Why It Is Vital For SMEs To Outsource Its Account Management
It can be overwhelming running a business, especially for SMEs and start-ups. From taking care of staff to getting important deals and planning for the future, many companies struggle to dedicate time and resources to manage their accounts.
It is crucial to recognise the importance of optimising business accounts and finding ways to reduce unnecessary costs and expenses. This is where engaging an outsourced accounting firm in Singapore comes in. If you are unsure of the idea of engaging external help to manage your business’s accounts and finances, here are five reasons why doing so may prove crucial to your business.
1. It helps your business save money
In order to encourage and optimise the growth of the business, SMEs need to reduce unnecessary costs and focus on ensuring that the employees are well taken care of. Hiring an internal accountant is possible if your company has sufficient resources and funds to do so. However, do note that you incur additional expenses besides payrolls such as CPF, benefits, and training.
By outsourcing accounting operations, not only does it cost less than hiring a full-timer because all you need to pay for is just the accounting services rendered, but you also can dedicate the necessary resources to grow your business.
2. It provides access to expert solutions
Most of us, unless having gone through business studies, are not familiar with annual filings and business taxes in Singapore. Without the necessary knowledge, we have to spend time reading and understanding the evolving regulations to find ways to lower our corporate tax rates legally.
Outsourcing accounting operations allows business owners to have access to experienced accountants who will dedicate their time to the business accounts. With accounting firms such as AG Singapore, we have a team of accounting experts who can provide up-to-date financing solutions and practices and can complete a job efficiently.
3. It uses up-to-date accounting software
Hiring an internal accountant means that your business needs to provide them with the necessary tools. Accounting software that helps automates specific finance procedures can be rather costly. It can also be a confusing matter as there is much software on the market.
Outsourcing accounting operations means that you save costs on acquiring the necessary accounting software.
4 It makes annual tax and GST filings more accessible
Tax filings can often be confusing and stressful for small business owners. They usually either do not have the capacity to deal with the filing of taxes or pass on the responsibility to non-accountant staff. Doing so not only puts the business at risk of incurring non-compliant penalties but also means missing out on certain tax rebates, cashbacks, deductibles, or benefits.
Outsourcing accounting operations helps to simplify specific processes. An excellent accounting firm helps such businesses adhere to corporate tax requirements, at the same time, maximise their tax returns.
5. It provides your business with a boost in growth
An accounting firm, besides managing your daily records, also focuses on your business’s long-term goal. They can better advise you on what your business can do in order to improve in certain aspects of operations. With a clearer perspective of the financial state of your business, you are able to make more sound decisions in growing your business.
Final thoughts
Outsourcing your business’s accounting operation is not a bad thing. Not only does it take some workload off your back, but it also benefits you in the long run as your business continues to expand. At AG Singapore, we are dedicated to helping start-ups, and SMEs discover efficient, accessible, and affordable accounting services. As a mid-tier accounting and audit firm ourselves, we are in the best position to understand the struggles many small business owners face. Find out how we can help your business at https://ag-singapore.com/.
