The accounting department plays a vital role in maintaining a company’s cash flow. Aside from managing the company’s assets and liabilities, it is also responsible for processing the organisation’s financial information. Overall, the accounting team ensures that all payables, receivables, payroll, inventory, and other accounting factors are tracked and properly recorded.
Given the complexities of accounting, the profession requires specific skills. In this article, we will discuss essential skills you should look for when hiring an offshore accounting team.
5 Skills Your Offshore Accounting Team Must Possess
Hiring competent accounting employees reduces the likelihood of errors that could result in financial loss. Here are vital accounting skills to assess in an offshore accounting team.
1. Analytical skills
Accounting professionals must be critical thinkers who possess an eye for detail when analysing financial data. Your offshore accounting team must be able to read and interpret data accurately, sifting through inconsistencies otherwise overlooked by regular employees.
These analytical skills prove particularly helpful in minimising tax liability, detecting mistakes, and preventing fraud due to misuse of company funds.
It is common in the accounting industry to change clients, projects, technologies, and regulations. As such, your offshore accounting team must quickly adapt to these changes and thrive in different situations.
For one, the accounting framework that guides financial reporting and taxes evolves without prior notice. Hence, it is crucial to hire employees who are flexible and possess excellent problem-solving skills. In particular, your offshore accounting team must be able to develop and provide actionable solutions required by the circumstances.
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3. Interpersonal communication skills
Besides possessing analytical skills, having interpersonal communication skills is equally important to succeed in the accounting field. Knowing how to effectively communicate and interact with other departments, whether by email, phone, or presentation, is crucial in maintaining transparency and openness within the organisation.
When hiring an offshore accounting team, choose team members with excellent oral and written skills so they can effectively communicate company-related financial matters to the management, client, and other people who need such information.
4. Software and computer proficiency
Year after year, advancements in accounting software, cloud computing, and automation technology are introduced. As such, your offshore accounting team should be able to adapt and learn how to use and integrate these technologies into their job.
Working with offshore accounting professionals with advanced mastery in software systems is crucial for managing your company’s financial reports, as these tools help ensure that all data and records are accurate.
Photo Credit: Mikhail Nilov via Pexels
5. Commercial awareness
Commercial awareness refers to the ability to understand how industries and businesses work. It involves analysing how developments in the economic world could impact a particular industry.
Accounting professionals who are commercially aware can help develop financial strategies that will enable the company to attain its financial goals. They can also provide strategic insights and serve as a common source of accounting knowledge across departments.
An offshore accounting team that understands your overall business operations can likewise help you assess and address your company’s financial needs. They can advise you on how to effectively negotiate with vendors regarding pricing, procurement, and invoicing.
5 Commonly Outsourced Accounting Functions
If you are planning to get started in outsourced accounting, check if your potential outsourcing partner offers services in the following areas.
Bookkeeping involves recording your company’s financial transactions. Proper bookkeeping allows your company to keep updated accounting records that can inform your investing, financing, and operating decisions.
2. General accounting
General accounting includes organising ledgers and tracking credits and debits. These activities are done by accounting professionals to document your company’s monthly, quarterly, or yearly financial statements.
3. Accounts receivable and payable
Accounts receivable is the money owed to your company by customers. In contrast, accounts payable refers to the money owed by your company to its suppliers and vendors. Accounting professionals stay on top of these accounts, managing the company’s cash flow and ensuring there are enough funds to cover your company’s overhead costs.
4. Financial statement preparation
Financial statement preparation is a basic aspect of the accounting process. Financial statements – such as balance sheets, income statements, statements of retained earnings, and cash flow statements – can give you a clear picture of your company’s performance regarding its financing and investment goals. These documents provide potential investors with information about the company’s profitability and ability to meet its financial obligations.
5. Tax compliance
A company’s failure to file tax returns and report its business income is punishable by law. By working with an accounting team, you can ensure that your tax liabilities are properly accounted for and promptly settled.
Offshore accounting professionals are adept at calculating your company’s tax dues based on current tax rates. They are also well-versed in the tax administration process, ensuring your company’s tax compliance with government regulations.
Safeguard Your Finances with an Offshore Accounting Team
An accounting team helps ensure that your company’s cash flow is stable. By hiring highly skilled accounting professionals, you do not have to worry about your business finances as they are taken care of by accounting experts.
If you are planning to expand your accounting team, consider working with optiBPO. As a trusted outsourcing company in the Philippines, we can help you build and manage a dedicated offshore accounting team that serves as an extension of your organisation.
Contact us today to learn more about how our outsourcing services can help you grow your business!