Considerable Aspects regarding Outsourcing Accounting

Outsourcing accounting is the latest trend in the accounting sector. But before you start analyse and get a clear-cut idea of the capital and the savings involved. When appointing an outsourcing service vendor, you must evaluate and compute your savings on overhead expenditures. At first, you need to determine the total cost, either you want to establish and manage an onshore or an in-house team of accountants. In your analysis, include staff allowances, supply, equipment, maintenance and development costs as well as other relative expenses for infrastructure, office zone, work force etc. in your computation. Along with these, analyze and estimate the expenses and perks you will be receiving by outsourcing your accounting tasks.

Here is a brief checklist: 

• Include non-fiscal gains of outsourcing during cost estimate. Draft all the benefits you will be getting on outsourcing.
• Seek a reliable and legitimate outsourcing service provider. Look for the experience and skills you desire for assisting you in your accounting functions, plus, their fee and the services they provide. Consider all these aspects and then go for the appropriate outsourcing service provider that suits you best.
• Look for a service provider who offers not one but a range of services. An accounting firm that provides many services is more proficient in dealing with more complicated accounting exercises.
• Make sure that they retain a high quality level. Your accounting tasks should be outsourced to that outsourcing firm which maintains exceptional quality in work. This really helps in process management and providing your business a competitive edge.
• Work with an accounting firm which offers enough security measures for the confidentiality of your company’s data. Their security standards must be at par with the industry standard and constantly upgraded as well.
• Review the work history and track record of the outsourcing firm. Look for firms that are experienced and have a number of happy clients that employ their services. Choose a firm that delivers work on promise of quality and time deadlines.

Connect Accounting, is an Australian firm, providing services to Australian Chartered Accountants for the past seven years. Connect offers a wide range of accounting services, including annual financials, smsf audits, tax returns, work papers etc. Connect, works with commitment and delivers on promises.

Retain all these details in mind and select the not just the best, but the one that suits you the best.

Pros and Cons of arranging SMSF to your business without thinking the strategy

We actually love this strategy but there are positives and negatives to this situation and you will need guidance from your legal, accounting and SMSF Specialist Advisor. Many owners of small to medium enterprises use this as an effective strategy but others do a half-baked job and leave themselves exposed.

Pros and Cons of arranging SMSF

Pros:

• Direct control of your super investments and a real understanding of where your money is invested.
• The fund will pay only 15% tax on commercial rent paid
• If the premises is sold no capital gains tax may be applicable once you are in pension phase and 15% or less if earlier.
• You can be your own landlord with secured tenancy which allows you greater certainty when fitting out or installing equipment.
• Keeps liquidity in the business to fund other costs.

Cons:

• There are thousands of dollars in set-up costs and there are sometimes higher fees involved in getting a loan through your SMSF.
• If a member of the fund dies without the proper insurance in place the fund may have to pay out death benefits leading to a rushed sale of the commercial premises.
• If sold to a third-party then there is a possible loss of tenancy to the business which could destroy it.
• There are strategies that can be built to avoid the cons, it is best to speak to an advisor so that they can see what is best for your personal situation.

MYOB Software Assessment

The MYOB Accounting Software is one of the most prominent software in use within Australia and New Zealand to maintain businesses bookkeeping and accounting records. MYOB is a heavily feature loaded software package which is proficient in handling most small to medium enterprises accounting requirements depending on what client expectations are and how much information is required to be extracted from the accounting software. Most business owners and managers acquire MYOB with the view of it being a measure to help maintain compliance with the tax offices requirements when it is capable of providing so much more useful information which can help an owner/manager gain the edge over market rivals.

With the new generation of cloud accounting software gaining momentum the PC based file that MYOB has traditionally used is becoming outdated. Still if a business does not require taxation updates from year to year, once purchased the MYOB software doesn’t require any further payment for maintenance or subscription.

The set up of MYOB software is very easy and also provides the ability to import a chart of accounts from Quickbooks and existing MYOB data files to step up the process. The main interface is simple to use with basic headings and map lines for each individual heading to provide guidance of basic bookkeeping processes. Data entry requires minimal bookkeeping or accounting knowledge. The MYOB software programs includes inventory management, time billing, job tracking, multi currency usage and strict security controls over users. MYOB also enables you to execute standard accounts processes like invoicing, maintaining debtors/creditors ledger, payroll, GST tracking and bank reconciliation

The best feature of MYOB is its vast reporting facility. apart from the many different reporting options that MYOB provides, the ability of extracting out and personalize the report is more outstanding. This time saved is like dollars saved. Also the ability to export reports into a Microsoft Excel format makes it more easy to customize.

Connect Accounting is a prominent accounting firm in Australia and an experienced MYOB user. Connect deals with accounting outsourcing work for Australian businesses. Connect is quite familiar with the pros and cons of the MYOB software and has the capacity and capability to fetch the maximum and best results through it. Connect Accounting can help you setup your MYOB software or can indeed handle all your accounts for you with the best industry standards, smart technology and a smarter workforce.

