In-house vs. Outsourced Accounting

There are increasing numbers of companies, with various sizes and types, making decision to outsource some or all of their accounting & administration functions to a third party. Contrary to popular misconception, it's not the companies in problem, but it's one of their business strategies. Outsourcing practice addresses their unique business needs, such as financial imperatives and operational effectiveness.

Through the outsourcing, we structure a tailored-relationship, sharing in the business risk to deliver optimal results. We will provide you with timely, accurate financial information in a cost effective, professional manner and we seek to operate professionally and personally for clients with both constructive and timely advice.

The daily accounting work within a corporation may cost management a lot of supervision time. However, if part of or even all the accounting functions are outsourced to a professional service firm, management will be able to save more energy to concentrate on the core business. Here are some comparisons between in-house accounting and professional outsourcing.

	In-house	Outsourcing
Management time	Extensive monitoring time,	Monitoring cost is minimized
Quality	May be inaccurate and incomplete, which impacts business decision	We working in a team environment ensure that we are keep in the last Tax regulation; We are set comptroller general to ensure our produce quality.
Software	Have to purchase software at company cost	Get access to existing accounting software
Growth	Hard to catch up with the pace of fast expansion	Standard policies and procedures to support the rapid growth of business
Economic scale	HR costs is high, some of the costs that should be taken account of in determining include: Recruitment fees (advertising, agency) opportunity cost of time spent interviewing potential new candidates Training Cost of a desk (provision of desk, computer, rent, software, administration, stationery, etc) Redundancy payments Temp staff while employee is on leave Subscriptions specific to employees Social welfare and pension for employees	Only payment of service fee
Risk	Relatively high fraud and non-compliance risk	Low fraud risk, compliance with statutory requirements is achieved
Culture	Accountants are subordinates who only provide “labor”	Gain access to “services” from external vendor