Why SMEs should outsource bookkeeping?
Omar Saleem, Director and Deputy CEO of Proven shares his view of how SMEs and business owners can benefit from outsourcing their bookkeeping.
COVID-19 has established the fact that the only thing constant in the world is change. More businesses are finding ways to reduce costs without compromising process standards to cope with post-COVID challenges. As a result, the outsourced bookkeeping industry may experience rapid growth in 2021.
Over the years, there has been an enormous change in how businesses work, and bookkeeping is not an exception. For many entrepreneurs, staying on top of company accounting or bookkeeping may be a tedious job that they often put on the back burner. Running a business usually requires you to don many hats, and it is justifiable to fall behind on bookkeeping. Hence, outsourcing bookkeeping service is one of the most common strategies used by most businesses today to find their financial footing and keep bookkeeping up to date. According to a recent research article, "Global Finance and Accounting Outsourcing Industry," the accounting and bookkeeping outsourcing market worldwide is expected to grow by US$16.7 billion in the coming years.
One of the significant benefits of bookkeeping outsourcing is that it helps to save operating costs. Utilizing online bookkeeping services allows you to spend money wisely while growing your business. By freeing yourself from piles of paperwork in bookkeeping, you can focus on what requires more of your attention, like improving the customer service or overall operation. Another upside of outsourcing this service is that an array of professional accountants will work together to meet your requirements by designing customized solutions. This model decreases the dependency on a small group of professionals and mitigates the risk of hampering the work through a team-based approach.
Modern bookkeeping does not operate on pen and paper. Instead, online outsourcing platforms provide cloud-based accounting software and technology, along with qualified and certified bookkeepers to ensure continuity and accuracy. These robust platforms also help you with the data and analytics to make better business decisions and stay competitive. For instance, by connecting with your bank account and credit card transactions, online bookkeeping solutions can track your expenses and cash flow. This data will provide you with a vivid picture of your financial performances to assist you in making informed business decisions.
Small businesses can access their financial data anywhere, anytime through cloud-based accounting software. It also provides a detailed range of tools to help you stay on top of your financial management game. Cloud-based technology is often considered an expensive solution designed only for large organizations. In reality, cloud-based bookkeeping service is an affordable tool for small enterprises to improve their operations by saving on infrastructure, gaining the freedom to scale up or down based on business needs, and removing the dependency on the latest software versions.
Your business challenge may be finding the right outsourcing firm out of dozens available to fit your requirement. Outsourcing to firms like Proven offer business owners with a wide range of facilities, including financial and corporate advisory services, accounts receivable and payable management, bank reconciliations, KPI reporting, cash forecasting, taxation, payroll preparation, and administration according to what clients need. Any start-up company in Saudi Arabia and the United Arab Emirates has tax payables to the government. This could be a burdensome process to calculate output VAT, input VAT, and tax payables. Support from companies like Proven makes these tax policies easier to navigate and quicker to execute.
Organizations may require a trustworthy and impartial review to ensure that legal responsibilities are met at every stage, along with the standard and quality expected. This is why businesses need access to account owners specializing in preparing critical financial reports, plans, project revenues, and expenditures, to ensure a unique customer journey.
When you start a business, as an entrepreneur, you are more driven by a vision and mission. The nitty-gritty of building a business, of which bookkeeping is a large part, may get overlooked sometimes. While bookkeeping is necessary for all companies, consistent financial management may be essential to achieve the desired success. You can resolve to start 2021 with a good bookkeeping practice, i.e., outsourcing your bookkeeping and financial management. This best practice will allow you to spend less time managing bookkeeping, maximize your tax savings, and devote ample amounts of time to your business growth.