When Should I Hire an Accountant for My Small Business?
As a small business owner, you should be mentally free to develop ideas, marketing campaigns, and new products. However it is not possible, if you must do administrative tasks. If you worry about expenses, budgeting, and the cost of ownership, you may be better off hiring an accountant for small business.
However, skill-wise, matching an accountant to your company’s needs takes effort. In addition, there are costs to consider and ensure they are within your budget.
Employing an Accountant for Small Business in Singapore
If you decide to hire an accountant for small business, you should drill down to the basics of it. The cost of hiring one such professional is a prime factor. The cost of employing an accountant for small business in Singapore can vary depending on the skill set required and the complexities of the tasks you want them to execute.
Accounting is a non-core task. Revenue-wise, it does not bring any money into the business. It may seem you are throwing your money down the drain, but these professionals can use their expertise to ensure the financial health and efficiency of your business.
Hire An Accountant for Small Business
If you are unsure about hiring an accountant for small business, ask yourself a question. Am I using my time effectively? Am I using it 100% to grow my business?
Yes, keeping tabs on your cash flow is essential. Saving money or keeping your expenses down is also important. However, doing business’ accounting on your own is not the best way to do it. Spending hours for it, especially, at the end of a tough day is certainly not the way.
On top of that, there is always a chance that you have missed an update on accounting rules, or tax rates. If it is the case, then you are going to make a costly mistake. You may also forget to update an important transaction and end up with inaccurate and misleading figures.
Yes, accounting software can help you catch a few such mistakes. However, it is not a substitute for the lack of deep accounting knowledge. If you spend all your attention and energy on tracking your expenses, the other departments of your business will suffer.
Your DIY accounting work will also rob you of time, effort, and energy. It may adversely affect your life-work balance. You have to ask yourself, “Is it worth it?”
Maybe hiring experienced accounting and bookkeeping services for small business is your best option.
Benefits of Hiring an Accountant
The following is a list of tasks an expert accountant can take for your business:
- Track cash flow
- Calculate and file business taxes
- Provide financial advice
- Provide advice on tax planning
- Prepare a financial strategy
- Render certified financial accounts
- Audit your books
Do You Need a Bookkeeper or an Accountant?
You must know a few key things to hire accounting and bookkeeping services for small business. Even though ‘accounting’ and ‘bookkeeping’ are used interchangeably, they are not the same activities.
Bookkeepers use accounting software to classify and organise financial transactions into a readily accessible database. It is a very detailed record of all of your incoming and outgoing money transactions. Accountants use this digitised data to do their work.
Accountants analyse your financial data subjectively, interpret it and present it as deep financial insights. These are actionable and can be used to make effective business decisions.
You can employ an accountant to do bookkeeping and accounting. However, it is costlier than hiring a bookkeeper for bookkeeping and an accountant for accounting.
Accounting Services for Small Businesses
Alternatively, you can also hire an accounting services firm for the expert help.
Installing Accounting System
Every business needs a robust accounting system. It helps your cash flow. The earliest you can put in place is right after incorporating your company. It is a great help in making business decisions.
Bookkeeping and Accounting Services
Hiring an accounting services firm gives you access to a team of experienced bookkeepers and accountants. These professionals share the workload and free you to expand your business.
Taxation Services
Calculating accurate company tax is tedious and complex. Your accountants are used to such type of work. They ensure your tax compliance by applying their latest tax knowledge.
Cash Flow Management
Accountants keep an eye on your cash flow. They use accounts payable and receivable ageing reports to streamline it.
Accountants Help You Manage Small Business Challenges
Accounting services firms hire trained and certified professionals. They even send these accountants to workshops, seminars, and training programs to keep them updated with the latest changes in the laws.
Their work is valuable as they assist you in neutralising the following challenges before they become problems.
Accounts Receivables
An accountant for a small business assists its owner in tracking and recovering the pending dues. It helps restore your liquidity.
Manage Payroll
If you do not have a dedicated payroll or HR department, your accountant can take charge of the task. They ensure a timely and accurate payroll and help you attract and retain top talent and great relationships with your employees.
Accounts Payables
They track business’ pending dues, help you pay your suppliers on time and keep the supply chain well-oiled. They also leverage discounts and other offers to save you money.
Expense Tracking
They regularly update your books and assist in streamlining your tax preparation. They claim tax deductibles on your behalf and minimise your tax amounts legally.
Bank Reconciliation
They reconcile and close your books for you at the end of your financial year. They minimise manual errors and help you table presentable financial statements to your AGM, investors, and lenders.
Fraud Detection
They scrutinise each of your financial transactions. Their vigilance helps you prevent financial fraud and maintain transparency. Their accurate work negates the need for a time-consuming and scary financial audit of your company.
Are You Ready to Switch to Outsourced Accounting Services?
Business owners are often advised to hire an accountant or accounting services from day one. Still, if you haven’t done so and are on the verge of making the switch, here is a list of the right opportunities to do so. You should effect the switch:
- After finding that DIY accounting is costlier than hiring an accountant or a provider
- At the start of your financial year
- At the month-end to reconcile your bank accounts and books
- When your in-house accountant proves costly
- After your accountant quits
You can hire an accountant for small business from us. We will assist you in eliminating unproductive expenses and improving your cash flow. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg to focus all your attention on growing your business.
Also Read: 8-Step Guide to Finding the Ideal Accountant for Your Business
