Five Benefits of Accounting Services
Despite accounting’s position as a critical and essential function in establishing robust financial management for organisations, many business owners are still opting to manage their accounting in-house. In doing so, they waste valuable resources, and increase their susceptibility to non-compliance issues that could lead to unnecessary cost, hefty penalties, and diminish their chances at business success.
According to Forbes, about 90% of businesses fail during their first stage; citing poor financial management as one of the top reasons. By leveraging accounting services from professional accountants, businesses can significantly increase their chances for success. Beyond bookkeeping, professional accountants help to facilitate the financial operations and planning of the company to ensure a steady and healthy cash flow.
Suppose you are looking to outsource your accounting or are currently outsourcing. In that case, you should always evaluate your potential or existing accounting company to ensure that they are the best fit for your needs, which will most likely change over time. Make sure that the existing accounting company is staffed with a team of Certified Chartered Accountants who are experienced in serving businesses of similar nature and scale. It is also crucial that they offer a dedicated account manager to service your account.
In this article, we are sharing how accounting services can significantly benefit your business along with why it is probably best for you to outsource.
01 Save precious resources
Managing your accounts in-house does not necessarily translate to cost-savings or better efficiency. Maintaining an experienced full-time accountant, or two, could set you back thousands of dollars a month. And in the event where your accountants may later choose to advance their careers elsewhere, you would have to embark on a resource-intensive hiring process that would cost you precious time and money.
However, should you choose to engage a professional accounting firm, you virtually eliminate these concerns. You pay a monthly service fee that gives you access to the expertise of an entire team of accountants who are proficient in various areas of accounting – from tax management to bookkeeping. You will never have to worry about varying hiring cost, induction/training programs, and employee turnover!
02 Facilitates ease of business growth
One key benefit of accounting, when done correctly, is its ability to clarify the status of your company’s financial health. Having a clear picture of your company’s finances helps you to make informed decisions when growing your business. It allows you to determine the feasibility of any business plan such as expansion and hiring. It prevents any counterproductive decisions that might threaten or delay your business growth by months or even years.
Credible accounting firms can help you to paint a clear picture of your company’s cash flow and seasonality by critically analysing your receivables and collections. Additionally, should you engage a regional accounting firm, their advisory services and market-analyst will be made available to you. Through them, you can effectively assess your company’s performance and make strategic decisions that will aid in your business success.
03 Ensure total compliance with statutory requirements & regulations
Time is a valuable and finite resource, so it matters what we do with it. As your company grows, more time will be needed to organise paperwork and navigate newly applicable regulatory complexities. From matters such as payroll, tax statements to Profit and Loss statements, a single oversight could result in a compliance infringement that may lead to a hefty financial penalty.
These risks and time cost can be mitigated through a professional accounting firm that is experienced in tax laws and procedures. Often a team of experts will be quick to flag any irregularities and ensure that your accounting records remain immaculate. In short, they will keep your company from any financial pitfalls and allow you to enjoy peace of mind.
04 Greater savings from higher deductions
Navigating Hong Kong’s complex regulations can pose a series of challenges that may result in an oversight of applicable tax breaks and exemptions. Ensure that you are maximising your savings and deductions by engaging professional accountants who are familiar with Hong Kong’s regulations, and can adequately qualify your business for the relevant tax rebates as well as expense deductions.
For companies that conduct business overseas, a professional team of accountants can even prevent issues such as double taxation due to their in-depth understanding of international tax treaties.
05 Digitisation of your accounting
Accounting records can be messy. A decade of records would quickly amount to hundreds of files and thousands of pages. Naturally, this makes the retrieval of data and reference a nightmare. Fortunately, as we transit into a technological age, professional accounting services are offering to store your business accounting records in a digital format on secure platforms with advanced software. These platforms often come with additional modules such as payroll and claims submission. They store their data electronically, together with the accounting records, in a centralised and secure location for maximum confidentiality. Digitising your accounting records also brings about ease of access. Regardless of place and time, you can retrieve records and reports in real-time from anywhere in the world!
Are you looking for a trusted accounting firm in Hong Kong?
BoardRoom is a regional accounting firm in Hong Kong that caters to corporations and fast-growing SMEs. Our expertise extends from tax accounting to managing statutory compliance reporting for companies across Asia-Pacific. With BoardRoom’s extensive accounting solutions, you can regain precious resources and refocus them on what matters – growing your business.
Contact us today or learn more about our accounting solutions here.
Related Business Insights
29 Mar 2023
Great corporate governance starts with a skilled company secretary
Elevating your corporate governance in Hong Kong can help you remain compliant and retain skilled employees. Ensure …READ MORE
29 Mar 2023
Make the transition to outsourced accounting services to grow your business
Outsourcing your accounting services can help support a successful growth journey for your business. Find out how t …READ MORE
21 Mar 2023
Hong Kong 2023-24 Budget
As Hong Kong enters the post-pandemic era, the Hong Kong 2023-24 Budget laid out the plans and measures for pursuin …READ MORE