Accounting and Bookkeeping Archives - Page 3 of 3

THE BENEFITS OF MOVING TO A CLOUD ACCOUNTING PLATFORM IN THE UAE

September 5, 2023January 10, 2019 by SUMEET NAYYAR

The benefits of moving to a cloud accounting platform in the UAEThe world we live in is rapidly moving towards digital for all aspects of business, one of the most aggressive moves is that of the accounting world. With your company’s financials at stake, what are the real benefits of moving to a cloud accounting platform? Here are the top reasons you should be considering a move to cloud based accounting.Reduced Capital ExpenditureThe move to cloud not only offers an operational cost option for the software. It also reduces the need for infrastructure to support it. Costly hardware and backup solutions are not required as they are now provided as a part of the software as a service offering. The scale of the infrastructures offered by the service providers will generally far exceed an in-house operation, so it will also increase your business’ accounting security and availability.Reduced Total CostNot only does your online accounting system reduce your capital expenditure, it actually reduces the overall cost. Cloud accounting solutions can enter the market on a freemium model (base levels of the software are offered free with the choice to upgrade for more advanced features) and can be up-scaled on users and requirements as necessary.There is now no need to invest in an all-encompassing system of which you will use a minor selection of the functions.ScalabilityA cloud-based system scales to fit your company. Entrepreneurs have a very cheap but limited system, this can grow to add users and functionalities as per the requirements of your business and team. The system will grow alongside your company and it will allow for the addition of functions and resources as required.Staffing efficiencyWith the use of technology, manual tasks can almost be eliminated. This opens a business’ options to allow outsourcing of technical and operational functions. Functions such as the capture of expenses receipts can now be eliminated by using application based functions on one’s phone. A simple photo is taken and it is assigned to the correct account. This means that no longer are you counting through endless receipts at the end of the month and you can easily ascertain the cost and value of each client’s activities.Real-time information updatingFrom your accountants to your C suite, the information is available as live. The system will allow you to build dashboards and reports which are tailored to the person using it. A C-level may want to see more of an overview whilst an accountant may need more transactional level information. With the connection of bank accounts to the systems you achieve real-time, live accurate data.Access from anywherePart of the success of cloud computing is the ability to access information from practically anywhere. The rise of smartphone adoption has allowed business officials access to key company information as long as they have a form of Wi-Fi connection.SecurityCloud solutions often face the issue of security and people often think that because a system is out of the office it is less secure. However, exactly the opposite is the truth. The following shows just a few of the key security enhancements that migration to cloud-based accounting will offer:

User authentication – two-step authentication for logins and transactions ensure that with the use of 2 personal devices only can you access the account.
Data encryption – industry-level encryption services ensure that information is delivered and translated to correct areas only.
Network security and data center – economies of scale allow a much higher level of infrastructure and the security that runs within it. This can offer governmental levels of security at a fraction of the price.

Immediate FixesMost softwares offer an uptime guarantee of >99%. Their vast teams ensure that updates, patches and fixes are completed before issues occur. They are also often very responsive to system improvements and thrive on critical feedback. The systems can literally change and improve in front of your eyes.Data Backup and RestorationOne of the largest investments in accounting is the backup of the data. If you do not have a backup of your software offsite you run the risk of losing your data. It is said that 60% of companies that complete data loss will be shut down within 6 months. With cloud accounting, you have servers based in environmentally perfect surroundings, these will be replicated in similar environments, often in other countries. Only severe disasters could disrupt these types of systems, and at this point, we probably wouldn’t be worried about our accounting.There are many benefits to promote the adoption of a cloud-based accounting system in the UAE and beyond. It is vital that you choose the right team to help you set up or migrate the services, and to see if it is a viable option in the first instance. Speak to one of our team to understand the benefits to you and your business and grow with the best.

9 KEY POINTS TO BECOMING A PROACTIVE ACCOUNTANT

September 7, 2023December 8, 2018 by NIHAR KOTHARI

As a business owner, we often feel if we had that something extra, something better and something clearer to make an informed decision. And that ‘SOMETHING’ often depends on the proactive approach from your Accountant. As a business owner and as a Chartered Accountant, I understand the limitations that we come across at both ends.

Our profession advocates constant training to be provided not only for technical aspects but also for strong interpersonal skills, organisational competence, and intellectual ability. So what are these characteristics? What makes someone stand out?

Here are 9 points that I think are important to understand the responsibility of a Proactive Accountant:

1. Stay updated all the time

Accountants must constantly stay up to date with the profession. Attending refreshers, going to conferences/ seminars, and in-house training is a must. Technological advancements are also evolving at a furious pace, so these also must be kept up with. Continual personal development is a must, not an option!

