Singapore is striving to secure its position as the leading site for accountancy not only within Asia-Pacific countries but also across the globe. The country’s active effort of domination in this field shows how crucial accounting is for a successful business. Accurate accounting is considered an essential building block for companies. The positive impact of precise accounting goes beyond the market itself and affects the corporate aspect and the country’s economy as a whole.
To stay ahead of your competition in Singapore’s current dynamic business conditions, you need to maintain timely and precise financial data that will assist you in making a more informed and efficient decision. This article will give you a walkthrough on the five ways an accurate accounting can help improve and brings your business’ value to a higher level.
Obtain Better Revenue Insights for Efficient Marketing
Revenue insights are essential not just for proper budget allocation and future plans; they are also necessary to help you better understand the efficiency of your current marketing campaign.
Startup companies tend to waste a lot of expenses in marketing. A recent survey done by Rakuten Marketing reported that at least one-fourth of marketers’ budget is lost on ineffective marketing channels and strategy. Keeping well-maintained and precise financial statements, especially with regards to the expenses and revenue, can help you assess the effectiveness of the marketing strategy and improve on it as needed.
Based on the well-tracked accounting, you can decide whether or not to continue a successful campaign and keep improving it for the best profit, or stop an ineffective marketing plan and devise a new one.
Making a Wiser Judgment on Both Minor and Major Investment
Timely accounting details verify the company’s credits and debits, including the company’s valuable assets such as the supplies and real estate. This verification allows your company to make a sound judgment before getting into any investments, be it a minor investment for improving internal system or significant external investment.
For improvement of internal system, for example, you can decide on whether to own software or equipment that can enhance your employees’ efficiency based on your company’s financial capability at the moment. Additionally, you can create a plan to invest at a later time.
Up-to-date financial statements are vital for business owners to help make the right investment decisions at the right time. Without timely and accurate accounting data, it would be difficult to decide whether the company can afford the investment or analyze its impact on the company’s overall revenue.
Creating an Effective Financial Blueprints for Human Resources and Employees
Happy employees translate to a more productive and efficient working environment. Thus, instead of just expecting the hard work from your employees, you should consider making them happy and motivated to keep working in your company and deliver outstanding works.
A study conducted by the Harvard Business Review reported that most employees’ happiness is significantly influenced by the company’s benefits and perks, such as health and vacation benefits. Aside from the company’s assets and debts, well-informed financial statements include the employees’ salaries, taxes, and related benefits and perks. Having such transparent data at hand can help you create an effective business plan for the employees’ wages, including policies for vacation and emergency leaves, medical benefits, and other perks.
Additionally, you can make the correct judgment on whether to hire additional staff or layoffs the inefficient ones for the growth of the company based on the company’s financial capabilities.
Overseeing the Company’s Cash Flow
Proper accounting tracks your company’s business internal and external transactions accurately, allowing you to cautiously check for any expense’s discrepancies, fraud, corruption, and waste resources.
Moreover, corrupted and deceitful employees can be dismissed immediately upon investigation before they bring further negative impact on your business and may even damage your company’s reputation with their unethical conduct.
Ensuring Regulatory Compliance
Accurate accounting data prepares your company for taxation and tax planning, financial audits, and other legal filings, which make sure that your company stays away from any legal charges due to violation of tax regulations and relevant laws.
Hiring the Right Accounting Partner
Now that you know the importance of maintaining accurate accounting for your business, it is also crucial to understand how to select the right accounting partner for your business.
Aside from hiring certified and experienced accountants, you need to employ the one who are familiar with Singapore’s statutory compliance, that is accountants that have the knowledge about Singapore’s tax regulation, business updates, and government laws.
Keeping a timely accounting data is indeed vital for every business. Precise accounting is not just about the revenues and profits; it is also meant for the betterment of the company, human resources, and the country’s economy. Start incorporating accurate accounting in your company with Corporate Services Singapore and see how it positively transforms your business.