Author name: Ronak Agrawal

Accounting

CRSP Connect Launches Website to help our clients worldwide to avail the Services at a Click!!

Is your firm facing difficulty in finding qualified accountants to do tax preparation work? Do you feel pressured in doing work during the end days of filing tax? If you agree, then it is time when you should start outsourcing tax preparation. Tax preparation outsourcing allows you to focus on your core activities, and you can get rid of all the problems regarding filing the tax. As the businesses are growing and the competition is increasing, it is time to focus on outsourcing that will allow you to complete your tax returns. There are so many reasons which enable companies to consider outsourcing as a preferable option for tax preparation. High Quality work with cost-effectivity Outsourcing companies offer high-quality work and affordable prices for tax preparation. Firms increase the cost up to 60% by expanding in-house staff with highly trained professionals. According to the research, after outsourcing a tax preparation, 90% of people found that outsourcing companies can give them high-quality work. It helps businesses to multiply their growth rate. Risk-free regarding tax laws Tax laws are always changing, and every accountant or professional is in stress that will it be a challenge or not. So many in-house professionals are not up-to-date with the changing tax laws. But, outsourcing tax preparation can be risk-free for the firm as the outsourcing company has to look into it & they are responsible for the updated tax laws. 47% of the people who outsource tax preparation say that they don’t have a tension of knowing all the laws. Meeting the deadline Outsourcing tax preparation services help firms to meet their deadlines on time because after this outsourcing firm is liable for all the penalties. Most firms who are not able to file their returns before the due date opt for the outsourcing firms, so that firm would prepare the tax before the extended date and can file the return on time. 72% of the firms who opted to outsource their work are getting the benefit of filing their returns on time before the extended due date. Security Paradigm Many in-house accountants save the files on the desktop but the information they have is so important that if it goes in the wrong hands, then anyone can misuse the data. Therefore, outsourcing tax preparation will ensure the safety of your data. Approximately 85% of firms who outsource their services say that their data is safe with the company to whom they outsource. Today the firms have different servers on which they guarantee the security of the data and they stand on it. Focus on fundamental business matters Outsourcing your tax preparation helps the firms to focus on their other business matters. Compromising other business matters over tax preparation will charge you a high fine after the extended date. Firms can get rid of the penalty by outsourcing tax preparation. Outsourcing will help directly and indirectly to the firm & the people who have observed this says that ‘Outsourcing tax preparation helped their business to achieve great heights.’ The majority of accountants and professionals are frustrated about their jobs that they do not even perform their job accurately. In a study, it has been found that hiring people full-time or part-time will not increase their income rather than outsourcing the tax preparation service will help in increasing the revenue of the company. Spending on outsourced services had almost doubled in the last two decades, from $45.6 billion in 2000 to $86.6 billion in 2018. It’s not slowing down now also. It means that outsourcing is at its peak that so many companies are using these services. CRSP Connect will help you to finding qualified accountants and decrease your work pressured. Contact us now. Enquiry Form

Bookkeeping, Offshore Staffing

What is Journal Entry Testing? Why Is It Important?

Journal entry testing: Journal entry testing has to be done to recognize the risk of material misstatement in financial transactions due to fraud. The auditor has to test the nature, timing and extent of Journal entries whenever there is an instance of fraud. Journal entry testing can be done by the auditors who audit the financial transactions of the company. The auditor should be cautious in its audit of transactions and look at all suspicious nature transactions. The auditor should check all the transactions with the backup documents, and a higher authority should duly approve all the entries after the staff accountant records the transactions. During the field work, the auditor generally tests the few transactions by following substantive procedures. He confirms the authenticity, validity, accuracy of the transactions. During this process, auditor may cross-check the journal entries with the supporting documents, vouchers. Auditors can be done Journal entry testing to check the functionality of the company’s internal control system. Need of Journal entry testing arises based on the compliance procedures adopted by the company in dealing with the conventional rules and principles of accounting and auditing. Mostly journal entries are posted by the accountants, so this testing has to involve the reviews of management and other staff, including the internal auditors, about fraud risks. Also, this testing can be done as per the requirements of government orders or by a court as part of examination into the company’s financial transactions due to financial misconduct, fraud, and negligence. Importance of Journal Entry Testing: To gather Audit Evidence: JE testing is carried out to gather sufficient and appropriate audit evidence to support the opinion expressed on the financial statements by the auditor. To validate the data: The volume of data in companies is increasing multifarious. These transactions are recorded in various accounting software’s. Hence it helps to increase the authenticity, validity, and accuracy of the transactions.  The journal entry testing ensures that all the entries are done in line with standards set by the organization and following as per audit and accounting standards. To detect fraud: This testing is done on sample basis and if any doubt arises on such entries, the auditor goes through broad audit procedures viz. compliance and substantive procedures to detect misstatements and frauds. The frauds when noticed during journal entries testing mean that auditors need to increase their audit sample and, in some cases, extend to the whole of the population. To test the authenticity: This testing can be done to know whether the entries are authorized by the proper authority and the proper support of such entries is available. To test the internal control system: Journal entry testing aids in identifying the existence, the efficiency of the internal control system. When the internal control system is operating correctly, the frauds cannot go unnoticed and it can be noticed by preparer and approver policy. Preparer and approver policy basically mean a dual way of preparation of any accounting records and authentication of the same by another accounting staff preferably of greater authority and qualification. To identify incorrect financial assertions: Management assertions include completeness, cut-off, accuracy, occurrence, and classification. So, the recorded expense transactions should pass the above tests. When any gaps occur in relation to the above criteria, journal entry testing can trace those errors. The accountants may make mistakes as a result of ignorance or due to low knowledge of such aspects. Hence, the journal testing would help to remove such assertions. To be used in forensic audits: When forensic audits are carried out to extract the frauds in a company, journal entry testing can be used as evidence by the investigating agencies in trial proceedings. To protects the interests of stakeholders: This testing helps to detect the gaps in the internal control system and frauds in the accounting of the financial transactions. If frauds are noticed at an early stage, the reputation of the company still remains intact. Want to know more about journal entry testing audit and planning to hire Offshore Audit Support Staff outsource your journal entry testing audit. Connect with our team call us on +1 929 254 6300 or email us on contact@crspconnect.com Enquiry Form

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