The pharmaceutical industry is largely regulated and complex, with everything from drug development and research to distribution and compliance with strict government regulations. Such companies are subject to pressure to be innovative while handling enormous volumes of transactions, which makes bookkeeping accurate crucial. However, such complex financial records necessitate management in-house, which is both time-consuming and very costly. Outsourcing such services is a viable alternative.
In this blog, we will discuss why pharmaceutical companies need outsourced bookkeeping services as a necessity and reveal the main benefits, services offered, a guide on how to choose a provider, and challenges you should know about.
Why Pharmaceutical Companies Need Outsourced Bookkeeping
If you’re running a pharmaceutical company, you already know how complex your financial landscape can be. Maintaining a book of accounts with R&D expenses, multiple supply chains, and varied tax laws won’t make this job any easier. All of this administered internally becomes overwhelming and takes away time from the core business activities.
That’s where outsourcing bookkeeping services proves to be quite helpful. Letting experts handle your finances will save you costly blunders that may arise from mismanaging financial data apart from saving your precious time. They are the experts and know all the nuanced angles concerning accounting for pharmaceutical companies. They would help you stay compliant with all the laws, and your financial records will not go wrong.
Pharmaceutics involves international business, and so on. With global transactions, there is another level of complexity, but with outsourced bookkeeping, the professionals are experts in their field of handling multiple currencies and tax legislations across the different regions following the international financial reporting standards. So, in a nutshell, all that cumbersome burden is taken from your shoulders so you can focus on what’s important to your business.
Key Benefits of Outsourcing Bookkeeping
Let’s further review some of the benefits of outsourcing bookkeeping services for your pharmaceutical company.
1. Cost Efficiency
Outsourcing bookkeeping services generally requires less direct dollars expensed compared to having an in-house accounting department. Consider the salary and benefits for accounting employees, as well as all that it takes to maintain an accounting department, for starters. This is certainly welcome news for small to mid-sized pharmaceutical companies, which need high-quality bookkeeping services without a hefty price tag.
2. Industry Expertise at Your Fingertips
Outsourcing providers specializing in bookkeeping for pharmaceutical companies know the industry inside and out. They know about R&D expenses, how to classify clinical trial expenditures, and how to run regulatory fees. Their know-how will ensure your books are always correct and in accordance with accounting for pharmaceutical companies’ norms, such as those by the IFRS or local standards such as UK GAAP.
3. Stay Compliant with Regulations
Pharmaceutical companies are highly regulated, and any slip-up in your financial records can cost you penalties or even lead to possible legal issues. Outsourcing bookkeeping services to industry-versed professionals assures that your books will always come up to par, meaning fewer headaches when it comes time for the audits and more peace of mind knowing your company is staying on the right side of the law.
4. More Time for Core Business Activities
Bookkeeping is not exactly what a pharmaceutical company should be largely known for. With your key focus being on developing new pharmaceuticals, you don’t need to worry about financial reports. Outsourcing makes sure that you pass the bookkeeping over to professionals so that you and your team can focus on innovation, product development, and sales. This higher productivity is probably one of the biggest advantages of outsourcing financial functions.
5. Easily Scalable Solutions
The requirement for an outsourced accounting provider grows right along with your pharmaceutical company. An outsourced bookkeeping provider can more easily scale their services with the ever-escalating complexity of your business. Whether you’re reaching into new markets or introducing new products, your outsourced team will quickly keep pace with your increasing demands without missing a beat.
Services Offered by Outsourced Bookkeeping Providers
Contracting out your bookkeeping means much more than just basic transactions. The best provider can give you a whole line of financial services that meet pharmaceutical companies’ very specific needs. Here is what you will get in the outsourcing process:
1. Accounts Payable and Receivable Management
Supplier payments and revenue stream tracking are crucial for accounting purposes for pharmaceutical companies. The provider ensures that each and every transaction gets made correctly, payments are done in due time, and all invoices work in an efficient manner.
2. Tax Preparation and Compliance
Tax obligations must be continually managed, and in a highly controlled industry such as pharmaceuticals, this is doubly so. Letting professionals manage your bookkeeping means you will benefit from professional tax planning and preparation by experts who can keep your business in line with both national and international tax laws. This may range from submission of VAT to corporate tax.
3. Payroll Management
These are usually companies with very complex payroll structures since the role played by bonuses and stock options, among others, is very crucial. Outsourced bookkeeping services would ensure that your payroll gets processed accurately and on time, so your employees stay happy, and your records will be in order.
4. Financial Reporting and Analysis
An outsourced bookkeeper will provide you with deep financial report insight, allowing you to see the financial wellness of the company. This could include profit & loss statements alongside cash flow analysis, which would allow you to make noteworthy decisions concerning the future of your business.
5. Audit Support
Pharmaceutical companies often have to go through audits because of the kind of regulations they have to adhere to. An outsourced bookkeeper can help you prepare your financial records for an audit and ensure the process goes through without any bumps.
Choosing the Right Outsourced Bookkeeping Provider
An outsourcing bookkeeping service provider is the first thing one needs to choose in the best interest. Here are some considerations made:
1. Industry-Specific Expertise
Not all bookkeeping providers have the expertise and knowledge of the intricacies that pharmaceutical companies entail. Choose a supplier who is professional enough and has knowledge and an understanding of the specific challenges your industry is faced with.
2. Track Record and Reputation
Before signing up with a provider, find out their reputation. Go through reviews, testimonials, and case studies to see if they have had good experiences working with other companies like yours. Your financial records are very sensitive, and you cannot just trust the outsourcing of them to anyone.
3. Use of Technology and Data Security
Given the sensitive nature of financial and pharmaceutical data, it’s best to identify that your service provider is updated with the latest technology in accounting to secure any of the information that relates to you. This encompasses compliance with data protection regulations, such as GDPR.
4. Open Communication and Transparency
With open lines of communication, a successful partnership is to be had. Find a provider willing to discuss its processes and keep you in the know regularly. This way, you’ll always know about your financial health.
Challenges and Considerations
There are many advantages of bookkeeping outsourcing, yet it’s worth knowing about potential challenges.
- Data Security: Financial information is very confidential. It is, therefore, very important that you make sure that your bookkeeper comes up with the most robust data security. There are always scores of vulnerabilities that could go wrong, so it is your responsibility to take due consideration.
- Cultural and Time Zone Differences: If you’re looking for an international bookkeeper, then you must make sure that you take into account the dissimilarities in work culture or time zones that may have a bearing on communication.
- Finding the Right Fit: Not all providers are the same; sometimes, you need to take your time to research the right service provider that fits your company’s objectives and values.
Also Read: Common Mistakes to Avoid When Outsourcing Bookkeeping
Conclusion
Outsourced bookkeeping services would provide pharmaceutical companies with cost-effectiveness, expertise, and compliance. By outsourcing bookkeeping services, pharmaceutical companies would therefore free up some time to return to core activities such as R&D, with the assured proper maintenance of their financial records.
If you’re looking for a trusted partner, MeticMinds is Your Accounting Outsourcing BestMate. With experience in bookkeeping for pharmaceutical companies, we offer comprehensive services that focus on the particular requirements of the pharmaceutical industry. MeticMinds promises tax compliance and payroll management- guaranteeing that your books are ready for an audit at all times, thus keeping your business compliant and succeeding.
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