5 Strong Advantages Of Outsourcing Accounting Tax And Payroll Functions Instead Of Hiring In-House
1. Quality of work
In addition, if you want VAT or other tax work, this will most probably be allocated to a tax specialist. Hiring an in-house accountant means that you only have a single set of eyes doing everything. Moreover, your accountant will need to have an in-depth knowledge of a wide range of subjects to fully cover the needs of a single business (book-keeping, VAT, payroll, etc).
2. Valuable time saved
Interviews take time. And time is money. And if you are a decision-maker for your company, you need to be very stingy with your valuable time.
Most times you will have to go over tens, maybe hundreds, of CVs before you even start interviewing. Then, when you do start interviews, you find that some people are not good enough, others are good but ask for too much, while some people don’t even bother showing up!
Some people apply for jobs to ‘improve their interview skills’, while some others are just looking to leverage an employment offer from you for a higher salary with their current company. Outsource accounting, and you are free to focus on growing your business.
Employment contracts are largely inflexible, ie an employee is typically paid for a fixed number of hours every week.
On the other hand, outsourcing your accounting, tax or payroll function is perfect for scaling purposes. You could agree a small increase in your accounting fees as the volume of a business’ operations increases. But you cannot negotiate 5 more hours per week from an employee who is already working 48 hours every week!
You could even negotiate a fee based on volume of work – ie if the company does 100 transactions in a month, accounting cost will be AED – X. If the company does 500 transactions, cost will be AED- Y.
4. Price savings
Unsurprisingly, the value for money you get when you outsource is significantly higher than when you employ someone in-house.
You can benefit by having an experienced accountant reviewing your company’s books and charging a few hours per week only, instead of having to pay their full salary. You can benefit by using a top-notch accounting software (specially designed for UAE tax rules) without having to purchase the full software license.
You can avoid paying for expensive training seminars, having your managers spend hours on interviews, spend time on salary negotiations etc. Money you spend on accounting is spent only on what is necessary.
A fundamental advantage of outsourcing Vs in-house bookkeeping, and a common element in the previous 4 reasons, is the guaranteed continuity of service when you outsource. Hiring in-house means your accountant will not always be available. Maybe because he/she is on annual leave. Or maternity leave. Or sick leave. Or resigned.