As your business begins to grow, it becomes apparent that accounting is an important area where entrepreneurs require help. For instance, you could hire an in-house accountant, reach out to a freelance accountant, or hire a firm that offers accounting and bookkeeping services. I chose the latter because I trust in the experience and expertise that accounting firms can offer with their comprehensive range of services.
As accountants do much more than simply provide accounting bookkeeping services, here are 5 excellent ways that my business benefited from outsourcing to firms with accounting services.
1. Easier to set up your business
When I was setting up my business, keeping up with financial management was tough. It was a crucial aspect of the business, but I had little skill and no time to do so. Demands such as business development and staff management had taken up too much of my time.
However, when you outsource to an SME accounting services provider in Singapore, it can take a load off your shoulder. Not only did the accountants take the bookkeeping and taxation aspects from my to-do list, but they also helped me to:
- Figure out a suitable business structure
- Identify a suitable bank and account to open
- Pick an accounting software
- Ensure that I had no issues with the IRAS
These are just some of the ways an accounting services firm can ensure that you are free of worries when it comes to setting up your business. They offer valuable, fast, proven and effective solutions that ensure your business can get started without any issues. They also provide tailor-made solutions for your business so that they can meet your outsourced accounting needs.
2. Processing loans was simpler
When my business needed a cash injection, I had thought about reaching out to a bank. However, I did not know how complicated the loan process would be. Fortunately, there are reputable firms that provide corporate accounting services and know exactly how to make a loan pitch. Some of the ways they can help you with include:
- Gathering necessary data for loan
- Quantify the business’ financial position and credit card
- Identify resources to repay the loan
- Prepare a compelling loan application
They understand how complicated loan processes can be, and they make it easier for clients to obtain loans for their business. With an experienced team and in-depth knowledge of accounting and regulations, they also provide essential accounting services such as tax, audit, payroll, and corporate financing.
3. Contracts were tax compliant
Singapore has one of the most tax-friendly regimes. But non-compliance can attract hefty negative repercussions. Most entrepreneurs don’t want to get entangled with tax issues, especially when engaging in contracts with other businesses or clients. Fortunately, accountants can also help to structure contracts so that they can comply with IRAS standards. However, an in-house accountant may not suffice for this.
On the other hand, outsourcing to accounting firms can give you access to tax-specialists. They can help to analyse and evaluate the tax consequences of your documents and contracts to ensure your business is tax-compliant.
4. Crucial for business growth
Business growth is seldom an outcome of instinctive moves. Instead, it often relies on a carefully planned strategy and resource application. Financial metrics are a crucial component of sound decisions that propel business growth.
When you engage in an accounting provider, they can provide metrics such as operating profit per staffer or costs per staff member. Thus, they can help you to make smarter decisions in charting a path for business growth.
5. Help in retirement, estate and succession planning
Firms offering accounting and bookkeeping services in Singapore can help you to plan your retirement, estate and business succession in a more organised and tax-compliant way. Here are a few ways accounting firms can help you:
- Maximise the growth of your retirement corpus with minimal tax implications
- Plan transfer of assets or the estate to your children with minimal tax ramifications
- Make plans for succession if you are looking to hand down the business to a new generation
The importance of an outsourced accounting firm cannot be understated. They provide essential corporate accounting services and more, helping you with vital financial aspects so that you can continue your business without any worries.