Most businesses often confuse the term of bookkeeping with accounting. Bookkeeping involves recording of financial transactions while accounting analyses and interpret this financial data. Bookkeeping serves as the backbone of financial statements preparation to allow internal or external parties to financially assess your business.
Bookkeeping Services for Small Businesses in Singapore?
Many business owners, especially small-size businesses, are reluctant to engage in bookkeeping services in Singapore. They choose to be hands-on with this function for various reasons such as control over accounts, save costs or trust in employees. However, as your business continues to grow, outsourcing bookkeeping functions may do more good than harm. Here are 5 signals indicating you need bookkeeping services for your business:
You have incoming businesses but still facing cash flow problem
If you have a steady flow of clients but still seeing red in your cash flow, you may not be efficiently managing your invoice issuance process. When invoice issuing becomes a passive cycle, whereby invoices are only issued when payments are overdue, you might need to hire a bookkeeper. Another reason your cash flow needs attention is that you may not be keeping good track of your client’s payments. You are only alerted on late payments when cash is running low. The lack of payment tracking is a strong indicator that you might need better management of your business’s bookkeeping function.
A bookkeeper will be able to help you eliminate sporadic invoice issuance so cash will continually flow in. You will, in turn, have a peace of mind to expand your business while having the confidence that the backend of your business is well-taken care. By having your bookkeeper send invoices to new clients timely, it also sends a positive signal to them that your business processes are organised which gives them confidence in your products and services. Proper bookkeeping also potentially solves debt collection issues professionally by promptly reminding your clients on payments.
Managing cash flow issues also requires someone to step in as a financial controller. Companies often turn to Ecovis Bizcorp to outsource the role of a financial controller because we guide and manage their finance and accounting function while advising management on internal controls and financial planning process. Only senior and experienced staff are deployed to these assignments as they demand a high level of technical, interpersonal and problem solving skills.
You constantly lack time and feel overworked
A common problem of self-managed bookkeeping is that you get bogged down by your accounts. As a business owner, multitasking may be part and parcel for your job scope but if you feel stretched thin by reconciling your financials constantly, it might be an indication that you need to delegate the job of bookkeeping. When the majority of your time is spent on organising your accounts, you are sacrificing precious time on areas that could potentially grow your business. Neglecting other aspects of your company may be detrimental for your business. If the thought of bookkeeping is becoming a chore, it may be an indication that bookkeeping is not your expertise and a good time for you to outsource your bookkeeping duties.
Your books are always not updated, causing you to always miss important deadlines
Un-reconciled receipts, delayed payroll, inaccurate tallying of figures with bank statement are warning signs of bad bookkeeping. Bookkeeping is a time-intensive task but undeniably important as figures such as your profit margin, amount of assets and liabilities need to be accurate for you to access the financial health of the company.
Frequent bookkeeping errors can be costly as it paints an inaccurate picture of your company’s financial position. Understanding the financial standing of your company through fully reconciled and vetted financial statements is crucial in helping you make informed business decisions.
While meeting deadlines are important to every business, snowballed bookkeeping can result in your company missing said deadlines. Tax filing deadlines are even more crucial as failure to do so can result in serious penalties such as court summons or IRAS investigation. If you are always scrambling during tax filing season, it is an indication that you do not have up-to-date books, including important financial statements, to plan ahead. Bad receipt management daily will snowball into bigger problems like missing important deadlines.
Ecovis Bizcorp is able to attend to urgent assignments that require quick turnaround at a short notice. We understand that speed is of the essence and specialise in handling urgent accounts for court orders, late filing, acquisitions, amongst other accounts which require clean up on short notice.
Your financial data is not making any sense to you
As your business keeps growing, bookkeeping methods have to be constantly updated to meet the increased demands. Outdated and time-consuming financial record processes such as filing physical copies of your financial statements are definitely not the way to go. In this modern age, most companies maintain spreadsheets to keep records of their financials. However, multiple spreadsheets may lead to more organised mess, hindering you from linking different aspects of the business and assessing them as a whole.
Adopting modern accounting software not only helps to save time and keep your business organised but also aid in intuitive interpretation of your firm’s financial health. Professional bookkeepers, such as Ecovis Bizccorp, have established processes and systems such as cloud-based bookkeeping software that provides accessible, safe and automated bookkeeping solutions, helping them work faster and accurately. If you worry about spending extra time learning to operate unfamiliar and complex software, you might want to consider outsourcing bookkeeping services.
Outsourcing your bookkeeping service in Singapore
Delegating bookkeeping service may seem like a loss of control of your business initially. However, when the duties of bookkeeping becomes counterproductive and interfering with the growth of your business, outsourcing might be a helpful answer in freeing your time to focus on other aspects of your company.
For customised accounting and bookkeeping services in Singapore, get in touch with us. Ranked the 18th largest international accounting firm in the world with over 7,000 people operating in 78 countries, let Ecovis Bizcorp help you support your business whenever, wherever. Contact us today to find out more.