Annual compliance can be a complicated and time-consuming task. Fortunately, hiring the right outsourcing services provider helps streamline these tasks. Thus, increasing numbers of companies in Thailand follow the global trend of outsourcing transactional accounting and finance annual compliance and focus their resources on functions that provide business value for the company.
Apart from streamlining annual compliance work, outsourcing to professional service providers gives Thailand companies many advantages. This article walks you through five reasons why Thailand companies should outsource their annual compliance work.
Simplifies collection of data
Generally, the end of the fiscal year is the peak season for the in-house finance and accounting team, who typically are obligated to compile all financial particulars for that year and prepare a budget plan for the next year. Plus, they have to file corporate tax paperwork and submit it before the set deadlines. All financial data must stay compliant with local accounting acts, including the IFRS and GAAP.
During this hectic season, it may not be feasible for the relevant team to gather every data necessary to cover every base and allow maximum Thailand tax savings. However, when companies in Thailand outsource tax preparation to an external professional accounting Thailand agency, the agency will ease the in-house team’s burden and help them do the heavy work of data compilation, organization, and sorting through the fiscal year.
Ensure tax regulation’s compliance
As a growing business-friendly nation, Thailand’s tax regulations are constantly evolving to meet the country’s current industry trends and national goals. Keeping up with new Thailand tax legislation can be quite challenging for in-house accounting and finance departments, who have to keep up with these changes on top of their company’s obligations.
Reliable outsourced accounting service providers in Thailand, however, have in-depth knowledge of the latest corporate tax and withholding tax Thailand adjustments, which may impact businesses. Those with a large client base will also have the necessary expertise on how new tax directives affect clients from various industries and give the proper advice accordingly.
Hence, the in-house financial team can focus more on developing plans according to the in-depth insight the outsourced accounting agencies offer without worrying about missing out on available tax-saving incentives in Thailand or non-compliance.
Strengthen financial data security
Financial data security is critical to ensure that corporate tax returns are filed accurately. The company’s sensitive data needs to be secure and accessible, which may be a challenge for many companies in Thailand.
Outsourced accounting agencies that deal with a considerable amount of financial and tax data in their databases typically implement enterprise-level data security and protection systems to ensure their clients’ data stays secure. To maintain this enterprise-level security, they must update their clients on the latest security and data privacy issues.
Hence, outsourcing to service providers helps companies maintain control over their sensitive financial details with more secure data protection. Also, the agencies would significantly reduce the risk of these data being compromised or exposed to security concerns through unknown networks and devices.
Increase data accuracy
Attention to detail is a critical element of corporate tax filing. Accountants responsible for the paperwork preparation need to ensure every figure is accurate. Besides, they need to have in-depth knowledge of tax rules to address many cases that can crop up over the fiscal year. Nonetheless, such a thoroughness level may not be feasible internally for many businesses in Thailand, which may have an in-house team of accountants juggling bookkeeping with other finance and administrative work.
However, external corporate services providers or accounting agencies are capable of providing dedicated filing services for their clients, which helps mitigate omissions or errors in the document preparation. Moreover, outsourcing to an agency that oversees filing deadlines for several clients ensures that the necessary documents will be submitted on time, and ultimately, help businesses avoid legal penalties and consequences.
Allow companies to focus on core services
One of the critical cores of business success in Thailand is value creation. Value creation is especially crucial in a competitive market like Thailand, where industry players attempt to excel locally and expand internationally. It is also vital for small businesses and companies in their first five years, where high-value creation and business development are critical for sustaining the business.
However, corporate tax filing, which can be time-consuming, may become a hindrance that takes away valuable time to offer higher-value activities and services. Outsourcing this task to professional services providers solves this issue.
Outsourcing annual compliance tasks to an external service provider helps speed up the necessary process, simplifies data collection, ensure legal compliance, strengthen financial data security, and improve data accuracy. Moreover, outsourcing these tasks helps boost productivity and profitability by giving in-house finance and accounting personnel more time to focus on core activities, such as value creation and client servicing.