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Marinos D. Marinou

Consulting Manager


How to achieve maximum profits from your Cyprus or International Company

Why should an SME outsource bookkeeping since they can do it in house?

  • To reduce operating costs?
  • To avoid the hustle of screening interviews and frequent training?
  • To avoid risk of fraud?
  • To avoid the hustle of replacing a leaving bookkeeper with a new one?

The answer to the above questions is “NOT NECESSARILY”.

Bookkeeping or otherwise accounting is the bread and butter of the accounting profession. It is the basis of every healthy business. The level of quality in bookkeeping mirrors the professionalism of management. Proper books and records allow the management of any organization spot discrepancies, weaknesses or even threats despite the fact that the specific numbers are historic data i.e. payroll increases for the past 3 months – as a percentage of Turnover – can trigger management to take action.

Facts:

  1. Bookkeeping is:
    • a complex and detailed procedure
    • time consuming task
    • requires skills
    • requires daily attention
  2. Business owners usually feel the need to carry this function in house as they believe it will save costs.However, not all employees are skilled enough to manage a business’s bookkeeping needs. Outsourcing bookkeeping services allow an SME to focus on their competitive advantage and core strategies while saving money.
  3. What makes business owners look for in house bookkeeping is the safety of having available data any given moment. The most important factor to consider however is that the data under question shall be correct!
  4. Hiring a professional services firm to carry out bookkeeping will ensure an almost error-free picture of the Company’s financial position, minimizes fraud and opens the doors to a pool of knowledge and experience held by the accounting specialists.

As a result the reason to outsource bookkeeping is EXPERTISE.

Professional bookkeeping ensures no tax deductible expenses go unrecorded neither aggressive deductibility of all kinds of expenses leading to penalties and fines in cases of tax investigation.

Miscalculations and misclassifications of transactions lead to higher costs as a result of doing the same job twice! Not only by outsourcing bookkeeping business owners save the salary they would pay a full-time bookkeeper but also save social Insurance costs, income tax costs and various benefits that would otherwise be given to employees such as medical and employer’s insurance.

Another major expense for SMEs that can be saved by outsourcing bookkeeping is software license. Proper bookkeeping software systems do cost a substantial amount in licensing fees yearly as the fee per license decreases only by volume.

 

How D. MARINOU & CO LTD can assist:

✔ Each client has their dedicated bookkeeper where they can contact in office hours either by phone or email

✔ Weekly/Monthly/Quarterly reports are provided to clients

✔ Payroll services are also offered monthly on our payroll systems

✔ Monthly social insurance and income tax payments are executed on behalf of clients

✔ Management accounts are provided every 6 months for the management

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