Factors to Consider When Looking For Accounting Services in Singapore
After the first year or two of your operations, it’s likely that you will require financial assistance to help you with the books. Luckily, there are many accounting firms in Singapore who can provide you with a professional service at an affordable price. However, how do you know which service is best for you? This is a problem that many new business owners face and at first, it can be extremely daunting. Some of the accounting services in Singapore include but are not exclusive to tax preparation, audit services, bookkeeping, system design, accounting, managerial accounting, financial reporting, controller services, and much more.
So, where do you begin? What services do you need and what company should you hire to complete these services for you? Here are some of the main factors you should consider when looking for accounting services in Singapore.
Your Corporate Needs and Objectives
Before looking for accounting firms in Singapore, it’s extremely important that you ask yourself some questions to put you on the right path. Firstly, why are you trying to hire someone? Have your books become too complex to manage? Do you not have the time to do them? Or do you believe hiring someone will be beneficial to expansion? Once you understand the main reason as to why you want to hire a professional, look at how often you would need their service. If you need their services for tax purposes, you may only need them once or twice a year. Alternatively, if you need someone to manage the books, you may need them on a daily basis.
During this process, you should also consider whether or not you would prefer digital assistance or a local accountant who can work in your office. Look at the pros and cons of each factor in order to determine which option is best for your small business.
According to a survey conducted in 2017 by the National Small Business Association, 61% of small business owners will use external tax accountants to complete their tax reports. In this same report, it’s estimated that around 1 in 3 businesses will spend over 80 hours each year working out their taxes.
This is why it’s important to first consider your needs before making any big decisions. If you’re a small business who only needs an accountant for a few days every month, then you’ll likely be looking for a part-time contract. Alternatively, if you require an accountant in your business on a daily basis, then your best option will be to outsource or hire a full-time employee. This may be a good idea for payroll options and tasks that are needed on a daily basis.
One of the most important parts of any business is your financials. After all, businesses are constructed to make a profit right? When choosing accounting firms in Singapore it’s crucial that you consider your budget. Work out roughly how much you’re willing to spend on accounting services and whether or not an in-house employee or external contractor will be the better option. It’s always important to remember that when hiring an internal employee, you’ll likely have to consider taxes, life insurance, and any other benefits such as retirement contributions.
At first, small businesses are often startled by the prices for outsourced accountancy services. However, they may sometimes be lower than hiring a full-time employee, especially if you only need the services for a few days every month. Often after some basic calculations, you’ll find that you can save a significant amount of money by outsourcing compared to hiring a professional in-house team.
Suitability for Your Business
Another crucial consideration you must make (if you choose to outsource) is whether or not the outsourced company is the right one for you. You need to make sure you feel good working with the company, as well as the individuals working on your books. In order to consider suitability, you should consider several different factors.
Firstly, you should consider the size of the organization. If you’re a small startup, then it’s always a good idea to work with an accountancy company of a similar size to you. There’s no point in hiring a huge international company as they may not be able to tailor their services to your needs. With a smaller accountancy firm in Singapore, you’re more likely to receive a personalised service that fits your business model. After all, you don’t want to become another number on a spreadsheet.
Another factor to consider is the core values and guiding principles of the business. Make sure the company works in alignment with your core values as this will help to save you stress and several other problems down the road.
The third factor to consider is the individuals you’ll be working with. Will you be working with a dedicated team of individuals that you’ll get to know personally, or will the team be rotated around in a way that each member will not have the time to understand the needs of your business. Both options have their pros and cons; therefore, it’s important that you choose an option that aligns with your business model and objectives.
Although the time it takes to find the right accountancy firm for your business may seem extreme, it will be worth it in the long run. Follow these guidelines and you’ll be able to find a company that works in alignment with your beliefs. The better the match, the more harmonious your working relationship is likely to be both now and in the future.