When it comes to dealing with a professional accountant, there is no doubt that a small business owner can outsource accounting duties. However, when you outsource accounting duties how do you ensure your company is compliant with Singapore Financial Reporting Standards (FRS)? It is important for a small business owner to remember that just as you have internal personnel who meet accounting obligations there are also individuals who are professional accountants. So what does it mean to be an outsource accountant?
First and foremost professional accountants are trained in tax laws and Singapore payroll law. This is critical because Singapore tax laws and payroll laws are designed to benefit all business owners equally no matter what the size of the business is. This means that even small business owners need to know about Singapore payroll taxes and accounting regulations if they are going to be compliant with Singapore tax laws and comply with Singapore payroll regulations. Small business owners also need to be aware that professional accountants are not ‘one size fits all’ people they come in all shapes and sizes and each accountant will specialize in different aspects of the business they are handling. There are accounting gurus in the professional tax department and then there are individuals who are trained in particular areas such as estate agents and corporate tax gurus. Knowing this it is always a good idea to get an idea of the experience and skills of the individual you are considering hiring.
Secondly, many small businesses think that by hiring an outsource accountant to handle their accounting duties they can save money. However, in order to be successful and remain compliant with Singapore tax laws and payroll regulations small business owners need to hire an accountant who has their act together. A good way to find this out is to ask the person you are thinking of hiring for references from previous jobs and clients. Many outsource accountants will happily provide references and these references often provide a wealth of knowledge on the individual they are currently working for. By checking out the references provided by the company you are considering hiring you should be able to get an idea of how well the individual handles his or her duties.
According to Startup Genie, a Singapore-based provider of corporate services, a good accountant should have expertise across the board, not just in one area. Therefore, it is important to ensure that your potential outsource accountant has the necessary skills and knowledge to run your accounting department. It should be made clear to the individual you are considering hiring that your company is a large company and requires several accountants to operate successfully. It is also necessary to find out exactly what type of services your new outsource accountant will be offering your company. If your accounting firm only provides bookkeeping and finance related services then it is likely that your business will be at a disadvantage when trying to keep up with the ever-changing tax rules and regulations.
When you hire an accountant to help you run your business, it is best if that individual is able to manage a variety of projects. This is because your accountant should have the ability to deal with any number of clientele and should not find it difficult to keep track of each one separately. Accountants who only work with a specific client on a one-off basis will not be as effective as those who are capable of handling hundreds of different clients. They should also be adept at keeping current with the ever-changing tax laws and regulations. In order to keep abreast of these changes it is necessary for an accountant to be versatile and knowledgeable.
Another advantage to outsourcing your accountant is that it can save a limited company money. It is not uncommon for an accountant to charge twenty to thirty per cent of a company’s payroll. For small businesses this amount is a major cost savings. When an accountant is hired by a limited company, they do not have to pay their own taxes or provide health care insurance. This can make a significant difference to the bottom line of a small company.
In some cases, accountants outsource their accounting because it is cheaper than hiring and keeping a full-time employee. Another common cents outsourcing method is to outsource the payroll function. Although most accountants will gladly take on new payroll duties when asked, it is always best to have an accounting department in-house. This way they can be sure their payroll records are updated on a regular basis. Most outsourcing companies offer payroll and bookkeeping services as well as other small business accounting functions such as invoicing and payments.
Outsourcing accounting has become so popular due to its efficiency. When you outsource accountants, you receive an accurate accounting report that is easy to read and understand. The accounting firm you outsource to will use the appropriate accounting software and generate a report for you. Outsourcing accountants is a great option for a company as it can free up valuable staff members which are needed in the office. You can always choose to have an in-house accountant on hand for accounting needs if you feel it is necessary.