For a company, it is a nerve-racking decision to hire an outsourced accountant as they will need to share sensitive financial information with someone outside their company; however, it is essential. By delegating these responsibilities of accounting outsourcing, bookkeeping services, and corporation tax return outsourcing, the business can eliminate unnecessary workloads and concentrate on more pressing business matters.
It is essential for a business to hire the right outsourcing accountant to take care of accounting, corporation tax return outsourcing, and bookkeeping services. More than just accounts and bookkeeping the accountant you choose will also guide you and your business for compliance adherence, meeting taxation requirements, and overall suggestions related to finances.
Here are 5 important facts companies need to take cognizance of before taking the plunge:
- Value for money: Overall, the outsourcing costs are significantly low when compared to hiring in-house staff and its related costs. When choosing outsourced accountants businesses plan for a long-term relation as they would want to avoid sharing their financial data with multiple people outside.
Hence, it is essential to hire someone with whom they can establish a solid working relationship. Evaluate and see what the accountant can provide other than the on-paper tasks. See his credentials and evaluate his knowledge to see if he is capable of advising the business about compliances and taxations, can he help in crafting a new strategic plan and predict financial projections to secure business loans without any difficulty. Look at the value for money you are getting before proceeding.
- Hire a Certified Accountant from the ICAEW or ACCA: A certified public accountant who is certified by the Association of Chartered Certified Accountants or ICAEW as an accounting professional is always the best option to go with. These certified accountants are authorized to take on more complex responsibilities, such as representing taxpaying individuals in IRS audits. Companies which feel more comfortable having their accountants handled by certified professionals or require the special services they offer, they can opt for a such certified accountants. Businesses on a budget or have basic accounting requirements can choose an accountant or an accounting firm, like Outbooks. Check references: Companies should do a thorough background check of accountants or outsourcing accounting firms before selecting the best among them. It is safe and advisable to get knowledge of client references from potential accountants to understand their previous performance. They should ask the right question about the firms like their areas of specialization, years of experience in the industry, location and pricing specifications. They can go ahead with their decision after considering these factors.
- Fixing rates: Businesses should put the agreed-upon rates in black and white and have both parties acknowledge them. Other than this, estimates for monthly expenditure and accumulated savings should be decided at the onset of the agreement. This makes it easier to develop a financial rapport, build a streamlined and systematic network flow, and not get any unexpected surprises later.
- Understand business environment: The financial health of the business and entrusting accounting responsibilities to an external source are two sides of the same coin. It is important that the business should be aware of its requirements and limitations before making this crucial decision. It is important to understand the working environment, analyze the problems to be addressed, and seek out the best people for the job.
More importantly look for an accountant who proactively gives you suggestions. Instead of responding to your questions, if he guides you, he surely is your right pick. Needless to say, to not rush on deciding on the accountant. Take your time to evaluate and pick the right one.