Why Outsourcing Your Accounting Needs is now the New Normal

Global economic decline is rippling through the globe. In an outlook generated by the International Monetary Fund (IMF), the economic growth of 3.4% gained globally in 2022 is expected to decrease by 2.8% this year. The effect of the numbers resulted in huge consultancy and tech firms laying off thousands of employees and more, tightening their operation costs to keep sales at breakeven whilst complying with stricter regulatory requirements.  

In response, most businesses sought outsourced accounting professionals for their compliance and operation requirements. Whilst this may also be an effective approach for you, it’s best to first do your research on the process and its impact in the long run. This article tackles outsourcing in a nutshell, specifically accounting and payroll functions, so you can be aware of the basics before continuing on to the more complex part of your decision-making.

What is Outsourcing?

Outsourcing is a practice by which businesses hire an external team of experts to perform specific business functions on their behalf. In the consultancy and technology sector, third pantry contractors are outsourced for customer service and technical support functions.

Meanwhile in finance, professional accounting firms are hired to perform accounting and payroll functions such as preparation of accounts and bookkeeping, assistance in reporting key business transactions, statutory compliance, payroll processing, and maintenance of employee records, to name a few.

How can Outsourced Professional Accounting Firms help?

Statutory compliance is getting stricter by the day. In Singapore specifically, all companies big and small, are required to prepare their financial statements in accordance with the Singapore Financial Reporting Standards, yearly. All Singapore incorporated companies (except for those which are exempted) are required to file financial statements with Accounting and Corporate Regulatory Authority (ACRA) in XBRL format. XBRL stands for eXtensible Business Reporting Language. It is a language for the electronic communication of business and financial data worldwide that requires specific knowledge, and skillsets to operate.

One of the challenges for most, is the lack of internal capacity and experience to go through the process and veer away from the vital task of generating profit. Hiring experts to do the job equates to a hefty tag considering all the recruitment expenses, onboarding and training, benefits, and the remuneration of the hired talents. Today’s tight labor market and the industry’s tough demands also contributed to the stakes.

This is where outsourcing a business’ accounting and human resource functions through professional accounting firms, can come in handy. Businesses can focus on tasks and decisions that drive profitability whilst a team of third-party experts conduct bookkeeping, disbursements process, draftting of unaudited financial statements, and complete regulatory requirements on their behalf.

How does Outsourcing Work?

Before looking for outsourced professional accountants, it is imperative to first assess your business needs. Why are you looking to hire a service? How often will you require the service? Weigh the pros and cons of each to determine how best to proceed and identify what will benefit your business most.

If your accounting requirements are less extensive and you only need assistance for several days a month, it may be prudent to contract a service on a part-time basis. If you need someone to keep your records, manage payroll, and do other more frequent tasks more permanently, this is where outsourcing your needs to a professional accounting firm should be helpful.

Professional accounting firms will assess your needs, propose several approaches to managing them and perform such in a long-term arrangement depending on what you’ve agreed upon. Data privacy-wise, your outsourced third-party accountants will mostly have access to your records and accounts under the bind of their licenses, ethical judgment, and professional liability in handling all information about your business. It should also be noted that the full control in the decision-making will still be yours.  

How can it Guarantee Success for your Business?

With an outsourced accounting firm overseeing and completing the tedious, [but a] vital part of your business on your behalf, you can focus on profit-generating areas and prioritise on the decision-making process for growth. You will feel more comfortable knowing that a professional is handling your finances and you need not worry about doing the work yourself. Moreover, the expertise accounting professionals hold will assure you of accurate reporting and standard compliance. This can save you from hefty fines and legal disputes that improper disclosures and incorrect report submissions can bring your business later on.

Outsource your Accounting and Payroll Functions Today

Our expert team is just a call away to assist you with your business requirements. We boasts over 30 years of cumulative experience in accounting functions and well-versed exposure to industry standards and regulations. With this, you are assured that your accounts are safe, adaptive, and compliant to the ever-changing regulatory and business environment.

Our accounting professionals onboard are highly qualified in automation tools such as Sage, Xero, SAP HANA, Netsuite, MYOB and more. These accounting automations reduce risk, minimising human errors and aids accountants to generate, analyse and share real-time reports.

In today’s fast-paced world, tough market competition, and the ever-rising challenges for businesses and individuals alike, make sure you focus on what’s important and evolve alongside the new normal of letting the experts assist you with what they do best, whilst you do what you do best— grow.  

All materials have been prepared for general information purposes only. The information presented in this document is not legal advice, is not to be acted on as such, may not be current and is subject to change without notice. Professional advisory should be sought before taking or refraining from any action as a result of the contents of this document.