Outsourcing, in general, has been credited with cost effectiveness, and consequently, fair to say, increasing profit and improving business growth. When non-core business processes are outsourced, a company can, among many other advantages, save on infrastructure and technology, focus on core areas and have access to skilled resources. Outsourced accounting has come out quite ahead in the prevailing outsourcing trend as financial transparency and legislative compliance have become more exacting, and business owners could certainly do with less of complex and time-consuming tasks, such as finance, accounting, compliance, audit and risk management. Also, the cost of outsourced accounting services has become affordable, even for start-ups and small-scale companies, and they are no longer a solution that only up-market firms can employ.
A professional Singapore Accounting Firm will handle labor-intensive tasks related to your finances and tax compliance reliably and responsibly, even with preemptive measures to safeguard against missteps that may lead to penalties being imposed on your company by the authorities. It has experts on staff who are familiar with the work, and these staff in turn have a strong support system behind them, as the managerial and supervisory personnel come with technical capacity and decades of experience in audit and accounting. Accounting pain points that a Singapore Accounting Company will address include:
1. Consistently Maintaining Proper Financial Records Year Round
There are many reasons why keeping proper financial records is essential to the running of a business operation, for example:
- prepare accounts at year-end and plan for tax payments quicker with less chance of errors to avoid over/under tax payments
- maximise all claimable expenses to reduce tax obligations
- plan to meet financial commitments such as paying creditors or employees
- distribute profits to shareholders as dividends
- identify the strengths and weaknesses to run the company and help it grow
And, there are many reasons why business owners do not find it practical to do their own bookkeeping/accounting in-house, for example:
- increased costs
- uncertain quality of employee and work
- interrupted accounting process if employee quits
- risk of employee fraud
Therefore, by outsourcing non-core functions such as accounting, business owners can leverage an outsourced Singapore Accounting Firm‘s knowledge and industry experience and the highly trained and accredited accounting specialists to alleviate the stress and anxiety associated with regularly and properly upkeeping the company’s books and financial records, as well as preparing the necessary financial statements for tax submission.
2. Dealing with Tax Computation, Submission and Authority
Not an exageration to say that taxes are a major source of pain for many companies, especially those dealing with high and conspicuous transaction volumes. And some business owners, when it comes to books and finances, take the “kicking the can down the road” approach when details get a bit tedious and “too much work” seems to be involved to tidy up the spreadsheets. As a result, year-end tax time turns hellish when extensions instead of taxes are filed, or taxes are filed improperly and amendments need to be rushed to avoid penalties and interest. Easier said than done is taking a proactive approach, which involves first understanding the finer details of local tax regulations and requirements and then keeping tabs on all the accounting work assigned to the in-house personnel in charge. The following excerpts from IRAS detail what business owners are held responsible for where tax reporting is concerned:
- You should keep proper records and accounts so that the income earned and business expenses claimed can be readily determined. You must be able to support your records and accounts with invoices, receipts, vouchers and other supporting documents.
- Estimates and improper records are not acceptable.
- Records to Verify Income and Claims for Deduction
- Records include cash register tape, daily sales record book and invoices
- Receipts and daily purchases record book
Not only can an outsourced Singapore Accounting Company, when you engage its services, keep your books and accounts in good order year round, which makes tax computation and submission a smooth, error and stress free process, but assuming that your books and financial records are not exactly in exemplary shape or the easiest to work with, it is still better late than never to hand them over to these experts (who certainly must have seen worse), have them sort them out, and prepare the financial statements and other documents your company needs to satisfy annual compliance obligations.
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