The accounting/finance department has shown to be indispensable in every successful organization. Yet, many small organizations often overlook the importance of having a well-structured finance department.
A highly functional finance department would ensure the maximization of monetary returns by keeping track of the revenues and expenses of the company. On the other hand, an inefficient finance department would lead to the organization having poor credit ratings or having extra expenses incurred due to the payment of fines for late tax or loan payments.
However, SMEs with limited manpower and financial resources, do not see the value of having a highly functioning finance department as they place more emphasis on other sales-generating departments. As such, the role held by the director/CEO or an employee who is already handling other job functions. The poor preparations show the lack of expertise to ensure a highly functioning finance department within the organization.
As such, accounting services outsourcing exists to help curb the problem. Nonetheless, the lack of financial resources should not be the only reason for an organization to engage with a corporate service provider.
One of the best benefits of accounting service outsourcing lies in the ability to leverage their experience of working with other similar organizations. With their experience of working with various clients across multiple industries, outsourced service providers will be able to instill the best accounting and finance practices to drive maximum effectiveness to ensure that all deadlines are met. Furthermore, implementing a better finance practice would ensure the better positioning of the company for growth and scalability as they reduce costs while improving work efficiency.
Apart from leveraging the expertise of a team of accountants that have worked in the field for a relatively long time, companies can leverage the best accounting tools available in the market to facilitate the work of a finance department efficiently. With so many accounting tools currently available in the market, it is not feasible for SMEs with a limited budget to incur additional expenses on experimenting with the right tools for them. Corporate services providers are kept up to date with the latest accounting technology to create the best financial reports for businesses to have the necessary data and statistics to make well-informed financial decisions.
Apart from tangible resources, including manpower and finance, intangible resources such as time and effort are important for companies hoping to achieve the maximum profit possible. By saving both time and effort, companies can redirect their limited manpower to focus on fewer administrative tasks and instead focus on tasks that will contribute to the growth of the company.
The fastest and easiest way to differentiate an experienced and an inexperienced team lies in their onboarding process. An experienced corporate services provider would often have an established structure and process that they follow strictly since it has been shown to guarantee results after working with multiple clients. During the onboarding process, they would take the time to truly understand the need of the clients to reach a mutually beneficial proposal and expectations. Nonetheless, do note that an established process does not mean employing a one-size fits all approach but rather a process that ensures a specifically tailored plan that is catered to the needs of each unique client.
Though it is unlikely for a corporate service provider offering tailored services to have a fixed fee package, they must be as transparent as they can be in the early stages of proposal pitching to clients. As such, clients are aware of the cost involved when outsourcing accounting services earlier in the onboarding process and can make any necessary adjustments to reduce or increase the overall budget. Additionally, choose a service provider that is as invested in your company’s growth as you. That is, they’ll keep the fees directly dependent on the growth of the company. If the company grows, the fees increase, and if the company does, the fees will be kept constant throughout- a win-win situation for both parties.
From using Xero to submit expense claims to using Talenox to handle payroll processing, to using Asana to help keep teams organized and on track when managing work, companies should understand which job functions they are willing to outsource for the implementation of the most appropriate tool. For instance, one of the best accounting used specifically for small to medium-sized enterprises is Xero, a cloud-based accounting software that eases job functions such as expense claims, multiple currencies reconciliation, statement line with multiple account transactions reconciliation, and simple bank reconciliation.
Having worked with several of Singapore’s top startups including Endowus, Homage, and Spenmo, PikoHANA guarantees a reliable and perfectly tailored solution to address your company’s accounting outsourcing needs- reducing the need to worry about the stress and cost of hiring new accountants. 30 minutes response time either through call or text, a human account manager, and having an accounting tool such as Xero included in the fees, are some of the concierge services offered by PikoHANA that make us stand out from other competitors in the market.
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