The key point to consider is how much time is the current bookkeeping process and function taking and could that time be better served elsewhere in the business. Another question to consider is could the owner of a small business spend more time on meeting, networking and developing new relationships with new customers? Has the bookkeeping and accounting function always been done in house because initially it was a simple process but as the company grew it has become more problematic.
Another key point to establish, is whether the bookkeeping is currently being prepared and processed correctly so that the information gauged from it is accurate, concise and easily understood. Incorrect information from the bookkeeping and accounting process can lead to incorrect decisions being made, more time spent correcting it and possible compliance issues from the tax authorities.
It is important to evaluate if you as the owner of the business or persons that have been given the responsibility of carrying out the bookkeeping have the necessary skills to complete the job effectively. It could be a better solution to outsource the bookkeeping function of your business to a company whom have qualified accountants and bookkeepers with the right skillset, whom can justify the decision by carrying out the job in a more time efficient and cost effective manner.
Benefits to outsource bookkeeping
One of the first considerations many take when looking at outsourcing the bookkeeping function is the deemed extra cost. This is especially the case when the business is in the start-up phase and a routine is developed and continued as the company grows. However, rather than being seen an as unnecessary cost to the business, the reality is that if a reputable company is used with experienced book keepers than the savings are often quite considerable whilst giving the company or owner peace of mind that the book keeping is being carried out correctly. It is also worth noting that an experienced book keeping company or accountants will set up processes that are effective not just in the start-up phase but will be robust enough to grow with your business. It should also be noted, that business could also increase revenue as the resources previously tied up with book keeping can now be allocated elsewhere.
If the company or individual is VAT registered it is important to ensure that the book keeping process is set up and carried out to ensure that ongoing VAT compliance deadlines are met accurately and in a timely manner. It is also important to ensure the information is set up in an orderly way, so that it can be easily found should the authorities wish to look at information. An important consideration for traders dealing with EU suppliers and customers is that whilst the place of supply normally is not in Malta and thus no VAT is paid, there is still a reporting requirement with regards to EU purchases and sales.
A final point to consider is that if the book keeping is being carried out for a business then usually there will be an audit requirement. The book keeping if organised and presented a certain way should ensure the audit process is a quick one and normally the audit fee reduced.
Advantages of outsourcing book keeping services
So to summarise the key advantages of outsourcing book keeping services are as follows:
- More Time
- Saving Money
- Expertise on your side
- Focused work staff
- Team staff versus individual
- Access to top systems
- Scalability options