Small Medium Enterprises (SMEs) are key pillars in Singapore’s economy. SMEs can range from cooperation with less than 10 employees to anywhere less than 200. They comprise of businesses from various industries and business scale. Regardless of which type or size of business you belong to, no company can escape from accounting duties. An in-house accountant or outsourced SMEs accounting services are usually solutions to support this function.
Accounting services analyse a company’s financial data in order to provide professional advice on business decisions. Many factors can influence the accounting demand for each firm. Certain SMEs with very unique needs may require an in-house accountant to attend to their accounting requirements round the clock. However most of the time, especially if you are a small company with less than 15 employees, you are more likely to enjoy more benefits with outsourced service. On a whole, there is less hassle with employment management and you get access to expert assistance without the burden of training and updating. Read on as we discuss how accounting services aim to provide SMEs in Singapore time and cost-effective alternatives from in-house accounting.
Better time management
Boggling yourself down with tax filing and financial reporting impedes you from focusing on other areas to grow your business. Especially if you do not come from an accounting background, self-managing your accounts will be sure to weigh you down. You may think that automated software to keep up with your bookkeeping is enough to make your life easier. Remember that accounting involves more than keeping track of transactions of your company. It does not benefit you if numbers are presented to you but useful insights are made from it.
Accounting firms have the advantage of having a group of certified accountants to do an in-depth analysis of your accounts. These are very valuable information for a business owner’s decision making, which can make or break a business, especially during the growing stage of the company. Professional service providers take the burden of forecasting problems, maintaining software updates and monitoring regulatory changes from business owners yet regularly present reports to authorities to ensure your company stays compliant all the time. For example, Ecovis Bizcorp customises management report format according to each business’s needs. We also share with our clients implications of their financial numbers, highlight variances and alert them of any compliance issues such as goods & services tax (GST) and withholding tax.
Reduce uncertainty and overhead cost
External professional service always sounds like an extra expense. As a business owner, budget planning is very important. Truth is, outsourcing accounting usually proves to be a cheaper option. Accounting is only crucial during certain period of the year. Accounting demands are not that high for SMEs typically to justify for a full-time accountant. By outsourcing, you save on many other unseen costs such as employee’s compensation, paid leave, taxes or health insurance. Besides, sourcing and training new accountants involves forking out additional time and costs for the company. On top of that, companies may still risk running into situations when they find themselves without an accountant. These include instances when your accountant is on leave during peak season or resigning staff. At Ecovis Bizcorp, once the outsourcing engagement is confirmed, we will assign a dedicated and experienced accountant. In addition, we will have one more accountant and a manager to back you up in case of unforeseen circumstances.
Access to backed up data
Security is a big issue when it comes to sharing of sensitive information. Hiring accounting service means involving giving access to third party information about your company. While that sounds like a loss of control of data, a flipside of such arrangement is that you can still have access to your company’s data in the event that you accidentally misplace your data or software crashes. Outsourced accounting services companies would have access to highly secured servers using the best encryption technology. Having the safety net of another copy of your information protects the business from loss of information which may cripple your ability to make accurate and timely reporting to regulating bodies.
Reduction of fraud
Many assume that having internal accountants helps to safeguard your financial data, therefore there is a lesser possibility of fraud. On the contrary, it may be the total opposite outcome in this situation. Your in-house accountant could try to cover up tracks without your knowledge as they are the sole person looking into the accounts. Whereas when outsourced, your accounts are looked after by a team of accountants alongside with their managers. As professional service providers uphold values of credibility and integrity as selling points, it will be your assigned accountant’s utmost importance to ensure your accounts are compliant and well managed in order to grow their business. This separation of duty is key to reduce fraudulent intentions. Not to mention, you get to receive reliable advice and expert help.
Outsourcing your accounting service
For outsourced accounting 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.