Outsourcing business functions is becoming more and more popular for small firms, especially when it comes to accounting services in Vietnam but, why? Let’s take a look at the benefits and drawbacks of outsourcing so you can determine if it’s something you should consider.
The outsourcing solution
Accounting outsourcing in Vietnam is primarily driven by the need to save time and money. One cannot purchase time, but one may give them selves more time by having an accounting company in Vietnam who can perform time-consuming administrative duties. Outsourcing services are currently more popular than ever before since all organisations need to be able to focus on what generates revenue and profit.
The good points
Often, employing a third-party accounting firm is less expensive and more efficient than hiring in-house accountants and financial analysts. In the same way that utilizing technology to enhance your business may save you money, outsourcing allows you to avoid the overhead expenditures involved with hiring an employee, such as health insurance, retirement, vacation, Workers’ Compensation, and sick leave days.
There to serve you
It’s not like you went into business to be an expert in finance and accounting and, you’ll be well aware thatwhen you’re running a business, you want to be focused on the company’s overall growth and future. Having an outsourced accounting staff provides you the benefit of being proactive, as they can monitor things ahead of time, alert you to things like expenditures and cash flow issues, and give you the confidence to make smart financial decisions.
Fraud is a common occurrence in small and medium-sized businesses with only one individual in control of the accounting department. So, because it is so easy to tamper with the records or make up a cost that goes undiscovered for months or even years. Indicators of fraud include a range of warning signs, which are often the consequence of an employee’s financial difficulties, when they don’t know what else to do.
Things to watch out for
The scope of a paid service might go beyond its original scope, resulting in additional expenditures that you weren’t aware of at the beginning of the project (or forgot about). If you want to decrease the possibilities of this happening, make your month-to-month relationship explicit and set expectations from the beginning.
The proactivity of an outsourced team comes with a catch: you can’t go and have a ‘sit down’ with them every time you need to discuss something. Of course, you’ll be able to contact your account manager, but you’ll probably need to study up on the issue if they aren’t accessible. You will be able to obtain weekly updates and monthly reports, but you must have faith in your outsourcing connection.
Action when you need it
Naturally, there are benefits to having someone on hand who can react to questions immediately, if you rely on a single employee, you may not get the same level of service that you get from working with a team of seasoned professionals. A competent outsourced accounting company should have excellent communication processes in place to ensure that your staff is always available and accessible.