Why Should Businesses Outsource Their Bookkeeping, Accounting and GST?

It is becoming common practice for businesses to outsource various departments in an effort to become more efficient and better management of their costs. We are helping you to understand the benefits of outsourcing your bookkeeping, accounting and GST functions and why so many SMEs have already chosen this route.

1. Cost Savings, thus increase Cost Efficiency

Accounting processes are too complicated yet very substantial parts within an organisation, staffing an entire account department with new workforce will involve budget-draining recruitment and training processes. By outsourcing or letting an expert outside of your business to take care of your daily activities such as bookkeeping, accounting, and GST, you will only be paying for what you need. If you currently manage the function yourself, just imagine how much of your own time you would save by outsourcing.

2. Focus on your Core Business Activities

You can focus on a more strategic approach to grasp business opportunities. The business market is in a constant state of change and organisations need to be able to adapt. By outsourcing certain functions, you can concentrate on looking after your clients and providing them with the best service you can without needing to worry about the huge mountain of paperwork waiting on your desk.

3. Expertise always be with you

Outsourcing gives you a great way to have full time knowledge on your team without having to pay for it around the clock. By putting your books into the hands of a highly skilled staff who understand the best practices and how to properly staff for certain tasks, your job becomes a whole lot easier and effective.

In addition, you are always accessible to the latest regulatory developments and updates from the experts. You will be able to get advice from these experts on a pay-as you-go basis; never paying for more than you require.

4. Avoid Financial Pitfalls

By outsourcing, you will avoid financial pitfalls such as compliance failure. When you outsource bookkeeping, accounting and GST functions, you’re placing your financial and GST records in the hands of a reliable and qualified team. They are aware of the latest regulations, deadlines and will be able to ensure that your financial reporting is up to standards and completed in time for any submissions.

5. Team of Staff Vs Individual

When you outsource your bookkeeping, accounting and GST, your books and accounts are taken care of by a team of skilful professions. You have a team of qualified and well trained staff from junior to manager (CFO or advisor will play their roles when more complex structure is involved) to carry out the respective functions such as data entry, independent check, compliance check, discussions and consultation to ensure a more reliable and accurate deliverables. In-house bookkeeper and accounts personnel of SMEs is often assigned with multi-tasks and no segregation of duty is in place, thus, the Company is exposed to greater fraud risk. Without proper training and guidance, in-house individual staff may find difficulty to update themselves on the latest developments of various regulatory requirements such as GST, Income Tax and accounting standards, thus the Company is exposed to higher compliance risks.

6. Improve Profitability

By keeping your bookkeeping and accounts up-to-date, you should be able to read and retrieve a real time financial records. This would help for better business planning and decisions making. Inadvertently, the Company could turn into better cash flow position, ultimately improved the profitability and helping the Company towards achieving its goal.

7. Scalable

Your outsourced team can grow/decrease as your business needs, without the need for you to take on/lay off staff. The outsource provider has a team already in place and will draw on extra resources, if required, to meet your deadlines.

If you are looking for outsourcing of any functions relating to accounting, GST or bookkeeping function, kindly contact GSMI for assistance.