The Complete Guides of Outsourced Accounting Service in Singapore
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Arthur Phan
Introduction
A business’s stable development requires a healthy financial condition to maintain the operation of all relevant departments. While bookkeeping assists enterprises in recording and organizing all the occurred transactions, accounting generates valuable analysis for improving profits and preparing tax compliances.
Practically, an accountant secures an important role with a wide responsibility range to cover all financial aspects of a business. Therefore, hiring a trustworthy service provider requires careful thought to make the right decision.
Why should you prioritize outsourced accounting services? How can you benefit from integrating other management solutions into your current accounting system? Jump right into this article to explore all the details about this service.
What is Accounting Service?
As a periodic task, accounting supports generating financial statements via a work chain of interpreting, summarizing, analyzing, and reporting. Specifically, the displayed cash flows, income, and balance sheet results provide stakeholders with an easy-to-understand overview of the financial conditions to evaluate the business performance.
A full-certificated accountant dedicates their knowledge to processing various tasks, including:
- Reporting the company’s finances and liquidity
- Reconciliation between payable and receivable accounts
- Closing monthly, quarterly, and annual financial statements
- Calculating taxes and preparing tax returns
- Managing profit/loss statements
- Following financial regulations and policies
- Guaranteeing financial secrecy and backing up data
Businesses will receive practical consultancies regarding financial data audit and tax compliance practices with the help of an accountant. Due to the high requirements for specialized knowledge and other factors, hiring outsourced accounting services receives more priority from enterprises to maintain their financial health.
Why Should You Outsource Accounting Service?
Outsourced accounting services provide businesses with various profitable and safe benefits. Besides incentives for money-generated activities, professional third-party accounting services will comfort enterprises with guaranteed financial privacy and legal tax compliances.
Save Time and Money
Instead of spending a budget for recruiting and training in-house accountants, businesses can access a large network of experienced experts provided by professional services.
Additionally, the organization board can focus more on strategic plans while separating from the burden of updating and summarizing financial statements.
Advanced Cloud-Based Software
Professional accounting services use specialized software to digitize all the processes and create a collaborative platform between involved individuals. You can easily access to keep track of real-time data to generate financial reports with fewer inaccuracy risks.
Valuable Pieces of Advice from Leading Experts
Not only integrating a cost-effective process effortlessly, but entities can also receive valuable advice regarding financial management methods to optimize the overall operation. Besides, businesses can prepare
Ensure Compliances
Accounting services minimize the risks of violating government laws regarding tax duties. Specifically, the outsourced team will help you reduce errors in financial reports to avoid penalties issued by IRS and relative agencies.
What Are The Relationship Between Bookkeeping and Accounting?
Despite both covering their functions regarding financial data, bookkeeping and accounting focus on different aspects. The following table will summarize all the criteria to differentiate bookkeeping and accounting.
| Bookkeeping | Accounting | |
|---|---|---|
| Scope of work | Performs as a part of the whole accounting process. | Has a broader range regarding business operations and tax compliance |
| Work’s results | Provide accurate data input of balance sheet, cash flow, profit and loss for the accounting process | Generate financial statement reports for comprehensive analysis |
| Purposes | Manage all records of businesses’ activities and transactions sequentially | Manage all records of businesses’ activities and transactions sequentially |
| Requirements for bookkeepers/accountants | Do not require a bachelor’s degree and specialized skills. | Require a bachelor’s degree and major knowledge covering policies and accounting practices. |
| Work’s features | Bookkeeping tasks are based on common accounting concepts and conventions. | There can be differences in analyzing methods and procedures among multiple entities. |
How to Choose an Outsource Accounting Service Provider?
Despite various practical benefits, hiring outsourced accounting services remains risks of hidden costs and unstable control. Specifically, third-party services can ask you for more fees due to the complexity of your business requirements.
In addition, the trust matter can cause several issues involving control limitations and work continuity. Therefore, you must choose a prestigious service provider to maintain quality.
Here are the significant factors to consider before choosing an accounting service provider:
- Businesses’ requirements: Determine the limitation in the current accounting system that the accounting partner can join with a comprehensive solution.
- Budget: Determine the budget to choose an appropriate price plan with needed features.
- Service provider’s portfolio and certifications: Choose an experienced team with specialized knowledge about accounting practices to reduce unexpected errors.
The price for an accounting service plan can be calculated hourly, monthly, or per project.
The Best Accounting Service for Your Businesses
G.O.C (Global Offshore Company) has satisfied global businesses’ experience as an experienced service provider covering company incorporation, bookkeeping, and accounting. With a fast and transparent process, we are confident in guaranteeing stable financial health and no risks of breaching laws for your businesses.
Disclaimer: This guide serves as a reference tool and should not substitute legal advice. For tailored guidance, consult G.O.C's customer services.
