The accounting function is essential in all businesses. Big corporations normally have an in-house accounting department, whereas small business owners may not find it economically feasible. Companies may also want to outsource their accounting function, in order to focus on revenue-generating activities and business development.
Five signs you need to outsource your accounting function:
- Your business currently does not have an internal accounting function.
- You do not have resources to establish an accounting and bookkeeping system.
- You have difficulty keeping adequate books and records.
- You spend too much time on bookkeeping.
- You have difficulties responding to enquiries from auditors.
If you answered “Yes” for most of the statements, you should consider outsourcing your accounting function. Your business can be more efficient and effective by outsourcing your accounting and bookkeeping function to professional service providers, who are reliable and are experts in the field of accounting. There is no doubt that outsourcing will bring you plenty of benefits.
4 Benefits for outsourcing your accounting function
- Compliance with rules and regulations
Your compliance risk increases if you are unfamiliar with the rules and regulations applicable to your business. For example, Cap. 622 Companies Ordinance in Hong Kong contains accounting and auditing requirements and Section 51C of the IRD requires the retention of trading records. If you have neglected these requirements, regulators will impose a financial penalty or remove your business license. By outsourcing your accounting function to professional service firms, you can be assured that your accounting and bookkeeping functions are compliant with the latest rules and regulations.
- Reduce time spent liaising with auditors
With bookkeeping service, your books and records will be properly kept. Your trial balance and ledger will be up-to-date, such that the Profit & Loss Statement, Balance Sheet and other financial information can be readily compiled for audit purposes. The audit process will be carried out more efficiently because financial records are clear, thereby reducing further audit queries and audit adjustment.
- Facilitation of group reporting
If you are a holding company, an external service provider can facilitate any regular or year-end group reporting. They can prepare consolidation schedules and group reporting packages. Moreover, companies under the same group will use consistent accounting and bookkeeping methodology. This reduces both the technical and logistical challenges of group reporting.
- Technical competency
By outsourcing your accounting function, you can save the cost of purchasing an accounting software license and training internal staff. Moreover, you can make sure your books and records have complied in accordance with international standards, such as the International Financial Reporting Standards. The external bookkeeper can assist clarify anything that is confusing about your figures and identify the cause of irregularities.
How hkMS can help:
With a good accounting and bookkeeping system, you can focus on your core business. Our bookkeepers are well-equipped with accounting knowledge and experience to keep your accounts updated and organized. Bringing on an external bookkeeper will be the right move for your company. Leave us an enquiry today and schedule a consultation. Let us provide you with the freedom to focus your core business.
Our services include:
- Designing and preparing customized management accounts and reports
- Preparing budgets
- Maintaining accounting records and cash flow statement
- Preparing financial statements in accordance to international standards, and attending to the audit enquiries
- Disbursement management: reviewing expense claims, processing payments
- Designing and implementing a tailor-made accounting system appropriate for reporting requirements
Talk to our experts
At hkMS, we are delighted to assist you with the accounting and bookkeeping requirements under all the regulations.
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