As an entrepreneur, you may have managed just fine without hiring anyone to handle your accounting for some time. You might be using modern computerised accounting software, or perhaps you are more old school and prefer recording transactions on ledgers and issuing paper invoices. You may doing just fine even if you don’t have much knowledge in accounting.
However, some situations will call for you to think twice and change your position. Especially when you need to avoid taxation issues, or you suddenly need to manage a more significant intake of cash or if doing your taxes takes up too much of your valuable time.
Here are some indicators that you need a personal accountant.
When You Aren’t Conversant with Accounting
If financial statements look like a foreign language or you find yourself lost when conversations are held in accounting terms, it’s about time you thought of hiring a personal accountant.
The beauty is that you don’t have to hire and stick with one all year round. Firms that provide accounting service in Singapore have also evolved and provided you with customised solutions to help you avoid those costly mistakes.
When You Know Nothing about Taxes
Closely related to the above issue is the aspect of taxes. Singaporean taxation regulations and requirements, both for individuals and businesses, are complex. Hiring an accountant every so often, especially when it’s tax season, will not only help you file correct returns, thereby avoiding penalties and fines, but also take advantage of tax breaks and deductions. Remember, if the tax season gives you headaches, its time you thought about hiring a personal accountant.
When Accounting takes You Away from More Important Tasks
Perhaps you are knowledgeable about accounting, but you just don’t have the time to compile your books and present them in the prescribed manner. You may have other burning matters to attend and this takes time away from your taxes. Does accounting take time away from your family or perhaps other critical business issues? Do you spend too much time on accounting stuff? If the answer is a yes, you are the perfect candidate for accounting services in Singapore.
When You Experience a Windfall of Cash
If you find yourself an unprecedented amount of cash, maybe you won a lottery, or if your investments have grown in value exponentially, or a relative passed on and left you with a sizeable amount of wealth, you’ll need a personal accountant. Accounting services will not only help you manage the wealth surge wisely but also take care of your new tax requirements.
When Your Income is Increasing but You are Not Seeing it
Closely related to the point above, when your income has been increasing gradually but you do not feel the corresponding impact in your wealth accumulation or profits, hiring a personal accountant will help you with budgeting and cost cutting.
The same applies to small business owners who may have experienced a rise in revenue but profits are stagnant. An accountant will help in cutting costs and increasing profitability.
Here’s the bottom line. Accounting services will help you save time, cut costs, and build your wealth. Just evaluate your status and if it fits any of the above, know that you need a personal accountant.