Best Practices when Outsourcing Accounting Services

Best Practices when Outsourcing Accounting Services

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Good financial management is the key to the success of startups as well as small and large businesses. Companies require accounting services to manage bank accounts, prepare invoices and financial statements.

However, finding a reliable accountant can be a daunting task. Even though some companies may prefer in-house accounting and bookkeeping services, some staff may not have the skill set or experience to perform the task accurately.

Why Do Companies Outsource?

The major reason for outsourcing accounting services is financial accuracy, as this is a highly important factor when making big business decisions. However, it's vital to select the right corporate service provider for you. Here are the advantages of outsourcing your accounting:

  • Utilising an expert accountant with experience
  • It helps the company save money and time
  • It offers peace of mind
  • It reduces the likelihood of fraud or inaccuracies in financial statements or records

Key Considerations Before Outsourcing Accounting Services

1.  Qualifications

There are many accounting firms where you can outsource accounting services. Before deciding on the firm, it is important to inquire about the firm's records and achievements. A firm with qualified accountants can gladly share its credentials and profiles. You can arrange for consultations and gauge the expertise of the accountants.

2.  Request Referrals

Ask friends, relatives, and businesspeople about which accounting firms they are working with. Remember, what worked for their companies may not work for you. However, word of mouth is an excellent notion. Take time and study the accounting firm’s certifications in using Xero accounting and references before making an informed decision.

3.  Create a Detailed Service Agreement

Set your needs and expectations beforehand to avoid future financial conflicts. It may help to compile a document containing details such as your expected working schedule, and payment terms, among other important information. Also, it is crucial that ensure the accounting firm in Singapore understand your company's goals, office routine, and products and services in order for them to help you in the best way they can

4.  Compare Different Firms

Find at least five accounting firms and evaluate their market reputation, detailed features, and charges. Look at the company's websites and see if they are clear about their services and whether their website seems credible and professional. The website should have contact information and credentials.

5.  Assess Your Requirements

Every corporation or business has different needs. Therefore, we recommend you examine your needs first before consulting an accounting firm in Singapore. The most commonly outsourced accounting services are payroll and financial management. An expert accountant can help your company organise monthly, quarterly, and annual accounts reports and implement a well-planned payroll.

Qualities of a Good Accounting Firm  

1.  Industry Specialisation and Commitment  

Accounting firms should be committed to a certain industry and master every detail. Rules and regulations vary by industry. So, companies should hire accountants that know their industry inside and out.

2.  Originality

An accounting firm should be inventive. They should think out of the box to solve customers' problems. Some issues require special attention, a deep understanding of what accounting is and a high level of creativity.

3.  Outstanding Organisation

A great accountant should keep up with all data, figures, and documentation with ease. They should also understand their client’s needs. With good organisation, an accounting firm will enhance productivity and have time for effective research and analysis.

4.  Trustworthiness

Accountants work with confidential information. Good accounting firms in Singapore don’t reveal clients' information. They work guided by ethical principles. In addition, an accounting firm should have a good reputation, as indicated by the online reviews.

5.  Detail-Oriented  

These skills are crucial for accounting firms whose aim is to ensure the numbers are correct. An eye for details and accuracy should be part of their routine, whether they are using Xero accounting software or not.

Sprout with Us!

Accounting is a crucial part of every business, but it is complex. The services require time and knowledge for business success. That’s where we come in. Sprout Asia wants to ensure you focus on what you do best, while we take care of the rest. Our chartered accountants will take care of your finances each step of the way. We offer budget-friendly expert accounting services tailored for business success. Feel free to reach out to us for a complimentary consultation so that we can understand your business needs, we’ll respond within 24 hours.