As a newly passed CPA and a newbie to the corporate world, we often meet a lot of clients at a critical turning pointing in their growth phase. The main problem is improper way of bookkeeping and updating of financial records which leads to greater problems especially in compliance to government or statutory agencies.
It doesn’t take long for a new business owner to understand that accurate and up-to-date financial records play an important part in the success of a business. At the same time, the daily tasks required to maintain these records often fall to the bottom of an owner’s to-do list of priorities. After all, business owners didn’t go into business to become bookkeepers but as our Tax Consultant says “Business owners should focus on the main operation of the business which is to generate sales and profit”.
Hiring bookkeeper and accountants to handle the bookkeeping and accounting tasks in-house for the business is one solution to the problem, but it is not always the best solution. Here are five good reasons why outsourcing these services is better:
Privacy
More than internal financial records, there are few matters that a business owner must not disclose to maintain confidentiality. It is not easy to have someone who is trustworthy, willing to stay long-term and keeps information private and secured. An in-house bookkeeper could be aware of the financial status and it will be risky if he/she will reveal such to competitors or even the public which may be cost against the business itself. Outsourcing bookkeeping and accounting to a third party will give peace of mind to the owner who will not anymore mind the security issues regarding the said confidential business matters.
Quantifiability
Once the business starts to grow and will require full force of bookkeeping and accounting services, hiring outsourced services will be a great help to the rapid growth or changes. With the assistance of controller oversight and one-stop shop services being offered, the business owners will be able to scale to needs, without the need to hire or train additional staff.
Training and Management
Having outsourced bookkeeper and accountant has a big impact to the company for being a reliable source of knowledge when it comes to updated features on accounting systems or comprehensive knowledge of current tax rules or reporting methods. Thus, the business owners will not be obliged anymore to train or manage in-house bookkeepers and accountants since they have also limited familiarity of the systems and prevailing rules.
Maximize Your Resources
It would not be wise for business owners to focus on its own bookkeeping and accounting just because they are saving money by doing so because valuable time and efforts are being used instead of growing the business. When they outsource their bookkeeping, they can concentrate more on running the business and not on technicalities concerning financial records and reports.
Tax and Audit Ready Financials
Accountants, the Bureau of Internal Revenue and banking institutions will experience smoother transactions when financial records are prepared by outsourced professional bookkeeping services. In this case, there is no concern or questions over the accuracy and integrity of the financial data. Outsourced bookkeeping services help make sure there is no doubt about the data specifically when a business owner needs to provide financial statements to the bank, to satisfy investor reviews or to share information with the BIR.
Whether a business needs current financial figures or cash flow, keeping up to date on accounting tasks is essential. An easy solution is to outsource bookkeeping to a professional service.
If you have any further questions, please feel free to call us on (+632) 491-77626 or contact via email at social@xmcasia.com.