The Pros and Cons of Outsourcing Accounting Services in Singapore

 There was a time when only mid-level and big companies outsourced their needs to accounting services in Singapore. However, today it is not the case. As an owner of a small business, you can also go for it.

It is evident that appointing an accounting firm Singapore will strengthen your hand. You get to access knowledgeable and trained accountants. They help you optimise your cash flow, make better use of resources, and grow faster.

These accounting services in Singapore are often more affordable for small businesses than building an in-house accounting setup. If you are interested in outsourcing accounting firm Singapore, but are undecided, here are a few pros and cons of the move.

How Outsourcing to Accounting Services in Singapore Works for a Small Business

Cost

Small business owners search for means of cost-saving. When they outsource, they do not have to bear the burden of employee hiring, training, salary, benefits, infrastructure, office space, Etc.

Core-Tasks

Those who multi-task get rid of their non-core accounting function by appointing a reliable accounting service in Singapore. It enables them to optimise their resources and focus on the core functions of their business.

Capacity

Some of them are after and addressing capacity issues. Leading organisations use outsourcing to drive transformational change and improve business results.

Thinking of Outsourcing Your Accounting?

Someone's medicine may turn out to be poison for you. Before you opt for outsourcing your business' accounting function, you need to weigh its pros and cons. Then only you will be able to know whether it is beneficial or harmful to your business.

Pros of Outsourcing Your Business' Accounting

1# Cost Effective

Appointing an accounting firm in Singapore is more affordable than employing an in-house accountant. If you do not want any third-party agency to handle your data, hire a full-time accountant and keep your financial data secure.

Hiring a professional provider of accounting services in Singapore keeps your data secure. It also helps you lower your overhead costs related to employees, in-house setup, and infrastructure. You will also save on insurance, retirement benefits, vacations, workers’ compensation, and sick leaves.

Compliance-wise, it is far better to have a team of experts than rely on an internal accountant. This is where an accounting firm comes on strong. It reduces the risk of non-compliance and inaccurate financials.

2# Grow Your Business

The company directors are focused on implementing the vision and achieving their company's growth. Expecting them to be proficient in handling the company's financial data is a bit too much.

It is why many businesses appoint providers of accounting services in Singapore. These experienced professionals are proactive. They can read and interpret business financial data for red flags well in advance. They point out the tasks you are overcommitting your resources, unproductive expenses and how it can impact your cash flow and liquidity.

A team of battle-worn accountants watches over your financial data and can instantly notify you of impending disaster. Such a backing reduces your stress level and gives you peace of mind. You also feel confident while using the financial insights they have generated for your business decision-making.

3# Preventing Fraud

Temptation can waylay a person. And the result is financial fraud in a reputable company. Search on the internet, and you will come across many examples of businesses that fell prey to financial irregularities.

When you leave your company's finances in a person's hand for too long, you invite some financial mishap. The books are easy to play with, and such a happening can remain hidden for years. The solution is to trust your employee but establish controls to prevent fraud.

Outsourcing to accounting firms in Singapore is a reliable way of preventing people from dipping their hands into your company's purse. A team of experienced accountants have a much better chance of spotting irregularities than an overworked accountant.

These professionals process your business' financial transaction data, prepare reports and act as a reliable check or internal controls in reducing incidences of fraud.

Cons of Outsourcing Your Business' Accounting

1# Hidden Costs

Hidden costs can give you a headache. When you are using a paid service, one thing can lead to another, and the task can grow like a snowball. It can drastically increase your accounting cost. The cost inflation can happen if you are not aware of or completely forgot to mention the task to your services provider.

It would help if you discuss your accounting needs with your provider. It will tell you the price you have to pay for your monthly accounting work.

2# Control Over Financial Data

When you appoint an accounting firm in Singapore, a major part of your accounting work will be out of your workplace. It is a blessing as it will not be a disturbing factor for your managerial staff.

However, it also means that you cannot ask your accountant to show you where each entry is posted. Instead, you will need to depend on weekly updates or monthly reports to know the financial status of your business.

Here, you got to trust your provider of accounting services in Singapore. They are professionals and know how to treat your books and secure your financial data. At the onboarding time, make sure to understand the roles, policies, and procedures you can rely on. It will set your expectation level and create smooth communication.

3# No Instant Answers

The experts from your accounting firm, Singaporeans, will answer your business account-related question. And professional providers know the value of timely communication. However, you may not always get instant answers. You should discuss your need to be in the loop with your provider and shape up a communication policy to address your accounting needs. Here you got an opportunity to specify the priorities of tasks and the urgency of response from the provider. It will streamline your communication with the assigned accounts manager.

Maybe you are searching for an experienced accounting firm in Singapore to set up an accounting system for your new company or to replace your existing provider. Whatever the case, finding the right provider of accounting services in Singapore is winning the half battle.

Contact SBS Consulting Pte Ltd at 6536 0036 or email us at info@sbsgroup.com.sg and discuss your accounting needs with our experts.