Calling on an outsourcing accounting firm: who, when, how, and why?
An outsourcing accounting firm will have certified accountants which will be the ones fully qualified to sign your accounts at the end of the year. However, their skills are not confined only to the accounting field. The certified accountant is also able to support project leaders and managers already in business or those who wish to sell/buy. There are many advantages to using an external accountant:
- Who can call on an outsourcing bookkeeping firm?
- When to call in an accountancy firm?
- Why call on an outsourcing specialist?
- How to hire an external partner to take care of your accounting?
Who can call on an outsourcing accounting firm?
In practice, any organization can call on an external partner for their accounting and payroll solution. There are no specific restrictions at this level. On the other hand, a company wishing to delegate its accounting can only call on a single professional: a certified accountant to work on your accounting. For certain entities, the use of a professional of the number is obligatory. For others, the choice is free; it is the result of a management decision. A company can then decide to manage its accounting itself, outsource it completely, or delegate only part of it. It is observed that small and medium-sized structures in Thailand generally do not do their accounting internally (the fault being attributable to the differences in languages and the different declarations to be made).
In addition, hiring an external partner would bring a fresh view of your business and will enable you to highlight some weaknesses that managers or owners would have not been able to see. In the end, hiring an outsourced specialist will also avoid any internal frauds, intended falsification of your accounts, and or mistakes that your accountant in-house might do on purpose.
When to outsource accounting?
At every key moment in its life, a company can call on an outsourcing accounting company. When setting up the business, the external accounting firm can provide decisive help with the project. To do this, they will carry out a creation support mission in which they will implement multidisciplinary skills: legal, accounting, tax, social … They will thus be able to determine the most appropriate legal status (company or sole proprietorship), choose a social status for the manager (director of the company or self-employed), identify the most attractive tax regime (income tax or corporate tax), etc. Then, during the life of the business, the public accountant can oversee the accounts by overseeing the bookkeeping. Different missions exist, the best known being the mission of presenting the annual accounts.
Beyond that, it can also offer additional services in legal matters (formalities related to general meetings or any dispute or negotiation), tax (preparation of tax declarations: VAT, WHT) social (formalities generated by entry or the exit of employees…). or economic (establishment of financial forecasts and dashboards). Finally, in the event of a business transfer or takeover, your future external accountant can also support the manager and his business. They will thus be placed on one side (seller) or the other (buyer) to optimize the entire process. ATa Outsourcing is competent to audit the accounts and legal matters of a target company, draft a letter of intent, negotiate the sale price, and will know, moreover, which device (s) to apply to minimize the tax impact of an assignment.
How to hire an accounting firm?
The steps to hire an outsourcing accounting firm are straightforward in practice. First, take stock of the extent of your needs and your budget. Here are the questions you need to ask yourself:
- What tasks will you entrust to the accounting company?
- Do you want to delegate all of your accounting or only part of it?
- In this case, what work will you be doing?
- Are there any additional incidental missions?
- What specific budget do you have?
A pre-selection phase follows the reflection phase. It is a question here of soliciting different professionals according to your preferences (online or local accountant). They will give you support proposals. It will be up to you to study these quotes from certified accountants. You will analyze and compare the information they contain: the price, duration of the assignment and renewal, a notice of termination, termination indemnities. Then, you will have to find and choose the professional who will take care of your accounting. To formalize your commitment, you will need to sign an engagement letter.
Why using an accounting company?
All companies can use a certified accountant at any time of their existence. Using a professional Outsourcing Accounting Firm has many advantages. It brings several competencies as well as advisors for the daily and yearly operation of the company and to the CEO/Founder.
Even if the selection process is facilitated using the Internet, finding a trusted partner without multiplying the numbers of external partners can represent a challenge and a hassle on a long-term basis. This will especially be the case for foreign entities setting up their operation in Thailand without knowing the market.
For the past 14 years, ATa Outsourcing has been the leading One-Stop Services based in Bangkok. We offer outsourcing accounting, payroll services as well as administrative management services to small, medium-sized, and international corporate clients. ATa Outsourcing does also provide legal services such as company set-up, license obtention, BOI set-Up, foreign business License as well as a legal dispute. Contact Us today!