Offshoring Accounting is the new trend for SMEs and sometimes large companies to save money and be more efficient. The question is what is offshore accounting? Offshore accounting is when you outsource your accounts and finance to an offshore company i.e. to an accounting outsourcing service firm.
Offshoring Accounting work to Chartered Accountants consists of a lot of types. It can include internal auditing, taxation, advisory, payroll outsourcing, book-keeping outsourcing and accounting i.e. year-end accounts preparation, monthly management accounts preparation, cash flow statements, Balance sheet, profit and loss statements, customizes reports, budget analysis and prepare forecasts from one country to another.
Outsourcing reduces the complications related to hiring of employees. All the responsibilities related to finding, recruiting, training and retaining of employee is on the head of outsourcing service provider. This also means that the resource you will be getting will not only be qualified, but he will also be trained to do the tasks assigned by you. A trained individual will be able to do your task in lesser time, thus saving you ample time to do more.
Outsourcing can be seen as a complex thing, but it is actually a great way of saving both money and time, thus allowing the owner of the business to focus all its energies on core activities of the business. For example they can work on relationship building with potential clients and making old relationships stronger.
Outsourcing of accounting services not only works for small companies, but also large companies tend to outsource as well. Some of the government institutes also tend to outsource their accounting needs from time to time so that they can benefit from cost cutting. Outsourcing not only benefits the company but it is also beneficial for the outsourcing work for chartered accountants provider. These service provider benefit from higher pays as compared to what they are offered in their native countries. Outsourcing accounting services could be of great help in saving time and money. Jobs can be simply outsourced on unbelievably low rates to the experienced accountants anywhere, anytime in the world.
Offshore accounting is actually a way to streamline the accounting process of the companies as well as attaining flexible terms to accommodate the business current situation, budgeting and forecasting. Accountancy practices can also benefit from outsourcing. With the option of accounting outsourcing companies, you can quickly grow your accounting practice. You can get much cheaper Full time recourses from offshore countries. Globally recognized Educations like ACCA and CIMA has made it quite easy to find accountants across the globe, who are up to date in their knowledge. An accountant can save an incredible 50% or higher of their employees’ cost by outsourcing their work to offshore outsourcing companies.
Outsourcing may sometimes be considered risky as financial data is being shared which is of high value to the company. With passage of time this has been overcome due to strict policies of accounting governing bodies. If an outsourcing firm breaks and law or rule set by these governing bodies, they are banned from practicing and their license is revoked. This makes offshoring accounting not only safe but also saves money and time.