Outsourcing Accounting Firms vs Hiring Freelance Accountants

Outsourcing Accounting Firms vs Hiring Freelance Accountants

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The age of freelance and outsourcing has brought about significant changes in the way businesses operate in the accounting and financial management aspects. Recently, businesses, especially solopreneur, start-up and small business prefer hiring a freelance accountant or outsourcing accounting service over traditional in-house accountant to handle their accounting needs.

We will explore the difference between hiring a freelance accountant and outsourcing accounting services, their roles and responsibilities, the qualifications required, a comparison with accounting software, and the best-outsourced accounting services for small businesses in Singapore.

Freelance Accountant and their Expertise

Freelance accountants are usually Certified Public Accountant (CPA), a proficient and highly qualified accountant who has cleared rigorous exams and fulfilled territorial licensing requirements. They possess a wide range of accounting skills and expertise, enabling them to offer various accounting services.

Financial Reporting

As a CPA, they meticulously prepare and analyse financial reports for businesses. These reports encompass balance sheets, income statements, or cash flow statements which are critical in providing valuable insights into a company's financial health and capabilities. Utilising their extensive knowledge and expertise, these reports adhere to accounting standards and are accurate to the smallest detail.

Tax Planning and Preparation

A CPA also play a crucial role in tax planning and preparation for individuals and businesses alike. Their primary responsibility is to help clients understand the possible tax implications of the financial decisions and offer them effective strategies to reduce their tax liability. Additionally, these accountant are accountable for preparing and submitting tax returns for you while complying with tax laws and regulations. With their expertise in these areas, it can have a significant positive impact on your client's financial health.


CPAs play a vital role in auditing, which involves scrutinising financial statements and records to verify your accuracy and adherence to accounting standards. These accountant carry out audits for your businesses and other organisations, delivering an unbiased evaluation of their financial statements and internal controls.

Consulting and Advisory Services

CPAs don't just handle taxes; they also provide valuable consulting and advisory services to your businesses. In addition to offering expert financial management advice, budgeting, forecasting, and other essential financial operations support. Firms like Sprout Asia assist companies in developing strategies to enhance their financial performance and achieve their objectives.

Compliance and Regulatory Requirements

As part of their duties, Certified Public Accountants (CPAs) are tasked with the responsibility of ensuring that your businesses adhere to regulatory requirements. One of the ways they achieve this is by keeping abreast of changes to accounting standards and tax laws and ensuring that businesses comply with them. Additionally, these accountants help your businesses prepare for audits and other compliance reviews.

Risk Management

As companies navigate the intricate terrain of financial operations, CPAs assume crucial responsibility for pinpointing and mitigating financial risks. These risks encompass a wide spectrum of potential threats, such as fraudulent activity, embezzlement, and financial mismanagement. Through the creation of internal controls and processes, certified public accountant effectively reduce the probability of financial losses, guarding the financial prosperity of the enterprise. In essence, CPAs are indispensable allies for businesses in the management of risk.

Trust us, the role of a certified public accountant is not one to underestimate.

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Characteristic of a Quality Outsource Accounting Services

Outsourcing accounting services have become a prevalent practice among businesses recently. By leveraging this strategy, businesses can effectively manage their finances and reduce costs. Additionally, outsourcing accountants provides access to expert’s advice and support. This further enhance financial management practices for your business. Before deciding on a outsource accounting firm, it is essential to explore their services and qualifications.

Professional Qualifications

When considering outsourcing accounting services, it is essential to evaluate the professional qualifications of the accountant team providing you with financial services. It is important to evaluate the educational background, certifications, and relevant experience of the team you plan to entrust your business finances to. Top-tier accounting firms typically employ qualified accountants who have completed degrees in accounting or finance and have obtained certifications such as CPA, ACCA, or CMA. These credentials demonstrate that the team has the necessary knowledge and expertise to manage a business's finances.

Industry Experience

With extensive and rich experience working with clients from various industries, the accounting firm demonstrates the strength to work with any client, regardless of background. Managing a wide variety of clients from different sectors reinforces the firm's ability to solve unique challenges, provide support, and offer constructive suggestions based on their expertise to your unique business.

Technology Tools

A reputable accounting firm is one that employs modern accounting software, i.e., tools that are secure, efficient, and user-friendly. This enables businesses to access their financial information in real-time, automate accounting tasks, and streamline their financial management processes. The accounting firm should also have a backup and disaster recovery plan in place to protect against data loss.

Financial Services

A reliable accounting firm should offer a range of services that meet the specific needs of the client's business. Be it bookkeeping, financial reporting, tax planning and preparation, payroll management, or advisory services. A reputable accounting firm can customise its services to meet the unique needs of each client.

Communication and Support Provided

A good accounting firm should have clear and open communication channels with their clients, providing them with regular updates and reports on financial performance. They should also be available to provide support and guidance when needed, answering questions and providing advice on financial matters.

In conclusion, when considering outsourcing accounting services, it is vital to examine the professional qualifications, industry experience, technology and tools, service offerings, communication, and support provided by the accounting firm. By assessing these qualifications, businesses can make informed decisions and select the best-outsourced accounting services for their specific needs.

Comparison Between Freelance Accountant and Outsource Accounting Firm

When it comes to handling accounting tasks, businesses have the option of hiring a freelance accountant or using accounting software. Each of these options has its pros and cons.

Hiring a freelance accountant offers the advantage of having a dedicated expert who can handle a company's financial tasks. Freelance accountants can provide personalised advice and expertise tailored to a company's needs. They can also offer flexibility in terms of working hours and payment arrangements.

On the other hand, outsourcing accounting tasks to a firm has the advantage of having an accounting expert handle repetitive tasks quickly. This free up your time, effort, and money to grow your business. Additionally, accounting firms have evolved over time and utilise automated cloud accounting software, which allows you to access your finances anytime, anywhere with an internet connection.

Lastly, accountants in firms are required to adhere to the firm’s standard operating procedures (SOP). This reduces the likelihood of being unresponsive and assists in reminding you about upcoming deadlines and submissions. Thus, it ensures that accounting firms are much more trustworthy and reliable compared to freelance accountants.

If you are considering outsourcing accounting tasks for your business but are concerned about the technological aspect, fear not. Our team of skilled accounting experts is only a call away to assist in your transition to your new cloud accounting software.

Best outsource accounting services for small businesses in Singapore

Tips to find the best outsource accounting services

Operating a small business in Singapore comes with plenty of options for reliable and trustworthy accounting services. Among them are Sleek, Osome, and Rikvin. However, we, Sprout Asia presents a distinct value proposition that separates it from the competition through our commitment to transparent pricing and responsiveness toward clients, on top of incorporating sophisticated cloud-based accounting software.

Sprout Asia is your go-to for all your business needs. Aside from accounting services, we offer complete assistance with company registration and compliance. Whether you're launching a new venture or need continuous support with regulatory requirements, Sprout Asia has you covered.

Our team of experienced and qualified accountants goes the extra mile to understand your unique needs and provide you with customised solutions that align with your business goals and objectives. Soon, you’ll be seeing success in no time!

Looking for an accounting firm that knows what they're doing? Look no further than Sprout Asia! With Sprout Asia, you can rest assured that your business is in good hands, allowing you to focus on what you do best - growing your business.

Take your business to the next level by giving us a call today!