As a small or mid-sized business, you would probably have a long to-do list in operating your business and there are many things that need your attention. Narrow down your list to the time-consuming tasks which can be outsourced and require the expertise to manage.
For instance, to keep track of your cash flows and plan financially for the future, there needs to be an engagement of accounting services. Then, it goes to the question of whether to hire an in-house accountant or look for an outsourced provider. In the long term, engaging external accounting services might be more worthwhile because it allows for efficiency and revenue increase.
But if you’re not yet convinced on the benefits, here are 4 reasons why outsourced accounting services go hand in hand with the operations of SMEs.
1. Covid-19 has shifted business models
In the time of the pandemic, your business may have been forced to re-plan your strategies and reconsider different approaches to deal with the unpredictable and fluid economy ahead. With new ways of working and living, there were challenges present in dealing with the disruption in operations, falling demand and waves of innovation.
Even though the Singapore’s situation has been looking up with controlled safety measures and community cases, the pandemic holds a lasting impact in economic activity. Consumption patterns have shifted, and your business needs to adapt to match them. As the situation evolves, you can expect a bumpy ride ahead – and outsourcing your accounting services would afford you more time to focus on other core operations and improvise current processes to adapt better.
2. Monitor the financial health of your business
It goes without saying that the pandemic has left many businesses strapped for cash. And managing your cash flow is important to keep your operations running smoothly. If you’re too busy to handle your company’s books, and expanding your team to include an in-house accountant may not be financially feasible currently, you would be better off outsourcing your accounting needs.
Firms that offer corporate accounting services have professional accountants to help maintain the accuracy of your books and keep the financial health of your business up to date. From bills to payrolls, you will also have a better understanding of your budget and expenditures to enhance your financial decision-making.
3. Offers expertise to improve your decision making
Typically for smaller businesses, more time is needed for them to experiment with their business models. With money as a critical business factor, ensuring you have enough business development funds is crucial.
Also, your team might not have acquired the expertise in managing financial risks. As such, outsourcing professional accounting services will help you plan your business strategies better. These professionals have the experience and knowledge to offer you insights and sound advice on potential monetary gains or losses.
4. Manage your payroll administration, tax and compliance
In Singapore, fulfilling tax requirements can be a tedious process. This involves tax filing, tax planning and keeping to tax deadlines. It is also common for SMEs to miss out tax credits and incentives which they qualify for. Moreover, these businesses would not have the time to keep a lookout for these incentives when involved with daily operations.
Payroll is another arduous process. Keeping track of the little things like annual leave and CPF causes calculating the right salary to take some time. Your outsourced accountant can take on these duties to ensure timely payment of employees.
At Ackenting Group, we provide a suite of corporate solutions, from tax to accounting and company incorporation services. With a deep knowledge of local regulation and the best practices to comply with tight deadlines, we can meet your needs that will help you save cost, time and hassle.
Conclusion
Amid this pandemic, SMEs or smaller business have experienced the largest hit. Business models and operating systems needed to be reimagined to deal with the uncertainty ahead. In the efforts to catch up, a lot of time and effort can be saved with outsourced accounting services.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com 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.
