of his company. Hence following are the advantages of outsourcing the work.
Advantage of Time:
When a business starts growing, managing the business goes on becoming more and harder and sophisticated. The owner has too many things to handle and therefore the likelihood is that he may lose track of the finances. From where the cash is coming, to whom it’s going, when are the accounts submission date, tax payment maturity, etc.
A the sensible businessman would always wish to have free time for himself to analyze what’s happening to his business, how and when to diversify, and the way to expand the business. If he’s left with no time for himself then the probabilities are that he would be heading towards stagnation and slowly towards losing his business to the competitors.
Advantage of Money:
Here the question is why shop for a hen once you are easily getting the eggs. So why have a permanent set of employees to whom the owner has got to pay all the payment benefits right up to the retirement benefits when professional agencies and firms are available to try to do this add less time and at less cost?
Moreover, the advantage of holding them liable for any lapse in their duty is there and that they are often forced to catch up on their professional lapses. Once the work is outsourced the owner is free from the headache of Accounting and bookkeeping work.
This work is basically very tedious and time-consuming with less tangible productivity benefits.
Advantage of growth:
Once the work is outsourced the owner has the time available to consider introducing innovations and find ways and means of increasing productivity. Hence naturally the expansion prospect of the organization increases. Additional manpower with greater skills is often recruited for the areas where expansion and growth are being planned.
The present employee’s skills are often developed by providing them advanced training to make them more efficient in their work, again contributing towards higher productivity per individual and in fact more profits.
Advantages of Confidentiality:
Employees keep changing companies so once they attend to other companies with them goes all the financial information of the corporation and through these employees, it’s going to fall under the hands of the competitors who come to understand about the longer-term plans of the corporation and therefore the strategy.
Accounting and Bookkeeping are highly confidential affairs of the corporation and that they shouldn’t in any way get leaked which can be very disastrous for a corporation. Thus with outsourcing, the confidentiality of the corporate is safeguarded.
No doubt then it makes better business sense to outsource Accounting and bookkeeping in Dubai work to knowledgeable agencies.