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Outsourcing Accounting Service: Pros and Cons in Singapore

Outsourcing the service of professional accounting services in Singapore has become very common in business. It is especially beneficial for a smaller business with limited staff number and resources to hire an in-house accountant or bookkeeper.

The restraints have often resulted in the owner of the business to be tangled in doing a job that they aren’t very knowledgeable about and end up getting too much in their hands. As a result, their main job of making sure that the company grows by making good planning of the company run and making relations as well as enticing prospective clients are abandoned. This could end up being a fatal case and can lead to a failure in doing business.

That’s why many resorts to the option of outsourcing the service of accounting to ensure that their business’ financial sector is handled by experts.

It is mostly advantageous. However, there are several disadvantages or things that you must be aware of so that you can avoid the negative aspect of it.

Pros of outsourcing accounting service:

1. Proactive approach

A professional accountant has the capability and resources to accumulate data and process it into a piece of information so that you can tell if the business is doing well or not. Simply putting it, accountants can forecast the financial condition of the company. By forecasting, they can see where the business is going. If it starts to deviate from the ideal condition or has the potential of it happening, they can immediately alert you and suggest ways of dealing with it based on their years of experience in the field.

2. Lower cost

Hiring an outsourced accounting service high likely can allow you to save up money that would go into in-house staff benefits and payroll if you hired one. By being able to save up money, you can allocate your resource into growing your business. Not only that, there is a chance that you are hiring accounting service that can perform better with more experience than an in-house accounting staff with a lower price. By outsourcing your accounting service, you also don’t need to worry about non-compliance and unreliable financials.

Cons of outsourcing accounting service:

1. Hidden cost

If you don’t make a clear contract and boundaries at the beginning of the agreement of hiring the accounting service, you may end up getting charged more money than you expected. You must make sure that the two parties understand fully what services are to be provided and what services are not. This way, you won’t be burdened with hidden costs that aren’t agreed upon.

2. Not local

Outsourcing the accounting service means that your accountants are not working in the same place as you. Despite the advancements in technology that has made communication easier, there are still sometimes limitation to it because they most likely are busy, since the outsourced service don’t only serve your company. In order to overcome this difficulty, your business and the accounting service must set a fixed time where the two of you make time for discussions and reviews regarding the financial status of your company.

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