Proper Bookkeeping of an account is crucial as it helps the management analyze several factors like revenue generation, incurred expenses and profitability from projects. It also assures statutory compliances on a timely basis. Financial accounting outsourcing helps in determining the cost of each products and the associated overheads in carrying out the business activity.
Finding the right talent for accounting is very difficult now a days and it is more so if you are a start-up company with a small budget. Finding an expert accountant is not only a tedious job but it is also very expensive. Outsourcing financial accounting and bookkeeping is a great alternative and it has several benefits from both quality and cost saving perspective.
If the books of accounts are maintained, the information is readily available. If we do not maintain the accounts, finding out the monthly tax liability of the business (Income Tax, TDS, Sales Tax & Service Tax payment and return filing is difficult.
Helps in Business Decisions
All businesses make decisions based on financial statement as they provide a true & fair view account of the efficiency of the business. In their absence, it is always possible for bias to creep in to decision-making.
Helps in Fund Raising
If we are going to raise funding or ask for a loan, we would need to provide your books of accounts and Financial Statements for 3-4 years. If you have a proper record of transactions, your compliance costs would be reduced. Also it is easy to get loan from the financial institutions.