It can be challenging to run a business, and any attempt to expand the operations usually involves a high cost. To reduce the company’s expenditure, many entrepreneurs have decided to outsource non-essential services, such as their accounting operations, to external providers.
While outsourcing your accounting and bookkeeping needs are beneficial in the long term, it is essential for you to carefully consider the various elements involved so you can make the best decision for your company. So, let us share four key considerations you need to examine when deciding on which firm to outsource your accounting operations to.
1. Know what you want
The first thing you need to do when you engage an accounting firm is to lay out your company’s requirements. Letting them know what you need can help to set expectations and allow the firm to clarify any doubts during these early-stage discussions. These meetings will also help to avoid any misunderstandings or conflict later on.
Providing the accounting firm with additional information, such as the company’s products, services, business plans, and organisational structure, can also ensure the goals of both parties are aligned. Where necessary, you can also discuss specific needs to allow them time to customise solutions to fit your accounting needs.
2. Be ready to commit to a long-term business relationship
It is crucial to remember that you are forging a long-term business relationship when you outsource your accounting services to an external firm. Therefore, before you commit to your decision, you need to be sure that your selected accounting firm is aligned with your long-term business goals.
When undergoing your initial assessment, make sure to read up on the accounting firms’ experience to understand their portfolios and determine if they have experience in handling clients within the same business sector.
3. Communication is key
Communication is key to running a business smoothly, and this belief applies to your partnership as well. Therefore, you have to ensure a two-way communication channel is established between both parties. This channel will allow either party to clarify any doubt that arises and prevent any miscommunication.
Additionally, it is advisable to schedule regular meetings with your chosen accounting firms to ensure everyone is on the same page. It is also good to layout task parameters and KPIs during these check-ins to guide both parties and ensure efficiency in the process.
4. Price is a factor but not a priority
While price should undoubtedly be a factor when making your decision, it should not be your main priority. It can be tempting to selecting a firm based on how low the bookkeeping services fees are listed. However, if the quality of the work fails to meet the standard, you may end up incurring additional charges should your financial report fail to meet IRAS guidelines. Therefore, it is important for you to read reviews of past client experiences so you can gain a better understanding on whether the firm can be relied on to provide quality services.
Outsourcing your company’s accounting needs could save you time and enable a faster turnaround for other business operations. However, selecting the right accounting firm is pivotal to ensure your organisation runs in compliance with IRAS regulations in an efficient and cost-effective manner.
At Ackenting Group, we provide a suite of accounting services to help you run your business smoothly. From financial reporting to affordable corporate accounting services, we are able to handle your company’s business needs so you can rest easy knowing your organisation’s finances are in safe hands.
If you require any assistance on accounting services, feel free to drop us an email at firstname.lastname@example.org or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.