Accountants are one of the most important resources when it comes to running a business in Singapore. They are responsible for providing advice, information, and assistance when it comes to matters related to tax compliance, financial reporting, and management.
However, did you know that hiring an accountant is not necessarily compulsory? Many companies have chosen not to hire an accountant because they find that outsourcing accounting services in Singapore have many advantages compared to recruiting someone to complete the task in-house.
If you’re curious as to how this could benefit your company, then you’re in the right place. That’s because, in this guide, we’re going to look at the key benefits that come from outsourcing your accountancy requirements
Availability
When you use the service of an outsourced accounting firm, what you get is an always available resource. Compare this to an in-house accountant who will only be available during contracted work hours, and you can see that this can be a considerable advantage to a small business.
Reduced Cost
It’s a well-known fact that hiring an in-house salary will be more expensive than outsourcing.
That’s because there are savings to be made on benefits, including medical, insurance, leave, and allowances, and then there’s no need to find cover in the case of maternity or long-term sick leave.
If you no longer need the service, then it’s much easier to terminate the agreement than to make a member of the team redundant!
Specialization
Outsourcing accounting firms have the opportunity to recruit people with specializations in various areas of finance such as taxation, management accounting. So, this means that they can assist in very niche situations. Hiring an individual with expertise in several fields instead of one would be incredibly difficult.
When using an outsourcing solution, you have access to individuals with years of experience within specialized areas of accountancy
Flexibility
When you outsource your accountancy requirements, that might be on a task-by-task basis. So, you may need assistance at the end of each month but very little help in weeks 2 and 3. If you hired someone, then that might mean that they are sitting twiddling their thumbs during those quiet times but then run off their feet and struggling to cope in the busy periods.
Business Expertise
As well as accountancy specialization, some accountancy services also have expertise within particular business types. For instance, if you have a retail business, you can look for an outsourced accounting services provider specializing in this area. An accountant with experience within your business field will be able to make recommendations that an accountant with more generalized expertise might not be able to.
Accessibility
Because an outsourced accounting firm has various clients, they are able to provide better accessibility since they will be readily available during the time that is convenient for you. They don’t need to limit their service within working hours, which means that they will be there whenever you need them.
There are also no worries about getting advice during holidays times; for example, the consultancy will ensure that there is professional advice available whenever their clients need it.
Technology
The modern way of conducting business today is driven by technology. Outsourcing allows businesses to avail the benefits of using computer software technologies that may not be accessible to smaller companies. Then there’s the need for staff who are trained to use the software, to begin with.
Suppose you have a large number of transactions being processed through credit cards, for example. In that case, you can use the software tools provided by your outsourcing accountancy firm to manage this efficiently. Now there’s no need for manual processing at your end.
Save time
Outsourcing provides businesses with another significant advantage because it also gives them more free time for other critical activities for the survival of their business, such as marketing or focusing on generating more sales. It also helps them save time to handle day-to-day activities without having to be concerned about the financial recording of their business.
Scalability
When your business is suddenly growing, then the support network around it also has to grow. Hiring new staff takes time, and then there’s the onboarding period before they are really as effective as you need them to be. And, of course, there’s no guarantee that they are going to work out.
When you go down the outsourcing route, then scaling up on your requirements can be as easy as making a phone call with your needs.
Reduce Stress
Running a business is challenging. There are so many things to consider from sales, marketing, human resources, and legal requirements. When you can hand the day-to-day responsibility for your finances over to someone that you trust, then that’s one less thing that you have to worry about.
Now you have the opportunity to focus on future planning and the success of your business.
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