Bookkeeping Services For Small Business: Myth vs. Reality

11 January 2020

Work in progress

What does a bookkeeper job entail? They build the foundation for accountants to perform strategic analysis of financial operations. The responsibility of recording day to day transactions, keeping an eye on account payable and receivable, making sure the cash flow of the company stays healthy falls on bookkeepers.

Bookkeeping for small businesses is extremely important. Especially during the growing phase of the company, transactions in and out of the business can be hectic and messy. Therefore, in Singapore, bookkeeping services for small businesses becomes a valuable option to put such an essential process in place for business owners. With the intricacy of bookkeeping, professional bookkeeping services aids business owners by freeing up their time in order to make smart executive decisions. However, there are some uncertainties with regards to engaging bookkeeping services that refrain some from using such a service. Read on to find out more about them and if they are factual.

Myth 1: Your accountant performs the same function as your bookkeeper

Many companies make the mistake of hiring an accountant with the hopes that they are able to handle bookkeeping duties too. They assume that an accountant can help them sort out tax issues while catching up with past financial records and transactions during tax reporting season.

However, in reality, accountants take a more insightful view of your company’s financial health based on the transactions recorded by bookkeepers. Accountants and bookkeepers actually perform two different functions even though they are very much interdependent on each other. Bookkeeping is largely administrative. They are dedicated to reconciling receipts and financial transaction consistently so that balance sheets are accurate and up to date in order for accountants to make meaningful analysis. When outsourcing bookkeeping services, your accounts are managed by a team of professionals who are specialised in different areas so that you have the best person to go for specific issues. Here at Ecovis Bizcorp, you will be assigned a qualified accountant or bookkeeper to take care of your accounts, a manager or a director in case you need a higher level of support.

Myth 2: All bookkeepers are the same

When bookkeepers are outsourced, business owners may assume that all bookkeepers should be able to perform the same functions or possess the same capabilities. Or that a bookkeeper with more experience will definitely be better for your business.

Truth is, no two bookkeepers are the same. Being able to find a bookkeeper with a good fit for your company is the utmost important criteria. A bookkeeper with numerous years of experience may not be a better fit than someone who has a year of experience doing bookkeeping in a similar field as your business. A good bookkeeper should possess the ability to perform analysis with the amount of depth and breadth that you need. Ecovis Bizcorp deploys only staff with a high level of technical, interpersonal and problem-solving skills for you to meet your business demands.

Myth 3: Bookkeeping service is very expensive

To most people, outsourcing sounds more expensive than hiring an internal bookkeeper. However, in actual fact, payroll for your business should be given priority to those individuals who value adds and bring revenue into your business. This includes salespeople and marketing professionals.

By outsourcing your bookkeeping, you are given more flexibility in terms of spending for your company. An in-house bookkeeping while may prove to give you more control and time, it puts a strain on your company expenditure as payroll involves more than paychecks every month. A full-time staff also involves filing taxes for them and ensuring they are entitled to employee benefits like medical reimbursements and leave. All of these arrangements involve costs. For a small business, spending has to be smartly allocated. Outsourcing offers a cost-effective arrangement for small businesses to have their bookkeeping processes sorted without disruptions throughout the financial year. Therefore, outsourcing proves to be a cheaper alternative than in-house bookkeeping. This is apparent by customised bookkeeping services provided by us, here at Ecovis Bizcorp, that are tailored specifically to the needs of an individual client. We also work on flat fees to keep you on a budget.

Myth 4: You do not have any control of your own books so no oversight is needed.

Outsourcing your bookkeeping function sounds like a terrifying idea to many business owners as it seems like they are handing over their business data to outsiders. As such, security over their financial data will be compromised. Therefore, many do not feel that there is a need to keep sight of their business’s bookkeeping progress.

To debunk this thinking, the risk of a data breach will occur even if bookkeeping is operated internally. This includes insiders with ill intentions. External bookkeeping service, however, prides themselves and builds their reputation on trust and security. Bookkeeping services are also governed by the law and any breach of confidentiality will threaten their livelihood.

Thus, business owners should constantly check on the progress on their bookkeeping. Financial performance of the business ultimately belongs to you so keeping tabs of your outsourced bookkeeper will do you good. Professional bookkeepers are there to offer their expertise in optimising the process. Business owners should therefore constantly seek more professional advice and clarify any concerns they have with their books. It is also beneficial for business owners to set out guidelines and policies from the start in order to manage expectations.

Outsourcing your bookkeeping service

For customised bookkeeping services, get in touch with us. Ranked the 18th largest international accounting firm in the world with over 7,000 people operating in over 78 countries, let Ecovis Bizcorp help you support your business whenever, wherever. Contact us today to find out more.