For a time, business owners would hire local certified public accountants (CPAs) from well-established accounting firms to handle the bookkeeping and accounting tasks that are normally associated with a business.
That being said, with the advent of technology, there are a lot of companies that are enjoying outsourced services more than what their local firms can provide.
Does this threaten local CPAs? Read on to find out. While you’re at it, you can also take a look at some of the outsourced accounting services in Malaysia as well.
Are Local Accounting Firms in Trouble?
Even though there are a lot of accounting firms that provide outsourced services, local firms are actually quite smart in that they build partnerships with such companies in order to provide a more robust service portfolio. Below are just some of the joint services that you can enjoy as a client:
Daily Bookkeeping Tasks
Typical accounting tasks that companies need include basic data entry, journal entry adjustments, account reconciliation, strategic planning, and the creation of monthly reports. There are certain tasks that would require a higher level of accounting expertise than others. Because of the varying degrees of difficulty given certain tasks, the salary levels between accounting positions differ greatly depending on what is required of the accountants.
In small accounting firms, they do not have the luxury of getting a junior or relatively new CPA on board. This would, at least, help with menial tasks that the junior CPA could do to help them gain experience and so that they can take on new and more challenging endeavors later on.
Bookkeeping is actually hard in and of itself and would require a careful eye, as well as time-management skills so that your bookkeeper will be able to handle different tasks.
You have to understand that tax preparation also requires a lot of time to do, simply because you have to calculate and record a lot of numbers to help with strategic tax planning. If you were to spend a lot of time going through the different business receipts, you will have less time to do other things. That is where outsourcing comes in.
For instance, if tax season is already a couple of weeks away and you want to ensure that you are paying the exact amount of taxes that your business is required to do, then you can just outsource your bookkeeping needs in order to meet the demands of your company.
Secure Data Storage
The issue that deters some company owners from outsourcing their important accounting information is that of security. How secure is it to send sensitive information to an external accounting firm?
Well, I am here to tell you that if you were contemplating on outsourcing some of your accounting needs, most of the accounting firms already put a lot of money in making sure that their systems are not hackable.
Furthermore, they also employ security measures so that you can rest assured that your sensitive company data is intact and is not available to prying eyes.