Whether your business structure is a Sole Proprietor, Partnership, Limited Liability Partnership, Limited Liability Company, or Non-profit organization we can fulfill your bookkeeping requirements.
Every company, no matter the size of the structure, needs a bookkeeper to record the company’s financial transactions and communicate the results with internal and external stakeholders. Bookkeepers need to be accurate in their data entry and pay attention to fine details.
Bookkeepers are like diamond cutters. If the techniques they employ are correct the outcome will be a priceless cut diamond that will be much appreciated. If the techniques are employed incorrectly, corrective actions need to be taken resulting in a damaged diamond fetching less than the original expected price.
If the stakes are very high, how do we find and choose a bookkeeper? Are there any guidelines or criteria that we can use to narrow down the potential bookkeeper?
Fortunately, the purpose of this article is to argue that the solution to finding a bookkeeper rests with finding a suitable bookkeeping service provider.
A company has three options to choose from to find potential bookkeepers. It can recruit qualified bookkeepers directly and employ them as an employee under an employment contract. Cost wise it will range from 12 months to 15 months of salary.
Or the company can outsource the bookkeeping functions to a bookkeeping service provider. Cost-wise it will be much cheaper. You can be assured of quality and service delivery.
The last option will be to engage freelancers who are willing to perform the job for a fee based on the hours involved. Price wise they are competitive. The only issue with them is service dependability and reliability.
All three options have their merits. Ultimately, it will depend on each company’s internal requirements and the budget they have at their disposal.
In my opinion, if the tasks are repetitive and non-judgmental, it is best to outsource to a bookkeeping service provider who can assure reliable service for a reasonable price within the stipulated deadline.
If a company is incorporated in Singapore or has elected to report under Singapore Law, it is best to engage a bookkeeper who is familiar with Singapore accounting, tax, and law. One can engage a bookkeeper from any foreign jurisdiction to complete the Singapore-based bookkeeping tasks. They can price themselves competitively. But the question is whether they are up to date with Singapore accounting, tax, and law.
You do not want to be at odds with IRAS or ACRA. If your business operations are in Singapore, please engage a local bookkeeping service provider firm.
To become a qualified bookkeeper, it takes persistence and years of academic training. In Singapore, at a minimum, a bookkeeper must possess at least a LCCI level qualification. It is also possible to find bookkeepers with Diplomas or Accounting degrees. The higher the qualification, the higher the bookkeeper’s rate and conversely one can expect a higher level of quality work.
Since the bookkeeping service providers depend on bookkeeping services for their revenue, they are incentivized to recruit and retain qualified individuals to perform the tasks. In addition, they run internal training programs to ensure the bookkeepers are current on applicable standards
Not only must the bookkeeper be academically qualified with qualifications and certifications but must possess practical experience. Educational Institutions can impart the necessary principles needed to be applied. But the context in which the principles are to be applied will require judgement. This cannot be taught. It must be acquired through experience.
In this regard, bookkeepers working at bookkeeping service provider firms, have plenty of depth and experience as they deal with different types of companies monthly.
A typical bookkeeping service provider firm will have companies from different sectors. Each of these companies operating in these sectors requires a different kind of setup. Bookkeepers working in these environments are exposed to complexities and challenges. In case the bookkeeper is not able to address the challenge/s they can always rely on their team members or supervisor for assistance and guidance.
That is why it makes sense to outsource bookkeeping tasks to these bookkeeping service provider firms. They have the solutions for every challenge.
The services of the bookkeepers can be engaged on a daily, weekly, fortnightly, monthly, quarterly, semi-annually, or annually. The duration of service is negotiated by the company and the bookkeeping service provider company. The price is also dependent on how frequently the service is required and the volume of transactions that need to be captured.
In general, it is better to have the accounts prepared every month.
I had written an article on this subject matter previously. Please click on the link to read the contents.
In my opinion, bookkeepers working at bookkeeping service provider firms are competent in the use of technology.
Bookkeepers provide bookkeeping services. But that is not their only task. They must communicate the financial results to their clients. They must present the information and make the clients understand the financial picture.
Bookkeeping service provider firms have bookkeepers who are experts at communicating numbers into words. There is no substitute for them.
The Unaudited Financial report will contain the following:
- Directors’ Statement
- Statement of Profit or Loss and other Comprehensive Income
- Statement of Financial Position
- Statement of Changes in equity
- Statement of Cash Flows
- Notes to the Financial Statements
- Appendix