Risks Involved In Outsourcing Business Accounting Services in Dubai.

With a surge of firms offering outsourcing services globally, it is now common for companies to outsource some of their major processes to external specialists.

This often results in cost-effectiveness in areas of labor management, infrastructure, and legislation. Business accounting services in Dubai lead to offloading accounts and taxation-related jobs to outsiders instead of doing them in-house. The professional accounting services in Dubai that are hired take care of payroll, return submission, final accounts preparation, and handling of taxation-related issues amongst other activities.

The appointment of an external party for business accounting services in Dubai that deals with sensitive and confidential information and data handling raise certain questions. How safe is it to trust a complete stranger, who may belong to another country with strategic information, even though he may be offering the highest standards of secrecy and non-disclosure? The risks involved in availing of professional accounting services in Dubai can be discussed as follows.

Business Accounting services are required to adhere to the Sarbanes Oxley regulations that require companies to implement several internal controls which are important to safeguard the financial information relevant to a company. Providers of professional accounting services in Dubai must make sure that controls specific to all accounting operations such as payables, cash reconciliations, and fixed assets are in the proper place. The risk of non-adherence to regulations may lead to litigations and legal hassles for the company that has trusted the service provider.

Outsource Accounting services in Dubai at reasonable prices.

Another risk that is faced in availing of business accounting services in Dubai is the meeting of deadlines and timeliness of the preparation of accounts and submission of returns. Hiring professional accounting services promises accuracy and the highest levels of quality at a reduced cost, but if the time frame is not maintained- the risk of penalties by the Government authorities and loss of reputation in business circles would lead to a decrease in shareholders value.

The risk of fraud and embezzlement and information being sold out to competitor firms always exists in business accounting services. Hiring more personnel to handle the client's accounts and other functions dissipates the work over a wider range of people and no single person can misuse the client's data for his own personal benefit.

Publicly held Companies have to have an annual audit that is conducted by a third-party accounting firm. If the business accounting services in Dubai have already been outsourced to an external firm, then the separation of audit functions from the professional accounting services leads to increased business costs. The objectivity in the opinion of public auditors on the accounts prepared by the outsourced company has to be considered too.

Conclusion

The risk of minor errors and violations such as non-signing of financial statements or failure to issue statements acknowledging approval of the executive management towards financial information released to the public attracts penalties. Professional accounting services in Dubai and Virtual Accountants must include terms of liability in their agreements to avoid this risk element.

Companies should follow the adage, "Precaution is better than cure" while outsourcing primary functions to external agencies and firms, to avoid taking any unnecessary risks

Accelcia Business Process Outsourcing service provides business accounting services, and professional accounting services in Dubai to focus on your core business.