Why Do You Need a Local Accounting Firm for Your SME?

Introduction

Small to mid-sized enterprises (SMEs) often face one issue when it comes to accounting services – high costs. Well, here is some good news: there are several affordable local accounting firms operating in Singapore that offer their services in a cost-effective manner.

Every SME needs accounting services to handle financial tasks like taxation, annual filing, payroll, bookkeeping, etc. This holds especially true when it comes to SMEs in Singapore, as the law requires records keeping and documentation either quarterly for GST registered company or annually for statutory compliance.

Reasons to Invest in Local Accounting Services

Here are some significant reasons why investing in local accounting services is a need of your business nowadays:

·         Saving Up on Time

Hiring accountants from local accounting firms saves a lot of time. It helps you meet your business’s accounting needs quite effectively and efficiently. Outsourcing accounting operations ensures that it does not mingle with other aspects of your business. Jobs like data entry, documentation, and reporting can be quite time consuming and often, one person is not enough to handle all your accounting requirements.

With an accounting firm, you need not worry about documentation and bookkeeping at all. You will get all the reports in time.

This allows you to spend more time in decision making. When reporting takes time, you need to take business decisions fast. However, when processes are streamlined, you have enough time to take a decision and improve your business operations.

·         Getting Professional Expertise

Outsourcing your business’s accounting tasks ensures that you are getting a professional take on your accounting operations. As accounting firms come with certified employees, your business’s accounting tasks are in reliable hands. These employees are experts, so there is less room for human errors or incompetency.

By getting professional assistance, you can better understand your financial position. With the help of accurate reports, you will be able to comply with obligatory requirements and avoid any financial loss.

This offers you a lot of time to focus on your business’s productivity and development.

·         Saving on Higher Costs

Another reason of going for local accounting firms is that it helps you save up on higher costs. Hiring an in-house accountant ends up being quite expensive; you need to provide training as well as all the resources required for accounting purposes. This will add a lot to your monthly budget. On top of everything, you will have to offer your in-house accountant a handsome salary for all services.

With accounting firms, you do not have to hire a full-time accountant. You only need to hand over the tasks that must be completed on an immediate basis. Overall, this method turns out to be highly cost-effective. You can spend the money on other business aspects and help your business expand.

·         Hiring for the Services You Require  

The good thing about outsourcing your accounting needs is that you only hire the firm/expert for the exact services you require. Be it payroll, taxation, or bookkeeping, you only need to pay for the service you need.

There will be times when you only require data entry services while at other times, you need to get reports and taxation filing done. You pay accordingly, which puts your business in an advantageous position. Your accounting requirements are met in a timely manner and so, there are no legal consequences to face. As Singaporean law is quite strict regarding payroll, taxation, and filing, it is important to comply with such regulations. It saves you from legal penalties.

·         Safe and Secure Processing

The safe and secure handling of your business’s accounting operations is a big reason for hiring a local accounting firm. You need not worry about your company’s data and records. Your business’s information is in safe hands.

Local accounting firms in Singapore offer secure and safe accounting processes. You only share the data that is required for accounting operations, thus protecting any sensitive information.

·         Benefiting from Additional Services

Outsourcing your accounting requirements lets you benefit from additional services that you might need occasionally or during unfortunate times.

For instance, you might need to get secretarial services if your company’s secretary resigns. Your administrative tasks cannot be left hanging in between like that. Most of the accounting firms in Singapore offer secretarial services and so, you will not have to worry about administrative regulations.

Also, it is easier to get advice on licenses and other legal passes for your business when you are associated with a local accounting firm.

 How Much Does it Cost to Hire a Local Accounting Firm? 

You might be of the impression that hiring a local accounting firm will be very costly to your business. No, it will not!

As mentioned above, hiring a local accounting firm is highly cost-effective. Here is a rough estimate of how much it costs to outsource your accounting operations:

Accounting firm charges for bookkeeping varies from monthly to annually depends on the complexity and volume of transactions. When it comes to financial compilation, it takes around from $300 annually. However, most of the accounting firms offer several packages that include a wide range of accounting services; these can range anywhere from $300.

Moreover, the total cost of your accounting operations depends on the size of your business and the accounting services you need. Accounting firms take in a lot of factors before offering their services. As these are not fixed, you have good chances of negotiating down the prices.

 Final Thoughts

There are numerous reasons to invest in a local accounting firm for your business, especially if you are running an SME. As every business has accounting requirements to meet, outsourcing such needs allows you to save your time, money, and additional effort. Every reason mentioned above is a benefit.

Hiring an accounting firm in Singapore ensures that your legal documentation and reporting is done timely. It also helps you get over unfortunate financial losses quickly and focus on your business’s improvement. Hence, if you have been worrying about the accounting aspects of your business, it does not need to be a hurdle for your business incorporation in Singapore. 

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