Indeed, many innovative companies prefer to outsource accounting services from an accounting firm. Here are some reasons why this option is popular:
Specialization and competence
Accounting firms specialize in accounting and their team has extensive knowledge of taxes, accounting standards and other important areas. They can provide accurate reports and advice, helping the company to operate legally and efficiently.
Technological capability
Many accounting firms use innovative accounting software and automated systems that can streamline a company's accounting processes. This may include, for example, cloud-based accounting software, electronic document management systems and automated reporting tools. Innovative companies value such technological solutions and see an accounting firm as a partner who can assist them in using digital tools.
Focus on core business
Bookkeeping can be a time-consuming and complex process. Innovative companies want to focus on their core business and development, leaving accounting to specialists who are experienced in their field.
Timeliness
In the field of accounting, there are constant changes in legislation and standards. Accounting offices are aware of these changes and ensure that the company's accounting always meets the applicable requirements.
Cost efficiency
For small and medium-sized businesses, using an accounting firm is more cost-effective than hiring a full-time accountant. The offices offer services according to the company's needs, and payment is often based on the services used.
Data security
Reputable accounting firms usually ensure a high level of data security and confidentiality. They have effective systems for data backup, access restrictions and safeguards to help prevent data loss or unauthorized access.
Liability insurance
Accounting firms are often insured with liability insurance that protects the company against potential errors, negligence, or other accounting-related problems. If an accounting firm makes a mistake or an error occurs, liability insurance can help cover potential damages or legal costs. This gives the company additional security and protection, reducing risks and possible negative consequences.
Innovative companies value this added protection as it helps maintain credibility, reputation, and ensure proper financial reporting and transparency.
In conclusion, it is important to note that not all innovative companies prefer to outsource accounting from an accounting firm. Some companies may prefer to create an in-house department or seek other flexible accounting solutions based on their needs and resources. The final decision depends on the company's specific preferences, size, industry and other factors.
Accounting service can be outsourced either in whole or in part. It is also very popular to buy just a payroll service, which we have written about separately here https://grow.ee/blogi/palgaarvestus-usalda-professionaali/.
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