As a business owner, you want to cut down on costs. One way you may be doing that is by doing your own bookkeeping and accounting. You save on the potential retainer fees you would have otherwise given to a certified public accountant.
However, DIY accounting is not for everyone. Moreover, tax services in Manila point out that in-house accounting or hiring your own accountant as a regular employee may be too expensive.
When should you start to outsource your accounting? How will you know if it is time to start outsourcing your accounting? This article aims to help you answer these questions.
What is Outsourced Accounting?
Outsourced accounting is when a business owner hires a company providing and specializing in accounting services. Instead of hiring an in-house accountant, you would hire an outsourced accountant to deal with your business affairs.
When you hire and avail of outsourced accounting service, you will have access to trained and knowledgeable accountants. They are qualified to help you run your business and address any tax compliance issues.
This accounting service is famously known to cut costs but it is so much more than that. It has benefits that you can take great advantage of. By hiring outsourced accounting services in the Philippines, you will have the chance to shift your time and energy to making strategic business decisions.
When Should You Outsource Your Accounting?
If you are still contemplating on hiring tax and accounting services in the Philippines, below are five signs. Watch out for these to see when you should start considering outsourcing your accounting operations.
1. Financial Records Are Not Organized
When you have too many responsibilities, some things can get overlooked. Sometimes, you might not even be able to organize your financial records. Unorganized financial records have consequences. When you fail to organize your records, the following may happen:
- The accounting process will take longer
- Not able to file your taxes on time
- You will have data entry errors
- Unclear view of the financial position of your business
- Difficulty obtaining investors and/or creditors
- Hard time applying for government grants
Having organized financial records is crucial, especially at the start and end of the fiscal year and during tax filing season. In short, it’s best to have organized record year-round to avoid the consequences of having messy records. Potential complications can be resolved when you start outsourcing your accounting. An accountant will ensure that your books of account are accurate and profitable by regularly doing data entry and reconciliations.
2. Hired In-House Accountants Need Support
If your business is experiencing rapid growth and your hired in-house accountants cannot complete their duties anymore, it’s a sign for you to outsource your accounting. Hiring outsourced accounting, tax and audit services in Philippines is a far option better than hiring an additional in-house accountant.
By hiring outsourced accountants, your in-house accountants can receive additional support and be able to finish their tasks on time. Best of all, you don’t have to pay for overtime and other Philippine government mandated benefits.
3. Not Specialized in Accounting
Business owners who become successful are usually those who focus more on the bigger picture. You should also do that. It’s important to make sure you create strategic plans. Let go of the tasks that will only slow you down.
Your accounting operations are important but if doing it yourself is weighing you down from making strategic plans, it is better to start outsourcing your accounting. That way, you will reap long-term benefits. Good accountants are detail-oriented and well-organized. They will make sure their financial reports are accurate so you will be capable of making good business decisions and future projections.
4. Losing Focus on Core Business
If you want your business to grow, you need to delegate the tasks to the people appropriate who trained for it. You cannot do everything. You must avoid being an all-in-one type of person. If you are running a sole proprietorship business, then yes, you are by yourself so things may be simpler.
However, if you are running a bigger business, you will get burnt out if you try to do everything. Just choose what you can do. You have to learn to trust and hire professional who can develop strategies that will help your business prosper.
5. Difficulty in Finding Desired In-House Accountants
If you are having a difficult time finding an accountant you can trust with your business, getting outsourced accountants would be a great option. The outsourcing accounting company will cater to your needs and requirements. They will be in charge of the hiring process and choose accountants that best fit your needs.
If you see any of the signs above, consider outsourcing your accounting operations to our team. It’s a decision that will greatly benefit you and your company. We provide accounting services in Pasig at an affordable price, while giving you access to experts in the field.