Businesses of any size benefit from having better accountants doing the bookkeeping. An accounts department in a company handles different functions like accounts payable and receivable, maintain ledgers, reconciling bank accounts and statements, tracking and maintaining credit card activity, handle payroll for all employees, prepare tax forms, manage cash flow, prepare operating budgets for every year , to name a few.
There are accounting firms, however, that manage the accounts of other companies, rather than the company employing its own accountants. On a practical point of view, this confers several benefits, as described below.
- A business that uses an accounting firm to handle the financial side of the business is outsourcing the accounting. This spares business owners the time and expense of doing it themselves and saves on overhead costs. Using a specialised accounting firm offers better insights into financials so the business can make better decisions.
- Outsourcing to an accountant firm in Perth is a good idea, even while accounting software is available, to avoid mistakes. Accounting firms are also aware of tax breaks available to businesses. Firms have specialists who can take care of payroll, as well as following up on accounts receivables. They can help with filing taxes for businesses, individuals and employees immediately.
- For these services, most specialist firms charge a monthly fee – they provide the equipment, expertise and manpower. Companies save by not having to train employees, pay bonuses, health insurance and other benefits. Businesses can save on office space rentals as well that would otherwise go for in-house accountants
Companies need to have their accounts audited by outside firms to ensure adherence to accounting principles, the tax code, and other requirements, so accounting companies doing it reduces errors. It also avoids penalties from the Australian Taxation Office in case of missed items or incorrect categorization.