Why should you outsource your accounting?
As most of our customers, you need to focus on your core business in a demanding market such as China.
Back office activities like accounting, administrative procedures, bank and so on are not your prime activity and is sometimes more a hassle than a benefit. That’s why outsourcing your accounting can be the right decision to make.
Some companies feel good to have everything internally as all these back-office activities are vital for the health of your companies. But sometimes the medicine can be worse than the pain.
Have your accountant onsite is better but do you really understand how he registers the entries. As for other activities, it’s not a monolithic way to process and it will take time for a customer to find out than the way used by its internal accountant is not the most convenient for the company.
You will trust your internal accountant for sure and mostly he will say to you “It is like that in China”, but is it really the case? From our experience, this reply is more a lack of knowledge from the rules and this simplification on explanation is rarely the right one and does not reflect the need of the authorities. As the Chinese accounting system is still a teenager in development, it seems to be changing all the time and some processes which look normal in occident are not in Chinese accounting. But it does not mean it is not something satisfying both parts. An outsourced accountant can concert with other specialists or CPA internally to find the right solution.
The cost of a well-trained professional is not cheap even for an accountant. So, in the end, you got what you paid for! The difference between an onsite accountant or outsourcing for the same level of competency results often to be more cost-efficient for outsourcing.
We have a process, to check in a few days if your actual accounting can be at risk. You can contact us to know more.
