Several studies have found that globally more than 90 percent of startups fail, and one of the most common reasons behind startups failing is poor financial management.
Finance is an extremely vital aspect of any business. Likewise, scaling and growth-finance is essential for a business to exist. As such, keeping finances in check is crucial for any company- big or small. This is where dedicated teams with finance experts can help out. However, when it comes to small businesses like startups and SMEs, hiring dedicated teams for accounting might not be a feasible option, and this is where accounting services outsourcing can help.
In this article, let us explore the top three benefits of outsourcing accounting services for SMEs and startups in Singapore, Malaysia, and across the region.
If you are a small business owner or a startup in cutthroat markets like Singapore and Malaysia, you need to put in more effort to outshine competitors. Thus, focusing on core activities like innovation for product development and new launches becomes crucial.
How do you then manage the day-to-day bookkeeping and accounting? This is where outsourced accounting services can help. You get access to a team of professionals who help manage bookkeeping and other accounting operations while your core team focuses on key business goals and activities.
Contrary to common belief, outsourcing accounting services can help you save money. There is a massive talent crunch globally, especially in countries like Singapore and Malaysia. Hiring dedicated teams of finance professionals is not an easy task. Plus, considering all expenses, such as salaries, health benefits, taxes, and levies, it is evident that the finance team is not cost-effective. Outsourced accounting services are cost-effective and hassle-free. With the right partner for your accounting needs, you can streamline operations and save money by reducing the cost of your back-office and deploying innovative tech solutions.
At PikoHana, we provide outsourced accounting services to SMEs across Asia. Our clients see an average of over 30 percent and some cases, more than 50 percent of cost reduction.
Small business owners have generally driven entrepreneurs with solid business acumen, but they might not necessarily be financially savvy. Even if you have some background in finance management, are you sure you are aware of the latest technologies disrupting the accounting industry?
Modern technology-enabled accounting firms tap into the latest solutions and offer value-added services like identifying business values, evaluating the current business state, helping create comprehensive plans, and deploying tools that not only help with finance management but improve overall productivity. Investing in these tools and tech solutions for small businesses is not always easy.
Outsourced accounting service teams will help you maximize your profits and optimize your tax payments with their holistic accounting, bookkeeping, corporate services, and CFO advisory.
Looking for accounting services outsourcing in Singapore? Learn more here.
Another great perk of outsourced accounting services is the significant reduction of margin errors as modern accounting firms rely on automation, which eliminates human errors. By using accounting software solutions, these forms are able to expedite some tasks, such as preparing tax returns, tracking expenses, and generating financial reports. In addition to saving time, automation reduces the number of human errors.
Furthermore, with outsourced accounting services, the business can easily expand without additional hires in the finance department. For example, at PikoHANA, we have many clients with 1-10 employees capable of handling small businesses with 50 or more employees.
Outsourcing accounting services is a viable and turn-key option if your business needs the resources of an accounting team when you are not able to afford the costs and management time.
However, many small business owners make the mistake of handling their finances themselves, especially during the first few months or years after the company launch. According to a study, around 10 percent of startups fail within the first year while over 7 percent fail during years two through five. It is important to understand that these initial formative years are crucial for any company’s growth, and partnering with a reliable accounting firm from the very beginning gives the business a head start.
In today’s climate, where the world is still recovering from a prolonged pandemic and the global economy is threatened by slowdowns and probably an impending recession, handling finances smartly and accurately has become even more pertinent, especially for small businesses. If you are looking for accounting services that can help manage your accounts, enhance productivity and optimize financial health, PikoHANA is the ideal choice for you.
At PikoHANA, our main goal is to provide holistic back-office solutions, including accounting services to help SMEs across Asia thrive. With us, small businesses get access to key financial metrics, deeper insights with detailed reports and audit statements, accurate balance sheets, updated cash flow records, and several other diverse business data through a consolidated and simple interface.
Find out more about how PikoHANA can help your business here today!
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