Debunking 5 Biggest Myths of Accounting Services
Outsourced accounting service is becoming a progressively popular choice for every business in Singapore, regardless of size, to manage their books of record. Not only outsourcing can provide transparency to how capital is invested, from where revenues are generated and show the weaker areas, but also, it can boost the overall capabilities of a business. However, some business owners are reluctant to partner with accounting firms in Singapore on account of some myths they may hear about the outsourcing services. This blog will highlight the biggest myths about accounting services Singapore.
1 Losing control over your company’s finance:
Many business owners believe that they would lose control over the financial aspect of their organization if they outsource accounting services to a third-party firm. On the flip side, the outsourcing firms actually enhance the control you have over your finance and accounting data. They will rigorously follow the preconceived guidelines and gradually, standardized the financial process of your organization. You will be provided with real-time data, enabling you to gain greater control over cash flow and other financial activities. When your books are in order, you have a better idea about your present financial condition and it helps you take the best decision for your business.
2 It is not secured to share information with outsourcing firm:
Security is another major concern every business owner has when they think of jumping to outsourcing accounting. Since all high-tech accounting firms use online services, they ensure to keep your accounting data and information secure by using online encryption security system in their server. Gone are the days when accounting firm used to keep the data in paper-based files and register. So there is no fear of loss, theft, misplace or wear and tear of your data. The data are stored online and you can have access to it by using a secure password.
3 Outsourcing is meant for Large Corporations
When is comes to outsourcing accounting services in Singapore, it really does not matter how big or small your organization is. As a rule of thumb, the outsourcing firm can save approx 40%-60% on the labor cost of in-house employees of small business. Regardless of size and industry type, any company can tap into the Singapore accounting services to save a substantial amount of the business cost. Most importantly, outsourcing services can help you get insight into what is going on and what is costing money unnecessarily.
4 Outsourcing is too Expensive and Waste of Money
Many business owners avoid outsourcing simply because they think it would not fit within their budget. While truth is that hiring in-house accountants can be more pricey than outsourcing because of the costs such as monthly salaries, benefits, infrastructural cost, allowances, etc. Moreover, when compared to the increased revenue and better financial strategies that outsourcing firm can hep business achieve, the cost to outsource them is worth the money. Make sure to hire the accounting firms in Singapore that keep the fees stable and concise. Month by month fees system is recommended as hourly or by project cost make the final cost unpredictable.
5 Accounting Services are only needed during Singapore tax filing
It is a fact that when tax season approaches, the accounting aspects of a business has to be handled with utmost care. But, its importance does confine to tax period only. The truth is that you need accounting services in Singapore all the year round. A timely-updated book not only helps you to assess growth and profitability of the business, but you can also better estimate the expense and earnings. In Singapore, a set of stringent laws of ACRA and IRAS compel you to engage with accounting services throughout the year.
Outsourcing of accounting services to a third-party firm has become common practice among businesses in Singapore. This is a welcoming change in the landscape of Singapore business incorporation as it has helped the companies to reduced cost and increased profitability at large. There may be an umpteen numbers of myths floating around out there, but be logical to act in such critical issue of business. And remember not to believe everything you hear.