Outsourced accounting and secretarial duties have become a more common solution for well-established companies. Why outsourcing is important?
According to Deloitte’s 2016 Global Outsourcing Survey leading organisations use outsourcing to improve business results. One of the key findings of this survey was, over years, outsourcing is expected to grow across all functions.
In this blog post we will examine the two duties, namely; accounting and secretarial.
How do you know you need to outsource your accounting duties?
Typically, one or more of the below needs to happen for a business owner to start searching for an accounting firm:
Your business is growing faster
If your business is growing faster than you expected it may mean money is flowing in and out faster than before. For instance, you are getting more sales but not every customer is paying cash. At this rate you can no longer manage accounting, it has become too much for you.
Consequently, that flags up a need to outsource your accounting to an accounting firm such as Baza where all your transactions will be done accurately and timely.
Your accounting is getting too complex
Lately things have come to a head, your accounting has become too complex. Unpaid invoices are piling up on your desk; meanwhile there are payments coming through that you have no idea where they come from. The only time you remember about those invoices is when creditors call you to demand payment.
In addition to that, there may also be an increase in your sales while your profitability stays the same.
All the above are signs that you need to outsource all your accounting duties. Find an accounting firm that can remedy this by looking at how your debts are structured and make recommendations accordingly.
You are overpaying SARS
Do you have a strong suspicion that you are overpaying SARS? If so, you are not alone in this. Almost every entrepreneur feels that way sometimes. The only way to confirm if you are indeed overpaying SARS is by hiring an accounting firm. Accountants will also shed some light on how much you should be paying to SARS. In a situation where you are owing a huge tax bill, an accountant can advise on the best ways of settling that bill.
You have hired an unqualified bookkeeper
Have you made a mistake of hiring an Admin Clerk who doubles up as a bookkeeper? You must have hired this person because you trust him/her or you thought she/he can handle all the bookkeeping and secretarial duties.
For weeks or even months, everything will seem fine before you realise what a blunder you have made. Then you will notice that your unqualified bookkeeper is buckling under pressure. Either the accounts won’t balance, or there will be something terribly wrong with the way the transactions are recorded.
The above are the signs that you need to outsource your accounting.
How do you know you need to outsource your secretarial duties?
Outsourcing secretarial duties will save you three things: time, money and office space. But how do you know it’s about time you start looking for secretarial services? Look at the following signs closely.
You struggle to maintain the company’s statutory records
You will struggle maintaining the following: minutes of general and board meetings, a register of directors, a register of shareholders, any changes pertaining to company’s assets, change of address, and a register of ‘debenture holders’.
You struggle with legal record keeping
These will include important documents like the Certificate of Incorporation, the Memorandum and Articles of Association, share certificates and stock transfers, certificates of change of name, and director’s service contracts, etc.
Your company admin is in complete disarray
It goes without saying that every business cannot function without office administration. So, in addition to the legal record-keeping and reporting requirements mentioned above, outsourcing secretarial duties will assure you that your business has an ongoing efficient administration in place.
Preparing minutes is hell on earth
The process of preparing and distributing the minutes of shareholders, board meetings or just any minutes involving directors can be tough and time consuming. If you are struggling with this, take it as a sign that you need to outsource. The sooner you do the better.
It takes longer to add or remove Directors to your company
If the process of adding or removing Directors takes longer than needed then take it as another sign that you need to outsource, ASAP.
Hiring a company such as Baza can give you a peace of mind. Baza’s team has a depth of knowledge and skill in the corporate secretarial space!
What are you waiting for? Contact Baza today!
Call: 011 071 0794