According to a survey, 37% of companies outsource their accounting services.
Here’s a quick look at six types of outsourced accounting services for which you can hire an offshore firm:
1. Bookkeeping Service
Bookkeeping is the recording, classifying, and organizing of the financial transactions of a firm. It‘s a task that can become hectic and tiresome.
Here are some benefits of outsourcing it to a bookkeeper:
You won’t have to worry about recording financial transactions when your business grows.
You can save money spent on training employees on bookkeeping techniques.
You can also delegate bookkeeping to an offshore bookkeeping service so that your employees can concentrate on core business tasks that require their attention.
2. Payroll Services
Payroll services include calculating each employee’s salaries and applicable tax, printing and delivering checks, etc.
You can handle payroll management by outsourcing it to an offshore accounting firm that can complete it on time with diligence.
The benefits of offshore outsourcing the payroll processes are:
Reduce mistakes by using the latest software.
Ensure compliance with the latest tax laws and regulations.
3. Account Receivable and Payable Services
Accounts receivable is the amount of money you should get from your customers. Similarly, accounts payable is the amount of money you owe a vendor or a seller.
Now, monitoring your firm’s cash flow is important as you need to know where and how you’re spending money.
By outsourcing accounts receivable and payable, you can ensure that an experienced accountant handles your cash flow. This can greatly improve the process and save time and resources.
You can also close your books on time as offshore accounting firms usually submit accurate accounting records on time.
4. Financial Statement Preparations
Preparing financial statements includes creating a balance sheet, income and retained earnings statement, and monitoring cash flow.
Financial statements need to be accurate and transparent as even a small mistake can significantly impact your business — you’ll have to handle them carefully.
Offshore accounting firms can take care of your financial statement preparations either periodically or yearly, based on your business needs. These statements can aid your firm during disputes or any other legal case.
5. Year-End Accounting
Year-ending accounting involves collecting financial statements and past due invoices, cross-checking payroll and bookkeeping, organizing business receipts, etc.
Your year-end accounting can be hectic and stressful, making your accountant less productive.
By offshoring accounting services, you can distribute the tasks among a larger group and reduce the workload on your accountants. This way, they may complete all tasks perfectly before the deadline.
6. Tax Preparation
Tax preparation involves calculating, preparing, and filing income tax returns- especially during the year end. You’ll have to create and balance accounting books, prepare tax and financial reports, file returns, and more.
You can outsource tax preparation to offshore financial accounting firms during peak periods and reduce the workload on their accountants.
Additionally, a good CPA firm (Certified Public Accountant) may help reduce the tax you pay as they’ll usually be updated with new tax laws and concessions.
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