In the past, outsourcing the company’s accounting and bookkeeping services is something that large, multi-national corporations and mid-market firms can afford to.
But in today’s competitive world, the cost of outsourced accounting services has come down significantly which makes it highly affordable for companies to access.
Therefore, it is time to take a good look at the benefits of outsourced accounting services and what the key considerations are before implementation.
Hereby are the top 16 benefits outsourced accounting and bookkeeping services can provide for your business.
It is highly cost-effective.
It only makes sense that budget allocation is focused on business expansion and growth, personnel training, and even research and development – not towards administrative expenses.
Outsourcing your accounting and bookkeeping functions is more cost-effective as compared to relying on one employee burdened with multiple tasks or hiring a team of accountants with overlapping duties.
You are assured of a team of professionally qualified and accredited accountants and bookkeepers.
You will be in direct communication with professionals with industry standard accreditations as well as comprehensive working knowledge and understanding of tax rates and tax system.
This means that they do not need any training or management from you because they have already been exposed to a wide range of accounting and bookkeeping circumstances and they can already leverage off their relevant and extensive experience to provide you with expert advice.
Your company can access to 24/7 financial expertise.
When you outsource, you don’t just get the privilege to work side-by-side with industry experts but you also become privy to the most current professional knowledge, and up-to-date laws and regulations.
This specialised team of experts is at your disposal – constantly brainstorming, strategizing, and collaborating to find the best possible financial solutions for your organisation.
You get access to financial data anytime.
This can be made possible if you have your own outsourced accounting and bookkeeping provider to provide you with essential financial information that is accurate, up-to-date, and easily accessible any time you want it.
Thus, it eliminates any waiting period that can delay strategic business decisions just because closing reports are not yet submitted.
It equates to lower tax preparation fees.
Many accountants steer clear of fixed prices when working on your tax files – charging exorbitant fees by the hour simply because they assume that they will correct many inaccuracies or even cram in finding incomplete records.
Outsourcing from the very beginning means your books are kept error-free and readily available for timely filing of tax returns – saving you hundreds of dollars on your tax bill.
It can lead to your eligibility for a government funding programs.
Singapore has one of the most business-friendly taxation systems not only in Asia but around the world. Its government is very proactive in ensuring the economic landscape is suitable for starting and growing your business.
This includes the provision of a wide variety of government-initiated investment platforms for entrepreneurs, investors, and corporate bodies alike.
Diligence in income tax filing will allow you to be eligible to certain tax incentive and tax exemption schemes as well as cash grants, debt financing schemes, equity schemes, to name a few – provided that you comply to its specific terms, conditions, and qualifying criteria.
It keeps you out of trouble with the law.
Timely filing of tax returns is more than just about having easy access to pertinent financial information at all times and gaining higher tax savings during tax preparation season – it does not put your business in jeopardy with the law.
Late or non-filing of tax returns, whether a one-time incident or a habitual occurrence, will incur charges and fees from the IRAS. Worse, it can limit any member of your organisation from fulfilling their duties or they might be obligated to appear in court.
It reduces occupational fraud and financial misconduct.
With the strict tax legislation system and complex regulatory environment in place, any sane CEO or business manager would not risk exposing the company to occupational fraud and financial misconduct that can lead to its ruin.
When your accounting and bookkeeping are outsourced to a qualified provider, you would not have to deal with poor records, failure of account reconciliation, or balance restatement. Plus, you would prevent any employee from intentional or accidental negligence or malpractice.
It supports your business operations.
Your main goal as a CEO or a business manager is to focus on business functions that will bring clients to the company, increase profits, and promote long-term sustainable success to the organisation.
If you have a reliable outsourced accounting and bookkeeping team, you will receive prompt reports on cash flow, expenditures, and all important business costs which will allow you to make intelligent financial decisions that may be time-sensitive and crucial for your business operations.
It promotes manpower efficiencies.
Temporary shortfall in manpower such as employee resignation, maternity leave and long medical leave, in your accounts department can put you in a tight spot because it forces you to hire and train new staff as well as provide layoff compensation – all adding up to your operational costs.
With outsourced accounting services, you are assured that there are professional personnel that will handle these processes so that your business will not be affected by immediate vacancies and other unforeseen events.
You don’t have to worry about compliance deadlines.
If your organisation is struggling with completing financial reports on time or incurring penalties for submitting regulatory requirements past its deadline, it’s time to outsource your accounting and bookkeeping functions.
This will not just give you peace of mind of knowing that your business returns are timely and error-free but will also help you focus to make the sensible business judgments for moving closer to achieving your goals.
All worries about year-end work and fees are eliminated.
This is because there are multiple sets of trained eyes that handle, manage, and maintain your general and subsidiary ledger as well as your accounts schedule.
It enables faster turnaround time for necessary business functions directly affected by preparations and/or submissions of tax returns and financial reports – which translates to lower overall accounting and bookkeeping fees, higher savings, and more substantial revenue flow.
Your company won’t have to be overburdened with the necessary upgrades and replacements.
Enterprise level accounting and bookkeeping functions come with a hefty price tag – capital investment that can be used for managing strategic operations, developing core competencies, and strengthening the brand image – among many other things.
Continued investment in software upgrade, hardware replacement, and other ancillary costs can be avoided as these will be managed by your service provider.
It encourages good business practices from the start.
Many start-ups and SMEs are so focused on revenue-generating activities that they neglect their accounting and bookkeeping duties – and end up in anxiety when tax submission deadlines are near.
If you are accustomed to outsourcing these functions right at the onset, it is easy to develop and maintain good business habits such as maintaining accurate records, practicing timely submissions to regulatory compliance, being in full control of expenditures, and preventing dishonest practices among all employees.
It keeps your finances private and confidential.
When only a handful of trusted individuals are privy to your financial dealings, it reduces the risk of leaked data.
The right outsourcing provider with discretion and integrity will ensure that your data is locked up tight, your files are encrypted, and that there are no accidental sharing issues with any third-parties or competitors.
It can scale with your company’s needs.
When you start off with the right outsourcing provider for your accounting and bookkeeping requirements, you can ask for a scalable package that can complement your business goals, requirements, and allotted budget.
You have the freedom to choose from a variety of options – you can even request for a customised package! And because you are not restricted to that one-size-fits-all approach, you can benefit from the service right away.
Corporate Services Singapore as your Dedicated Provider of Outsourced Accounting and Bookkeeping Services
At Corporate Services Singapore, we have a competent and independent team of well-trained, experienced staff and accounting professionals who have a broad range of expert skills set to oversee your work efficiently, provide on-demand services promptly, and even create new business processes as needed.
Experience straightforward, swift, and seamless accounting and bookkeeping functions – from day one and as your company grows. Choose to outsource right away and you will be entitled to a 30 day money back guarantee – to give you full confidence to our top-notch, full-range services.