What Is Outsourcing Accounting?
Outsourcing accounting services have become increasingly popular. Here are some reasons to branch out your accounting services globally. At the beginning phase, there is a massive set of responsibilities any new entrepreneur has to face. With so many operations to multi-task, it may be taxing and overwhelming for entrepreneurs to keep track of their operations and their budgets at the same time. At such a crucial time of the business, it is imperative that entrepreneurs shed as much of the workload as possible. This can be done by outsourcing.
Should you outsource your accounting service? At WLP Group, we believe so, especially when your business is at its early stages and you cannot afford an in-house accountant. Outsourcing an accountant is practical and cost-effective as you are essentially only hiring them for the work that you need for them to do.
Why You Should Outsource Accounting
You may think that you should just save the money, and just tally your spending and revenue in an excel sheet. Why will you want to engage an accountant? Well, accounting services is not just typing numbers into an excel sheet…
There’s more to accounting service than tabulating expenditure and revenue. The accountants can provide an expert advisory and analysis on areas like business licenses, expense tracking, policies and procedures, month-end accounting, payroll, preparing your business for taxes, creating budgets, cash flow analysis, audit support, and preparation. By engaging an accounting firm, you get all these much-needed support that your business requires.
As a start-up, you probably invest most of your time concentrating on core activities like marketing and production. There is a tendency to ignore or side-line activities like finance and accounting. Thus, it is highly likely your company has very little experience in these activities. Hence, you should consult an accountancy firm that can provide an effective result in a professional manner that will cost significantly less than an in-house accountant.
How much cheaper? For simplified services for taxes and bookkeeping, it is only about a few hundred dollars a month. For complex services covering a full spectrum of services, it can be a few thousand or more, depending on the size of your firm. However, it is still a fraction of the cost of hiring an in-house accountant, whose salary alone would take a hefty amount out of your cash flow. You still have to factor in infrastructure costs, computer use, and office space for an accountant. Thus, it is apparent that outsourcing is significantly cheaper.
When is the best time to hire an accounting service?
At the early stages of the business, it would be wise to keep track of the in and outs of your funds. Using an accounting software is a good way to simplify the process for yourself. Here are some accounting software available in the market:
Shifting the responsibility to an outsourcing accounting firm does not mean that you will lose control over the accounts. But, ironically, companies tend to administer an outsource provider more stringently than their in-house department. Thus, in a way, by outsourcing, you actually retain more control over your accounts and finance, simply because you would check everything carefully before submitting it to the accounting firm.
Additional Outsourcing Services
There are also other outsourcing services that you may wish to engage in such as payroll outsourcing in Singapore. Processing payroll is very complex and tedious for those who are unfamiliar with the various legal guidelines. Luckily, there are firms that offer payroll services in Singapore that can process employee salary and answer any HR queries. Many companies opt for payroll outsourcing Singapore for hassle-free and professional services, and it has resulted in higher efficiency and productivity.
We urge entrepreneurs/business owners to keep in mind that outsourcing such complex activities allows them to devote more time to create value for their business and growing it, instead of merely working to support it. Opportunity cost should always be factored in your every decision! Thus, non-core functions like accounting should definitely be outsourced, for effective tax compliance, auditing, budget creations etc. This allows you to spend more time focusing on things that matter such as growing your business and satisfying your customers.
Feel free to contact our friendly consultants for a non-obligatory discussion today! WLP Group can also help entrepreneurs to register a Private Limited Company in Singapore and guide them through the entire process.