Why do Businesses need Accounting and Bookkeeping Services

Behind every great business is a great accountant - ask any successful business owner out there and chances are they will readily agree! It's a universal truth that accounting serves as an integral part of every successful business. From its core functions in bookkeeping, payments and audits to tax preparation, advisory and assurance, there is no part of a business that accountants aren’t involved with.

In fact, many local startups today are placing importance in handling their company's finances not by hiring accountants, but outsourcing their accounting and bookkeeping services to professional firms in Singapore! The early stages of new businesses demand that business operation costs be controlled and to compete with established businesses with cost productivity. With external accounting services, startups gain access to an accountant following up with their day-to-day transactions and the expertise support of an experienced accounting team.

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Why is accounting and bookkeeping essential to businesses?

1. Provide insightful financial analysis and business opportunities. For any business that's seeking growth, a detailed and in-depth accounting function is key to managing key costs and opportunities within the company. As the complexity and capacity of your business grows, effective accounting measures can improve your business's cash flow and effectively scale any business opportunities at optimal costs.
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2. Provide a solid financial record of your business. Accounting isn't just about counting money as most would imagine - it's about systematically keeping track of all transactions that run throughout the business regardless of it being sales, payments, expenses or reimbursements. Proper accounting and bookkeeping keeps the financial performance of every department in a business in optimal condition and can be a key starting point of evaluation when it comes to employee performance. Of course, keeping a prim and precise financial record of your business helps if there ever comes a day where your business is audited!
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3. Provide invaluable tax advice and services. When it comes to business and taxes, accountants will be the first point of planning and final point of execution when it comes to calculating and preparing all things related to corporate taxation. Any operating business of a small-medium scale needs accounting and bookkeeping services to prepare for the yearly exercise of lodging tax statements, returns and any transactions that follow.

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So why is engaging a firm for accounting and bookkeeping services a better choice than hiring a large number of accountants?

1. Consistently achieve a high level of accuracy and efficiency. When you're engaging quality firms for accounting and bookkeeping services, you often enjoy the experience and expertise of a team of accountants that are dedicated to specific roles or duties. More often than not, this generates higher accuracy when it comes to crunching your business's numbers - as high as 99.95%.
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2. Enjoy the sheer cost-effectiveness of outsourcing. Your business is unlikely to require a full-time accountant to provide accounting and bookkeeping services. Outsourcing allows you to fulfil the accounting function at a fraction of the cost. This significant amount saved from operational costs can even be channelled towards business growth!
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3. Avoid the threat of financial misconduct or fraud. While it may not be an issue to many businesses, frauds or illegal financial motives can often be detected and prevented when outsourced to professional accounting and bookkeeping service providers. Professional accountants are highly trained in ethics and governance as they are held accountable for every transaction processing, quality and accuracy control.
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4. Bulletproof your business against penalties. Inaccuracies, whether intended or not, can often result in penalties by Singapore's Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS). While hiring quality accountants can prevent this potential issue, it is far more effective when hiring professional service providers with a solid track record for managing tax filing for their clients in the past.
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5. Boost your business efficiency by saving on processing time and effort. Accounting and bookkeeping is a notoriously time-consuming task. Business owners and their organisational leaders are better off focusing on core competencies and generate value with their time instead of such processes.
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6. Gain instant access to a panel of experts. Accounting and bookkeeping service providers are often firms that hire top-notch accountants with the best skills and experience out there. An outsourced accounting firms deals with many similar businesses like yours and have gained precious experience from its client base. When you engage with an accounting firm, you gain unique access to the best practices, up-to-date accounting methods and even the latest software to further increase your business's financial performance.

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Unlock the hidden opportunities within your business with Sprout Asia

Our team at Sprout provides professional accounting and bookkeeping services with exceptional quality and accuracy at affordable prices. We implement the latest accounting technology that reduces data-entry & paperwork to focus on providing solid insights to support your business in making major business decisions.Arrange for a complimentary consultation if you're interested in learning about Sprout's approach to top-tier accounting and bookkeeping service!