For ages, accounting services were managed in house by all companies, no matter how small or large. It was a tradition to have you own accounting department. But recently, the trends in this areas have changed a lot. Outsourced accounting services seem to be the new hit in the corporate world. But many are still reluctant. Fact is outsourcing this department comes with plenty of benefits than many might think. Also, there appeared reputable Singapore accounting firms, able to provide some of the most professional services of this kind. Below you will find why you should outsource this department rather than creating an in-house one.
Although all accountants have experience in the field, not all of them are able to provide top services. Especially if you manage the human resources and the hiring process yourself, you might lose sight of some important aspects when hiring in house accountants. However, with outsourced departments you can forget about the dreading process of finding and hiring proper candidates. All accounting firms do have great employees with a generous portfolio of clients and experience. Fact is outsourced accounting services provide higher levels of quality and expertise. These employees undergo continuous trainings in different accounting areas and these companies invest plenty in their human resources, which makes them highly accurate and professional. With an in house accounting department, such things are hard to accomplish.
Especially for large companies, there are more chances of fraud due to poorly made bookkeeping. Having one or two employees managing all this increases the chances of fraud activity, because human errors are very likely to occur due to a high workload. However, with outsourced services of this kind, there are lower chances of this kind of unfortunate situations to occur. Usually these companies have a great separation of duties; therefore, every employee is managing a different area of their work.
Although financial reports look differently from business to business, depending on their own specific, they all have a thing in common: overstressed and busy accountants. This is because they oftentimes manage multiple tasks at once, and the quality level of each of them decreases. This usually results in poorly made financial reports and inaccurate data. If you want to avoid such situations, it would be ideal if you would outsource the accounting department.
The cost of two in house accountants per year easily reaches somewhere around $ 100,000. These are a lot of money, especially for small businesses. The previously mentioned amount is without overhead costs. However, when you work with an accounting company, you don’t have to worry about overhead costs. Also, the monthly cost of an accountant from such a firm is somewhere around $ 2,000 monthly. Common sense mathematics tells us that outsourced accounting services are not only more efficient, but also more affordable than an in-house accountant.