Top 4 Factors to Consider When Outsourcing Your Accounting Functions
From being able to concentrate better on your core competencies to avoiding the burden of putting together a package for an in-house team, there are many benefits to outsourcing your accounting services. These are all benefits that you can look forward to if you hire the right services.
That said, what should you consider when choosing an accounting services company? Here is a look at the top factors.
Certifications and Licensing
An Australian Financial Services (AFS) licence is mandatory for any business involved in financial services, and this includes firms offering accounting services. Certification by professional bodies, namely CPA-Australia, the Institute of Public Accountants (IPA) and the Institute of Chartered Accountants of Australia (ICAA), should give you confidence that you will be working with professionals.
Don't just take their word for it. You will certainly feel more confident if you see proof that the company does indeed have a valid and up-to-date licence and certifications.
Scope of Services Offered
Commercial accounting is a very broad subject, encompassing different services. Before you start out on your search for a company, assess and identify the specific services that you need. You will have an easier time narrowing down your options once you have this list.
Do you need help preparing, filing, and working out a strategy for your taxes? Are you looking for basic book-keeping and account reconciliation? There is always a company that will match your needs.
Accounting Tools and Technology
If you are keen on your accounting needs running on a specific software, then be sure to make that known from the get-go. On the other hand, if the accounting services company proposes using other tools and technology, be sure that they can seamlessly streamline your accounting function and are generally value-adding. A demo would be great to show you what to expect.
Privacy and Information Security
What strategies or tools are in place to protect the information you share with the company? Given the fact that you will be giving the company access to your financials and other sensitive information, this is one of the most important questions you should ask when looking for accounting services.
You have every reason to dwell on this one. Let the company walk you through how they will protect your information and their preparedness for a worst-case scenario where a security and privacy breach happens.
Commercial accounting is crucial to the success and growth of your business. If you are outsourcing your accounting services, get the right company with the highlighted tips. Contact tax accountants in your area to learn more.