2. Story behind the numbers: The Bigger Picture

Providing a data-generated report is easy. Staying on top of all the figures and paperwork is more important. At the very least, they need to understand where these numbers are coming from and what does it mean for the business. Good accountants will have a much shorter list of targeted questions that are developed specifically to aid their understanding which allows them to focus on the big picture.

3. Importance of Time

Every business needs management reports at regular intervals, if not in real-time. If these reports come after 2 months, it is like a post-mortem report – you can read through it but cannot change anything.

4. Inter-dependability and Accountability at each level

It is important to make every effort to do the right thing. Every process in an organisation is linked to Accounts Department somehow. Accountants need to have exceptionally well people skills as they typically work in coordination with different departments within an organisation. They have the opportunity to work with different types of professionals and personalities. Therefore, they are required to be generous with what they know, sensitive to others’ needs, and supportive of their team’s goals. We all succeed when we work together as a Team.

5. Decision making, critical reasoning & analytical ability

Business owners want their accountants to be strong and helpful in decision-making; however, decision-making can be hard. There is always a tendency to put off decisions by procrastinating and concluding that you need more information, only to later conclude that you need even more information. A good accountant should always determine what is relevant and what is not.

6. Trust factor

The information that accountants work with is highly confidential in nature. This is why trust and professionalism are important traits that they must always abide by. Not only is this the right and ethical way to go about their businesses, but having a reputation for trustworthiness will win plaudits in the long run. I firmly believe that we trade on our knowledge and ability, but we only get these opportunities by demonstrating our commitment to client confidentiality.

7. Solutions seekers, not fault finders

Great leaders have the desire to help others succeed. Don’t find faults in the system; find a solution that helps the organisation to overcome an obstacle. Leadership characteristics can be taught, but leadership must be exhibited day in and day out.

8. Commitment

Companies are looking for motivated, dedicated individuals for long-term employment. There is no short-term solution, neither for business owners nor for accountants.

9. Enjoy what you do

This last one might appear strange, but I firmly believe that we all need to enjoy what we are doing. There is no fun in a 9-6 job unless you have a good working environment, surrounded by people who are happy and joyful. Work takes up so much of our time, and it is my opinion that mere monetary rewards will not keep someone in a career they do not enjoy. Whilst no one should expect to be smiling all day, every day, it is important we have some fun along the way.

The characteristics of a proactive accountant start with the basics of sound technical ability and a solid ethical foundation. These are considered as a baseline, and the Accountant needs to grow beyond the “rules and regulations” mind-set of our profession. Attaining and maintaining the characteristics mentioned above require a personal commitment but are crucial to the accountant’s long-term success. Have you got what it takes to be a good accountant?

How Much Does An Accountant Cost In Dubai?

September 7, 2023July 10, 2018 by Affiniax

The recent changes in the business world in the UAE, particularly the introduction in VAT, have seen significantly increased demand for accountancy services. Until recently, many small and medium businesses may not have had their financial statements professionally compiled or audited, whereas newer regulations have made this a necessity rather than something that was done for a secondary purpose (applying for financing, for example).

This has, in turn, led to many more business owners and senior managers needing to ask how much these services will cost, and, as is often the case, there isn’t a simple answer.

Rather than try and pick an arbitrary number out of thin air, this article aims to highlight the factors that will impact the cost of accounting and bookkeeping services to help you when making the decision that fits your organisation.

The Scope of Work:

Perhaps the most obvious consideration relates to what type of accountancy you need to be taken care of. This might be registering your company with the FTA for VAT or filing a VAT return. It could be a far broader requirement, such as accounting consultancy or even full-time bookkeeping. This might be an in-house dedicated service or, as is often more appropriate and financially viable, outsourced bookkeeping. To make sure you get the quality of service you require, have a look at testimonials and client comments and consider who your competitors and clients are using for their accounting needs. Most importantly, check that the potential accounting service you are considering is experienced and qualified to handle the type of service you will be paying for.

The Scale of Work:

It goes without saying that handling the books of a multinational corporation is going to have a different cost associated than looking after the accounts of a sole proprietor. Also, consider the complexity of the industry you are involved in. Large-scale construction with multiple sub-contractors and projects spanning multiple financial years are going to have complicated requirements. They may have phased payments agreements and trigger milestones that will require extensive, if not specific, specialist skills and experience compared to a retail outlet, for example. One may require a full-time team of accountants, whereas the other may need part-time assistance, for which the costs are going to be relative.

