Outsourcing accounting functions is becoming a growing trend today because it delivers cost-effective results and lets businesses focus on their core business capabilities.
Michael Adams, principal of accounting firm Adams Johnston, cites the lower cost of labour as one of the many obvious benefits of hiring offshore accountants. “To give you an idea, we can employ seven to eight qualified CPAs in Manila for [the cost of] one qualified CA-CPA in Australia,” he says. “It makes quite a compelling argument for setting up an office overseas, if it can be managed properly.”^
There are four major accounting tasks that your company can outsource:
You can let a virtual assistant or administrative assistant handle data entry, transcription, scheduling, and other administrative tasks.
Write the daybooks which consist of sales, receipts, purchases, and payment. They are responsible for ensuring that all financial transactions are recorded and up to date so that the accountant may prepare the income statement and balance sheet.
Your accountant can help you pre-fill data to complete your tax returns and declare relevant income. This makes it more convenient and ensures accuracy as there will be fewer discrepancies.
- Tax preparation
Preparing your income tax returns can be made easier and efficient. Just send your completed checklist (income and expenses for tax deductions), with documents and supporting information and they will take care of the rest. Your accountants can also answer your tax questions and work through every possible tax deduction.
If your company uses a cloud accounting software, it will be more convenient for you and your accountant as data are available online – your accountant can access your data at anytime. This helps you monitor your business performance better.
With many outsourcing service providers today, your company can have access to accounting experts without the hefty price tag.
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 896 522, and download our e-book.