Outsourcing accounting saves cost and frees management to focus on the business, but the wrong partner can leave problems that last for years. These seven questions help businesses assess a provider on substance.
Many SMEs, start-ups and representative offices of foreign companies choose to outsource accounting rather than build a full in-house finance team. It is often a sensible decision on cost, but service quality varies widely between providers. When Corvane takes on clients moving from another provider, the team often spends several weeks to several months reviewing and correcting historical records. To avoid this, businesses should ask the following seven questions.
1. Who will actually work on my files?
Ask who the responsible specialist, the reviewer and the person with final accountability are. A team holding tax agent practising certificates, CPA qualifications or ACCA membership is a reliable indicator.
2. How many layers of review are there?
Every file should be checked by at least two people before submission. Ask the provider to describe its process and how errors are recorded and resolved.
3. How is my data protected?
- Does the provider follow an information security standard such as ISO 27001?
- Where are documents stored, who can access them and how often are they backed up?
- When the contract ends, how is data handed over and deleted?
4. How will I track progress?
Through regular reports, an online portal or only by email? Businesses should know their filing deadlines and what needs their approval in advance.
5. Is the scope of service clear?
What does the fixed fee cover: bookkeeping, payroll, social insurance, tax filings, financial statements, meetings with the tax authority? Which extra items are charged separately? A clear scope prevents disputes later.
6. Which languages and standards can the provider support?
For foreign-invested enterprises, the ability to work in English, Japanese or Korean and to report under both VAS and IFRS for the parent company is an important factor.
7. How is responsibility for errors defined?
The contract should set out each party's responsibilities, how errors caused by the provider are handled, and commitments on filing deadlines.
“Price is only part of the decision. What a business is really buying is peace of mind: files done correctly, submitted on time, and someone who understands the business when it needs to deal with the tax authority.” — Ms Nguyen Hoai An, Partner, Accounting & Outsourcing, Corvane Advisory
Advice when switching providers
If a business already works with another provider, it is best to switch after the end of a quarter or financial year, request a full handover of ledgers, documents and software accounts, and sign a balance reconciliation record. A planned transition limits disruption and reduces the volume of later adjustments.
Signs it may be time to reconsider
- Filings are frequently made at the last minute or need to be amended.
- The responsible specialist keeps changing and nobody knows the file's history.
- No reports or explanations are provided when figures move significantly.
