Incorporating Account Outsourcing Into Business

Accounting and Bookkeeping are essential requirements of a business

. Accounting is the art of maintaining records, and analyzing and reporting them when the need arises. Bookkeeping, however, is different from accounting. It is the art of recording business transactions which does not involve analyzing and reporting.

Accounting may involve bookkeeping, but bookkeeping does not involve accounting. In some companies accounting and bookkeeping functions are carried on by separate staff members while in some, one person performs both roles. In this case, the designation used is that of an accountant. The accounts that are generated ensure that the company runs smoothly and efficiently and in case a dispute arises, one can utilize them to prove their companys authenticity.

Presently, accounting has to meet the obligations of the tax department for the objective of income tax return, because of the principles and policies set by the government. Some organizations keep their own accountants and book keepers while some rent professional services. Hiring professional services is a new practice in business development. It is termed as Account Outsourcing. Some of the functions of Account Outsourcing are:

Keep a record of the purchases and expenses made by the company

Closing of books monthly and annually

Entering the transactions

Making Deposits

Maintaining general ledger and balance sheets

Writing Checks

Credit card and bank account information kept safely

Creating Purchase Orders

Financial scrutinizing

Processing the receipts and sales orders

Preparing financial statements

Using account outsourcing services has several benefits, which are as follows:

Cost Efficient: Maintaining a staff for accounting in ones company is expensive these days. Hiring professionals makes sure you receive efficient services, without having to keep an eye on the employees work.

Proficient Staff: Appointing an employee for ones company is not an easy task, and even if you find one, they may or may not be professionals, and you would have to train them initially to receive better services. But with account outsourcing, you can leave your account worries to these trained professionals.

Flexibility: Since the outsourcing companies maintain a trained staff, they know how to deal with their customers, meet deadlines and you can tell them about any specific requirements that you may have.

Make sure to sign the Non Disclosure Agreement (NDA) with the organizations. These account outsourcing companies are highly competitive and will provide you with the best services in the market.

by: Bookkeeping Monster

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