Accounting plays a crucial and wide-ranging role in every business.
A well-managed accounting system can provide hundreds of benefits, but if it is not handled properly, it may also pose challenges.
For SMEs trying to manage their accounting on their own, it should go without saying that better finances can improve other aspects of their business. But sadly, business owners don’t have the time and energy to handle the necessary responsibilities and often ignore the need to hire an outsourced accounting service. Sometimes it turns out to be a downfall for many businesses.
Though it is not a new concept, it is only popular among business owners who really feel the need when addressing accounting with other crucial aspects of their business. That may be marketing and sales in most cases. It might surprise you that nearly half of the many entrepreneurs in Australia don’t know which accounting functions they should outsource to CPAs.
This blog highlights the most significant factors of managing an account and how you can list all the crucial accounting functions and understand which accounting functions they can outsource to a CPA firm in Australia to save time and effort for your valuable but limited resources.
Let’s get started
1. Forensic Accounting or Fraud
Outsourced forensic accountants can help a corporation, victim of fraud, or do not have accurate records for infringements into statements. Outsourcing this service can help with many things, including the restoration/reconstruction of lost and destroyed corporate records. Your outsourced staff may even audit internal processes to improve productivity, uphold asset security, and prevent any fraud efforts.
2. Accounts Receivable and Payable
As a start-up, you would not want to establish a reputation for not paying or being late with payments. These are the two most common outsourced operations. Businesses like to be handled by professional firms specializing in managing accounts receivable (AR) and accounts payable (AP). They ensure that your customers pay you on time while making it sophisticated and transparent at both ends. You can think about outsourcing your AR services to an outsourced AR/AP service provider who can also handle the following tasks.
- Invoice Management
- Reporting Transactions
- Recording and storing transactions
- Debt Collections
3. Bookkeeping Basics
Bookkeeping is tedious, repetitive, and may take a lot of your time. Having your bookkeeping handled by an outside firm allows you to focus on running your business, discovering new growth opportunities, and growing. Outsourced bookkeeping also includes all the essential reports and financial statements that every business owner should know: balance sheets, income statements, and cash flow statements. Having your bookkeeping handled by a professional facilitates tax filing in day-to-day operations to provide all the information you need to prepare your tax return, complete forms, and generate ATO-compliant reports.
4. Preparing Financial Statements
Preparing and maintaining accurate financial statements is essential and can never be underestimated for all sizes of businesses. Since preparing financial documents and reports requires the primary expertise of accounting firms. A team of Certified Public Accountants (CPAs) can easily consolidate your expenses and earnings through financial statements. CPAs manage accounting books while being on the neutral side by recording and updating all pertinent information while ensuring the accuracy of your financial data.
5. Financial Audit
The goal of an audit is to carefully investigate the financial statements to evaluate business statements and ensure they demonstrate a solid and accurate state of the company. CPA and audit firms in Australia keep track of each unique business process and operate as advocates for them, earning the trust of all stakeholders in the management. Many businesses now take advantage of auditing and due diligence services as an annual exercise without adhering to legal requirements. You can hire an internal auditing firm to get a clear picture of the business’s finances and take critical actions.
6. Processing of Payroll
By outsourcing payroll services, you can benefit from the expertise of payroll specialists. Outsourced service providers use payroll software to automate your payroll processes using the necessary information provided by you. You can also ensure the latest software and technology are used to manage accounting functions by outsourcing them. Outsourcing reduces the risk of any liabilities deriving from payroll or income tax return errors, which could result in massive fines. Outsourced bookkeeping reduces payroll costs, allowing you to hire employees who are more integral to your core business functions. As a result, it enables you to improve the efficiency of your payroll procedures.
7. Tax Minimizing Strategies
Tax management and minimization strategies can be the primary advantages of outsourcing tax needs. Not only do they work to help ensure that you are in full compliance with tax law, but they also help ensure that you get as much as you possibly can get back from it. Finding every item that can be written off as a tax deduction is one way that this expresses itself. You can always get assistance from your CPA in following a weekly and annual tax strategy. Also, to find the best solution, whatever legal angle can be employed to justify exempting certain earnings must be employed.
8. Reporting and Filing of Taxes
CPAs can assist you in filing your forms and accurately disclosing your taxes. Your outsourced accounting firm can help you limit your exposure to various accounting and financial computation errors that could have a detrimental effect on the way your organization operates. Outsourced tax preparation services include franchise tax support, checking financial statements for compliance, payroll tax collection filing, payment, etc.
Outsourcing accounting functions can be a great way to reduce costs and improve efficiency within your company, but it is also crucial to find one that fits your needs and budget. When work is divided among different providers, it can lead to a more streamlined and organized operation. There is more than just one type of professional service that can be hired. Additionally, by outsourcing your non-core functions, you can free up internal resources to focus on more important tasks.
To make the best choice, you should carefully evaluate your business requirements before considering outsourcing your accounting needs to an accounting firm in Australia.
Accounting simplified with Mizael Partners
Mizael Partners has been providing high-quality services that help businesses grow and increase their value and viability for over a decade. As a small business, we understand the value of our customers and take pride in providing personalised accounting services that focus on overcoming your company’s current challenges.
Our global network of tax & accounting professionals helps you gain better control over tax accounting matters through customized tax services to meet the needs of your business. If you are still unsure how chartered accounting firms can get you out of the trouble, we can help you with a free consultation call and resources.
Call +61 (0) 466 228 000 or visit our website today to speak with one of our accounting experts! We also provide auditing, bookkeeping, and forensic accounting services.