Benefits of Outsourcing Accounting Services for Companies and Businesses (Including MSMEs)

June 2024

Outsourcing accounting services entails contracting an outside firm or individual to handle all or part of your company's accounting and other functions rather than managing them in-house. These services might vary from simple bookkeeping to more advanced activities, including financial analysis, tax preparation, legal advice, sustainability reporting and auditing.

Outsourcing accounting activities helps eliminate high overhead costs, allowing you to focus on your core competencies. Another advantage of outsourcing accounting services is that it helps you not only prepare annual reports, but also look at your overall financial administration.

Here's how outsourcing accounting services typically work:

1. Efficiency.
   Accounting outsourcing allows businesses to reduce operating costs, and can help organizations save money on employee-related costs such as hiring, training, and empowering accounting professionals. Instead, the corporation pays the outsourcer a project-based fee. 
    
2. Maintain high quality standards.
   Companies that outsource their accounting benefit from the best services of the outsourced company, with each worker trained and experienced in their field.
    
3. Concentrate on your primary business.
   Because expenses may be reduced and the individuals on each outsourced team are experts, you don’t not have to worry about the costs or quality of your accountants, allowing you to focus on your company's primary business.
    
4. Scalability and Flexibility.
   By outsourcing, companies are able to adapt their business patterns to a variety of conditions which require flexibility. Companies can easily determine their priority scale for outsourcing services, allowing them to achieve better potential business growth.
    
5. Use of the latest technology
   Accounting outsourcing firms use the latest technology to improve their client’s performance. In this way, companies that outsource their accounting can save costs and achieve maximum results from every accounting job.
    
6. Security and Legal Compliance
   Accounting outsourcing firms understand and apply all applicable regulations, allowing businesses to comply with the law and avoid legal issues. In addition, accounting outsourcing typically includes a strong data security mechanism to ensure that a firm’s confidentiality is protected
    

How important is it to choose an outsourcing accounting services partner for your business?

Outsourcing accounting services can offer numerous benefits, including cost savings, access to expertise, scalability, flexibility, and enhanced focus on core business activities. However, it's essential to choose a reputable and reliable outsourcing partner and maintain open communication to maximize the value of the arrangement.

Before your business and organization chooses an outsourcing accounting services partner, here are some things you should know:

• Selection of Provider: Once you've identified your accounting requirements, you'll need to research and select a suitable outsourcing provider. As for Moores Rowland Indonesia, we Consider factors such as expertise, experience, reputation, pricing, and compatibility with your business needs.
   
• Assessment of Needs: Before outsourcing, you'll need to assess your company's accounting needs and determine which tasks you want to delegate to an external provider. This could include day-to-day bookkeeping, payroll processing, financial reporting, tax planning, or more specialized services.
   
• Service Agreement: You will sign a service agreement or contract with the outsourcing provider that specifies the scope of services, service level agreements (SLAs), price structure, confidentiality provisions, and other terms. 
   
• Data Transfer: You will provide the outsourcing provider with access to your financial information, either through a secure web platform, cloud-based accounting software, or physical documents. Moores Rowland Indonesia feels it is important to ensure that client data transfer methods comply with data protection standards and regulations while maintaining confidentiality.
   
• Accounting Processes: The Moores Rowland Indonesia outsourcing provider will complete your accounting requirements in accordance with the agreed-upon scope of services. This may include documenting financial transactions, reconciling accounts, creating financial statements, calculating taxes, processing payroll, and performing other common or specialized tasks.
   
• Communication and Collaboration: These are essential for a successful outsourcing engagement. You will communicate with the outsourcing provider on a regular basis to issue instructions, monitor progress, handle complaints, and ensure alignment with your company's goals.
   
• Quality Assurance: The outsourcing provider will provide accounting services that are accurate, timely, and of high quality, in compliance with professional norms and regulations. They may have internal quality control mechanisms in place, as well as periodic evaluations or audits to assure compliance and excellence.
   
• Risk Management: Choosing the right outsourced accounting service can help reduce the risk of errors and fraud. Professional accounting firms such as Moores Rowland Indonesia have strong internal controls and processes to ensure the accuracy and integrity of financial data.
   
• Feedback and Improvement: You will submit feedback to the outsourcing provider based on your experiences and expectations. This feedback loop assists in identifying areas for development while also ensuring continued alignment with your changing business needs.

Moores Rowland stands out as a leading provider of accounting outsourcing solutions, providing bespoke services to meet each client's specific needs. Our comprehensive suite of services goes beyond accounting and financial management to include payroll, back-office support, and human resources functions. With Moores Rowland as your trusted partner, you can confidently delegate non-core activities while focusing on what you do best.

With Moores Rowland, you can reap the benefits of smart outsourcing while also unlocking new potential for growth and success. Contact Moores Rowland Indonesia immediately to explore how we can assist you with your business. https://moores-rowland.com/contact