Should I outsource accounting?

While medium-sized or larger businesses can maintain full-time accountants, smaller enterprises and SMEs usually hire a bookkeeper and consult an accountant on an annual basis.

If you wish to engage full-time bookkeepers or accountants, ensure that they are up-to-date with the requirements of the Inland Revenue Authority of Singapore (IRAS) and the provisions under the Singapore Financial Reporting Standards (SFRS), which affect accounting and tax statements. Also, as many businesses are making the switch to automation and cloud accounting, bookkeepers must have the necessary capabilities to carry out their record-keeping functions seamlessly.

Also, in the case of financial fraud, bookkeepers and accountants can play a key role in manipulating financial books and results. Thorough background checks are recommended if you wish to recruit candidates for these roles.

Alternatively, one-stop corporate secretarial firms such as Corporate Services Singapore can deliver insightful information on your business’ corporate finances through accurate accounting services to help you manage your business effectively and maintain corporate liquidity. Services may include:

  • monthly, quarterly and yearly of full sets of account services
  • maintenance of general ledger accounts receivable ledger and accounts payable ledger
  • compilation of unaudited financial statements
  • group consolidation and reporting

This frees up your time to focus on the other core aspects of your business. Among all the other benefits, enjoy the peace of mind knowing that your financial records are properly kept while complying with Singapore’s accounting regulations.

While every business is unique, we recommend that smaller firms with teams of up to 10 staff outsource all their bookkeeping and accounting tasks. SMEs with more than ten but less than 75 employees can consider engaging a full-time bookkeeper and outsourcing their accounting function. For more information, read our guide on outsourcing your accounting and bookkeeping functions.

Posted in Accounting Right.