Since bookkeeping does not directly generate profit, many business owners in Singapore do not feel excited about taking this task into their own hands. Most find it more convenient to hire an in-house professional bookkeeper (part time or full time) or outsource this to established firms. The DIY approach to bookkeeping definitely saves some costs, but outsourcing it to a firm offering the best bookkeeping services in Singapore or hiring a full time, in-house bookkeeper definitely has its own advantages.
Bookkeeping is an important aspect of your business regardless of how you approach it. Let us have a quick peek at the pros and cons of each approach and identify which is better for your business.
Pros of Hiring a Professional Bookkeeper
Time Savings – the idea doing your own bookkeeping may excite you. However, as your business expands, you may find it difficult to manage, record and reconcile all completed transactions. Hiring a professional bookkeeper from the very first day will not only take a load off your shoulders, but it will also give you time to focus on generating income for your business.
Valuable and Timely Advice – as a business owner, you may think you have a firm grasp on all aspects of your business. While that thought may not necessarily be wrong, hiring a professional bookkeeper will give you access to specialised advice and insights from the bookkeeper.
Cons of Hiring a Professional Bookkeeper
Additional Cost – hiring a full-time bookkeeper will incur additional monthly costs. Many start-ups operating in Singapore find this to be the biggest barrier to hiring a full time, in-house bookkeeper.
Privacy Issues – many start-ups simply do not hire an in-house bookkeeper because they believe it opens the doors to potential leaks of private and personal business information.
DIY Bookkeeping – Pros
Cost Savings – the most obvious advantage of handling your own bookkeeping is cost savings. Doubling as the bookkeeper for your company saves you the cost of paying for the services of professional bookkeeping.
First-Hand Information – One of the biggest advantages of taking bookkeeping into your own hands is that you will have first-hand information about the financial status of your business.
DIY Bookkeeping – Cons
Distraction – a major disadvantage of DIY bookkeeping is that it requires your attention and time, leaving you with limited time to address income generating facets of your business.
Lack of Interest – doubling up as the boss and bookkeeper of your company may cause you to lose interest and neglect the tedious process of tallying up the numbers of your company’s finances.
Having this information will allow you to make the best decision of who does the nitty-gritty of handling your company’s finances. Eventually, you decide to outsource company’s bookkeeping, hire an in-house bookkeeper or simply do it yourself.