Which one is moresuitable for your enterprise? Financial Outsourcingor Bookkeeping?

 

The efficientdevelopment of enterprises depends onthe running mode of the company. Along with thedevelopment of the main business’ competitiveness, it is also important tobuild a financial system for the company’s development. Thus, a lot ofcompanies will emphasize on the establishment of impeccable financial system. However,there are business decision-makers whose knowledge is just limited to sometraditional concepts such as bookkeeping, taxation and invoicing but no focusis put on the setting up and ongoing development of the finance department.

The following is a summary ofthe differences between the financialoutsourcing and bookkeepingservices provided by RTF.

1)    Service Concept

Providing bookkeeping services is moreabout clear and precise recording and accounting oftransactions and accurate declaration of taxes. However, financialoutsourcing focuses more on the completion of the outsourced financial tasks, theimprovement of the projects and the optimization and development of the whole financesystem.

2)    Service Group

Bookkeeping services are generally suited for small-scaleenterprises which are in their initial stage of development or which arestand-alone businesses, thereby, the financial requirements are much easier.However, financial outsourcing services are mainly for medium and largeenterprises, where more targeted and convenient services are being provided. Moreover,with its professionalism and efficient financial data processing, the outsourcingservice provider can offer the finest tax planning advice and programs aboutthe available tax incentives, so that, these enterprises can easily enjoy thesebenefits.

3)    Service Form
Bookkeeping services, generally, focuses mainly on the financial accounting andtaxation aspects. Financial outsourcingservices can be classifiedand carried out by a number of financial modules such as accounting outsourcing, cashier outsourcing,financial management outsourcing,tax outsourcing, finance department outsourcingand so on. In addition, the service period is customized based on the enterprise’scurrent needs. The financial outsourcing service period choices vary betweenall companies. For example, services can be set on a yearly or monthly basis orother customized time periods.

Financial outsourcing is originated from western countries. Withthe development of the Chinese economy, such form of service has gradually beenaccepted by the Chinese domestic enterprises due to its multiple benefits, forexample, this service reduces labour costs, enhances financial operationcompliance but it can also make enterprises enjoy more tax incentives, so that,decision makers can focus more on their core competitiveness.