Accounting is important for all businesses. With that said, there are two types of accounting a business can opt for; outsourced or in-house. Both have their pros and cons, so how do you choose the right one?
What Is Accounting?
Accounting is the process of recording financial transactions. This includes analysing, summarising and reporting all transactions a business makes. In simpler terms, it’s how a company keeps track of their money to improve business performance and ensure compliance.
Read More: Introduction to Accounting Basics
The Importance of Accounting in Singapore
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Accounting in Singapore helps businesses stay compliant with statutory requirements under the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS).
Accounting also gives businesses a better understanding of their business performance, showing insights into their financial health so they can make better decisions. The accounting process includes bookkeeping, GST submission and payroll processing, among other financial tasks.
These tasks can be handled either by outsourced accounting services or an in-house accountant.
Read More: Understanding Different Accounting Types: A Beginners Guide
Outsourced Accounting Singapore (PLCO)
Outsourced accounting involves hiring an outside firm to handle your company’s financial tasks. This option is popular among startups and small medium enterprises (SMEs) that may not require a full-time accounting staff.
At PLCO, our services are designed especially for outsourcing purposes. Some of the benefits of hiring us includes:
- Cost-Effective
Hiring a full-time accountant can be expensive. Outsourced accounting firms on the other hand, offer flexible pricing based on your needs. This makes it affordable for businesses that require specific services.
We also have no hidden fees, ensuring you get exactly what was agreed upon.
- Expertise
Outsourcing involves engaging an entire team of professionals—not just one accountant. Our team is well versed in all relevant Singapore Financial Reporting Standards. They can ensure your financial records are compliant with IRAS and ACRA guidelines.
- Accuracy
Mistakes in accounting can lead to serious penalties. Our team uses reliable accounting software and double-check processes to minimise errors and maintain accuracy. You can rest assured that your payroll reports are always handled correctly.
- Scalable
Our outsourced accounting services can easily scale with your business. As your needs evolve, we can adjust our services to match your growth. This also saves you the hassle of hiring and training additional staff.
In-House Accounting Singapore
In-house accounting involves employing an internal accountant or team to manage your company’s finances directly. This is a common option for larger companies with higher transaction volumes. Some of the benefits of this include:
- Direct Control
Having your own in-house accountant allows you to maintain full control over your financial processes. Communication is immediate and decisions can be made on the spot.
- Customised Processes
In-house teams are familiar with your company’s internal systems. This makes it easier to customise reports according to your business model.
- Confidentiality
Some businesses prefer to keep their financial data in-house for security and privacy reasons. This ensures that sensitive information remains within the company.
Choosing Between In-House Accounting and Outsourced Accounting Singapore
| Criteria | In-House Accounting | Outsourced Accounting (PLCO) |
| Cost | Higher costs due to salaries, benefits and training expenses. | More affordable with flexible pricing and no hidden fees. |
| Expertise | Limited to the experience of your internal accountant or team. | Access to a full team of professionals familiar with SFRS, IRAS and ACRA requirements. |
| Scalability | Difficult to scale quickly—requires hiring and training new staff | Easily scalable as your business grows, with adjustable service plans. |
| Control | Full control over financial processes and decision-making. | Shared control but managed by experts who follow your business goals. |
| Confidentiality | High confidentiality since all data stays in-house. | Secure cloud-based systems with strict data protection measures. |
| Technology | Depends on your company’s investment in accounting software. | Equipped with the latest accounting tools for greater accuracy and efficiency. |
| Time Efficiency | Time spent managing and reviewing staff work. | Saves time—focus on core business while professionals handle accounting. |
Ultimately, choosing between in-house accounting and outsource accounting depends on your business needs. Larger companies with higher transactions usually opt for the former. It gives direct control over the accountants while ensuring confidentiality over sensitive information.
Conversely, outsource accounting is suitable for businesses that want more flexibility. You’ll have the expertise of an accounting team without the high costs of hiring in-house staff. This makes it ideal for startups and SMEs that need professional support while focusing on growth.
Final Thoughts
Need help with your outsourced accounting services? Don’t hesitate to contact us for help! We’ve helped countless businesses manage their transactions, and this includes SME’s, international companies and anything in between.
At the end of day, accounting plays a crucial role in our system, and negligence can be the difference between thriving or surviving.
Visit plco.com.sg to find out more!
