Did you know that SMEs make up more than 90% of all businesses in Singapore? They contribute to nearly 50% of the island’s GDP and employ more than 65% of its workforce. Despite this, SMEs in Singapore are facing a threat – a shrinking market with over 37% experiencing a turnover growth of 1-10%. Without improving productivity and expanding overseas, growth will continue to shrink.
Productivity in businesses is often an outcome of investing in new technologies, building human capacity and innovation. This makes financing a pivotal element in improving productivity. However, SMEs also face the challenge of inadequate or lack of access to financing options.
By outsourcing to SME accounting service providers, SMEs and entrepreneurs can head in the right direction. SMEs can adapt to new technologies, identify key performance indicators, streamline procedures and reduce business expenses thanks to affordable accounting services.
Here’s everything you need to know on how SMEs can benefit from outsourcing to accounting firms in Singapore.
Accounting and productivity
Accounting is regarded as a function that deals with history, not the future of a business. While the importance of historical perspective cannot be underrated, many Singapore accounting services company play a central role in strategy and operations planning as well as evaluation of crucial performances.
However, not many SMEs can afford to hire a qualified accountant. Most entrepreneurs do their accounting or hire independent contractors from time to time. This leaves many firms with disjointed books that lack consistency and continuity. A third, more affordable option available to entrepreneurs in Singapore is engaging in professional SME accounting services firms, like Ackenting Group. This option remedies the first two challenges. With our experience and expertise in accounting and audit, SMEs can enjoy the benefit of a more efficient accounting function to run their businesses smoothly.
Adapting to new technologies
Adapting to new technologies is a crucial ingredient in improving productivity. However, most of the latest technologies don’t come cheap. An SME also has to consider the cost of building its team’s capacity to utilise new technologies effectively. Outsourcing to an accounting firm in Singapore enables SMEs to hit two birds with one stone.
Accounting firms are specialised companies. This makes them familiar with SMEs and can recommend modern accounting technologies that are best suited to a firm. At Ackenting Group, we stay up to date with the latest accounting software and knowledge so we can utilise the technology effectively to meet all your accounting needs.
This way, your business can handle its books more efficiently and enhance overall productivity.
Identifying key performance indicators for businesses
When you engage in professional SME accounting services, these firms help businesses identify the key performance indicators that matter. Whether it is an e-commerce store or a florist shop, outsourced accounting services help businesses figure out the inventory turnover. For example, if a particular SME is in the construction industry, accounting firms can help to tailor their services and provide value-added solutions to figure out the financials relevant to your industry and business needs.
Tax preparation and planning
Apart from identifying key performance indicators, outsourced accounting firms can directly impact certain processes in a company. The most obvious process is tax preparation and planning. Doing taxes can be rather tedious when business owners do it themselves or require additional payroll when you hire an accountant.
With outsourced tax filing services, Ackenting Group will connect you with a certified accountant to take care of the entire tax filing process for you so you can delegate the menial tasks and free up more time for important business activities.
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.