Technology advancement makes accounting outsourcing more cost-effective and efficient. However, when deciding to make a switch from in-house to outsourced accounting, several issues may arise.
Building a good relationship with the outsourced accounting service provider allows you to increase efficiency and gain financial intelligence and strategic tools for business expansion. To make sure your company successfully builds the right relationship with the accounting firm, follow these five simple tips.
Tip #1: Define the Company’s Needs
During the onboarding procedure, the company needs to define its needs and expectation clearly. Sharing the company’s goal with the accounting firm allows the accountant to help business owners in making more informed decisions.
Business owners should also be as truthful as possible when it comes to the current state of their accounting. If they do not know much about the company’s accounting status, appoint someone in the company to liaise with the accounting services provider. The initial onboarding procedure would be an excellent overview of what the company hopes to achieve from the outsourcing service provider.
Tip #2: Form an Ongoing Obligation, Communication, and Check-in
Depending on the company’s size and lifecycle, several options are available for the financial operations’ management. Both internal and external roles can assist with day-to-day reporting and strategic consulting functions. How the company structure its financial activities depend highly on its objectives, available resources, and the expertise of its in-house team.
To ensure competency, business owners should clearly understand the outsourcing accounting firm’s duties and obligations. Evaluation of the firm’s performance should be done at least every two years.
Apart from the quality of services stated in the outsourcing agreement, business owners should assess the provider’s non-technical elements, including communication practices and responsiveness. For a better communication experience, they can establish a preferred mode of communication — email, Skype, or other communication channels— with the accounting partner.
Moreover, business owners need to devise a standard check-in system to measure the provider’s overall performance. Business owners and their outsourced accounting partner can implement key performance indicators to measure work delivery, response, and accounting accuracy. This method enables business owners to set their expectation and lets the outsourcing firm know what they are expected to deliver.
Tip #3: Make Information Transfer Easy
Another key to a successful accounting outsourcing relationship is a streamline and secure information transfer between the accounting firm and the company. One effective way to boost the efficiency of information transfer is by utilising digitalised accounting solutions, such as Xero accounting and QuickBooks, both of which are secure and beginner-friendly.
Implementing better information transfer allow the company to stay organised, get better security, save time and effort when searching for specific documents, and allow easy access to attached files.
Tip #4: Pay Attention to the Company’s Financials
Although the outsourcing provider is responsible for managing all of the company’s accounting tasks, this does not mean that the company can stop paying attention to its accounting. Business owners or relevant team should review the company’s financial and management report occasionally to stay updated with their accounting and business performance.
Keeping up with the company’s financial reports and status allow business owners to ensure that the numbers recorded add up while avoiding cash flow issues. This approach also allows them to obtain proper insight into their business health.
Apart from financial reporting, business owners need management reports to create a better business decision. Management reports focus more on the business segment rather than the company’s overall assessment, allowing business owners to get into the core commercial information and analyse the primary drivers for their company.
Tip #5: Get Strategic
Outsource accounting to professional service providers that utilises powerful accounting software would help the company to establish data-driven business decisions.
For instance, business owners can use the accounting firms’ financial intelligence to help them understand and improve their cash flow. They can also use the data to identify the company’s flaws with regards to spending quickly.
Moreover, business owners can strategically utilise the available tools and analysis to boost profitability for the next financial year or identify potential financial problems.
Choosing the Right Singapore Accounting Firm
Investing in the right accounting firm not only ensure proper financial management but also help your company to grow. When trying to pick the right Singapore accounting firm for your company, you need to consider the accounting firm’s credibility, reputation, specialisation, taxation knowledge, and services fees. Contact Corporate Services Singapore today for no obligation discussion on how to outsource your company’s accounting function.