Thailand’s authorities require all businesses in the country to submit their financial reports annually. Companies are also obliged to get an auditor to check their financial statements. While auditors and accountants in Thailand typically work hand-in-hand, some work independently. And auditors may refuse to audit a company if unqualified accountants prepare the financial statements.
Hence, one of the most critical decisions you may need to make when setting up a new business in Thailand would be ensuring eligible accountants prepare your financial records and other necessary documents. Hiring a reputable accounting service provider would also undoubtedly boost your business’ productivity. Moreover, experts from accounting services in Thailand ensure your company is compliant with the country’s latest corporate and tax laws and regulations. Here are five essential factors to consider when choosing an accounting service provider for your company.
The company’s needs and objectives
Before hiring an accounting firm, one of the vital steps companies need to take is to decide on their needs. For instance, business owners should consider how many times the professionals need to process their payroll. If a company has bookkeeping software, it might only require the service of an accountant once every month or quarterly to keep them on track.
Companies may also need to determine the types of services they require from the agencies. Typically, accounting agencies provide the following services:
- Tax filing: Filing of taxes is the primary job of an accountant. Depending on the company’s type of tax, accountants will help to file taxes at a specific time under Thai revenue codes.
- Compilation of year-end financial statements: Accounting firms help companies prepare their financial reports, including balance sheets of profit and loss, income statements, and bank account reconciliations.
- Payroll processing: Some payroll services the accounting providers may offer include paying employee’s salary monthly, computation and filing of personal income taxes, and submission of payslips and tax certificates.
- Accounting transactions: The Revenue Department wants to see where the companies get their money and how they spend it. Professional accountants ensure the companies’ transactions are justified and done correctly.
- Company registration: Some accounting agencies can help local and foreign entrepreneurs, especially startups, to register their new businesses. They also offer general guidance on corporate laws.
- Business licenses: Most businesses need to acquire a business license before they can fully operate, such as restaurants, hotels and travel agencies. And some accounting firms can help these companies get their permits.
Location of the service provider
Business owners who prefer to meet their accountants or require them to attend meetings personally may need to consider choosing a service provider which operates around their vicinity. On the other hand, business owners who are comfortable with conducting their business online or on cloud-based in real-time may hire accounting agencies from anywhere around the country.
Certification and industry expertise of accounting service provider
The certified or chartered accountants have sufficient knowledge about Thailand’s corporate laws and tax rules and regulations. They also keep up with any changes or new enactment of the relevant legislation, hence, making sure the companies stay compliant and free from legal penalties.
Aside from certification, companies should look for accounting services which have years of experience in their industry or have served companies within similar market sectors, size, and revenue. Their expertise helps the companies to get the best relevant guidance possible.
Size of accounting agencies
Accountants in Thailand range from sole practitioners to national agencies. Therefore, companies need to look at the size of the accounting firms and decide whether they prefer hiring a small or big firm. Some business owners feel more at ease working with a small firm with a reputable background, while others go for the large firms who are already popular in the country.
Rates of the service provider
Some services are not covered under the regular accounting rate. The prices may also differ according to the monthly accounting transactions and complexity of the company. So to prevent any misunderstandings between the company and accounting agency somewhere down the line, it is best to negotiate and get a clear idea of the rates to ensure it is within the company’s budget.
Finding the right accounting service provider for your business is not easy. It would help if you considered your company’s needs as well as the service providers’ location, certification, expertise, size and services rates. Nevertheless, hiring a reliable accounting firm can undoubtedly level up your game big time.