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Quality accounting services

Accounting services

"I offer quality bookkeeping or accounting service" - such an announcement can be frequently seen in various printed and Internet editions. There are a few names for this service. They include book keeping management, user's book keeping support, the accounting reporting delivery, and simply accounting. Such services are in demand both for businessmen, and for the small enterprises.

Professional accounting services and bookkeeping of the outsourcing companies

Nowadays, demand for quality accounting services which are provided by the specialized bookkeeping companies is growing. Those services are usually named the bookkeeping outsourcing, i.e. the transfer of work amount of accounts department to the external executor which can make this amount of works best, cheaper and faster. Bookkeeping management allows the client to be without his own accounts department, concluding the contract with the company which is providing professional bookkeeping services. When addressing to them, the client receives high quality accounting at a rather low cost, an opportunity to concentrate on management of the business, having given accounting service of the enterprise to the specialized company. What is the accounting services of the outsourcing the companies?

This services consist of:

1. Bookkeeping services and accounting support ;

2. Bookkeeping restoration ;

3. The book keeping report preparation and its delivery to the tax inspection and non-budget funds.

Bookkeeping services for businessmen and the small or average enterprises are mostly needed in the Russian market, however successful examples of some auxiliary registration functions transfer to the bookkeeping companies exist in the global practice. Today, bookkeeping outsourcing is used for receiving professional and quality bookkeeping services without own accounts department.

Have you ever calculated how much do the bookkeeping and the maintenance (contents) of own accounts department cost, i.e. the accounting services manages? It includes high wages of the main (and more often the only one) bookkeeper who will highly estimate the accounting services, thus you will pay the tax to the income of physical persons (13 %) and the uniform social tax (26 %) from a wage fund. And this unique bookkeeper, who manages the accounting of your enterprise, can call in sick during the most inappropriate moment.

To equip only one workplace the computer, furniture, the bookkeeping software which allows to conduct bookkeeping, a stationary and the area where all this should settle down, are required. You will carry monthly charges on bookkeeping of the enterprise. In addition to these charges, own accounting services and bookkeeping will demand expenses for the writing goods, a paper for office equipment, computer service, software update, bookkeeping seminars and consultations.

Therefore a question arises whether is it reasonable for the small enterprises or individual businessmen to have own accounts department which manages bookkeeping?

Accounting services of own accounts department. Disadvantages.

If you are the owner of a small company and thus are able to count money, you will hardly ever employ the skilled chief bookkeeper, as the amount of the bookkeeping work is not big enough to pay him a high salary. Employing the bookkeeper for reasonable amount of money, you cannot be sure in his sufficient competence as the chief accountant. Mistakes of a chief accountant are not only unqualified accounting, but also penal sanctions, and in some cases they can cost you your business and probably freedom.

What other problems caused by an unprofessional bookkeeping or its absence can you face?

When the organization does not give in tax inspection the accounting or tax reporting tax bodies impose arrest on bank accounts of businessmen and the enterprises, which frequently leads to the end of enterprise activity. Then follow penalties both on the enterprise, and on an administration. Only payment of penalties and personal visit to tax inspection can help you unlock the accounts.

Unauthenticity of the reporting or its full absence do not allow a management of the company to have full and a trustworthy information about its activity. If bookkeeping is not conducted or there are no primary documents that it with inevitability leads to the charge of penalties at carrying out in the company of tax check. Absence of primary documents and registration registers does not allow to supervise safety as commodity - material assets, and money resources. But that is even more important, absence of complete accounting will not allow to answer the tax claims of supervising bodies.

One more problem is a dependence on relation of your chief accountant with supervising bodies. As a result, its safety and stability of your business can depend on relations which will develop between you and your chief accountant. These are the basic disadvantages of using the accounting services or accounting of own accounts department.

Professional accounting services of the outsourcing companies. Advantages.

According to the law on bookkeeping (The federal law N 123...) accounting services is an officially allowed kind of activity that allows to transfer bookkeeping management to the outsourcing company.

Making a contract on the bookkeeping service, your enterprise does not carry an expense mentioned above. You as the customer will include charges on bookkeeping services in the price of production, thus reduce the taxable base. The taxable base decreases at application of the simplified system taxation in the same way. You do not carry a responsibility for the charged taxes and correctness of how your accounting is organized, but the legal person who provides you services does.

Qualification of the bookkeepers working in outsourcing companies, which provide quality accounting services is usually higher than qualification of bookkeepers, which are usually employed by the enterprises of average and small business to manage the accounting. It allows you to avoid many reefs in artful designs of the Russian legislation on the accounting and tax account. Therefore it is expedient to businessmen to be guided by professional accounting services outsourcing companies. Advantages of such cooperation will bring positive results.

For the accounting services and accounting for businessmen and the enterprises to be realized to the fullest, having shown all advantages, it is necessary to approach to a choice of the company to which can charge with conducting bookkeeping as quality of given services, a degree of service and accounting yet at all outsourcing the companies at high enough level carefully.


VAT change proposed as easy tax win for small business

FOUR ELEMENTS have been flagged up as short-timescale changes that could ease the burden of the tax system upon small businesses. The changes, suggested in a major review by the Office of Tax Simplification, include a simpler system for VAT.

The proposed VAT changes intend to introduce certainty over ratings, a simplified procedure for small business to manage VAT across the EU, and consider alignining the end of the tax year with the end of the month. Consideration could be given to taxing the business, ignoring the company structure. It also recommends introducing a incentive towards "dis-incorporation". This would encourage incorporated businesses that want to quit the structure to dis-incorporate without facing an immediate tax charge, for small businesses with just one employer and shareholder.

A single corporation tax rate should also be introduced, which would reduce tax complexity.

The OTS proposes making it easier for small businesses to handle expenses incurred by their employees by creating an exemption from reporting requirements at a level of up to £500. Currently reimbursed expenses require the employer and employee must report the transaction or incur tax.

The capital allowance limit for small businesses should be set and fixed for a period of several years, to promote certainty. The current limit, £25,000, could also be split over two years if that helps small businesses use the otherwise lost allowance made on a single purchase of plant. "It is clear that giving small businesses a better relationship with HMRC, and so simplifying their tax compliance processes may be even more beneficial than simplification of legislation," stated the report.

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