Any business houses their own financial data and they deem it to be sacred in that they do not want any outsiders to find out about their information (unless required by a court of law). For that very reason, a lot of business owners rarely, if ever, get outsourced bookkeeping services in Malaysia.
However, with the ever-changing business landscape, company owners now know that they should trust such entities to help them with all of their accounting and bookkeeping needs.
But, what about those that are still reluctant to get such services? Well, in this article, I will go over some tips to help you know if the bookkeeper you’re going to get can be trusted with your company’s financial records.
Your Chosen Accounting Service Use a Built-in Checks and Balances System
The usual problem with in-house bookkeepers is that they might be the only ones who know the things that are stipulated in financial statements. No other employee in the company might know of accounting basics and principles.
This presents the problem that no other employee knows how to check or spot any errors in the financial records that the in-house bookkeeper makes. This is problematic given that bookkeepers are still human and they, too, can make mistakes from time to time.
For instance, aside from giving you a bookkeeper, they might also recommend that you get a controller as well to help oversee all of the financial statements that the bookkeeper makes.
The Bookkeeping Company Makes Use of a Client Procedures Manual
Typically, outsourced bookkeeping firms create a robust client procedures manual as part of their product portfolio and you will help them create one to suit your business needs.
This includes the timelines for all of your documents, financial records that can be shared, and what manner you want them to be delivered to you.
Their Bookkeepers Are Given Vacation Time
In-house bookkeepers that rarely go on vacation is considered to be a red flag. You would think that this employee might just be dedicated to their work, hence the reason why they do not want to go away. But, in most cases, these bookkeepers might be guilty of company fraud since they do not want others to take a look at the financial statements they have made as they could spot something wrong.
Most virtual accounting firms allow their bookkeepers to have time-off just to ensure that their mind and bodies get well rested and so that they are not guilty of any fraudulent activities.
Their Employees Work in a Secure Environment
The premise of virtual accountants is that you give them all of your company’s transaction records so that they will be able to create suitable financial statements for your company to use.
That being said, there might be some of your employees that do your bookkeeping needs, but they are negligent in the sense that they work in a non-secure environment and they might not put a password on your accounting programs- thus leaving it open for possible hackers.
Outsourced accounting firms usually have their employees work in a secure environment so that you do not have to worry about data loss or the loss of your data’s integrity.