Bookkeeping and accounting, or sometimes known as transactional accounting, are integral functions to any organisation, regardless of size, business structure or location. Not only does it provide cashflow visibility of financial health which allows the company to adjust its strategies for bottom-line results, there is a legal requirement in Singapore for Singapore companies to submit financial statements annually to the Singapore Government- Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS) respectively.
Companies are spoilt for choice when it comes to competitive accounting software available in the market, for companies can do everything themselves. The next questions are- who to hire as a competent bookkeeper who also intrinsically understands the workflow for preparing and filing eXtensible Business Reporting Language (XBRL) financial statements? What other technical skills and skillsets should this competent bookkeeper possess? Is he/ she equipped with updated knowledge of Singapore regulations and company filing obligations? How much does it cost to source for the right hire and retain him/ her?
A key deciding factor lies in weighing the pros and cons of using an outsourced accounting service provider in Singapore, one that understands the XBRL format and is well versed in corporate regulations.
The top benefits of outsourcing accounting services in Singapore are:
1. Efficient time management. Bookkeeping tasks and filing returns, ensuring compliance, are time-consuming matters not to be overlooked due to the cost implications of misrepresentations. By leaving accounting services to the professionals, not only can you ensure accurate reports, time can be spent wisely on converting ideas into action.
2. Reduce cost. There are upfront and hidden costs of maintaining headcounts such as remuneration and employee benefit packages. When companies choose to outsource the bookkeeping or accounting services, they save in production costs and are only paying for the actual accounting work done. Perform a simple cost-benefit analysis and you will likely find that an outsourced bookkeeping and accounting arrangement will give you up to 40% savings in monthly costs.
3. Eliminate fraud. Truth be told, small companies and businesses do not have the expertise of a Financial Controller or Chief Financial Officer (CFO) who evaluates activities in transactional data and accounting controls while measuring it against KPIs and various metrics. This puts companies at a risk as there is no timely implementation of proper protection controls to prevent the undesired outcome.
4. Team of experts. Time savings aside, companies know that they can tap into a team of qualified accountants in Singapore who are familiar with tax codes and corporate laws inside out. By appointing the right bookkeeping and accounting service provider in Singapore, you will have access to the most experienced and knowledgeable professionals at your beck and call.
Lexico Business Solutions also provides specialised corporate secretarial services to free your time from the mundane duties so our clients can be focused on realising their business plans.