Accounting is mandatory for every self-employed person. However, many founders have little experience in this area and therefore find the work tiresome.
However, it makes sense because it ensures an overview of the finances, so you can act in time. Since many business owners think that accounting is too time-consuming or do not dare to do it because they have little or no experience with it, they decide to turn to account services in Delhi.
If you outsource accounting, you can fully focus on your actual core business. Because it is precisely the familiarization with accounting standards and Ind AS Implementation in India that takes a lot of time, you can invest in your actual core business in the event of outsourcing.
You also benefit from the experience and professionalism of the specialist. He has several clients and thus collects know-how that he can also bring to your company. You also reduce costs associated with accounting.
In this way, you reduce technical and logistical expenses for the purchase of hardware and software, for their maintenance, and training. In addition, you save a server room, which is required for archiving documents from the accounting area. Its expansion and maintenance are associated with high costs. If you have an external provider, he will archive the data for you.
In addition, you also save in human resources since you do not have to hire anyone specifically for accounting. In addition to salaries, there are no costs for illness, vacation, ancillary wage costs, and training.
Another benefit of outsourcing is that you transfer liability to the service provider. This way you don’t have to be held responsible for possible mistakes in accounting. So, the risk is reduced when you outsource the maintenance of the books.
Many business managers and owners start thinking about outsourcing accounting when it comes to understanding that your accountant is not a friend of your business, for example, he:
- Does not want to take responsibility, is afraid to communicate with government agencies, or does not know how,
- Cannot provide high-quality expert support: there are not enough time, knowledge, experience, or resources;
- Clumsy does not keep up with business changes, sabotages the new, and prefers to work in the old way.
In general, accounting outsourcing is understood narrowly: to calculate taxes, and salaries, and submit reports to the tax authorities.
However, accounting outsourcing can be considered when a company is faced with the task of reducing the current costs of accounting. The services of an accounting firm are always cheaper than the maintenance of full-time accounting service.
In addition, the transfer of accounting to outsourcing makes it possible to get free (or almost free) access to technologies, the introduction of which the business most likely will not pull either in terms of money or resources.
Well, another common case when accounting outsourcing is a good solution is when a company has several founders or hired management and it is necessary to maintain the independence of the accounting service, exclude the possibility of collusion with the accounting department, and provide all interested parties with equal access to financial information.
Accounting outsourcing is possible in different combinations. The larger the accounting company, the more options it can offer you. Which type of accounting outsourcing to choose depends on the financial capabilities and the specifics of the activities of a particular company.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by
CA Aman Aggarwal
AKGVG & Associates