Today, companies are surrounded by many challenges. An accountant plays an important role to overcomes the challenges of the business. The accounting is a very important activity in supporting the foundations of every business. The accounting outsourcing, in which the company hires an office or self-employed accountant who performed the financial related professional activity, according to research.
Accounting outsourcing is the hiring of a self-employed accountant who performed tasks upon payment of monthly fees that are agreed between the parties (company and accountant).
In Accounting outsourcing, accountant task
An accounting firm can operate in 5 main areas, that are as follows:
The accounting firm offer tax-relatedobligations services like:
- classify document
- prepare balance sheet
- payment slips preparation
- tax calculation
This area is focused on managerial activities like:
- prepares balance sheets
- prepare statement
- generates reports
It offers solutions for obtaining:
- Union contribution
- Taxes guide
Its objective is to increase the company’s profit by driving useful results from the analysis and planning of its financial transactions. Its only aim is to maximize company economic growth and results.
It is an important part of accounting in which an accountant offers complete assistance in regularization processes.
When outsourced accounting recommended?
The outsourced accounting is a good option for the company because of the factors like:
- One of the aspects is its size, the bigger the taxes and labor issues the bigger the handling problem
- Business complexity
- Number of processes involved in planning and analysis for generating reports
- Routine and financial flow checkup control
- Taxation involved
All the above factors are enough to understand, why outsourcing accounting is important and recommended.
How do third-party accounting firms work?
Like any outsourced service, the accounting firm is also working for their clients to complete their needs. In a first contact, the client and the accountant officers discuss briefly about the problems facing the business, demands, and ambitions. Then accountant defines the outsourcer’s tasks and responsibilities.
The accounting firm act as the true intelligence service provider, that advising on company management to improve the financial health of the company.
Why has an external outsourced accounting department is needed?
The external outsource accounting department is needed because
- It provide you with services at very affordable prices
- Your financial data remain safe and confidential
- provide control bookkeeping services
- You can have access to competent and trained resources
- Influence with the most advanced technologies without making additional investments
- provided excellent services with strict deadlines.
pros and cons
Some pros and cons of outsourcing in accounting are as follows:
Advantages of Outsourcing accounting:
significant cost reduction (by removing unnecessary expenses for the business)
Constant updating (by continues studying outsourced always aware of any changes in the law and taxes)
Experience to deal with different situations (the offices serve different companies so they learn more by experiencing different types of situations)
Focus on the company’s core business( outsourcing accounting is a way of paying attention to the company’s core business)
Specialized service (the specialized company recycles constantly and adopts changes in accounting legislation and always remains up-to-date.
Greater control over deadlines(accounting outsourcing is your ally in managing payment dates.)
Disadvantages of Accounting Outsourcing
The only and the main risk is
- make sensitive information available to outsiders
- you must have to make good relation with the outsourced company
Why Outsource Accounting?
The outsourcing accounts provides services of accounting that not only reduce cost but also keep their business update from new accounting rules.
What is the main advantage of having good accounting?
The main advantage of having good accounting is
- maintaining business health
- fulfill obligations to the government, its employees, suppliers, and customers
Why is social good for businesses?
The e-social is a digital platform that unifies sending the information related employer to the employee. The e-Social digital platform offers:
- Practicality and agility
- provision of information
- Taxes guides
When is it worth having an accountant?
Companies that have more complex billing systems have very essential to have an accountant.
When do I need an accountant?
You need an accountant when you are going to start any type of business other than MEI.
Is it necessary to have an accountant?
The company may not necessarily require an accountant but it is the legal obligation to have an accountant who takes care of your financial support and management system. Either this accountant is hire within the company or through a company providing this service.