We tend to provide outsource accounting services to all levels of business entities and helps to prepare financial statements to better depict their financial position.
Six Reasons Outsourcing your Accounting Operations is the Right Choice
1. Better use of time:
- By outsourcing your accounting operations, you free up valuable time that can be better spent elsewhere. Pouring over the books on back-end office operations can be a huge hassle that takes away precious company time. This time can be better spent on daily operations and bringing in new customers. Get the distractions of in-house accounting out of your office by outsourcing your bookkeeping.
2. Cut down on costs:
- Outsourced accounting operations save you money by eliminating costly benefit packages to a full-time or part-time employee. When you outsource accounting, you only pay for the actual accounting, nothing else. This saves in productivity costs as well as payroll costs. The cost benefit analysis of outsourced accounting vs. in-house bookkeeping can save up to 40% in monthly costs.
3. Reduced Fraud:
- With Outsourced accounting small businesses can afford a CFO/controller who can look for fraud signs and implement proper fraud protection controls.
4. Accountants know accounting:
- By outsourcing your accounting operations to a professional accounting firm, you’re effectively hiring a team of experts. Professional accountants know the tax codes and laws backwards and forwards—it’s their job. They work around the clock for your business by keeping up with the latest tax information, affording you full-time coverage for only part-time pay. Staffing options are considered and executed per task, so you’ll only have the most experienced and qualified individuals on your side, right where you need them.
5. Collaborative accounting is better:
- No matter how you look at it, having a team of professional accountants working on your books is going to be better than having an in-house employee keeping them. Whether it’s you, a part-time accountant or full-time employee who takes on the task of accounting, the job is just not getting the proper attentions. There are tons of loopholes and exemptions out there and one individual is just not enough to find them all for you. Outsourcing your accounting operations affords you a team of people, all double-checking each other to ensure that all the right findings are being found.This also means that you can have your departments separate from each other. With just one in-house accountant, it’s too difficult to hold departmental purchasing and spending individually accountable. This creates cracks for services to fall through. With a team of accountants, the man power is right for separating all of the departments and really getting down to the nitty-gritty of each sector, allowing the fine-toothed comb to find more ways for you to keep your money.
6. Scalable options:
- Last, but certainly not least, we have scalable options. When you outsource your accounting operations, it becomes simple to expand and grow your business or find places to cut down on spending. Accounting firms can provide you with lists of options, giving you valuable feedback and suggestions that will raise your profits at the end of the day. Whatever your long-term goals are with your business, earning more money—and keeping more of it—will help you achieve them. Essentially, outsourcing gives you tons of flexibility and options.
A chartered accountant is well equipped with theoretical knowledge and practical training in the field of accounting. In Taxoservice we have professionals including Chartered accountants to better guide in accounting work and help business entities to prepare financial statements as per recognised accounting standards as per ICAI and abide by statue . ICAI has prescribed 31 Accounting standards to help accountants to better prepare the financial statements of Level 1, Level2 and Level3 business entities.
There are three types of accounting:
1. Financial accounting
- Financial accounting focuses on the reporting of an organization’s financial information to external users of the information, such as investors, regulators and suppliers. It calculates and records business transactions and prepares financial statements for the external users in accordance with generally accepted accounting principles (GAAP).GAAP, in turn, arises from the wide agreement between accounting theory and practice, and change over time to meet the needs of decision-makers.Financial accounting produces past-oriented reports—for example the financial statements prepared in 2014 reports on performance in 2015—on an annual or quarterly basis, generally about the organization as a whole.
2. Management accounting
- Management accounting focuses on the measurement, analysis and reporting of information that can help managers in making decisions to fulfill the goals of an organization. In management accounting, internal measures and reports are based on cost-benefit analysis, and are not required to follow the generally accepted accounting principle (GAAP).Management accounting produces future-oriented reports—for example the budget for 2014 is prepared in 2015—and the time span of reports varies widely. Such reports may include both financial and non financial information, and may, for example, focus on specific products and departments.
3. Tax accounting
- Tax accounting concentrates on the preparation, analysis and presentation of tax payments and tax returns. The tax system requires the use of specialised accounting principles for tax purposes which can differ from the generally accepted accounting principles (GAAP) for financial reporting.