1. Customised Hands-on Solutions To Your Accounting Needs In-house and Outsourcing Accounting of SMEs

2. In-house Accounting As the most cost saving approach, most small companies would opt for hiring bookkeepers, entry level accountants or part timers to handle straightforward bookkeeping at clerical level. As the most cost saving approach, most small companies would opt for hiring bookkeepers, entry level accountants or part timers to handle straightforward bookkeeping at clerical level. © 2019 CHS Consultancy 2

3. In-house Accounting However, in the highly competitive business environment nowadays, such staff, without sophisticated skill sets in analysis and interpretation for decision making and strategic planning, may will be insufficient for success. However, in the highly competitive business environment nowadays, such staff, without sophisticated skill sets in analysis and interpretation for decision making and strategic planning, may will be insufficient for success. © 2019 CHS Consultancy 3

4. In-house Accounting Challenges & Concerns © 2019 CHS Consultancy 4 Too many Audit Adjustments? Book-keeping/ Finance Analysis Level? Operation size & compatibility Implementation by trial & error or professional advice? Accountant = HR + Admin + Operation + Secretary ? Skill Set & Mentality? MPF, Fringe Benefit, Annual Leaves, Sick Leaves, etc. $17 – 20K min x 13 months?? Employee Cost Personnel Quality Quality Control Software System

5. Outsourcing Outsourcing accounting tasks to professional firms or freelance accountants can save costs and benefit from efficiency for greater competitive advantage. Outsourcing accounting tasks to professional firms or freelance accountants can save costs and benefit from efficiency for greater competitive advantage. © 2019 CHS Consultancy 5

6. Outsourcing Handing direct control and important internal data over to a third party is for sure an important decision, therefore business owners need to consider the pros and cons Handing direct control and important internal data over to a third party is for sure an important decision, therefore business owners need to consider the pros and cons © 2019 CHS Consultancy 6

7. Outsourcing Instant Benefits Focus on core business activities: Focus on core business activities:  Free up your time and resources to focus on main tasks and strategic planning Cost control: Cost control:  Headcount cost thus saved can be invested in other profit-making projects and assets © 2019 CHS Consultancy 7

8. Outsourcing Challenges & Concerns Service Delivery and Quality Service Delivery and Quality  Calibre of the firm’s personnel determines timeline management and fulfilment of expectations © 2019 CHS Consultancy 8

9. Outsourcing Challenges & Concerns Infrastructure Infrastructure  Communication Channels??  Independence with Auditors??  Rigid or Flexible??  Mutual Trust/Loss of Control??  Confidentiality and Security??  Service Level Agreement?? © 2019 CHS Consultancy 9

10. Outsourcing Challenges & Concerns Bureaucracy hinders flexibility Bureaucracy hinders flexibility  Terms and conditions in a contract with accounting firms can limit scope of service and may be too rigid for accommodating urgent needs or special circumstances © 2019 CHS Consultancy 10

11. Outsourcing Challenges & Concerns Quality Control Quality Control  Meeting Monthly Deadline??  Audit Purpose Only??  Storage & Circulation of Documents?  Crack and Solved All Historical Errors??  Detect, Reveal Errors from Operations??  Items Clear Breakdown & Descriptions?? © 2019 CHS Consultancy 11

12. Outsourcing Challenges & Concerns Managerial Accounting Focus Managerial Accounting Focus  Merely fulfilling audit and compliance requirements may not satisfy managerial accounting needs for business strategies and continuity © 2019 CHS Consultancy 12

13. Dilemma between In-house and Outsourcing  In-house accounting team always best fits the nature and needs of each business. © 2019 CHS Consultancy 13

14. Dilemma between In-house and Outsourcing  For smaller-sized companies, owners always hesitate between full-time and part-time accounting staff members and between headcount budget, personnel management and the cost of implementing the appropriate accounting system. © 2019 CHS Consultancy 14

15. Dilemma between In-house and Outsourcing  Outsourcing accounting can save much cost with immediate effect, but the benefits may be offset by the lack of attention to the company’s operation and internal control, which are factors that interact with accounting and finance. © 2019 CHS Consultancy 15

16. Evolution to Managerial Accounting On top of fulfilling basic statuary requirement (audit report with unqualified opinion), essential financial analysis skills are necessary for a business to cope with its growth. On top of fulfilling basic statuary requirement (audit report with unqualified opinion), essential financial analysis skills are necessary for a business to cope with its growth. © 2019 CHS Consultancy 16

17. Evolution to Managerial Accounting Such analysis provides a forward- looking model that assists the management in making business decisions Such analysis provides a forward- looking model that assists the management in making business decisions © 2019 CHS Consultancy 17

18. Make the right DECISIONS © 2019 CHS Consultancy 18 IFAC Definition of enterprise financial management concerning three broad areas: cost accounting; performance evaluation and analysis; planning and decision support. Managerial accounting is associated with higher value, more predictive information. Copyright July 2009, International Federation of Accountants Professional Accountants in Business Committee (2009). Evaluating and Improving Costing in Organizations (International Good Practice Guidance). International Federation of Accountants. p. 7 c. ISBN 9781608150373.

19. Frustrated with both In-house and Outsourced Accounting Services? © 2019 CHS Consultancy 19 Looking for an affordable miniature CFO? JUST COUNT ON US! On top of the daily stress of running a business, the added headache of managing the accounts is the last thing you need. We are a one-stop solution provider for your accounting, admin and HR needs.

20. chs-consulting.com STAY TUNED Our consultants are more than happy to meet you for a free advisory session to design the best, specialised and tailor- made services, the most cost-effective package for your business Book Now © 2019 CHS Consultancy www.chs-consulting.com info@chs-consulting.com www.facebook.com/chs.consultancy.92www.chs-consulting.cominfo@chs-consulting.comwww.facebook.com/chs.consultancy.92 Unit 6, 16/F. Enterprise Square Three, 39 Wang Chiu Road, Kowloon Bay, Hong Kong