News & Updates
May 25, 2022
A Guide to Accounting Services Costs for a Small Business
From large businesses to SMEs, entrepreneurship comes with different accounting needs. Each company in the Singaporean business landscape requires help in filing taxes, issuing payroll, managing business transactions, and a lot more. Because of this, we have been asked unfailingly about how much accounting services cost. To tell you honestly, that is not an easy question to answer because every company has different accounting requirements. Therefore, the services offered to them will depend on their needs.
Although there is no one way to tell how much accounting services cost, it is crucial to have an overview of how to allocate the budget for accounting services and how they are priced. As a small business owner, it is also essential to know what to expect from outsourced accounting services in Singapore and other things related to handling business finances.
The good thing is that you don’t have to look far because this article will cover it all. Read through below and learn more about accounting services in Singapore.
Allocating Budget for Accounting Services
Costs are and will always be a deciding factor when it comes to getting business support services. Above all, accounting services costs must be allowed in the budget, and it should guarantee an appropriate return on expense. However, it becomes challenging when this question is taken out of context, and we fail to address the issues at hand. As much as we want to present a pricing matrix to you, it is not possible to create one that is one-size fits-all. Because, once again, accounting requirements differ from one company to another.
Instead of having these costs fixed, it is better to consult a provider and let them create a custom quote based on the scope and complexity of work required. Below are the costs considerations, typically included for small businesses in Singapore, that you should get familiar with. They can help you with pricing concerns regarding accounting services.
- About $10 to $20 per employee for payroll service
- About $400 per year for tax service
- About $100 per month for general bookkeeping
Note that these rates are only approximations, and they might change depending on what work needs to get done. Some companies need to go beyond the basic services, resulting in additional expenses. To cater to this, other providers in Singapore offer service bundles priced from $400 to $900. These package deals are highly recommended to small businesses because they have everything you would need to take care of your business’s finances.
Scope and Complexity of Work
Undoubtedly, all accounting and bookkeeping tasks are not the same. Some companies require extensive reporting and complex financial management from skilled professionals, while others don’t. The same professionals may also be monitoring and managing more common bookkeeping tasks, which, in this case, need to be charged with an additional rate. However, imposing this may put a company at risk of paying non-essential rates to deliver a service. It is practical to identify the approximate time required to perform an accounting task and request a fixed rate in line with the scope and complexity of the work. This way creates a more likely fair price.
Outsourcing Accounting Services in Singapore: What to Expect?
Before we go in-depth with your expectations, let us ensure that we have sorted out this one thing. Many business owners get torn between doing the accounting task themselves or outsourcing from a third party. But how should you decide when crossing the same dilemma?
The first thing you should do is identify how much your hourly value is, or the amount you earn per hour. According to Indeed.com, a full-time accountant’s salary is around $4,300 a month. Now, if you earn beyond this rate, it is only right to turn over accounting tasks to the expert. And this makes getting accounting services better than doing them yourself.
So, what to expect from outsourced accounting services in Singapore? Let us start with the fees. The rates of accounting service highly rely on the kind of tasks your company needs, including analysing financial statements, collecting past-due invoices, calculating taxes, reviewing accounts, and more. Other aspects like the accountant’s years of experience and technologies used to execute account tasks also dictate the price.
Firms that offer accounting services can also increase their base rate when government bodies in Singapore recognise their accountants. If they are a member of the Institute of Singapore Chartered Accountants (ISCA), firms are obligated to a membership fee. Being a part of these organisations adds expertise to these accounting firms’ services which they provide to small businesses.
Determine Your Priorities and Know Your Options
You must know your company’s current needs to prioritise what accounting services to avail of from which firm. Also, observe the industry you operate in and use that knowledge to select a provider that can handle critical points based on industry standards. In addition to that, work with a reliable firm that can easily adapt to Singapore’s ever-changing business laws to stay on top of your accounting activities. Lastly, never forget that you have many options in selecting accounting services for your business. From adjusting service frequency to adding services, you are the one who gets to decide what is best for your company.
Be on Top of Your Accounting Tasks with ContactOne at the Helm of Your Business
Choosing the right firm to take care of your finances can be a challenge, given that there are many firms in Singapore. But only some of them could cater to your accounting requirements. And that is why you have to choose wisely.
With ContactOne, you no longer need to file taxes or track business transactions on your own. Our helpful team will be in charge of everything related to your business accounts. If you are on the fence about working with a firm, we can present you with your options and walk you through more possibilities of working with us. Call us on +65 6333 0633 or +65 8666 3633 to discuss your requirements today.