Engage an Accounting Service Provider for your Business this New Year
When running a business in Singapore, there can be an overwhelming amount of things to stay on top of. From managing sales to securing order fulfilment, it is common for many business owners to be caught up with the challenges of managing the company as a whole. If you are setting your business goals and objectives for the new year, you may be considering hiring your own in-house accountant to help ease the load. To help you make a better decision, read on to discover the benefits of having a qualified accountant and how outsourcing accounting services can add more value to your business in the long run.
How Important is the Job of a Qualified Accountant?
For starters, your accountant will be playing a major role in guiding important business decisions, providing valuable insight on how to best manage your financial resources. Equipped with a full understanding of your business financial health, he or she ultimately contributes to your overall business success. In order to provide tailored advice to your business, employing a qualified accountant that keeps abreast of new developments in accounting standards is essential. Most importantly, he or she must be well-versed in any compliance-related matters and avoid making common accounting mistakes that can be detrimental to the business.
Top 3 Accounting Mistakes
1. Inaccurate financial records
In the event of hiring the wrong staff, he or she may not be fully familiar with the accounting requirements applicable to your business. Failing to record any business transactions (invoices, receipts or etc) or incorrect recording will result in inaccurate financial records being relied upon by business owners in their decision making process. In fact, more than 7 in 10 respondents believe that their organisation has made significant business decisions based on inaccurate data, according to a Singapore survey done by C-suite executives and financial professionals.
Whether the day-to-day transactions of your business seem significant or not, the recording of these transactions needs to be accurate and timely to prevent potential business disputes. This is a critical process as it can negatively impact your business in the near future.
2. Ineffective cash flow management and forecasting
Having positive cash flow is a must for any business to be sustainable. Without proper accounting practices and accurate financial data to start with, it will be impossible to have a clear visibility of the company’s true cash. Once you lose track of the inflow and outflow of your business, it can snowball into larger issues. For instance, your company is unable to pay its business expenditure, may have to forego promising opportunities to grow the business or even worse, to take up external loan with high interest rate to meet the immediate cash flow needs.
Ineffective cash flow management and forecasting can ultimately leave your company in a vulnerable situation if no proper action is taken. The worst case scenario is when you eventually run out of cash, which can lead to the demise of any business.
3. Missing out on tax deadlines
Besides internal problems, keeping up with tax regulations is a common pitfall for many businesses where liability is at stake. Preparing for tax submissions can take up a lot of time, particularly if your accountant is going to be handling additional roles and responsibilities on top of accounting. Having to clean up inaccurate recording can hinder this process and as a result, it is easy to fall behind on deadlines.
Rather than handling the financial matters yourself or hiring an in-house accountant, you can tap on the in-depth knowledge and expertise of outsourced accounting services. With a specialised accounting service provider as your trusted business partner, you won’t have to worry about managing these challenges alone or making accounting mistakes one too many times – so you can better focus on the core competencies of your business instead.
What to Expect when Outsourcing Accounting Services
In an increasingly dynamic accounting landscape, staying up-to-date with the latest technologies and services can reduce time and effort. With a trusted accounting service provider like Chartsworth, we leverage on cloud accounting so you have real-time access to accurate numbers and detailed reports to make timely business decisions. Expect comprehensive presentation of financial information that meets the requirements of Singapore Financial Reporting Standards so you can continue your business at ease. And when the time comes for the mandatory tax filing, you can rest assured that we will deliver punctual deliverables for important deadlines such as Corporate Tax Filing (Form C-S) and Filing of Estimated Chargeable Income (ECI).
Work Towards a Successful New Year
In a nutshell, working with the right accounting experts can get your business on the right track for a successful new year. On top of accurate financial information at your disposal, let our dedicated team of Chartered Accountants oversee the financial aspects of your business so you can better focus on your company this 2021. Explore our accounting packages catered for businesses of all sizes to get started.