Most companies in Singapore are focusing on business growth, increasing their revenues. Hence many of their employees are usually involved in marketing, sales, development or customer support of the products or services which are being sold. However, it is mandatory for every company in Singapore to comply with the government regulations, keeping proper accounting records, furnishing their financial statements to the relevant government agency and filing tax returns in time. All this is a specialized activity and the company should have well trained and competent staff to complete all these activities.
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If there is any mistake in the financial records and calculation of taxes, it can adversely affect the business, since their reputation may get damaged and the business may have to pay penalties. Hence it is important that a business has competent and experienced staff for their accounting and taxation work. However, it is often difficult for a small business, startup to hire full time employees for doing the accounting work due to their limited budget. So, it is better to outsource the work to an accounting agency and some of the other reasons why your company needs an accounting agency are also discussed below.
One of the main reasons why it is better to use the services of the accounting agency is the expertise that they offer. Since the agency is only focusing on accounting and related services, they have well trained, qualified and experienced staff who are aware of the latest rules and regulations, changes in the relevant accounting and taxation laws. They also have better systems in place to prevent any kind of accounting or compliance related error. The agency will have trained professionals who will check the work of each other, to eliminate mistakes, resulting in high quality work.
Another major reason why outsourcing accounting is cost effective is because of the lower overheads for the business. If the business will hire one or more employees, they will have to pay monthly salaries. For a small business, the number of financial transactions will be less, so the employee will have less work, though he receives a fixed salary. Hence hiring an employee can be expensive. Also, the business will have to provide office space, computers and other amenities to the employee. The business will also have to invest money in accounting software for financial records, which is an additional expense.
On the other hand, the accounting agency already has many clients, software installed they do not have to invest money again for purchasing software. Hence the amount they will charge for the outsourced accounting service will usually be lower than the cost of hiring a full-time employee for doing the accounting work. Businesses are always interested in reducing their expenses to boost their profit and outsourcing the accounting work is the simplest way to reduce their overheads and business expenses. So, for higher quality and cost-effective accounting services, it is better to hire the services of a specialized accounting agency.