Small and medium enterprises are often limited by budget and time constraints, and would have priorities over growth, business expansion or research and development. Outsourcing therefore provides business owners with a sensible alternative to ensure that their accounting and bookkeeping needs are managed by a group of professionally accredited accountants.
Outsourced service providers typically charge either based on time-cost, or volume of transactions. This cost structure allows business owners to only “pay for what they need”. This releases capital for investment elsewhere in the business, and allows business owners to avoid large expenditures in the early stages of the business. Hiring your own team of experienced accountants, on the other hand, typically require business owners to invest in training and hiring costs, other human resource related costs, and to deal with cyclical turnover.
The officers of the company (including its directors and company secretary) are responsible to ensure that the financial statements comply with Singapore Financial Reporting Standards, and give a true and fair view of the company’s profit and loss, as well as the state of affairs of the company. Penalties for non-compliance are significant and it would be prudent to ensure that the accounting and bookkeeping functions are entrusted to professionally accredited accountants.