Every company in Thailand, be it local or foreign businesses, has several responsibilities when it comes to tax and accounting. The company needs to prepare and maintain accounts, regardless of which business structure it adopts. Only a private individual is exempted from the requirement.
The company’s accounting team needs to draft the accounts according to the Thailand Financial Reporting Standards (TFRS), which are laid down by Thailand’s Institute of Certified Accountants and Auditors. The reports should reflect the company’s assets and expenses accurately. Moreover, the company’s financial statements must be evaluated and certified by a qualified accountant and submitted to the relevant authority within a set period.
Considering the complex accounting function and regulations, the easiest method for companies to get it done the right way without violating any laws is to outsource their accounting operations to a reliable accounting services provider in Thailand. Here are seven reasons why businesses in Thailand should outsource their accounting and bookkeeping.
Focus on core functions
A business establishment has a lot of critical things to look into during its operation, including devising and optimizing a strategy to grow the business. However, for most companies, accounting is not a core competency and has no unique impacts on the business’s growth.
Outsourcing accounting jobs to the professionals help the company have peace of mind and concentrate their effort on other core functions of the company, such as sales and marketing and consumer services, which ultimately help generate more revenue for the company. The accounting provider would provide the company dedicated, skilled accountants who will focus on the accounting function of the company, hence, improving the overall productivity of the company.
Outsourcing ensures consolidated resources across different places in the country. The consolidation ensures that quality accounting services are delivered consistently. It also helps quicken growth as it is more flexible.
Cut down on the cost
There is a common misconception that outsourcing non-core functions, such as accounting, will be more costly compared to managing it internally. However, for many small companies in Thailand, it is simply not cost-effective to keep a full-time accountant or bookkeeper on the payroll.
On the other hand, outsourcing the accounting and bookkeeping functions help save the company money by eliminating the need to spend on expensive benefit packages to part-time or full-time workers. When a company outsources its accounting, it only needs to pay for the actual accounting job and nothing else, thus, cutting down on the overall productivity and payroll expenses.
Get a better understanding of the cash flow
Knowing where and when the money is coming from can help companies in Thailand to make strategic business decisions in the long run. A reliable accounting company helps the company understand where they are losing money and where and when it should invest their money and efforts.
Get access to accounting experts
By collaborating with a competent accounting services provider in Thailand, the company can get access to a team of accounting experts who have sufficient skills and experience in the field. These professionals have in-depth knowledge of Thailand’s tax codes and regulations. They will ensure the company is compliant with the latest tax rules, allowing the company to get a comprehensive service for only part-time charges.
Allows collaborative accounting
Regardless of which accounting situation a company may be in, having a team of skilled accountants working on its books is going to be considerably better than having in-house. The accounts may not get the attention that it needs, and there may have loopholes and exemptions that one individual may overlook. Outsourcing accounting and bookkeeping operations provide the company with a team of meticulous individuals, ensuring the right entry and mistake is corrected.
Essentially, outsourcing accounting operations gives companies flexibility and choices. The company can quickly scale its business by decreasing the amount of time and money invested in human resources, technology, and infrastructure.
Moreover, accounting agencies will offer the company with a list of options while providing it valuable suggestions, which will increase its revenues in the long haul. No matter what long-term objectives the company may have, accounting agencies can help them attain the desired target.
Choosing the right accounting services provider in Thailand
While outsourcing your accounting proves to bring several benefits, you cannot merely select any accounting provider in Thailand. To select the best accounting services provider in Thailand that is right for your business, you need to consider your needs, the accounting services offered, the agency’s reputability, and service cost.