The business world has gone through many changes in the last couple of decades. The idea of outsourcing various business functions, such as accounting, bookkeeping, HR functions, and Tax functions is not new, but it has gained a lot of support in today’s hyper-competitive business world. The thought of having an external party managing the most important departments of your business such as finance and accounting seemed absurd a few years ago, but today it is a norm and many businesses and organisations are hiring external accounting services in Singapore and taking full advantage of this business model.
Here are five reasons behind the ever-growing popularity of outsourced accounting model:
Saves Money and Reduces Overhead
The number one reason behind the growing popularity of outsourced accounting model is the cost savings on offer. For many businesses, that they are paying too much to maintain their in-house accounts department is the prime reason for switching to the outsourced accounting model. It is estimated that businesses typically spend 2-5% of their revenue to hire, train, and retain their staff working in the accounts department. When you outsource your accounting department, you do not have to pay for all employee related expenses such as hiring, training, benefits, insurance, accounting software and hardware, and office supplies.
Saves time and Improves Operational Efficiency
Another dominant driver for the outsourced accounting model is the amount of time business owners can save to take care of other more important tasks. More time means you are able to focus more on other core business functions that help you boost sales and generate more revenue. Outsourcing your accounts department to the best in the business also means you are minimising the chances of financial mistakes which can hurt your business in the long run. When everything starts to perform at its best, you are able to automatically achieve operational efficiency.
Access to the best accounting services in Singapore
Many small businesses operating in Singapore prefer to choose this option because they simply cannot afford to hire a full-time, in-house CPA to take care of their accounts department. When you outsource your accounts department to a reputable accounting firm, you know you are getting the best efforts of many CPAs have out there. Many third-party firms only charge for the hours worked, ensuring it is always a win-win situation for the many smaller companies operating in Singapore.
As a business owner, you are always facing plenty of risks. The risk of losing key staff, the risk of losing your valuable clients, the risk of losing sales, the risk of making big financial mistakes and much more. Outsourcing your accounting department to trusted and well-reputed firms means you can minimise many of these risks.
Confidence and Peace of Mind
Last but not least, another important benefit of outsourcing your accounting department is that you can get accurate accounting reports every time you need them. This helps you keep a close eye on the financial health of your business. You will also be less worried about mistakes as your financial accounts are handled by the best.