The Pros and Cons of Outsourced Accounting Services

Outstanding benefits when businesses hire outside services to handle financial and accounting issues within the business. Not all businesses can solve economic problems that arise during the period well on their own. Therefore, they chose to hire external accounting services to optimize costs and limit risks.

1. Should you hire an outside accounting service?

Currently, many businesses choose to hire outside accounting services to perform their accounting activities. These may be newly established businesses that do not yet have an operating accounting department. At this time, using outsourcing services is the most optimal choice. Accounting service companies will help businesses with difficult issues in the accounting process and preparing financial reports during the initial start-up period.

Accountants need to understand accounting operations such as debt accounting operations, tax accounting operations… to manage the bookkeeping system and grasp the financial situation of the business. However, the cost of hiring an experienced accountant who can handle these tasks well will be a significant cost for the business.

In addition, companies also choose to cooperate with accounting service providers when they need advice on new regulations and decrees related to year-end corporate tax finalization. At that time, experienced accountants will help businesses overcome difficulties and limit financial risks.

Outsourcing Accounting Services For Businesses: Pros And Cons

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2. Benefits of hiring external accounting services for your business

Let’s take a look at the typical benefits when businesses outsource services.

2.1. Hiring an accounting service saves some costs

The cost to operate an accounting department is not small. Businesses not only have to pay salaries to employees but also have to pay costs for fixed assets. Meanwhile, if a business hires an outside accounting service, the cost is much lower but still ensures work progress.

2.2. Books and documents are guaranteed to be absolutely safe and confidential

Many businesses are still concerned about the confidentiality of accounting service companies because it is outside the scope of the business itself. On the contrary, the security of the accounting service provider is very high. In addition, the contract for using accounting services also has strict confidentiality provisions. Therefore, businesses absolutely do not have to worry about the security of documents and books when hiring outside services.

2.3. Hire an accounting service to ensure the highest quality of work completed

Accounting service providers always ensure the quality of work is completed accurately and on schedule. Problems that arise are also promptly handled by the staff.

2.4. Businesses will be supported professionally and dedicatedly

Maybe you don’t know, accountants in accounting service companies are people with many years of experience in the profession. They are not only professionally good but also have practical experience, working directly with tax authorities. Therefore, businesses will receive professional and dedicated support when choosing outsourcing accounting services.

The Pros and Cons of Outsourced Accounting Services for Businesses

3. Drawbacks of hiring external accounting services for your business

• Your accounting needs may be very specific, specialized or unusual. If so, hiring an outside accountant may cost more than hiring a permanent accountant.
• When you hire someone, you are free to assign tasks that they must perform. Outsourced services often come in a set package of services that may not always suit your needs.
• The variety of tasks within the company is increasing. Outsourced staff will either not have a complete understanding of these tasks or will not have the time or skills to meet your needs. Having someone on the ground means business processes run smoothly, quickly and easily adapt to new company needs.
• When outside accountants work, they may follow a process that may not be the same as your company’s processes or even incompatible with the way your business operates. By choosing a full-time accountant, you can also (to some extent) choose how to work for your business.

4. Services that businesses should outsource in the field of accounting and tax

Some of the outsourcing services most used by businesses today include:

4.1. Full accounting and tax services

Hiring a full-service accountant is a solution to help businesses handle all economic operations that arise during their operations. This type of service helps businesses optimize costs, achieve high accuracy and security. The subjects of comprehensive accounting and tax services are very diverse. Newly established businesses that do not have enough resources or large businesses that want to share the burden of internal accounting can also use this service.

4.2 Consulting services on tax finalization issues

The busiest time for accounting service companies is tax settlement season. Not all accountants can handle tax-related issues and explain to tax authorities well. Therefore, the most optimal choice for businesses is to hire a tax settlement service to limit financial risks.

Enterprises should base on the characteristics of their business activities to choose the most suitable accounting outsourcing service. In addition, businesses should only cooperate in hiring accounting services with reputable and professional service providers. Hopefully the information from S4B will help businesses have a more multi-dimensional view of hiring accounting services and come up with appropriate policies.

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S4B Vietnam

• Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
• Tel: + 84 24 3974 4181
• Email: service@s4b.com.vn

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