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Why Outsourced Accounting Services are Beneficial for a Company?

Nowadays companies and new start-ups are looking for getting access to high quality accounting services and advice on market driven strategic financial decisions. Accounting Services are the specialised service which handles accounting responsibilities necessary for the companies. Outsourced Accounting services firm can manage Accounting, Bookkeeping and Financial activities through professionals (CAs) with in-house finance department experience.

In India, Outsourced Accounting Services are continuously helping Entrepreneurs, Micro, Small and Medium Enterprises ( MSMEs), and Industries in India to reduce operation costs, raise the standard of adhering to accounting principles, ensure compliance and create an opportunity to become more competitive.In situation, businesses with limited capacity, time becomes the most essential and valuable asset of all, then outsourcing accounting services can be relied on for achieving and managing the business efficiently.

What are Outsourced Accounting Services?

An Outsourced Accounting Service means availing a professional service that provides an experience of a fully functional accounts department. The series comprises business activities from basic accounting of financial transaction to tax management and financial reporting. It is difficult to find a professional with the skills, time and resources to analyse accounting data, maintain cash flows, and manage financial operations. Therefore, an Outsourced Accounting Service firm can offer a customised package for handling the function of an accounting department.

Types of Outsourced Accounting Services

The following types of functions that an Outsourced Accounting Services Firm can manage are:

Management of Accounts Receivable/Accounts Payable

A business must track the debts to business, sale figures, debts to suppliers, & flow of money going out and going in of a business. Some of the following types of activities carried out under this service of accounting are:

• Database of Invoices (imaging and storing)
• Expense reporting
• Online payment approval
• Handling of vendor inquiries
• Order management
• Customer billing and payments
• Cash forecasting and reporting
• Outstanding Debt management

Book-Keeping Service

It is a continuous process of maintaining records of the financial activities of daily operations. With the advent of cloud-based software technology, the process of bookkeeping has become easier. Bookkeeping can help make comprehensive reports that improve the quality of financial statements. Some of the activities are listed below:

• Account Balance Statement;
• Balancing Ledgers;
• Payment of taxes;
• Assessment of Operating cost;
• Installation of Bookkeeping Software;

Preparation of Interim/Annual Financial Reports

The preparation of multiple financial reports of the company requires expertise and knowledge of financial reporting standards (International Financial Reporting Standards and Indian Accounting Standards). The interim financial reports can help prepare the annual financial statements. These reports can track cash flows, determine taxes and ensure the accuracy of the financial data. Financial reports are prepared to disclose the organisation’s financial performance to shareholders, board members and potential investors.

Cost Accounting

Cost accounting is an essential part of the accounting process for recording, determining and reporting the overall costs (both variable and fixed) associated with the product manufacturing and survives. The primary goal of cost accounting is to influence the pricing decisions to increase the company’s net profit margins.

Financial Controller Service

An Outsourced Accounting Firm uses its expertise in evaluating the accounting &bookkeeping processes and overall management of the business. They provide strategicguidance and expert advice for scaling the growth of a business.

Financial Planning and Analysis

The outsourced firm can perform budgeting, forecasting, integrated financial planning, breakeven analysis, financial data analysis and preparation of management reports. These solutions can improve the management of finances of the company by implementing corporate strategy planning.

Forensic Accounting

Forensic accounting adopts various methods to detect fraudulent activities, which can damage the company’s position. These accounting services can help restore the records and missing documents. It also analyses the company’s internal management, subsequently ensuring productivity. The outsourcing firm take efforts to put a KYC^[1] and AML Compliance framework in place.

Tax Filing and Reporting

The outsourced service can help you file taxes, deductions and exemptions with prescribed format. It can help company adhere to tax laws and rules. It significantly reduces the error in the computation of taxes and reporting.

Payroll Service

With the installation of the latest Payroll Processing Software, a company can automate their payroll process after entering fewer details and reduces the risk of mistakes in salary credit and filing ITRs.

Significant Benefits with Outsourced Accounting Services.

The following benefits can be achieved through Outsourced Accounting Services are:

Affordability and Exceptionality

Outsourced Accounting Services have become boon for a small or medium-sized company or start-ups as they are not in a position to allocate funds for hiring experienced accounting professionals.You get top-notch service through an Outsourced Accounting Service at an affordable cost.The accounting services provide exceptional outcomes which couldn’t have been achieved without the services being outsourced.

Improve Efficiency

As a business grows,you will invest more time managing your finances instead of scaling the business. They ensures sustained long-term growth, enabling business owners or entrepreneurs to have a robust and more focused approach towards achieving the primary objective of their businesses.An Outsourced Accounting Services firm can handle multiple accounting functions simultaneously.

Automation

Most businesses use accounting software for automation to reduce human errors and save time. By installing automation software, accountants get real-time reports, and timely assessment of reports can be performed. They are capable of diagnosing and resolving the problem at the early stage.

Premium Accounting Services

Outsourced Accounting Services provides the facility with continuous guidance from an expert and veteran accounting professionals from scratch to major investment decisions. An external company acts as a significant part of a business function. A professional support from highly qualified and experienced Chartered Accountants Service and Company Secretaries. They use the latest accounting software and tools to ensure that your data is accurate and secure, which can be a real difference-maker in the company’s success.

Conclusion

From the above discussion, we can conclude that outsourced accounting services have become an essential part of a business enterprise for reducing overhead expenses and can significantly increase efficiency simultaneously. An Outsourced Accounting Services can offer sector-specific solutions in Financial, Technology, Manufacturing, Shipping and Logistics, Retail and Wholesale, Restaurant and Hospitality, and Telecom Services.

Read our Article:10 Benefits of Outsourcing Accounting Services