Is It Worth Hiring An Accounting Firm For A SME Company? SMEs, whose size falls under the 100 employees and revenue per annum in the millions range (such as accounting firms), generally face similar business issues. For example, how to remain profitable, deliver service levels expected by customers, improve productivity while reducing costs and ensure a smooth transition from one generation of leaders to another?
The first step is often to identify areas for improvement from bottom-up perspectives. That would require time and effort and still may not work because each SME has its own unique challenges and limitations. Therefore, outsourcing accounting functions that are routine or not critical can be an effective way out.
Furthermore, accounting firms with special expertise in supporting SMEs will have more tools at their disposal to help companies achieve their objectives. Thus, it makes good business sense to hire accounting firms.
So, is it worth hiring an Accounting Firm for an SME company? Read on!
Small accounting firms offer the same accounting and tax services as their bigger competitors but at much lower prices because of the high demand for accounting and accounting-related services in Singapore (due to a surplus of talented people).
This could help SMEs save money which can be diverted to other essential activities such as marketing or training employees. However, bear in mind that accounting is not an exact science, so if you want 100% accuracy, getting an external audit would be a good idea.
Firms giving a general accounting service will often charge around $250 per hour, while those with specialization in supporting SMEs may ask for around $275 per hour. Both accounting firms offer affordable accounting and accounting-related services for SMEs in Singapore.
Hiring accounting firms can help save your time, as their business processes are efficient and well established. So they have all the information needed to deliver a service tailored to your needs. Hence accounting firms will free up your executives’ time to focus on what they do best; managing!
The lack of accounting knowledge may also be an issue for SME CEOs; this could force them to dedicate valuable management time learning accounting principles and applications, which may not be productive as it is not core business expertise.
Accounting firms will help you streamline your workflow, enhance productivity and reduce operational costs, thus enabling organizations of any size to focus on their core business.
Accountants working in accounting firms often possess specialized accounting knowledge, which helps them improve accounting services by providing innovative accounting solutions such as the implementation of more efficient accounting systems and controls, risk management, tax planning, or compliance reporting for SMEs.
Their accounting specialists will also be able to provide a wide variety of advice and recommendations needed in various industries, from retail to wholesale distribution, manufacturing, or service businesses.
Accounting firms offer specialized accounting solutions and business development expertise, thus accounting firms will help grow or stabilize your company’s accounting and tax compliance function while adding value to your SME accounting functions.
On top of that, a good accounting firm can also offer access to talent pools within their professional networks for you to source quality staff whenever needed.
Additionally, if you wish to change accountants, accounting firms are more likely to be able to handle accounting transitions smoothly as they have a full understanding of various processes involved in moving clients between them and other accountants, which is always a delicate process, especially when it comes to conglomerates.
Accounting firms employ the latest accounting technology and accounting systems to help ensure that accounting information is secure and up-to-date (not just accurate).
In addition, they can also provide accounting services such as cloud computing accounting which may be ideal for SMEs who do not have the resources or technical expertise (or time) to set this up themselves.
It should also be noted that some accounting software is better than others, thus if you are looking at getting accounting software, ask them to provide you with a free trial on their accounting system, so you get an idea of how scalable it is to your business needs.
More often than not, accounting firms can have accounting specialists with proven accounting skills and more knowledge than others within a given field of accounting services.
They may also be able to provide access to accounting resources that you can tap on at any time or accounting outsourcing solutions that are tailored specifically for you (and only you) so that you can focus on growing your business rather than managing accounting processes such as payroll, tax filing, balance sheet, cash flow forecasting, etc.
Accounting firms in Singapore have the accounting experience as well as reputation from working with many different types of SMEs.
Most accountants will admit that whether SMEs feel they need an accounting service is often a difficult judgment call to make- not just because there is no fixed cost involved, but also accounting services can vary so significantly from accounting firms to accounting firms.
Accounting firms, on top of that, are usually owned by partners who have been in accounting for a long time and thus have the accounting experience as well as the expertise required to deliver accounting solutions with an accounting firm in Singapore at a much higher level than others, especially those who work alone.
Although accounting services may look very similar on the surface level when you are looking at accounting software or accounting outsourcing solutions, accounting firms will be able to provide accounting services that are not just flexible but also scalable and thus ideal for SMEs who either do not have the resources or organization capabilities (at least yet) to scale their accounting operations with their company’s growth.
The accounting industry may be considered ‘boring,’ but it is just as important (if not more) for every SME to get accounting services right. With good accounting firms, you can reduce your accounting expenses, accounting risks, and accounting time while at the same time ensuring that accounting information flows seamlessly in order to ensure continuity of business operations without the disruption caused by lack of accounting information.
One of the biggest problems faced by SMEs is limited financial resources or human resources, which prevents them from accomplishing their goals and achieving their business plans (for growth).
Accounting solutions may seem expensive at first glance when not properly managed; however, a good accounting firm produces more than just accounting reports or accounting information; a good accounting firm offers excellent value and returns that are greater than the price tag attached to accounting services.