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 costs, hefty penalties, and diminish their chances of business success. It also becomes challenging for companies that have smaller accounting and finance departments, where small errors might slip through the cracks or they may be overloaded by too many tasks.
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 of success. Beyond simple accounting and bookkeeping services, 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, learn how accounting services can significantly benefit your business along with why outsourcing might be a good idea.
The benefits of professional accounting services
From making business processes more efficient to moving your financial records online, here are the top 5 ways that accounting professionals and services can be beneficial for your business:
01 Saves 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 and get a host of benefits in the process. 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 services. You will never have to worry about varying hiring costs, 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, collections, and financial statements. 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 through comprehensive financial reporting and make strategic decisions that will aid in your business success.
03 Ensures 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 and tax statements to annual financial statements, a single oversight could result in a compliance infringement that may lead to a hefty financial penalty.
These risks and time costs 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 they spot in your financial documents and ensure that your accounting records remain immaculate. In short, their services will keep your company from any financial pitfalls and allow you to enjoy peace of mind.
04 Enables 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 Digitises your accounting records and processes
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 references a nightmare. Fortunately, as we transit into a technological age, professional accounting services are offering to store your business accounting records and financial data electronically on secure platforms using advanced accounting software. These platforms often come with additional modules such as automated payroll services and claims submission, making such procedures much more efficient.
Another benefit of using accounting services to digitise your accounting records is the ease of access it provides – regardless of location and time of day, you can retrieve records and reports in real-time from anywhere in the world!
Discover professional accounting services in Hong Kong with BoardRoom
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 and services, you can reap all the benefits by regaining precious resources and refocusing them on what matters – growing your business.
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