Outsourcing internal accounting and payroll allows management to hire dedicated internal accounting professionals without the day-to-day managerial requirements such a department would require. Outsourcing also allows the company to monitor key areas within the organization -- giving high quality assurance to the board that the risks are being monitored effectively and objectively.
We do understand that your Company internal accounting and payroll activities consume huge amounts of time, require investment in technology and man power is usually problematic at best. Rather than constantly struggle to hire, train and retain internal resources, we hereby sincerely suggest you to outsource the entire function, or co-source to our firm to supplement for your specialized needs, freeing your time so you can focus on running your business.
1. Direct Cost (list not all inclusive)
i. Continual education to stay abreast of accounting principles and procedures so that you are prepared to hire and train
ii. Staying abreast of governmental laws and compliance with respect to payroll so that you are prepared to hire and train and watch over your staff
iii. All compliance audits costs, such as time to monitor the auditors activities while on your premise
iv. Additional costs for requesting financial information in a rush to meet financing and banking demands
2. Administrative Costs (list not all inclusive)
i. Hiring/Training accounting and payroll staffs - over stated Resumes
ii. Accounting and payroll employee gross payroll cost
iii. Payroll related costs, FICA, workers compensation, unemployment, vacation/sick benefits, health insurance benefits, and many others.
v. Software and annual updates
vi. Office supplies (check stock, paper stock, envelopes, toner)
vii. Bank charges
viii. Office space (rent for additional offices) < paid during items personal (banking, inefficiencies>
3. Opportunity Costs
i. Opportunity Costs are hard to realize on a financial statement or in the checkbook, but they are just as relevant when talking about outsourcing. An opportunity cost is a cost that exists under one option and not under an alternative option. Outsourcing your accounting function is the alternative option over an in house option.
ii. The following is list of some of there types of costs
a. Time spent on non-revenue functions of the business. Payroll is non-revenue producing. Accounts payable and accounts receivable functions have some revenue producing elements, but for the most part is non-revenue producing.
b. Invoice billing shock from your outside CPA firm. The cost is one monthly fee and covers the entire accounting function. There is no separate bill for a conversation with your assigned CPA.
c. Peace of mind that your information is correct, up to date and ready for any request from your banker, supplier, or your business partner.
4. Personal Professional Accountant And Accounts Assistant
i. We assign you a personal professional accountant and accounts assistant who will get you started on the right track. Having an expert to coach and counsel you in the financial management of your business can be an invaluable asset. We let you handle the invoicing functions that you feel comfortable with and we will do the rest!
ii. There are three services offered included complete processing on daily basis of the following:
a. Basic Services
• Accounts Payable and Receivable
• General Journal
• Bank and accounts reconciliations
• Final Report
• Monthly Debtors and Creditors Statement
• Debtors and Creditors Aging
• ther report as per requested
b. Value Added
• FREE fully integrated Enterprise Resource Planning (ERP) system
• Internal financial consultant
• Establish the control system
• Inform those concerned of financial condition
• Supply the business with adequate information
• Main contact with government agencies, bankers, etc.
• Provide insight, courses of action
c. Daily Service
• Proper documents data entry (quotation, invoices, CN and DN, PO, DO)
• Proper inventory control
• Proper account classification
• Proper asset classification and depreciation
• Proper filling
• Setting up your vendors
• Setting up and using payroll
• Importing and Exporting