Over the past few years, outsourcing business processes to external companies has gained much momentum in Singapore and many other parts of the world. Many smart business owners are now comfortable enough to distribute business tasks to highly qualified external contractors and companies. If you own a small business operating in Singapore, you can outsource specific tasks such as customer support, logistics, manufacturing, IT support, bookkeeping and accounting to a trusted external contractor or company. Outsourcing the management of your company’s accounts is different from outsourcing your logistics or IT department due to the importance of keeping track of your finances in everyday dealings. If you have decided to outsource accounting of your finances, you need to engage an accounting firm offering the best accounting services in Singapore.
While most big businesses usually have an established in-house accounting department with numerous of highly qualified Chartered Accountants on their payroll, most smaller firms and businesses are unable to afford their services. Therefore, they need to take advantage of outsourcing to contract their accounting functions to a third party.
Let us have a look at top 5 reasons why small business owners need to consider outsourcing their accounting functions:
Allowing external firms to handle your accounting needs can save you costs. When you outsource your accounting functions to a third party, you will not have the need to hire a team of in-house accountants. This way, you will be able to save money in hiring, training, and retaining employees.
When you outsource your accounting department to a third party, you can save the time that you used to spend keeping track of sales, outstanding bills, employee payroll and other accounting related activities.
Timely Financial Advice
Another advantage of outsourcing your accounting department to a well-established, external accounting firm, which is able to offer solid and beneficial accounting advice, is that you will be able to ask for and get a complete financial overview of your business anytime you want.
Better Understanding of Cash Flow
Without having a better understanding of your current cash flow position and future cash flow needs, you won’t be able to make sound business decisions. One advantage of outsourcing your accounting is that you can call your accountant any time and ask about the current status of your cash flow. Your accountant will be able to give you advice on when and where you should invest your money for maximum returns.
Most of the small business owners operating in Singapore are unaware of the tax saving opportunities available to them. Calculating tax returns for small businesses is not an easy task and there are so many ways you can save money. When you outsource your accounting department, you can be sure to save some money in this head for sure.