As an Entrepreneur, Should You Outsource Your Accounting Services?
As an entrepreneur, you need to constantly have your eyes on everything that happens in your business. After all, you are solely responsible for the success of your company. However, there’s one area of business that has often caught most entrepreneurs off guard, and that is accounting.
As more financial responsibilities are added to an entrepreneur’s plate, it can become difficult to stay on top of everything from day-to-day expenses like operating costs and managing cash flow to longer term goals such as forecasting future growth rates and preparing for tax filing. It is no surprise why many companies choose to outsource their accounting services to more efficient and professional accounting firms.
This article will give you some tips on what exactly accounting services entail and where you can start finding them.
Accounting Services for Entrepreneurs: What You Can Expect
1. Better Focus on Your Company’s Operational Functions
Businesses grow and change over time. When you first start out, accounting tasks may not be a priority for you or your team. After all, it’s easier to record and track money coming in and going out when your company is small. Chances are you’ve probably taken on the role of accounting.
However, keep in mind that as the business grows and evolves, new challenges will arise. This can become time-consuming and tedious for even the most organised entrepreneur. Entrepreneurs often don’t have the expertise, experience or resources to manage every aspect of their company’s finances by themselves. With that in mind, another important benefit of outsourcing your accounting is the fact that you get more time to focus on your core business and generate higher revenue rather than spending time on the routine and administrative tasks.
By outsourcing your accounting needs to an expert, you can free up time in your day for more productive tasks like marketing or developing new products and services for clients. All you need to do is simply snap a phone picture or drag and drop your files onto our online platform anytime. Here at Chartsworth, your dedicated accounting expert will ensure that your financial reports stay well-organised while meeting compliance and regulatory standards.
2. Outsourcing your accounting is more cost-efficient
Next, outsourcing can eliminate the need to hire a large pool of in-house accountants, who come with extra expenses such as salaries, benefits, paid leave, employer’s contribution to Central Provident Fund (CPF), insurance, and much more. When you outsource accounting, this essentially saves you from having to hire extra staff members to do this work, reducing your overall operating expenses. With Chartsworth, for instance, you can engage our professional Chartered accountants that will work with your business needs at an affordable price. Start exploring our price plans here.
3. Get access to the latest technology
For most small businesses in Singapore, purchasing and implementing every accounting software that comes up can be quite costly. But when you outsource to cloud accounting services, did you know you can get access to the latest technology without actually having to buy it? That’s why when it comes down to deciding on your trusted accounting service provider, we previously compared cloud accounting versus traditional accounting to help you make a more informed decision.
4. Find tax-saving opportunities
Finally, as a budding entrepreneur, you may not always be aware of the many tax-saving opportunities available to your business but your trusted Chartered Accountant will advise you on how you can recover much of your tax expenses. According to the Inland Revenue Authority of Singapore (IRAS), eligible startups can get a 75% tax exemption on the first S$100,000 of their normal chargeable income. Your company can also be exempted up to 50% of tax on its next $100,000 normal chargeable income. This exemption is applicable to your company in the first three Year of Assessments (YA). We cover more in this blog.
Keep Your Business in Check with Chartsworth
Even for entrepreneurs who are just starting out, having better financial control from the start will help you to grow the business faster in today’s highly competitive business environment. With countless responsibilities as a business owner already on your plate, outsourcing these accounting tasks should be at the top of your list.