The struggle of small business owners is peculiar in its own way. Every single day is committed to plenty of to-do task and still a pile of pending works. The responsibility for too many tasks shifts the focus from core concerns. Strategic goals that embark the business empire should not be taken for granted. Prioritization is the key. Ventures that solely demand owner’s presence like the capital arrangement and decision making should be focussed while rest segments need to be managed.
Bookkeeping is the fundamental prerequisite to every business that requires a constant supervision. But this is both bulky and tedious, so what to do? All this discussion definitely aims at the role of outsourcing firms. Offering entity specific customized bookkeeping solutions, these outsourcing firms can handle books of account better than owner himself. Regardless of industry, outsourcing firms can deliver you a simplified version of your financials. Timely preparation of financial records, identification of inefficiencies and improved productivity are few of the outsourcing advantages.
Outsourcing few bookkeeping tasks is another convincing option that provides business owners a glimpse of improved financial performance when partnering with reliable outsourcing firm. We’ve discussed below the four bookkeeping tasks that every small business owner should outsource.
VAT (Value Added Tax):
VAT is something new to UAE small business owners and will be applicable from 1 January 2018. Procedural formalities, compliance with statutory laws, calculation, implementation and filing VAT return is something that requires expert’s hands. Incorporating any new practice or legal compulsion is definitely technical and complex. Pairing with the right service provider will entail an understanding of key functions impacted from VAT particularly in IT and finance domain. Outsourcing firms can help you with:
- VAT Registration, Planning & Administration
- VAT Control & Reconciliation coupled with VAT IT Solutions Advisory
- Pro Representation in FTA proceedings
Accounts Receivable Management:
A transaction is actually successful when revenue is earned. Accounts receivable is one of the trouble making areas. Recovering money is something that requires patience and tactics. It is time draining activity too. A proficient in-house system is surely required to sustain liquidity in business. Lack of such skills will invest extra investment of time and energy with zero results putting your business in misery. Outsourcing accounts receivable is a practical idea for those who value time. Three main benefits of accounts receivable outsourcingare:
- Saving time and money: When Account receivables are managed by the third party, a resource eating fragment is literally stripped off. No need for extra staff or investment in equipment. Large amount of accounts receivable is handled in given time
- Enhanced Account Receivable Process: Faster payment collection and its processing are ensured via next-generation electronic billing and payment solutions. Cash inflow is increased when clients are persuaded to make advance payments or via online platforms.
- Spare time for main business activities: Outsourcing firms perfectly chase down late payers. Letting professionals recovering your money enables you to focus on money making activities.
Accounts Payable Process:
Accounts payable is another grave task requiring efficient handling. Missing payment dates clearly means the imposition of fines and penalties. Dissatisfied creditors feel reluctant when advancing loans in future. A credit crunch can play havoc for small businesses. Processing AP is another detailed task particularly when latest technology is not in action. Outsourcing Accounts Payable can be a great tool to achieve automation at a fractional price. Potential benefits of outsourcing Accounts Payable include:
- Conversion to ERP System: Wide in its scope, this function involves extensive efforts for scanning, OCR, extraction of information and digital expertise. It is crucial yet unrelated to core activities. Outsourcing greatly helps in sorting out this issue.
- Revealing payment discrepancy: Counter checking of receipts, vouchers and supplier statements need enormous time. Outsourcing is an efficient way to authentically validate the accuracy of accounts payable
- Accounts Payable Automation: Since outsourcing firms are already operating extensively across various industries they are well versed with automation of entity specific accounts payable. Invoices are processed at a much faster pace and much time is saved.
Bank Reconciliation Process:
Monitoring the actual financial health of the business is essential yet incomplete without bank reconciliation. Counter checking transactions and balance at both terminals (bank and small business) can take ages. The gravity of matter is intense for industries like retail where multiple payment systems i.e, credit/debit card, POS purchase, cash, and vouchers are used. This single task is sufficiently time-consuming for one or two individuals. Outsourcing this task with Alterf Services will result in:
- No delays in work as continuous and precise data is available round the clock for decision making
- Zero operating cost as no expenses are incurred on arranging software, technology or infrastructure
- Impeccable quality with guaranteed accuracy
- Identification of any ghost entries
- Third party reconciliation diminishes chances of account manipulation
The earlier discussion clearly concludes that outsourcing above mentioned tasks is basically a win-win deal for small businesses. Automation of procedures, streamlining operation, strengthening bottom line, improved financial processes, effective cash flow management, identification of system inefficiencies and reduced revenue leakage are the motivating perks that invite small businesses to explore bookkeeping services offered by Alterf Services. Contact us today to know more about our services.