95% of the companies in developed countries from various industries outsource tasks to third-party operators for reasons such as cost-effectiveness and specialisation. With back-office or time-consuming transactional activities out of the way, companies can better focus on core activities, improving their products and services to gain a better competitive edge. For businesses that do not house an accounting team, outsourcing their account functions to a Singapore accounting firm lowers operational costs and localises a level of financial expertise not available in-house.
Singapore Accounting Company
All things considered, engaging a Singapore accounting firm sounds like money well spent. But before hastily making that important decision of disclosing and handing over intimate financial details to a third party, do take into account the following mistakes that many companies have made making and after making that decision.
1. Going for the cheapest rates
Indeed the decision to outsource largely has to do with cost-cutting. But deciding which Singapore accounting company to outsource to must not be based on a “cheap is better or good enough” approach, as low rates have frequently been associated with poor quality work, lower expertise level and barely existent customer service. In addition to rates, pay attention also to the company’s Audit Scope and Expertise, Experience with SMEs (like yours), Company Reputation and Notable Clients, and also Quality of Marketing and Sales Services, to help you make your final decision.
2. Not knowing what and when to outsource
If the demand for performing particular tasks in your company is progressively overwhelming your staff and available resources, outsourcing might present itself as an obvious and cost-effective decision, freeing you from hassles and helping you meet your company’s business goals. Outsourcing your important financial matters, such as bookkeeping and annual compliance reporting, to a third-party service provider is a good example and explains why outsourced accounting has been expanding in scope and scale since outsourcing took off. However, indiscriminately outsourcing things left, right and centre can affect your company’s operations adversely, if you take into consideration risks in confidentiality and security, possible loss of some control, unexpected hidden costs and costly miscommunication with a provider.
3. Ambiguous and poor onboarding arrangement
Rules, procedures and guidelines are crucial when you hand over important financial tasks to a Singapore Accounting Company. When it comes to outsourcing, everything needs to be in clear writing with regard to services to be rendered and the full scope of the provider’s responsibilities. Expectations, systems, payments and deadlines, for example, should never be left to assumption. Effectively comunicating with your provider from the onset, as well as regular feedback, is crucial to a successful relationship.
4. Lack of Communication and Review
Once you’ve onboarded your service provider, it is important to remember that communication needs to be kept up, and you should provide detailed and regular feedback with regard to both satisfactory and less than satisfactory performace. If you don’t take time out of a busy schedule to review outsourced work regularly, you miss out on opportunities to rectify work not done up to your expectation and also to improve your business relationship with your provider. Regular review and feedback is also important for another reason. The scale, scope and nature of your business do evolve even over short periods of time and therefore goals change and so do the particulars of your financial accountability. Therefore, your Singapore Accounting Firm needs to be accordingly apprised to do the best job possible.
5. Dictatorial and Micromanaging
The opposite end of lacking in feedback and communication is being overly enthusiastic about it. Micromanaging sends a message that you do not trust the work and expertise of the provider and its accountants. A respectable accountant team would still deliver satisfactory results, but value-added service, expediency, productivity and confidence might be hampered along the way.