Business owners may feel more assured if their company’s books and accounts are managed and kept accountable under their very noses, so, for example, when businesses needed to track accounts receivable daily, in-house bookkeepers and accountants used to be the norm. If the volume and scale of a business justify keeping a dedicated in-house accounting team (and equipping it with expensive software like Quickbooks), then a company will need to allocate enough budget to keep fully qualified accountants on staff throughout the year. But some business owners, understandably, may rather prefer to channel that kind of expenditure to what is directly involved in generating profits for the company, for example, means of merchandise production or digital marketing or advertising, and outsource accounting functions to a professional Singapore Accounting Firm.
Singapore Accounting Services
Running through a list of pros and cons will shed more light on the questions many business owners ask when faced with the dilemma of whether to outsource or not to outsource:
- How much time and money will I be saving?
- Can they (Singapore Accounting Firm) do a better job?
- How safe is my company’s data?
Outsourcing your accounts and annual compliance reports to Singapore Accounting Services allows you to allocate more resources, i.e. time and money, to functions that directly generate income. The annual salary for just one accounting personnel is in the vicinity of S$30K, likely much more, when all work benefits are considered together. That is no small amount when you’re running an SME, the success of which depends heavily on increasing efficiency in every aspect of business. So perhaps the same amount of money is better spent on a sales representative, who can wide your client base, especially after discovering that it may just cost your company a couple of hundreds dollars a quarter to have all books and accounts professionally taken care of.
With a team working outside of your organisation for you, it is conceivably more difficult to prioritise which tasks you wish to be completed first (though that should not be a problem if you entrust the work fully to the professionals), and the responsiveness to your questions or instructions or requests might be lacking due to factors such as work load and the inherent remoteness of an outsourced work relationship. However, with the advance of digital communication and conference solutions, building a communicative relationship between client and vendor to overcome the limits of communication and control looks promising.
In addition to saying time and overhead costs, outsourcing to a team of professional accountants also means, as a client, you are likely reaping decades upon decades of collective accounting experience for less than the cost of a single hire. To top it off, professional Singapore Accounting Services are well-versed in small business accounting experience, which means they know what you, as an entrepreneur, might only discover years into business or after suffering heavy penalities. Their ability to errors and provide foresight into potential implications down the road is priceless considering these boons are not invoiced, technically.
Some business owners tend to worry that what is out of sight will get out of hand at some point and begin to develop trust issues with the Singapore Accounting Firm handling their accounts. Constant monitoring of financial performance does provide valuable insights to the reality of one’s business’s efficiency and having books and accounts in somebody else’s hand may, contrary to its well purported benefit of lightening one’s burden, contribute to additional stress and worry that businessmen can do less with. Therefore, getting regular feedback from and maining transparency with your accountants and their supervisors is perhaps a piece of the puzzle of the “to outsource or not to outsource” impasse that will make good of any decision you finally make.