Sheer Numbers:

Should the gross turnover alone be a factor in determining the cost of accountancy services? This is an interesting question on the surface. It may appear that the amount of chargeable work is the same for an organisation turning over $100 million with 100 transactions compared to another turning over $1 million from 100 transactions. In reality, this is not usually the case, and higher gross numbers, more often than not, will demand a higher fee. There will be different levels of responsibility and risk involved, and making sure your chosen accounting professionals have the relevant experience and confidence with high-value transactions is going to be vital for your own peace of mind.

Employee or Outsource:

This is one area where you are likely to see significant variation in costs. Having an in-house accountant will incur a salary relative to the experience and skills of the employee. Add to that visa costs, medical insurance, and holiday cover, and you will have a fixed and determined cost. Outsourcing, provided you have selected the right partner, is likely to represent a lower overall cost almost by default. Consider also that you may well have a team working on your accounts with broader skillsets and combined experience. You could well be getting considerably more bang for your buck if paying for the time they are dedicated to your books rather than for a full working day, week, month, or year.

So How Much?
When push comes to shove, you are going to get broadly what you pay for, and cheap is rarely the best, and the best is rarely cheap. The important thing to ensure is that you are getting great value and the best service for the cost.

Why not speak to the team at Affinax and let them guide you on what services they can provide and how much value they can deliver for you.

What is the Cost of Outsourcing the Accounting and Finance Function / Department?

September 7, 2023July 10, 2018 by Affiniax

Cost of Outsourcing Accounting Services in UAE

Understanding the cost of outsourcing can be confusing. In a field where there are so many options, it is difficult to determine the cost of the accounts and what actually defines this outgoing. Here are six factors that can help you determine the cost of an accountant and why.

1) Transactions

On a pure labor cost basis, the number of transactions your business conducts will dictate a portion of the price with an accountancy firm. Quite simply, if your business conducts a few transactions throughout the year, it will cost less than a business that has thousands of transactions.

An important role of an accountant is to account for the business incomings and outgoings on an accrual basis. This shows you, and others, what financial transactions have occurred, how, and where?

2) Total Revenues

Much like the number of transactions, the value of transactions and, therefore, revenue will have an impact on the cost. Large transactions can often be more complex, but more importantly, they carry risks.

It is vital to ensure that if your business is conducting high-value transactions, the outsourced accountancy firm has the capability and experience to align with your business. This can come with a price.

3) Complexity of Business

An accountant’s cost is also affected by the complexity of your business. A single office in a single location will have a very different price to the one that is read across several jurisdictions, for instance. The makeup of a business complexity can follow a few guidelines:-

Entities:
- How many entities does your company have?
- Is it a single company dealing only with customers, or is it a holding company with many entities serving different functions below?
Jurisdictions:
- Where are the business (es) based?
- What activities are they carrying out?
- Is your business based locally, regionally, globally, or offshore?
Bank Accounts:
- How many bank accounts are to be served?
- The number and type of transactions will be monitored.
d) Business Model: Various businesses have inherent complications. A single-owned proprietorship conducting consultancy services will be much simpler compared to a contracting business having continuous contracting services.

4) International Accounting Standards

An accountant’s cost can also change based on their ability to conform to International Best Practices. It is important here to align your business with your accountant. An accountancy firm is only as good as its employees, and often they would have gained their certifications from abroad first. What is the make-up of the company, and to what best practices do they adhere? A big four company will cost you more but has the strength to back and certify your accounts to global standards. Do you need the auditing power of a big four company, or will a base-level to international mid-tier group perform the task effectively?

5) Analytical And Management Support

If you cannot measure something, how can you improve? It is very important to ensure that your accounting firm can give you the reports you need. These vary from business to business and from C-level to C-level. Everyone wants something different based on what is important to them.

The difference in cost can also change with this factor. Many low to mid-tier firms will not have the ability to customize reports for your business. They will use accounting software and will pull out reports in that standard. The more effective firms will tailor it to exactly what you need.

However, the cost of getting the exact figure you need can be outweighed by its significance to your business. Getting improper or ineffective reports can affect your decision-making ability and the future of your business.

6) Experience

When choosing an accounting firm in the UAE, you must understand the experience of that company. Aligning your company, its jurisdiction, and its activity to the skill set of the accountant is vital.

When evaluating the company, you can ask for references or details of the company that has similar stature and activities to yours. Most accountants will give you a list of the big companies that they have worked for or worked with, but it is important with alignment to your business – the answer is no. Choose a company with experience in your field, your location(s), and a proven track record of success.

The cost of experience can be high. For an accountant, landing a multinational can affect its own pricing model. Make sure you align your business with the correct skill set to attain the best results.