5 Benefits Of Outsourcing Accounting Services

It is nearly impossible to run a business without issuing invoices, collecting payments, and paying employees. Hence, you will need a bookkeeper to help you with some of those tasks.

Still, finding an honest and qualified bookkeeper can be really tricky. One way of doing this is by outsourcing.

Daily bookkeeping, payroll, accounting, and HR are some of the crucial services that companies in South Africa might want to outsource.

Here are five benefits of outsourcing accounting services:

Day to Day Bookkeeping

One of the main advantages of outsourcing a bookkeeping service is that you will have someone who will handle your day-to-day management of accounts. This way, you will keep track of all your business transactions without paying a monthly salary.

Maintain Up-to-Date and Accurate Records

Having a qualified bookkeeper in your corner will help you maintain accurate records. All your business records will be up to date and updated accurately. Furthermore, you will be better positioned to resolve financial problems quickly.

Robust cash projections

Another benefit of outsourcing accounting services is that you will access your cash projections anytime. For instance, when you outsource your bookkeeping to MGT Accounting, you will be able to generate monthly cash flow projections that will allow you to know when your business will run out of cash.

Staffing flexibility

If you are a small business, you may not be in a position to pay a full-time bookkeeper. But outsourcing gives you staffing flexibility. You can only use a bookkeeper once or twice a month. Outsourcing gives you access to a team of qualified bookkeepers that you can use anytime a need arises. You will also be able to pay employees on time, collect payments, issue invoices, and file tax returns timely.

Simplified tax compliance

Lastly, when you outsource, you will know how much tax is payable on specific invoices. Moreover, outsourcing accounting allows you to prepare annual financial statements (AFS) regardless of whether your company is a small, medium, or large business.

The AFS submissions are a minimum requirement for submitting tax returns for companies. They should contain the following: Income Statement; Balance Sheet; Tax Computation; and Notes to the AFS. According to SARS, for all other company classifications (Dormant, Body Corporate, Share Block, and Microbusiness), the submission of the AFS is optional.

Are you looking for accounting services for your business? Reach out to MGT Accounting today! Email info@mgt-accounting.co.za