Why is there a Demand for Outsourcing Accounting Services?
Today, the government and its supervising agencies are becoming more and more strict on companies’ financial transparency and regulatory compliance. Keeping business owners’ records in accordance while managing their business to stay afloat this puts a burden on them.
Business functions that can’t be charged to a single individual are administration, production, marketing, general management accounting, and finance. Usually, there is no single person who can juggle all these tasks altogether. The company doesn’t have enough time and resources to hire and train people to fit these roles.
This creates a demand for outsourcing services. Businesses are now turning to outsource their business functions to solve the piling of complex business responsibilities. Outsourcing the accounting function, most especially, is gaining popularity. Outsourcing accounting services has proved to provide advantages and convenience for business owners.
1. Experts Handles Complex And Accounting Duties
Regularly revised and updated the tax rulings and financial reportorial requirements. With many different circulars and standards to go over like Bureau of Internal Revenue (BIR) rulings, Securities and Exchange Commission (SEC) circulars, and Philippine Financial Reporting Standards (PFRS), it can be quite overwhelming for business owners or for company accountants to handle it themselves.
By outsourcing an accounting firm to take on these responsibilities, the company is ensuring that experts are handling the company’s books at par with the standards. This way, you can be confident that only professionals with industry-specific skills and proficiency will be managing complex and ever-changing compliance requirements.
2. Eliminates Hiring Problems
By outsourcing some of your financial functions like bookkeeping, accounting, payroll, and taxation to an accounting firm, the company eliminates the costly and time-consuming hiring process to employ and retain employees for an accounting department of your own. Outsourcing accounting services also reduces the risk of resignation and replacement. It provides convenience and continuity of operation for the company.
3. Lowers Operating Costs
Keeping a company accountant of your own can be a bit costly. The company is required to pay for Social Security Services (SSS), Home Development Mutual Fund (HDMF, formerly Pag-IBIG), PhilHealth contributions, and 13th Month Pay, in addition to their basic salary. You would also look after their meal and travel allowances, and the cost of the additional facilities and utilities they will occupy and use.
Outsourcing eliminates these costs and expenses, as it does not require any of these many additional expenses. Outsourcing has been proven to be more efficient in cost, time, and effort than maintaining your accounting department.
4. Provides Independent Financial Perspective
Accounting firms provide financial advisory services. By analyzing patterns and trends in your financial data, professionals from accounting firms can offer an unbiased and qualified perspective of your company’s financial health. These outsourced accountants can offer suggestions on how to better smoothen your operations, and on developing forecasts and strategies. Experienced insight by outsourcing can solve existing issues and problems.
5. Improves Productivity
Specific financial functions handled by team experts, business owners are relieved to focus more on other business functions and their management. With these aspects all taken care of, productivity and effectiveness are expected to follow. Outsourcing accounting services frees up valuable time and allows for better work management.
Starting a business and handling the financial aspect can be a formidable barrier if faced alone. It is why accounting professionals are ready to handle the accounting burden for you. 3E Accounting is your one-stop accounting service provider in the Philippines. With experienced professionals who offer compliance services on both local and international avenues, you can only expect efficiency and effectiveness in handling your books and reportorial issues. Check them out today!
