Accounting outsourcing in Hong Kong has become a common approach taken by both local and foreign companies.
Business owners choose to outsource bookkeepers and accountants because they are cost-effective, affordable, have scalability and mitigate risks.
Before you let accounting services handle your accounting, you need to know the difference between an accountant and a bookkeeper, so that you are sure what you need.
Differences between Accountant and Bookkeeper
Both accounting and bookkeeping are important to ensure smooth running operations and compliance when doing business in Hong Kong.
But there is a difference between the two.
Bookkeeping is the systematic process of recording and storing transactions and financial data in an enterprise.
Bookkeepers are usually administrative employees of companies who manage daily financial records.
They ensure financial records are always updated, comprehensive and correct. Bookkeepers have no authority in providing financial advice or decisions for the company.
In Hong Kong, a bachelor’s degree is not mandatory to be a bookkeeper. However, it is important to have related certificates and knowledge in bookkeeping or accounting.
Accounting is the process of analyzing data and financial transactions managed by bookkeepers.
With the results of the analysis, the accountant will then provide advice to management or business owners to help in terms of taxation and making business decisions.
The advice of accountants is important for businesses to avoid risks and increase financial value.
Therefore, many companies often outsource accounting to certified accountants to gain access to professional expertise.
It is also very common for accountants to be hired on a contractual basis, especially long before the end of the financial year, or at a certain stage of growth of the company.
Accountants are professionals with university qualifications. In general, they have a bachelor’s degree in accounting. In further studies, they also earned other degrees such as Chartered Accountants (CA) and Certified Practising Accountants (CPA).
Accountants have a lot of expertise and ability. They may also specialize in a particular field, industry or type of business.
Why Is Building An Internal Team Expensive?
While you think that accounting outsourcing isn’t essential for a business, having an in-house accounting team can get more expensive and not deliver the desired results.
Here are the reasons:
1. High Training and Overhead Costs
Building an internal accounting team is less cost-effective when compared to working with an accounting outsourcing provider in Hong Kong.
When hiring full-time employees, you need to consider onboarding and overhead costs. For example, training, health insurance, monthly salary, benefits, sick leave and annual leave.
2. High Recruitment Costs
Conducting accounting internally means that you have to pay the full salary every month to the employee.
Also, you may not find the right person who needs this particular skill and all the money and time that has been invested will be wasted.
Considering the huge costs of forming an in-house accounting team, the ideal solution would be to outsource both, accountants and bookkeepers. When outsourcing, you don’t need to hire full-time employees.
So, you have the advantage of enlarging your business at any time and reducing recruitment costs and hiring permanent and temporary staff.
Why Outsource Accounting with SME BRO in Hong Kong
SME BRO provides a number of options related to accounting outsourcing services in Hong Kong. SME BRO has professional accountants and bookkeepers who can answer business accounting needs.
Regular obligations of accounting and builders will eventually distract you from the main business activities. And without expertise, legal complications may arise.
So, if you find it difficult to handle business, accounting and bookkeeping at the same time, it’s time to talk to a professional.