What is Outsourced Accounting Service? The Benefits of Outsourcing Accounting Services

1. What is Outsourced Accounting Service?

Outsourced accounting service involves hiring accounting professionals or firms to handle specialized accounting tasks such as financial records, documents, and reports on behalf of a business. Instead of maintaining an in-house accounting department, you delegate part or all of your accounting work to external experts.

2. Benefits of Using Outsourced Accounting Services

Time and Cost Savings:

When you outsource accounting services, you don’t need to pay for a full-time employee to manage your finances. You also avoid the costs of training an in-house accounting team and the associated expenses like employee benefits, accounting software, office supplies, and hardware.

Access to Professional Accounting Resources

This benefit is especially important for small businesses that lack a dedicated financial management system. Outsourcing gives you access to a team of knowledgeable experts, ensuring your financial records are accurate and up-to-date.

Minimized Risk

You can rely on professionals and tools to handle your financial reports and audit your financial pathway, ensuring everything is in order.

Access Financial Data Anytime, Anywhere

With cloud accounting applications, you can access files and reports from anywhere and at any time, as long as you have internet access. This allows you to view real-time financial data, including cash balances and updated expenses, giving you confidence to make informed business decisions.

Strategic Consulting

Beyond daily tasks, professional accounting services can provide financial strategy consulting, helping you analyze data to make smart business decisions.

Tax Compliance

Tax is a crucial aspect of business accounting. Outsourced accounting services ensure you meet tax deadlines and comply with all regulations, avoiding unnecessary risks.

Focus on Core Business Activities

By outsourcing accounting tasks, you can focus more on your core business activities like product development and marketing strategies.

3. Tasks of Outsourced Accountants

Outsourced accountants perform all the tasks that an in-house accountant would handle, including:

• Bookkeeping: Daily recording of business transactions and compiling them into financial records at the end of the month.
• Financial Reporting: Collecting data on assets, liabilities, equity, revenue, and other financial aspects to prepare financial reports such as income statements, cash flow statements, and explanatory notes.
• Tax Management: Ensuring the accurate calculation, declaration, and payment of taxes in compliance with tax regulations.
• Financial Consulting: Providing advice on financial management, data analysis, and strategic decisions.
• Payment Processing and Debt Management: Monitoring and managing the payment cycle and debts of the business.
• Debt Management: Tracking receivables and ensuring timely collection to avoid bad debts. Legal documents must be in place to handle long-overdue debts.
• Financial Auditing and Analysis: Performing internal audits, reviewing financial status, and analyzing accounting data.

4. Specific Tasks Handled by Outsourced Accountants

• Year-Beginning Tasks:
  • Declaring and paying business license tax.
  • Filing value-added tax (VAT) and personal income tax (PIT) declarations for December or Q4 of the previous year.
  • Submitting corporate income tax (CIT) estimates for Q4 of the previous year.
  • Reporting on invoice usage.
• Daily Tasks:
  • Collecting and processing invoices.
  • Ensuring the legality and accuracy of invoices.
  • Paying taxes if necessary.
• Monthly Tasks:
  • Preparing VAT and PIT declarations if applicable.
  • Preparing other tax declarations.
  • Reporting on invoice usage.
  • Preparing financial adjustments.

• Quarterly Tasks:
  • ​​​​​​​Filing VAT and PIT declarations.
  • Reporting on invoice usage.

• Year-End Tasks:
  • ​​​​​​​Completing the annual financial report.
  • Filing tax declarations for Q4.
  • Preparing tax settlement reports.

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5. Advantages of Outsourced Accounting Services Compared to In-House Accounting

• Cost Efficiency

Outsourcing reduces costs compared to maintaining an in-house accounting department. You only pay for the specific services provided by the outsourced team.

• Time Efficiency

Outsourcing saves time, allowing you to focus on other essential business activities. The outsourced team handles your financial tasks and provides advice aimed at results.

• Access to Experienced Accountants

Outsourced accountants bring expertise and experience, ensuring effective financial management and accurate financial reports.

• Contract-Based Work

Outsourcing allows flexibility through contract-based services. If dissatisfied, you can change providers or adjust the scope of work based on your business needs.

• Data Security

Professional outsourced accountants ensure high levels of security and transparency when handling your financial data.
With the above information, you can decide whether to outsource accounting services to maximize the benefits for your business. For more detailed advice, contact Zora.vn for further consultation.