The Value of SMSF

SMSF or the Self Managed Super Funds, is a long-term savings arrangement, which has gained popularity in the recent years.

smsf audit, Value of smsf

The major benefit and reason for SMSFs rise is its aspect of giving you the power and resources for  property investment. It favors you to convert your funds into assets. But a major concern is, that you can’t just invest your money into anything. Though It has many gains, but there are also lots of rules that you need to be aware of. The assets you invest on are supposed to be for business only and not for personal use, or you might incur hefty penalties.

The best would be, to let an expert handle your SMSF than paying for errors or being in the fear of making one. Connect Accounting, provides outstanding service and support for your SMSF. Just pass us all the required stats and worries, and gain full and efficient control over your numbers.

The boon of Accounting Outsourcing

Accounting outsourcing refers to outsourcing of activities pertaining to finance and accounting functions to a third party vendor. Accounts payable, accounts receivable, credit and collection, bank and other reconciliation, general ledger maintenance, financial analysis, management reports etc. are services that can be outsourced.

 

Accounting Outsourcing

The best part of outsourcing is that you only have to pay for the work that your accountant does. You get relieved from the burden of paying salary, holiday time, benefits, sick time and so on as these duties will be passed on to the agency outsourcing your accounting functions. This makes cost reduction the primary reason for outsourcing. In today’s tough economic times accounting outsourcing favors an organization’s competitive edge in the market.

Outsourcing also provides the benefit of latest information technology and processes. While focusing on core business activities of the organization, outsourcing functions provide increased efforts toward the organizational mission as well as well planned contributions to a company’s healthy fiscal growth.

Outsourcing is now available for businesses of all sizes due to the advancements in technology and has made Finance and Accounting one of the most attractive and straight-forward functions to outsource.

Choosing a service provider becomes the deciding factor for your company’s outsourcing functions. The outsourcing company must provide specialized outsourcing services and be experienced in the areas of accounting and bookkeeping. Connect Accounting, Australia is one such firm, well equipped with latest technology and experienced professionals to manage the process with great efficiency.

Why Outsource When You Can Insource

There has been a lot written in recent times about the risks surrounding outsourcing with particular emphasis on the new privacy laws as well as the general protection of data and the access to personal information of clients.

The recent article published in the annual software guide published by the Institute of Chartered Accountants in Australia made particular references to these issues and the risks that Australian accounting practices face when confronting the issue of outsourcing.

However, there is an alternative that eliminates or greatly reduces these risks and that alternative is “in-sourcing”. What do we mean by in-sourcing?

In-sourcing is the process by which a member of staff or contractor accesses your server by use of Remote Access Connection and works on your server to undertake the various tasks that need to be undertaken. The administrator of the practice’s network sets the rights and access restrictions of the person logging in to the server and no data can be transferred from the home server to the remote user’s computer unless these permissions are allowed.

The benefits of in-sourcing are that the person using the remote access connection can be located anywhere that there is a quality internet connection, their connection and the files that they access can be monitored by the network administrator, access is restricted to only the areas that relate to the work being performed and there is no transfer of data from the network to the remote user. Under this process the remote user must use the software provided by the host and the host can dictate how and when the work is to be performed.

There are many that would raise concerns, although data is not transferred, the remote user can still use the information accessed for purposes other than for the reasons of completing a task set by the practice. This is possible and so it is paramount that any in-source provider is the subject of the same level of scrutiny in assessing their suitability and reliability. A quality in-source provider would have systems and processes in place that guarantee the security and quality concerns of any potential user.

Mind you it is also possible that staff working in your office could access client information for non-professional, indeed illegal purposes. Most firms have systems and processes to protect data from firm staff, but they are not completely foolproof.

When talking in-source, this can be by people working in a secure center overseas, or people working from their home in Australia. Many firms already have domestic in-source arrangements, some have good security controls for the data accessed by the domestic in-source people and some don’t.

Regardless of the system, outsource, in-source based overseas, in-source based in Australia, or indeed staff based in your office, all firms need to ensure access to data is protected and where possible limited. Strong security of client and firm data must be maintained so no one can transfer data to another party.

A quality in-source provider can provide real benefits to your practice without compromising quality, privacy or control.

Outsourcing: A new way of working

The pressure to enhance the business performance has persuaded many companies and executive heads to look for new means to make their businesses compete well in the challenging market. Finance and Accounting organizations are not left out.

accounting outsourcing services

Connect Accounting, Australia provides accounting outsourcing services to help your company transform into a high-performance organization that attains global recognition and competence. Connect Accounting, productively simplifies processes, executes policies and maintains compliance, while you focus on your core competencies and overall business growth.

Accounting is normally like a textbook illustration of a corporate task since it involves standard procedures that accounting experts follow all over the world, hence outsourcing the finance and accounting business processes is really smooth and yet so necessary to exist and succeed. The accounting tasks that are generally outsourced are analysis, auditing, data entry, bookkeeping, payroll, credit analysis, benefit and bills processing, cash book entry, and many more.

Connect Accounting, Australia offers you a perfect platform to hire accounting professionals for your Accounting and Finance Business Processes on as needed basis rather than full time in-house staff. We offer you the best in industry at your will and complete flexibility.

Connect aims to give you a better start than anyone else.