Top 4 Reasons to Outsource your Accounting

Let’s be real, accounting and bookkeeping for your own business can be quite a herculean task, especially if you are not a professional. Even Certified Public Accountants (CPA) need to constantly study because of frequent updates on BIR regulations and Tax Codes. If you attempt a DIY, you will find yourself asking, “How and when did I get this receipt and what can I use it for?” Though basic bookkeeping may be managed, especially if you are an organized person, you still run the risk of failing unexpected audits from the BIR.  All financial statements, records, and journals follow a specific format. When improperly followed, it could lead to major discrepancies in your logs, resulting in stiff penalties. The worst-case scenario is it can put your business at risk of closure for not properly complying with the BIR while landing you a seat in court for intentional tax evasion. If you are a micro, small, or medium enterprise, hiring an in-house accountant might cost you a bit too much as you’d have to pay for their benefits, bonuses, leave credits, and office space apart from their professional fees. The overhead costs of hiring your own CPA are too big a burden to bear. Don’t worry; there is another option for you: Accounting Outsourcing. Read on to find out why this option is the best for your business.

1. Lessen your troubles with expert advice

Accounting outsourcing services work similarly to a BPO. Instead of you doing all your filing and record-keeping or hiring in-house CPAs, an accounting firm independent from your office will do so for you. Instead of frying your brain trying to crunch numbers and organize your finances, all you have to do is compile all receipts, invoices, and transactions, just forward all the paperwork to your retained accounting office. The expert outsourced team will do the work for you. Most accounting firms offer all-in services, including:

 

  • Bookkeeping
  • Preparing Financial  Statements and Financial Analysis
  • Management Accounting
  • Tax Accounting
  • Payroll services
  •  Auditing
  • Renewal of Business Permits

2. Reduce costs and minimize penalties

If you feel particularly comfortable with your bookkeeping skills, you may opt to pay for management accounting, tax accounting, audit, management accounting, or financial analysis. You can always make arrangements with the accountant depending on your business and financial need. Moreover, you can request only the services you need when you need them. This is less costly than having an in-house CPA. However, if your budget allows for complete, full-scale services, save yourself the headache and go all in. Most of all, hiring an expert assures you do everything correctly. As a result, you won’t miss any deadlines or pay stiff penalties for unintentional miscalculations on your tax dues.  

3. Assure BIR, DTI, and Government Guidelines are properly followed

Outsourcing accounting work to professionals helps you manage your business’s finances. Most of all, this collaboration ensures that all your legal and business documents are in compliance with your LGU, the BIR, the DTI, and other government offices. CPAs ensure that there are no discrepancies and miscalculations of the statement, giving you a likelier chance of passing all government audits. Hiring a pro also ensures that your taxes are properly accounted for in relation to your income and expenses. With their help in putting all these records in order, you can also base your projections on data and make educated decisions.  

4. Saves you a lot of time

The biggest gain in outsourcing an accountant or accounting office is you save time! In the business world, time is money; and it is hard to focus on the workings of your company when your head is stuck in accounting books that you have no clue how to organize correctly. It is okay to seek help! Though you will have to shell out professional fees, the return on investment is higher as you have more time to grow your brand and improve your products and services.  

Final Word

Accounting is a practice that is not as easy as it sounds. It requires conscientiousness, organization skills, a good grasp of business/ tax laws, and mastery of accounting principles, all of which follow government standards. When you are stuck on a problem you don’t know how to solve, hire someone who can! Partnering with a reputable accounting firm offers you more cost-efficient services. Best of all, they give you peace of mind knowing that you will not be penalized when tax and audit season comes. If you require assistance, give us a call. We offer a free-30 minute consultation so we can discuss your specific needs to protect your business’s financial health.

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