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Outsource Accounting – 7 Reasons
  • December 28, 2013
  • admin

Why Outsource Accounting? 7 reasons to Outsource Accounting will help you take the correct decision.

  1. Focus on your Core BusinessOutsource Accounting to grow your business. You are a businessman and your focus and concentration should only be on your core business activities which will increase your business and which is your sole motive. By outsourcing your accounting department, you will be relieved from all the accounting worries and would be able to devote your precious time for your core business activities.

  2. Let Experts do the WorkAll are not good at everything. It is necessary to understand that Accounting is a skilled job and needs to be handled by the Expert Accountants who know accounting better than others. Let Experts do the Work by outsourcing accounting and you will for soon realize that it helps a lot to let the experts do the work.

  3. Save MoneyOutsource Accounting is cost effective option than to hire a full time Accountants in the case of SMEs. SMEs do not have full time work load to justify full time accountant. Also those accountants are mere bookkeepers, whereas, professional accountants are much better in their work than mere bookkeepers. Outsource Accounting works on the concept of shared service center wherein one full time accountant’s time is shared among more than one clients which results in considerable cost saving. Though the hourly fees in case of outsourced accounting may be more as compared with full time accounting personnel, the total annualized cost of services is definitely less in the case of “Outsource Accounting” option. Try for yourself and Save Money.

  4. Get Your Documents organizedOutsource Accounting and stay organized as it helps in keeping your accounting information and documents organized. Professional accountants know the way accounting information should be organized and preserved which leads to easy and quick retrieval of information when needed in the future. Normally, in case of any country, the tax laws prescribe maintenance of accounting records for 7-8 years, which requires the accounting records to be in very good shape and absolutely organized. Examination of accounting records, filing of records and indexing of documents help in maintenance of accounting records properly for the statutorily required tenure.

  5. Meet the Statutory Deadlines and avoid penaltiesOutsource Accounting helps in keeping your accounting records organized. Professional accountants have the necessary system in place to keep a track of statutory deadlines and they know the consequences of failure to meet deadlines. Professional accountants also understand the time which goes into any statutory compliance before filing and inputs required from accounting viewpoint for statutory deliverable. “Outsource Accounting” option surely helps you to be on the top in meeting statutory deadlines and to save money on payment of delayed payment interest and penalties for late filing. Bad statutory track records also spoil your background check which is far more important for any business as it results in sales promotions and business development. Timely statutory compliance should never be seen only as statutory requirements but it helps in business growth. Remember that you are not saving any cost by statutory compliance but you are surely loosing your business by not doing the same in timely manner. Develop zero tolerance on compliance, be compliant and grow your business.

  6. Be prepared for the Tax Audit / AssessmentNormally tax audits and assessment follow the accounting period at least after 1 to 2 years. Closure of books of account and filing should not be seen as closure of accounting period unless tax assessment is not finalized. Income Tax Department requires books of accounts and accounting records during tax audit and assessment proceedings. Unless your books of accounts and accounting records are organized, indexed and maintained appropriately, it becomes difficult for you to face such audit and assessment. By exercising “outsource accounting” option, you are making yourself prepared to face any audit and assessment by taxman.

  7. Get Strategic Financial ReportsOutsource Accounting and stay on the top of your business. Outsource Accounting not only helps you in maintenance of your books of account but also provides you valuable strategic financial information by way of reports which help the management to take the right business decisions at the right time. Budgets, Actual v/s. Budgeted figures, Expense by Vendor, Income by Customer / Client, AR & AP Reports, Aging Analysis, Bank Reconciliation Statement, Credit Card Reconciliation Statement, Collection Report and such huge collection of reports can be obtained by opting to outsource accounting.

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