Updated: Mar 17
Nowadays, Businesses, Entrepreneurs and Start-ups find it difficult to enlist a qualified and certified accountant, particularly one with the correct abilities to set up their organisation's budget reports, oversee ledger activities, investigate monetary information, and set up the active regulatory framework.
Due to this fact, businesses might prefer outsourcing of accounting services to the company that comprises of right knowledge and qualifications. Also, the company who can perform the job more qualitatively and cost-effectively.
Key benefits to an organisation wherein business verticals can be outsourced to avoid additional cost. Due to budget constraints and in the midst of pandemic organisation's can perform outsourcing based on length and breath of respective industy.
Here’s how to do it:
Most of the businesses are of the perception that outsourcing of accounting is an additional and unnecessary cost for their business. However, this is not right at all. The savings that outsourcing engagements can generate is massive, as most companies can offer their services at the lower cost Besides, by outsourcing, companies save on paying the recruiting costs like salaries, taxes, office supplies and benefits for the full-time or part-time employees. You only pay for what you need.
2. Industry Expertise
Outsourced accounting professionals have experience working in corporate accounting departments they interact from controller to CFO level. Outsourced accounting firm have to be updated with the latest accounting practices while also ensuring that the financial statements are accurate and presented in the clearest way possible. They can easily share the new accounting trends, solutions, and tools. They have extensive access to training, courses, and they are participating continually.
3. Automation of Accounting
Most Accounting professional use automation software which saves time and further reduces risk. It further minimizes human errors. Further real time reports can be generated through automation of accounting process. Most of outsourced accounting professionals are highly qualified and well versed with the latest automation and accounting tools like Tally, Quickbooks, SAP and many more.
4. Tax Compliances
Outsourcing of Accounting services to professionals can assist companies to ensure compliance with changing financial and tax regulations w.r.t state and central tax regulatory laws. It can assist companies in avoiding penalties, defaults and utilize tax benefits by complying to the regulatory laws which would further help concentrate on core business activities.
5. Preparation of Financial Statements / Reports
Accounting professionals maintain financial statement by recording and updating all pertinent information while ensuring the accuracy and security of company’s financial data. Preparation of financial statement / reports for internal and external reporting require primary expertise of accounting and compliance wherein the team of certified accountants consolidates expenses and earnings for preparation of financial statements ensuring cash flow monitoring.
6. Financial Planning & Analysis
Financial planning and analysis require in-depth evaluation of organization’s financial position to assist in making the right business decisions. Outsourcing these services can give access to resources which can be accessed as per need, , simultaneously managing the functions like data mining, data collection and interpretation, Investor communication and reporting, cashflow forecast, planning budgeting and reporting.
7. Fraud and Forensic
The team of experts can assist in handling accounting responsibilities by protecting information and keeping it safe and confidential. They apply measures that prevent data security threats that exist, with impenetrable security systems which mitigate the risks of data breach, compromised security program or internal fraud.
8. Cost Accounting
With outsourcing of accounting services, companies end up paying only for the time and services that is needed. Outsourcing enables any organisation to scale up or scale down the resources according to your business' needs.
Right from being cost-efficient, flexible in terms of contracts or scaling the number of functions. Accounting is complex but a vital part for any business. It requires dedicated time, knowledge and resources failing to which may lead to non-compliance, monetary loss or closure of business.