Quite often, entrepreneurs regard themselves as masters of their businesses and want to do it all. A company founder will want to handle everything from procurement to handling logistics, hiring, sales and marketing, and bookkeeping. Understandably, during the initial stages, the business is small, and you can’t afford to pay for all these services. That’s why it’s called a “one-man operation.” But, as the company grows, you cannot sustain such an approach; otherwise, the business would be stunted.
In fact, you lose money when you hold on to these functions.
Outsourcing is often viewed more favourably as compared to hiring staff. Contracting the services of accounting firms in Singapore will help you save money! Below are the ways you could lose money when you handle your accounting.
You Spend More Time on Bookkeeping
Trying to do your own bookkeeping may be time-consuming, especially if you do not have much experience and in-depth knowledge in accounting. You will probably spend more time getting a simple job done, rather than focusing your resources on core activities and growing your business.
Alternatively, you could outsource to a seasoned accountant from a reputable accounting company in Singapore who possesses the necessary skills and expertise to handle your accounting needs efficiently.
If time is money, the more time you spend on an activity you are not good at, the more money you lose. You could be using the time to pitch to a potential client or exploring a new business opportunity.
You Make Errors More Frequently
Errors are expensive, especially errors in accounting! When you handle your accounting, other business demands will overwhelm you, and you cannot concentrate on the present job adequately. Consequently, you are bound to make more errors, more frequently.
An error, for instance, in the pricing, or invoicing will cost the business dearly. In some cases, you may need to engage the services of an accounting company in Singapore to help you identify the errors and correct them.
Your Figures Might Not Be Reliable
You may lack confidence in your figures, resulting in you not being able to make decisions confidently. This may then lead to lost opportunities and incur losses.
Hesitation or delays in certain decisions, such as changing the pricing structure, following up or making timely payments, will eventually cause you to lose money.
You Struggle with Technology
There are many accounting software available for businesses in Singapore. Due to the diversity of developers, each software is inclined to a specific type of business. A software best suited for manufacturing operations will not be suitable for a business in the hospitality sector.
However, since you’re not familiar with the software and other accompanying technologies, you are bound to struggle to find a suitable one. Thus, you lose time and money, purchasing the wrong software, feeding data and testing its suitability.
On the other hand, when you outsource to an accounting company in Singapore, they will employ their experience and recommend the most suitable technologies.
When you handle your accounting without the latest up-to-date software and knowledge, you risk wasting your business’ resources and facing losses. Consider contracting the accounting to reputable accounting firms in Singapore. You’ll get the best accounting services without the hassles of hiring.