5 Ways Accountants Prevent your Business from Failing
It’s never easy to keep track of your business finances irrespective of size and nature of operations. Many small business owners do bookkeeping of their business themselves and while doing so they do take help from business apps and in some cases from accountant friends as well. Sometimes, maintaining and updating your own books becomes very stressful and time-consuming. Honestly, being an owner doesn’t necessarily mean that you have to be an expert in financial management. Outsourcing your accounting and bookkeeping services to a professional service provider will help you in putting your time and focus on your core business activities instead of worrying about non-core tasks which restrict your business growth.
Today, we will discuss 6 proven ways by which outsourced accountants can prevent your business from failing in time when COVID has drastically destroyed many of the leading businesses in Singapore:
1. Avoid the End-of-quarter Crunch
Outsourcing your accounting to a professional accounting firm will help you in avoiding stress and pressure at the end of a quarter. With outsourced accounting, you would not have to scramble to update your books at the last minute instead you’ll be looking at financial records to ensure that everything is accurate and in compliance with all the relevant laws and regulations. You will also have time to assess your business prospects for next quarter.
2. Avoid Inaccuracies
Even though you may be capable enough to track your business’s finances, it’s natural to feel overwhelmed when it’s not your area of expertise. Don’t let the fear of a material accounting error live within your mind. Evict that fear by hiring a professional accounting firm to handle your accounts, especially in case of accounting for start-up companies.
3. Save Money and Grow Business
A competent and loyal employee is valuable, but as we all know that employees now-a-days are very expensive especially when it comes to qualified accountants. When you setup an in-house accounting department, you incur expenses relating to equipment, employee benefits, bigger office space, trainings etc. but when you outsource all the aforementioned costs are transferred to the accounting service provider which makes the entire accounting function financially affordable.
4. Industry Specific SOPs and Best Practices
It is not easy to organize and track your company’s finances and that too in an efficient manner. You must prefer to use established processes and practices. Creating such processes from scratch is as difficult as running a business successfully. But the fact is that without best practices and processes your business ultimately falls and in some cases you may incur huge financial losses too. Since it is not easy to create great processes from scratch and at the same time you cannot also survive without these processes then why not outsourcing this task to an experienced accounting firm who already have all the industry specific processes and standard operating procedures?
5. Lower Security Risks
It’s highly important to delegate tasks among your team members and ensure segregation of duties is in place to ensure confidential information only remains with relevant people. But the fact is that unless you have a very sophisticated ERP system, keeping your confidential information secure is difficult. Outsourcing your accounting function reduces these risks significantly as the data is in the hands of an established accounting firm. This also means that you will not have to delegate tasks to inexperienced employees, instead your work will be performed by professional accountants whose work is being supervised by a team of qualified and experienced accounting professionals.