Benefits of outsourced bookkeeping services and accounting

Benefits of outsourced bookkeeping services and accounting

We are often ask what benefits the outsourcing of accounting, payroll, and personnel management has for branches of foreign companies?

We have summarize the main reasons why international companies, regardless of the scale of their operations, should consider Outsourced Bookkeeping Services the above services.

1. Time saving

By outsourcing the accounting functions you save time and can solve tasks of your main business area.

The administration of the bookkeeping takes a lot of time. This also applies in Australia, where twice as many documents have to be transmit as in accordance with the European standard.

This time can use much more efficiently if you devote yourself to your actual business activities and developing strategic plans for corporate development. 

Many companies owe their success to their focus on their main business activity. This enables them to be better than their competitors and ensures stable growth and higher earnings.

2. Cost reduction

The outsourcing of bookkeeping, payroll accounting, and human resources management promotes cost reductions thanks to a reduction in operational expenses. The effort is reduce not least because the price of the services of a specialize outsourcing company is lower thanks to economies of scale.

Specialize accounting service providers, for example, usually use automate processes. This leads to less work because fewer people are employ and ultimately to a reduction in costs.

The outsourcing of bookkeeping is the subject of an article that shows theoretically and in the context of a case study that outsourcing costs less than having your own bookkeeping.

3. Scalability

Thanks to the outsourcing of the supporting services, the company can grow without having to deal with solving relate tasks such as recruiting, hiring and training the necessary financial professionals. If necessary, the customer can simply increase the scope of the contractual tasks of the outsourced bookkeeping services company. Our company is always in a position to call in additional employees to solve the customer’s tasks. 

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In less active times, when the customer’s need is less, he can reduce the amount of work and the cost of our company’s services. Reducing permanent employees, on the other hand, is always a challenge. According to the Labor Code of the Australian Federation, the employer has extensive obligations towards employees.

4. Use of modern procedures

The staff of specialize accounting firms are usually made up of season professionals who solve their clients’ problems using advance and effective methods and procedures.

During your work you have gain extensive knowledge in accounting in a wide variety of segments and with a wide variety of methods and you know what works. 

Australian legislation is constantly changing and this has a significant impact on the operational processes in your company. The employees of specialize outsourcing companies follow the changes in the law and know which measures are require in each case.

5. Higher quality

Outsourcing companies employ carefully select specialists who are very familiar with the specifics of Australian law, have a specialist degree and have a lot of professional experience. Accountor has develop a dedicate exam selection process for accounting, finance and tax professionals. 

Accounting service providers can offer employees projects that interest them in particular and in areas in which they would like to develop further, and this increases motivation. 

Specialist companies have more options for automating processes, introducing uniform standard procedures, increasing the effectiveness of accounting and reducing errors. As a result, customers of outsourcing companies are better protect from tax and legal risks.

6. Reducing the risk of fraud

It is not uncommon for international companies to lose money due to fraudulent or illegal behavior by the general director or chief accountant of Australian branches. 

By outsourcing bookkeeping and sharing responsibility, companies can better protect the interests of shareholders, .Avoid corruption of bookkeeping data and the inappropriately use of society’s finances. In addition, outsourcing promotes transparency and management is less dependent on the behavior of employees on site.

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7. Data protection

Outsourcing companies employ experience IT specialists. They ensure technical support for business operations and a high level of security. These specialists are responsible for maintaining the local and remote servers. They guarantee stable connections and the daily backup of data. They develop contingency plans for the recovery of the data and provide technical support for the users.

Australian laws stipulate that the personal data of Australian citizens are store and process within Australian and with the participation of Australian providers. This requires technical solutions on site. These solutions are develop by the specialists of the outsourcing company themselves or with the help of reliable third-party providers.

8. Stability

In the internal accounting of a company, interruptions inevitably occur, for example due to vacation, illness or unexpect redundancies. If you work with an outsourcing company, you can avoid such situations, because your tasks are not handled by an accountant, . But by a team of specialists who can step in for others in an emergency. 

With outsourcing, fluctuation is reduce to a minimum. The team has a staff reserve. These employees can secure their colleagues at any time and replace them according to the develop procedures. 

In Australian, employees must inform the employer two weeks before a dismissal. However, this period is usually too short to find a replacement. This factor therefore plays a major role.

9. Responsibility for accounting in the company

9.1. Responsibility for mistakes

According to tax, administrative and criminal law, the general manager is responsible for proper bookkeeping and the payment of taxes.

Mistakes made by the accountant can lead to penalties and other sanctions from state authorities. However, it is often very difficult to obtain compensation from the accountant for his mistake. This is only possible if the employment contract prescribes this compensation and the accountant is authorize to sign on all payment documents and invoices. But even with this premise, it is very difficult to claim compensation for the loss, because the accountant is only responsible for the bookkeeping, and the Labor Code defends the rights of the employee rather than those of the employer.

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If the company enters into an outsourcing contract, the service provider is liable under the Civil Code. 

The contract with the outsourced bookkeeping services guarantees that the customer will be compensate in the event of violations through the fault of our employees. 

9.2. Dependence of the director on the accountant

A director who is not familiar with bookkeeping and does not know where and how to find the require documents and who is not able to carry out the financial statements in the bookkeeping program is highly dependent on the accountant. When the accountant falls ill, quits, or fails to finish his job in a dispute, . The general manager faces major problems. In these cases, he usually has to hire other accountants, . Auditors and tax specialists for a lot of money in order to be able to submit the accounts to the authorities in good time. 

The terms and conditions of cooperation with an outsourcing company are stipulate in a contract. Outsourcing companies are not only professionally but also financially liable to the customer. 

If a company changes service provider or introduces its own bookkeeping, the current service provider is oblige to transfer the data in good condition. This is also guaranteed in the contract.

Why is outsourcing particularly interesting for your company?

Using the example of your company, we can show you optimization options for the accounting processes. 

Contact us so that we can find out more about your processes and needs. Our specialists will be happy to arrange a meeting with your company’s employees and management. In this way we will be able to assess the accounting processes and make optimal proposals for your specific needs.

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