Types of Outsourced Accounting Services in the Philippines
Choosing the right accounting services to avail depends on the needs and progress of the business. Initially, small businesses avail compliance services for filing, paying, and submitting their tax returns on time. As they mature or increase profit margins, they place more emphasis on maintaining accurate accounting records and gaining a trusted financial advisor to help manage their finances.
For foreign companies registered with the Philippine Economic Zone Authority (PEZA), they usually avail the services of accounting firms to file post-registration requirements on their behalf so they can maintain their certification with PEZA and continue availing tax benefits.
Some companies usually avail the services of accounting firms because they do not have their own accounting teams or departments. Other businesses with existing in-house accountants avail outsourced accounting services to help improve their internal processes.
What Accounting Service Works For Your Business?
GrowthForce states that a business owner must first identify why and when they need to avail the services of an accounting firm. Accounting firms charge professional services based on how often you will work with one.
When you work with a firm for recurring engagements like accounting and bookkeeping, they will charge you on a monthly retainer. On the other hand, special engagements focus on a specific accounting service (e.g., Tax Advice) and they can either charge you per hour or through one-time payments.
You might consider hiring in-house accountants but it might be costly (e.g., salary, benefits, health care, etc.) compared to outsourcing accounting functions. Before availing any of these services, determine what best suits your business needs. Remember that estimates may vary because accounting firms usually base their rates on market demand.
Types of Outsourced Accounting Services in the Philippines
There are three types of outsourced accounting services available from most accounting firms in the Philippines. If you intend on availing these services, this section can help you decide which type of service your company requires.
General Accounting and Bookkeeping
This service is the primary expertise of accounting firms wherein a team of Certified Public Accountants (CPAs) consolidate client transactions and earnings through financial statements. They work on client financial records by creating a system capable of keeping track and compiling their expenditures.
CPAs compile and maintain accounting books by recording and updating all pertinent information while ensuring the accuracy of the client’s financial data. They create financial reports for clients looking to disclose their financial performance with board members, stakeholders or the general public. They also analyze adjusting entries at the end of the accounting period and prepare documents for compliance for account schedules.
Government Compliance
Accounting firms also assist enterprises of varied sizes in complying with the taxation requirements of the Bureau of Internal Revenue (BIR) and the fiscal and non-fiscal incentive programs of the Philippine Economic Zone Authority (PEZA) to eligible companies.
For clients encountering inconvenient dates to submit their tax returns, CPAs will submit such returns and declare their taxes properly on their behalf before BIR’s prescribed deadlines. They also aid PEZA-registered businesses in sustaining their eligibility for tax incentives by submitting their post-registration requirements to maintain or annually renew their PEZA certifications.
Specialized Accounting
Specialized accounting services allow businesses and solo entrepreneurs to outsource certain financial operations requiring the use of specific accounting tools and methodologies. Accounting firms help business owners minimize their vulnerabilities to various accounting and financial computation errors that may affect their financial operations.
CPAs also analyze internal processes of their client companies to ensure productivity, improve internal security procedures to protect assets from fraud, boost proper management of corporate taxes, and create financial documents for other purposes.
Planning to Outsource Your Accounting Processes?
If you want to outsource your accounting functions, AHC Certified Public Accountants Limited Co. will assist you by providing top grade accounting solutions and financial monitoring services. Our services are fit to expedite and improve your internal processes in accounting, taxation, and compliance with government requirements.
Have any questions related to our services? Let us know by filling up our contact form, and we’ll attend to your inquiry as soon as we can.
