The advantage of choosing the accounting outsourcing firm
Accounting is divided into commercial accounting, industrial accounting, cost accounting, investment accounting. In some large company, accounting department is consisted by several accountants, they focus on different area, require proficiency and high quality accounting knowledge. However, small-size company is involved in different field of area which is the same as large company. However, due to the workload is low in the small company; they only hire one accounting person to take care the whole accounting progress. However, one person is limited by the knowledge structure; it will affect the quality of the accounting job. An accounting outsourcing firm can solve such kind of problem. Outsourcing firm is verified by the Ministry of Finance Bureau, and registered in Industrial and Commercial Bureau, it is standard and reliable. A good outsourcing firm is led by senior accountants, reasonably structured accounting team, possess professional complementary, mutual cooperation, thus you could have a professional accounting team by hiring a good outsourcing firm.
Hiring a foreign-related professional accountant is quite expensive, however, cooperate with an outsourcing firm, and pay only one accountant’s fee can benefit high quality accounting services. Further, the enterprise have to undertake employee’s social security, unemployment fund, housing fund, maternity fund, injury fund etc. if the employee have accident (e.g. Get injury on the way of work), the company has a series of labour costs; some company will also bear employee’s meal, accommodation and other benefit. The new Labour Contract Law request more restrict implementation on the social security, and compensation cost, the cost burden is increasing by the firm. However, entrust an outsourcing company could avoid these costs.
Ongoing accounting work
If the employed accountant has demission, the handover accounting work will affect on the company regular operation, it will also cost time and efforts to hire a suitable candidate. The outsourcing firm possesses a professional team to ensure continuous work in accounting.
Clearance of legal liability
If the employed accountant causes misdeclaration, fail declaration, late declaration, conscience money, overdue fine, penalty during the tax filing process, the company shall undertake the liability and related loss. However, accounting outsourcing firm has assigned person to take care the tax filing verification, to avoid the mistake caused by short of knowledge in the tax issue. The accounting outsourcing agreement is also has provision of the mutual liability.
How to choose suitable accounting outsourcing firm, below are the steps we suggest
Whether possess accounting outsourcing qualification
In order to assess the firm has qualification to engage in the accounting outsourcing field, you could require the firm present business license and accounting outsourcing qualification which approved by the Ministry of Finance Bureau. In the meantime, to check the fund date of the firm could help to deduce the experience of the company.
Whether retain the highly skilled accounting talent with full-time?
Some low-level outsourcing firm use Part-time accountants to provide accounting service for their clients in order to reducing overhead at the cost of stability and quality of the service provided. However we couldn’t agree with that and we think it’s not just a matter of money, you need an experienced partner who value their clients as much as you do.
Therefore, you must ensure a good and reliable third party assistance that can handle such issues for your company and thus, take it on the path of progress.
Whether possess the qualification of Foreign Service?
In PRC most outsourcing firms are taking the domestic company as service object and shorting of the accounting requirement for foreign company, So these kinds of firms don’t possess the capacity and experience for foreign service.
In foreign company the accountant is required to make paperwork and communicate with foreign part in foreign language. So foreign language is a must to a outsourcing firm who provide service with foreign company oriented
Suggest the foreign company to entrust an outsourcing firm who mainly cooperate with the foreign affairs.
Whether has the sufficient experience for foreign company?
You can get in touch with the previous clients of your preferred outsourcing firm, to gather qualitative information about their work strategy and time management and this sort of comparison will allow you to assess their sincerity towards work.
Whether has the regulated facility and workplace?
You should try to get complete information about their work environment and location of workplace, the source of talents, the business reputation and the other factor. Choosing a partner with creditability and reliability would be an effective method to reduce risk.
We suggest you’d better have an On-site visit to your preferred outsourcing firm before making decision.
Whether provide integrated service content?
Besides daily accounting job as bookkeeping, tax return, some outsourcing firm could provide finance consulting, finance analysis, tax planning and other specific service for clients. So you could make a comparison of the service content provided by different outsourcing firm and opt one as your reliable partner.
Whether the price offered is reasonable.
It’s not wise to evaluating the reasonableness by price solely.
We wish you could make a comprehensive consideration about above six points and find high-cost-effective outsourcing firm for your company.