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Main Reasons to Outsource Your Accounting Services in Singapore
You’ve made an amazing product that your customers love and simply can’t get enough of. Sales continue to increase day after day and there’s a real buzz around your product. There’s only one problem.
You realise at the end of the month that your accounting work is a complete disaster. You haven’t processed payroll correctly, you have to reconcile this month’s books but aren’t even sure if you finished reconciling last month’s books, and you’re getting increasingly anxious because it’s almost time to file your business taxes.
This is the part of running a business that you hate. You didn’t become a business owner because you wanted to handle accounting, you became one because you want to focus on creating life-changing products and services for people that need them.
Thankfully, there’s a solution: outsourcing your accounting services.
Let’s discuss the five most important reasons to do this.
Setting up an in-house accounting department requires a tremendous amount of time and effort. You have to create job postings, interview candidates, choose the ones that are a good fit for your company, set up standard operating procedures for your accounting department, integrate the department into the rest of the company, and much more.
Moreover, when you add employees to your business, you also have to take care of them. This means you have to pay their salaries, conduct performance reviews, offer paid-time-off, sick-time, add benefits and perform all relevant HR duties.
By outsourcing your accounting services to an expert accounting firm in Singapore, you don’t have to worry about any of that anymore. This reduces your stress, gives you peace of mind, and allows you to focus on what you do best, while we do the rest.
→ Tips for choosing accounting services that you need
As mentioned above, setting up an in-house accounting department requires a lot more than just hiring employees and stepping back as they work their magic. In addition to the items listed earlier, creating an in-house accounting department also means that you have to pay into the Central Provident Fund for each employee that you hire.
And have you thought about where you will physically locate the members of your new accounting department? Hiring additional employees means that you have to invest in both physical infrastructure – more office space and furniture, additional computers, etc. – and virtual infrastructure – new software programs, project management tools, and other relevant technology.
As a result, another key reason to outsource your accounting services is that you’ll save on valuable time and money.
Now that you’ve seen how much time and effort is required to create an in-house accounting department, you might be thinking “well in that case, I’ll just learn everything there is to learn about bookkeeping and accounting and do it all myself. How hard can it be?”
In addition to adequately processing payroll, doing routine bookkeeping, and preparing year-end financial statements, you also have to make sure that you’re complying with GST and accurately and timely filing your IRAS Income Tax returns.
And don’t forget that you also still have to run your business.
When you outsource your accounting services to an accounting firm in Singapore, you’re leaving your accounting, tax, and compliance issues in the hands of trusted and qualified experts.
These firms use proactive chartered accountants who are immediately updated on regulatory changes and rules associated with financial reporting standards.
In other words, they’ll ensure that – excuse the pun – every penny in the company is properly accounted for.
One of the many ways in which the Internet has transformed the world is by significantly reducing the amount of paper that we use in our daily lives. Instead of sending clients and customers physical mail, businesses now send them electronic reports and paperless statements.
Accounting firms have also evolved with the times by using fully paperless and automated cloud accounting software. This brilliant technology allows you to access your finances anywhere, anytime, and at every hour of the day. All you need is a compatible device and an Internet connection.
And don’t worry if you’re not good with technology. Sprout’s team of skilled and certified IT professionals is always available to help you so that the transition to your new cloud accounting software is smooth and effortless.
Accounting software can be a great help, but it's not a magic bullet.
Sure, accounting software can do a lot of things to help you with your finances. It can generate statements online, make payment transfers, and even track your expenses. But there are still some downsides to using accounting software only.
For one thing, accounting software can be complicated. There are a lot of different functions and features, and it can be hard to know where to start. If you're not an accountant, you may need to take some time to learn how to use the software properly.
Another downside of accounting software is that it can lack the human touch. Take, for example, those moments when you encounter tricky tax issues, need help with financial planning, or have to navigate through complex regulations. Trust me, you'll miss having a human expert by your side. They bring not just their knowledge and experience but also a personalised approach that considers your specific circumstances and goals.
Finally, accounting software can be expensive. You'll need to pay for the full suite software itself, as well as any training or support you need when in reality, you will only need it for certain functions.
So, while accounting software is handy for everyday tasks and simple calculations, it's crucial to recognize its limitations. To truly thrive and make informed decisions, seeking professional advice and guidance becomes essential.
→ Track every penny that flows through your company
Are My Data Secured When Outsourcing Accounting Services in Singapore?
Concerned about the safety of your data when outsourcing your accounts to accounting firms in Singapore? As a business owner, you value your data—it guides your decisions, tracks progress, and ensures compliance.
When it comes to safeguarding personal data, Singapore is renowned for its stringent measures. They've built a solid shield to keep our information safe and secure. So, you can rest easy knowing that they've got your back when it comes to data security.
Here's what you need to know about data protection in Singapore:
Singapore's Personal Data Protection Act (PDPA) is a robust law that safeguards personal data. It sets strict requirements for data collection, use, and storage. Accounting firms must take measures to protect this data and demonstrate their compliance.
Accountants in Singapore adhere to the Code of Ethics for the Accountancy Profession. Confidentiality is a key principle, obliging accountants to treat personal data as strictly confidential and only use it for intended purposes.
Accounting Services Evolve with Your Business
As hard as you might try, you can never exactly predict how successful your business will be. A significant problem of creating an in-house accounting department is that if your business unexpectedly grows or shrinks a lot in a short timeframe, you will suddenly have to hire or fire a lot of employees.
Accounting services anticipate these sudden fluctuations and will evolve with your business. This way, you know that no matter what happens to your business, you’ll always get the same level of high quality, expert accounting services.
What Are You Waiting For?
Outsourcing your accounting services in Singapore will save you money and time, ensure that you comply with all government regulations, allow you to transition to cloud software and monitor your finances from anywhere, and give you peace of mind as your accounting services evolve with your business.
By outsourcing your accounting services, not only will you give yourself peace of mind, but you’ll also be able to fully focus on what you do best: creating great products for your customers.
What are you waiting for? Here at Sprout, we are determined to see your business grow to reach its maximum potential. Take a look through our accounting and bookkeeping services and the budget friendly packages we offer. If you have any queries about our services or would like more specific information, feel free to carry out a complimentary consultation with a Sprout representative to discuss with us. We'll respond within 24 hours.