Why Outsourcing Accounting Services is Crucial for Your Small Business

As a small business owner, we don’t have to tell you how overwhelming running a business can be. Between clinching important deals, managing employees and finalising future plans, how much can you realistically dedicate to the boring and mundane tasks of day-to-day accounting?

Yet many small business owners still find themselves caught between two minds — growing the business and overseeing its financial health. Savvy owners recognise the value of reducing business expenses and optimising the books, but do not let the task of accounting distract them from growing revenue and profits.

That is where outsourced accounting and bookkeeping services come in. If you baulk at the idea of paying someone to handle your business’s finances, here are 5 benefits of outsourced accounting that prove it is absolutely crucial for small businesses.

Outsourced Accounting Saves Money (Cost Less Than a Full-time Staff)

The importance of cash flow to a small business cannot be overstated. To maximise growth, you want to reduce unnecessary expenses and focus on the employees bringing money into your business.

When you hire an in-house accountant, you incur additional costs on top of payroll like employer CPF, training and company benefits. Outsourced accounting costs less than a full-time position because you only pay the accounting company for services rendered, no more, no less.

At the end of the day, outsourcing your accounting frees up dedicated payroll funds to grow the business rather than a support position.

Outsourced Accounting Gives You Access to Experts

How familiar are you with GST, annual filings and business taxes in Singapore? Do you have the time to comb through changing rules and regulations to find tax breaks for your business? What are the chances you can hire a professional accountant who can do all this for you with the budget you have set aside?

Outsourced accounting gives you access to chartered accountants who are focused solely on your business finances. Most accounting companies will assign your business to a team of qualified professionals who are up-to-date with the latest accounting practices and can get more work done in a shorter time than a single accountant.

Outsourced Accounting Uses the Latest Accounting Software

When you hire an in-house accountant, you need to provide him/her with the tools they need to effectively do their job. Unless you plan on using pen and paper, this means a costly subscription or one-time purchase of the latest cloud accounting software out there — not to mention training for your accountant.

Accounting firms use cloud-based accounting software like Xero to streamline your records and even generate consistent financial reports for your business. Not only will you be saving on software fees, but you’ll also be able to view your latest business transactions and financial records at any time.

Outsourced Accounting Makes GST and Annual Tax Filings a Breeze

Tax season is a stressful and confusing time for small businesses. Many owners do not have the time to worry about tax computation and filing, and some even choose to leave the responsibility of filing taxes to non-accountant employees. Not only does this put you at risk of penalties associated with non-compliance, you might also be missing out on various tax rebates, benefits or deductibles — returns that can be better channelled into your growth.

Engaging an outsourced accounting partner simplifies your tax preparation and filing process, taking the stress out of compliance. A good accounting firm works with you to meet your company’s tax filing obligations and maximise your tax returns at the same time. Just think of how much time you’ll save not having to scramble to find a lost receipt or proof of an old transaction!

Outsourced Accounting Can Accelerate Your Business Growth

A good accounting partner does more than just manage your day-to-day records. They’re also long-term focused with your best interests in mind. When you need to lower expenses or identify an area of your business that needs improvement — your accountants are in the best position to provide you with relevant financial reports and advice.

With a clear picture of your business’s financial status, you’ll be able to make more informed, smarter decisions like whether you can afford a new hire or how much budget to assign to a new venture.

Looking for a Reliable Accounting Partner for Your Business?

At SCS accounting, we are passionate about serving start-ups and SMEs with professional bookkeeping and accounting services. As an SME ourselves, we’re in a position to understand the unique challenges faced by business owners, which is why our philosophy is to work as your extended team — helping you stay compliant and competitive as your business scales.

Get access to a dedicated local team of certified public accountants with over 20 years of combined experience. As a Xero-certified advisor, we leverage on the latest accounting technologies to make it easy for you to keep up with your business finances, and get the information you need to consistently improve the profitability of your business.

WhatsApp us at 8862 1113 to find out more about our outsourced accounting and bookkeeping services today!

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