Pros And Cons to Outsource Accounting Service In Malaysia

Small-medium enterprise (SEM) businesses outsource their accounting activities to licensed chartered accountants to handle has become a standard solution nowadays. Despite some disadvantages, small-medium enterprise businesses understand the advantages of outsourcing their accounting activities.

Here are some of the pros and cons you need to consider if you think you should outsource the accounting activities of your businesses.

Hire An Outsourced Accounting Service To Help Reduce Cost

Many businesses choose to outsource accounting services from chartered accountants mainly because they are cost-effective. Hiring an outsourced accounting service is often cheaper than bringing in-house experts to handle the accounting activities. Hiring a full-time employee requires more overhead costs, including health insurance, maternity leave etc.

Furthermore, businesses are going digital. Installation, subscriptions, and device and cloud accounting software are costly to businesses, especially small-medium enterprises. With that, outsourcing payroll services that can be handled by using HR and accounting cloud-based software to chartered accountants will be more cost-effective than establishing in-house HR and accounting departments.

Communicating with your outsource accounting service provider is crucial to meeting your expectations. However, one task might snowball into multiple tasks when it comes to getting paid service. It can result in additional costs if you are not aware. Ensure you get a comprehensive and straightforward onboarding process.

Proactive Approach VS Less Control

As a business owner, you are not trained to be a professional when starting your business. Outsource incorporation company service from speciality and core competence chartered accountants has the advantage of proactivity where you can focus more on the other core business.

There is so much to be done, from registering the Sdn Bhd company to opening a company in Malaysia. To incorporate a company in Malaysia, you need a certified company secretary. Either register a company online to set up or incorporate a new company with a certified company secretary service. Everything usually can be done by your outsourcing business and accounting company in Malaysia.

Foreigner register company in Malaysia becomes a more manageable task when you outsource the service to an expert. Although you can get reports from your outsourcing, you still need to establish trust in your service provider as you will have less control. You might not feel comfortable handing out the tasks to an outsider.

Reduce Fraud VS Time Consuming

When one person only handles accounting, fraud is unfortunate in small-medium enterprises. Manipulating expenses, and records that go unnoticed for months is not difficult. You have multiple pairs of eyes on your report using an outsourcing accounting service.

An outside advisor specialising in transfer pricing usually has a table of people they can call on for assistance when specific issues arise. Besides, they typically have access to other resources where the in-house team likely does not have them. For instance, you outsourced transfer pricing documentation.

Schedule meetings to communicate regularly and set clear expectations are essential when outsourcing accounting activities. However, you may not get an instant answer as asking your in-house team will be faster. There may also be some limitations to not being in the same office.

In short, outsourcing accounting services can be beneficial or a disaster to your business. The key is to research and choose an experienced, trusted chartered accountant and firm that cater to your needs. You should also consider certain factors before deciding on whether to go through with an outsourcing accounting service or not. Click here for more info!