A Peep into the Disadvantages of Hiring Business Accounting Services

It has now been understood by small and medium business owners that the time spent in languishing over books and accounts does not add to the bottom line and the same can be spent in handling other core functions and processes that generate revenues. For the efficient use of available time and limited resources, organizations are increasing looking towards outsourcing their taxation and accounts related job work to firms offering business accounting services in a professional way. Experts who are fully equipped with the latest accounting and taxation software and information are providing high quality services and valuable consultancy and advice to organizations willing to outsource their accounting and bookkeeping functions to professional accounting services providers.

Outsourcing of professional accounting services to third parties helps businessmen by saving money in the areas enumerated below:

1. Accounting software

2. Employee training and turnover costs

3. Vacation, sick and personal leaves

4. Additional office space, equipment and furniture

5. Retirement plans, medical benefits and other incentives and bonuses

6. Worker’s compensation insurance

7. State Unemployment insurance, etc

Various printed, and internet editions, broadcast advertisements like “We provide quality business accounting services” or “Contact us for your professional accounting services needs”. The synonyms for the outsourced accounting services are many such as book keeping management, accounting reporting delivery, user’s book keeping support system, financial accounting services, etc. With the increasing demand for these services for SME’s and entrepreneurs for cost effective and error free solutions, there have been many insights into the pros and cons of outsourcing accounting procedures to external parties supplying professional accounting services.

I would like to put forward certain disadvantages of opting for business accounting services, which should be studied by small business owners- to avoid complications through their outsourcing decisions.

1. Most of the small and medium sized business owners are capable of handling the transactions and monetary dealings on their own. Opting for business accounting services may provide more time on their hands to manage other affairs but it may also lead to loads of headaches and even loss of personal freedom. If the professional accounting services are hired from incompetent consultants or third party accountants, their mistakes in accounting procedures, non compliance to regulatory standards and non timely submission of taxation and final accounts and documents can lead to high penalties and imprisonment in certain cases.

2. The safety and stability of the accounting records and data along with highly confidential information depends on the business relationship between the outsourcer and the business accounting services provider. In certain cases, non ethical business procedures lead to the exposure of Company sensitive data to competitors which may lead to great business losses.

3. It is extremely important to comply with the statutes related to tax inspection. Improper supporting documentation accompanying the submitted tax returns may invite tax bodies to impose arrest on bank accounts of the enterprises and the personal accounts of the businessmen. This leads to a loss of reputation and undue stress for the owners and in certain cases the termination of the business operations.

Accelcia business accounting services provides professional accounting services for your business growth and future of exposure.