The Myths And Facts About Outsourcing Accounting Services In Singapore

In today’s business setting work is no longer confined to co-workers zone but rather it involves a number of players including suppliers, partners, customers, freelancers and so much more. Outsourcing is also an integral part of business operations. While the practice is relatively new to many businesses, its impact in business operations especially accounting is now being realized. Those who regarded outsourcing accounting services with indifference, confusion and outright fear are now embracing it with open arms. As businesses begin to understand the benefits of outsourcing, they are now using the practice to achieve many organizational goals. That’s why we are here to shine some light on misleading myths or unfounded beliefs and facts about outsourcing.

Myth #1: Majority of Businesses Outsource Accounting Services To Reduce Costs
Fact: The primary reason for outsourcing is to increase capability and capacity to achieve global expansion
While cost is a major concern to many companies who outsource labor or expertise, the primary driver to outsourcing is to achieve global expansion and gain access to skills. Outsourcing relationships that are purely based on cost savings have an increased tendency to fail. Hence as companies become more sophisticated and aware of the benefits of outsourcing, they seek to find someone who can do the job efficiently and better rather than someone who offers to do it at a cheaper price. And because the current market is characterized by complex security programs and management, businesses do not have to worry about security safeguards anymore.

Myth #2: Outsourcing Eliminates Jobs
Fact: Outsourcing leads to increased efficiency
As much as outsourcing has had a dramatic impact on other development businesses like IT, with jobs being taken by cheaper overseas labor, the accounting industry has not experienced that. Outsourcing actually means you, as a business, get more final output using lower inputs. That in turn translates to lower costs on the local businesses as well as consumers. And with lower prices the workforce can enjoy higher standards of living while the growing economy witnesses more jobs. Outsourcing accounting services can allow the business to:
-Relieve bookkeepers and accountants of the brunt of their work
-Free up both the employer and employee’s time
-With most accounting services operating electronically, storing and exchanging data can be quick with the aid of cloud-based solutions
-The need for regular in-house staff is eliminated leading to complete flexibility

Myth #3: When CPAs Outsource Work, It Will Ruin the Profession Completely
Fact: CPAs work on creating relationship businesses with outsourced accountants
There’s no single day outsourcing has ruined the profession of the CPAs. Instead, incorporating the practice within the firm complements the in-house processes. That is mainly because many companies only outsource between 10 to 30 percent of the work, with the remaining work being handled by in-house staff. When outsourced labor and in-house preparation is done correctly, then it can be a perfect recipe to workflow solution.

Myth #4: Outsourcing Means Getting Accountants from Overseas
Fact: Outsourcing simply means contracting out work
If you think that outsourced services only refer to labor taken from overseas, then you might have fallen victim to myths and unfounded belief about this practice. Outsourcing in simple terms refers to obtaining goods and services from a source outside the business. Hence it doesn’t imply in any way that the work to be contracted out must be done by an offshore entity. Outsourcing in Singapore from onshore accountants is a service that has created hundreds of thousands of full time jobs to residents of the country. So outsourcing accounting services only seeks to improve efficiency and ensure long terms profits to the firm.

Myth #5: Outsourcing Leads To Loss of Control
Fact: The practice helps you handle company goals and decisions better
Most growing entrepreneurs in Singapore do not entertain the idea of outsourcing because they think the practice can lead to loss of the hard-won business. However, the fact of the matter is, rather than you losing command of the enterprise, it helps you offload the accounting work to a professional service provider who can handle the goals and overall financial position of the company better. That will allow you to
-Make better business decisions
-Have regular access to timely and accurate accounting information
-Enjoy running a cherished enterprise

Myth #6: There’s Risk of Proprietary Data Falling into Potential Competitors’ Hands
Fact: Outsourced professional accountants always work towards creating good relations with businesses
Outsourcing is a practice that many companies and entrepreneurs fear because of trusts concerns. Majority of entrepreneurs tend to believe that no one else cares about their business than them. And so they avoid outsourced labor as much as possible. But you should always remember these professionals are businesses like you and they’re concerned with maintaining the highest possible level of service to clients. Additionally, since these professional take a natural approach in service provision, they’re likely to spot any unusual business activity within the firm. Hence they’ll be equipped with better and more effective ways of running your company’s financial affairs.

Myth #7: Do-It-Yourself Accounting Is Better
Fact: Outsourced services are reliable and more accurate
While there might be great bookkeeping and accounting software available for use, they might not provide an effective tool for keeping track of your finances. The fact that you have the latest accounting software in place doesn’t necessarily mean you’re going to get the most out of it. Majority of businesses in Singapore have failed because they do not make use of their accounting programs. And yet still, those who do spend more resources than necessary to keep proper books of accounting. With growth in business comes complex financial management and so hiring skilled professional accountants becomes the only viable option to keep track of the firm’s finances. Rather than guessing around, you can rely on experts to lessen the load for you to keep your accounting house in order.

Conclusion
While you might have had a difficult time understanding the need to outsource accounting services, the reasons above can demystify your fears. Actually, outsourcing these services lead to increased efficiency, reliability and cost-effectiveness in the long run. Singapore has many professional accounting firms that are ready to work with various companies. Outsourcing doesn’t really mean you have to get accountants from offshore firms to work for you. You can actually find skilled professional accountants from Singapore to help you manage and keep track of your finances properly.