How Does Outsourced Bookkeeping Work
Many companies choose to outsource accounting services in Singapore because it is a highly reliable and effective way of dealing with accounting functions and processes.
However, there are many different aspects of outsourcing bookkeeping, and businesses can get more understanding from this post before deciding whether they should outsource these services.
The following is how outsourced bookkeeping services work.
What is Outsourced Bookkeeping?
Outsourcing accounting services to an accounting firm in Singapore plays a significant role when your in-house accounting team can’t deal with the business finances and accounting processes.
In such situations, professional accountants can take care of your accounting functions in a reliable and efficient manner. As a result, you get the benefit of experienced and professional accountants without hiring them full-time into your company.
A significant advantage of outsourcing accounting services is providing you with more time and energy to focus on other core business activities and expand your business.
It also helps you in saving a significant amount of money involved in recruitment, training, and other employee benefits like insurance.
Features of Outsourced Bookkeeping
There are some common features of outsourced accounting services in Singapore. These are:
a. Track Income and Expenditure
Once you hire a professional accounting firm in Singapore, it will be the responsibility of that firm to track your income and expenses by recording all the financial transactions.
This process is now typically performed with the help of a modern accounting system that makes it easy for accountants to save data in an organized manner.
Moreover, changes are made to these entries in real-time, so the companies can send invoices to the clients and suppliers. The management will track all incoming funds and revenue the company is making. It is highly useful in creating income statements quickly and efficiently.
b. Manage Payables and Receivables
Companies, especially large-scale businesses, often lose track of what they owe to the vendors and what the clients owe to them.
This problem can easily be resolved by outsourcing accounting services in Singapore so that professional accountants can keep a full record of the company’s payables and receivables.
c. Payroll Management
Payroll management is another essential pillar of a company. It involves the accurate calculation of the employee’s wages and salaries as per the law to ensure compliance with legal rules and regulations.
Furthermore, payroll services also play an integral role in ensuring compliance with the tax laws to avoid any issues with the authorities.
3 Steps of Outsourced Bookkeeping
The work of outsourced bookkeeping can vary greatly from an accounting firm to an accounting firm.
However, there are three common steps that accounting firms in Singapore follow to provide reliable services.
- The first step of outsourced bookkeeping is associated with the relationship between the internal manager of the company and the accountant or accounting firm. It includes the integration of all financial accounts and information with the professional accounting firm so that this data can be thoroughly analyzed for accounting purposes.
- The second step is to record and categorize transactions and start maintaining comprehensive records so that you do no longer have to worry about these accounting processes.
- Once you outsource bookkeeping services, you will get a complete analysis of the company’s financial health through monthly financial statements.
Accountant vs. Bookkeeper
Many people use the terms accountant and bookkeeper interchangeably. Nevertheless, there are significant differences between an accountant and a bookkeeper.
An accountant is responsible for overseeing the financial data management of a company, while a bookkeeper deals with the company’s revenue, expenses, and various other banking activities.
It is a bookkeeper’s responsibility to maintain the company’s records, while an accountant is responsible for interpreting and analyzing the collected data.
Bookkeepers ensure compliance with government guidelines while accountants prepare financial reports according to industry standards.
Furthermore, bookkeepers typically assist accountants in preparing financial reports and audits while accountants give various recommendations to help companies maintain a good reputation.
The bottom line is that financial management and tracking financial expenses are essential practices for all types of businesses. However, it does not mean that you should spend too much time on it.
Instead, you have the option to outsource accounting services to an accounting firm in Singapore so that accounting and bookkeeping processes are handled by professionals in the best way possible.
Ultimately, professional services will help you in going through the audits and ensuring compliance with the law.