Reasons to Avail Accounting Services in Cambodia

For any company in Cambodia, irrespective of the size of their business, it is compulsory to have an accounting process in place. This helps the firm keep control over its financial health by ensuring no revenue leakage occurs and at the same time maintaining regulatory compliance with periodic audits.

How does internal Audit offer by accounting firms helps a business? 

Internal audits are outsourced to accounting firms so that periodic inspection of the company’s books of accounts takes place without any lapses. It helps determine the company’s financial health and certifies the profitability figures released by the Finance and accounts department.

It also checks all the business documents and ensures compliance with the regulatory authorities. By providing a precise and complete picture of the business to the Management, an Audit report provides an unbiased view of a company’s financial health. Audits carried out by professional accounting firms in Cambodia ensure that standard operating procedures and existing internal controls are carried out correctly.

 How can an Accounting firm help a company with its financial Management?

  • An outsourced accounting firm helps in assessing the risk management of the business. They review the company’s workings and point out the flaws and weaknesses for remedial action.
  • They help to find out any fraudulent activities that may have been committed by either the employees, vendors, etc.
  • They ensure that proper bookkeeping and accounting entries are done to correct the tax computations. This helps in avoiding any false tax filings, violations, or penalties.
  • Many accounting firms also offer audit services, and they represent the company before the authorities for any representation.
  • Business audits focus on its business and financial status, and their recommendations provide insights into company expansion plans.
  • Audited financial reports help increase confidence in the company’s stakeholders, including shareholders and investors. Audited financials are more reliable to external parties interested in providing funds to the business.

These are regular exercises and helps give the Management a clear picture of the business. Large companies are now outsourcing accounting and auditing services to professional firms. This allows them to reduce the manpower strength of the organization and also keep the employee overhead cost low.

Accounting is the critical function of any business, and external firms will ensure no compromise with the accounting system or allow any fraudulent activities to occur. If any abnormality is detected invoicing or high debtor turnover period for example, they are pointed out to the senior management or audit committee of the organization.

Conclusion

If a new company in Cambodia wants to get their business audited, they must comply with some rules and regulations specified by the government, and a professional accounting firm will be the best guide to help them as they are well versed with the laws.

MAR & Associates is a duly registered law firm in Cambodia with a network of legal advisory member firms in ten countries across Asia: Cambodia, Japan, Thailand, Singapore, Malaysia, Vietnam, Philippines, Indonesia, Laos, and Myanmar with their core proficiency in foreign investment, merger & acquisition, real estate law, banking & finance law and accounting & taxation within the regions.