Among all the games in the playground, the seesaw symbolizes accounting services best. Although there will be times when either cost or profit is higher than the other, it is critical to balance both.
Outsourcing a third-party organization to manage your business’s affairs will benefit your company. Bookkeeping centers on documenting and organizing financial data, while accounting is the interpretation of that information. Doing these accurately helps a business handle its cash flow, meet its financial obligations, and plan its investments, which are all essential to sustaining a company.
4 Main Types of Accounting
1. PUBLIC ACCOUNTING
Public accounting is the most comprehensive type of accounting. It specializes in management services, bookkeeping, and analyzing finances. Apart from that, it also handles tax preparation, creating accounting system designs, identifying financial errors, and compensating employees.
2. GOVERNMENT ACCOUNTING
This type of accounting focuses on government-related services. It guarantees that all expenditures and revenues follow the law, and it is responsible for creating a budget as well as managing government assets.
3. MANAGEMENT ACCOUNTING
Aside from recording and analyzing the business’s financial data to make the budget, management accounting is also in charge of cost management, asset management, and performance evaluation.
4. INTERNAL AUDITING
Internal auditing examines financial waste, fraud, management practices, and mismanagement. It ensures that the business abides by the laws and regulations. There are various specializations that include different fields of auditing, namely environmental auditing, technology auditing, and compliance auditing.
IMPORTANCE OF ACCOUNTING
WHO NEEDS ACCOUNTANTS AND BOOKKEEPERS?
1. SMALL BUSINESSES
Most small businesses assume that they do not need accounting in their company. However, it is during this early phase of the business that it is most vulnerable. In fact, the absence of an accountant is one of the main reasons why small businesses fail even before they get the opportunity to grow.
2. COMPANIES STRUGGLING TO HIRE
Hiring an experienced and affordable full-time accountant is difficult and may take time. Outsourcing will not only solve these problems but might also exceed clients’ expectations.
3. GROWING COMPANIES
Business growth means more responsibilities, and outsourcing makes it easy to scale up and meet demands without spending more than necessary.
4. NOT-FOR-PROFIT ORGANIZATIONS
Accounting for charities or the not-for-profit sector is different from working for a private institution. This requires a more in-depth understanding and expertise about the industry and its purpose in order to further its cause, not to mention other charity-related tasks like managing donations, tax-deductible receipts, recording and approving of programs, managing grant funding, and reporting annually to regulatory bodies.
5. ANYONE WHO NEEDS TEMPORARY HELP
Contractual service is ideal for individuals or companies that need short-term assistance.
WHEN TO OUTSOURCE ACCOUNTING SERVICES?
1. WHEN FORMING YOUR BUSINESS
2. WHEN WRITING YOUR BUSINESS PLAN
Business plans are not prepared by accountants alone but by the whole management team. However, their expertise is needed because a good business plan includes necessary details about the company, its products and services, market analysis, strategic implementation, financial forecast, management structure, and an appendix.
An accountant’s insights will ensure that all business information and strategies, especially those regarding the company’s finances, are not only accurate but also cohesive, feasible, and time-bound.
3. WHEN COMPLYING WITH TAXES
4. WHEN AUDITING
3 THINGS TO CONSIDER BEFORE OUTSOURCING
1. ENUMERATE YOUR GOALS AND THE SERVICES YOU NEED
Before reaching out to an outsourcing company, knowing your goals and listing all the support and services you need will enable you to choose the right accounting package for your business. This will prevent you from spending your finances on services that you do not currently need.
2. WORK WITH A COMPANY WITH ALIGNED VALUES
Business is business, but working with a firm that does not share the same vision and values as you can create future conflicts. Put your trust in a company that does not only produce results but is also guided by the same principles you practice.
3. CHOOSE SOMEONE WHO UNDERSTANDS YOUR BUSINESS
A “yes” person may make business discussions seem easy and fast, but an accountant who understands your business will not just agree to everything you want them to do but rather discuss what your business truly needs and make suggestions if necessary.
There are times when companies are confused about the service they need. Accountants who can identify what your business lacks will probably be the same experts who are capable of tailoring unique solutions to help it grow.
WHY OUTSOURCE WITH THE REMOTE GROUP
ACCOUNTING AND BOOKKEEPING ROLES
- Keeping records of the business’ financial accounts
- Updates financial systems by documenting a hard copy of the financial data or by using the network’s financial accounting software
- Monitors the accounts’ payment and receiving processes
2. TAX ACCOUNTING
- Deals with the business’ tax
- Gives the best tax claim advice and protects the company’s finances from unnecessary taxation
- Helps in fixing return issues
3. CHARTERED ACCOUNTING
- Specializations cover various areas from auditing to management
- Usually a member of the professional financial body
4. FORENSIC ACCOUNTING
- Tracks missing funds recorded in the financial report
- Works together with law enforcement agents
5. FINANCIAL CONTROLLER SERVICES
- Serves as the commercial department’s head
- Assigns tasks to employees and oversees the staff
- Deals with new clients
- May perform both external and internal auditing tasks
- Checks the accuracy of accounting work
6. ACCOUNTING AUDIT
- Provides detailed financial information about the business
- Validates the accuracy of the financial statements and reports
7. BANK RECONCILIATION
- Improves the business’ payment system by supervising financial transactions
- Creates strategies on how to resolve expenditure issues and exclude duplicates
- Manages financial documents
8. ACCOUNTS PAYABLE
- Ensures accurate bookkeeping and finds any discrepancy
- Provides expenses cut down and protects the business from fraud
9. ACCOUNTS RECEIVABLE
- Maintains the accuracy of tax rates and regulatory information
- Keeps employees’ financial records, including income, deductions, and bonuses
10. PAYROLL PROCESSING
- Boosts the company’s collection rate, reduces payment periods, and guarantees fast processing of invoices