Understanding the Internal Accounting Function
Companies boasting a turnover more than €5 million typically establish an internal accounting function. This multifaceted team comprises key roles:
- Financial Controller: Overseeing processes, monthly management accounts, reconciliation checks, and analytical reporting.
- Financial Director: Focusing on strategic growth, shareholder engagement, and enhancing overall profitability.
- Accounts Payable and Accounts Receivable: Vigilantly managing inflows and outflows to maintain a harmonious balance between credit control and cash flow management.
- Payroll: Ensuring accurate and timely employee compensation, factoring in variables like sick days, bonuses, and taxes.
Despite having a well-equipped internal accounting team, engaging an external accountant remains imperative for compliance-related tasks such as tax filings, external reporting, and potential auditing, necessitating collaboration with the internal accountant.
Is Bookkeeping Sufficient for Your Company?
For many small to medium-sized enterprises with growth-oriented ambitions, maintaining an internal accounting function may be cost-prohibitive.
In such cases, hiring a bookkeeper appears as a viable option.
However, relying solely on bookkeeping services, which might cover specific functions like accounts receivable or accounts payable, offers only a partial solution, and often causes delays to the preparation of the increasingly important management accounts.
Management Accounting for Holistic Oversight
When entrusting bookkeepers with reporting, the responsibility of acting as the internal accounting function falls within your company.
This includes evaluating the bookkeeper's work, ensuring procedural correctness, and addressing issues as they arise. This setup lacks efficiency and reliability, and as such, the number of companies that are turning to an outsourced accountant is growing month-on-month.
Borgo are equipped to manage the entire accounting function, ensures the seamless operation of bookkeeping processes and financial reporting as it is required.
In this instance, Borgo assumes the role of their book-keeper manager, evaluating the accuracy of bookkeeping, identifying gaps, and rectifying discrepancies.
This oversight is critical in validating the precision and timeliness of bookkeeping records, akin to the practices observed in larger companies with dedicated internal accounting departments.
Borgo’s Outsourced Accounting Solution: A Comprehensive Approach
At Borgo, we present an outsourced accounting service that transcends traditional boundaries. Addressing both internal and external accounting needs, our service stands out by integrating seamlessly into your operational framework.
Imagine relinquishing the oversight of accounts payable to Borgo, where one of our accountants collaborates with your bookkeeper internally.
This synergy creates a complete accounting service, with meticulous processes, automated reconciliation checks, and direct accountability.
Borgo’s outsourced solution offers a compelling alternative to in-house personnel, saving some of our clientele over €30,000 in their personnel costs.
Explore the comprehensive benefits of Borgo’s Outsourced Accounting service to empower your company with a full-fledged accounts department at a fraction of the cost today by scheduling a call here, or by emailing info@borgo.ie where a member of our team will be delighted to assist.
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