Outsourced Accounting Services: A Solution for Small & Medium Enterprises
Outsourced accounting services can solve the accounting problems of Ghanaian SMEs. At SCG, we believe that without good accounting, you can’t run a successful business.
Here’s our own experience with poor accounting, Poor accounting is expensive.
SME accounting problems
- Ignorance – accounting is not at the top of the mind of many entrepreneurs when they start. They focus on getting in business and making money. This neglect creates problems such as:
- Poor or no records – you can’t account without good records.
- A backlog of accounts to prepare to get a true picture of the company’s current position.
- Tax problems – taxes not filed and paid on time.
- Annual returns not filed with the Registrar General’s Department.
- Finding suitable accounting personnel – they need accountants who can create transaction processing systems but most of the accountants they hire lack this skill.
- Inadequate accounting resources – most SME’s lack the money to invest in the accounting software they need.
- Running the business without understanding the numbers – most small business cannot interpret the accounts and so miss the message in the numbers.
What is an outsourced accounting service?
A business may hire a contractor to deliver accounting services. This may be an accounting firm or an individual.
An outsourced accounting service is an accounting service provided by a contractor, rather than the business’s own employees.
The company can outsource part or the whole of its accounting needs. This gives flexibility to use outsourcing to solve pressing problems.
How outsourcing solves SME accounting problems
Outsourced accounting services solves these problems:
- Recruiting accounting personnel – outsourcing removes the problem of finding and recruiting appropriate accounting personnel.
- Accounting resources – it also solves the need to provide and maintain the hardware, software and training needed for accounting.
- Organizing documentation – the contractor will show the SME the documents it should collect for accounting purposes, and how and when to submit them for processing.
- VAT and withholding taxes – these taxes arise from the daily transactions of the entity and often trip SMEs. The contractor solves this by teaching the client how to treat the various taxes. He also helps to generate the reports needed to file the monthly returns on these taxes.
- Regular timely reports – if the client keeps and submits the documents for processing on time, he will get the agreed reports regularly and on time.
- Making meaning of the numbers – the contractor is likely to have people who can help the SME understand the numbers and use them to make decisions.
Every business wants to succeed, but many don’t – poor accounting is a big factor in their failure.
There’s no reason a business should not have a suitable accounting system. Outsourced accounting service is a solution for SMEs. Explore it.
Unsure where to start? We can help you with your outsourced accounting service needs.