OUTSOURCING OF BOOK KEEPING & ACCOUNTS
OUTSOURCING OF BOOK KEEPING & ACCOUNTS - A tool to cut cost and increase efficiency.
Whether you are owner/CEO of MSME or of a newly set up business entity of foreign company in India, you need to prepare books of accounts of your organization in timely manner and duly complied with.
Now a days book keeping does not remained a simple double entry phenomena. It not only requires knowledge of conventional accounting concepts but also requires deep sense of prevailing accounting practices in the concerned industry and accounting standard etc.
Moreover, while book keeping one has to comply with various day-to-day statutory compliances such as GST/TDS etc. It requires businessman to hire not only qualified accounting staff but also multiple consultants who can advise about day to day compliances as required under the law. Thus the entrepreneur whether small or MSME has to incur a huge busted cost on book keeping and statutory compliances which ultimately not a profit-making activity of the business.
Due to this reason, you can consider outsourcing a good accounting firm which holds not only expert accounting staff but also various consultants under one roof only. It is most easy way to maintain books of accounts of your business without any worry of mistake, violation of applicable Rules & Regulations, and of timely compliances.
Benefit of outsourcing of such services are endless at the same time it is cost effective and increase efficiency of the organization. Some of the advantages are as under:-
1. Cost-Saving Accounting Services
In general, most entrepreneurs consider outsourcing of accounting services would be an additional cost to their business. However, it is not so. It is other way round.
Recruiting manpower of requisite skill and experience remain a challenge for newly set up business entities in view of corresponding financial cost. At this juncture, outsourcing of accounting services to a competent Chartered Accountant firm will provide immediate relief. They will not only takeover entire responsibility of maintenance of books of accounts but will also take care of various legal compliances in timely manner. The management can also have MIS from the service provider on regular interval. It will save money as the entrepreneur gets the services of competent and qualified personnel at a very economical price vis-à-vis recruiting of manpower on full time basis and creating inhouse infrastructure facilities.
2. Consultancy & Advisory Support
A good Chartered Accountant firm while rendering accounting and book keeping services, normally also provides consultancy on regular matters of direct, indirect taxes, manner and method of maintaining records in back office and about timeline for various compliances. It is an added advantage of outsourcing of accounting and book keeping to a CA firm.
3. Updated technologies support for services
Smart work is a key to better business. Going with the same lame technology may cost in term of time & money to an organization. Whereas such service providers have access to new upgraded software’s which allow error and hassle-free services. Upgrading the internal system may cost much more to business houses in terms of imparting training and annual maintenance. Therefore, the outsourcing is especially beneficial to the newly set up MSME/ newly set up business entity of foreign company in India who can’t afford personal and monetary inputs required to implement these systems.
4. Timely compliances with assured Quality
In the modern era of technology, legal compliances are also changing and increasing with the speed of light. It generally becomes difficult for entrepreneurs to keep track of all the changing laws and acts those may have direct/indirect effect on their business. These may invariably call for interest for late compliance, financial penalties and sometime even both prosecution and fine. Here outsourcing comes to the rescue. The service provider assures that the assignment is carried out in compliance to the applicable Rules & Regulations and that to on time. They focus more on quality of the service provided by them and assure that the business does not suffer from any legal infirmity as it is their responsibility to ensure that the service provided is error-free and completed on time.
5. Focus on major business concerns
Paying attention to routine jobs like book keeping, accounting, compliances to various laws and alike may distract the management from their core business activities and place the gain in opponents hands. These jobs if outsourced to subject experts save time, energy, cost and also provide the management to focus on their main business for wealth maximization. Outsourcing is a key reason for increasing the organization’s overall productivity because it relieves the management and its team from unnecessary mundane routine work concentrating on other key areas of growth.
6. Overall Control and Safety
Irrespective of size of business or nature of business, the management always desire that the sanctity of books of accounts remain confidential unless until it is required. For this purpose, it is desired that no staff members/vendors/competitor should have access to their accounts and financial results. To achieve this goal, outside agency plays an important role as they assure secrecy of number and they locked the figures at regular intervals so that nobody can modify them. It assist in preventing anti date entries in books of accounts, manipulation resulting in fraud and disclosure of financial results to the undesired persons.
7. Technical support during Investigation /Audit etc.
A competent outsourcing agency, invariably provide necessary help to the management during the course of investigation by any Government Agencies likewise, annual audit of accounts by the statutory auditor of the organization as may be appointed by the management. Inhouse team howsoever strong it may be, still require help from consultant in this regard. Therefore, outsourcing of accounting job with predefined service scope to the competent CA firm is inner way is always a “first aid” without any additional cost and stress.
8. Overall Effectiveness:
TIME & MONEY are the lifeblood of Business. With the rapid pace of technology advancements, IT security risks, and budget-conscious customers, Outsourcing can help you save both time and money by allowing you to pay for the services you need only when you need them. You can take advantage of advance technology without even investing by yourself. It also allows you to have lesser permanent staff reducing your overall overhead costs.