Sometimes outsourcing accountant service in Singapore may not be as good an option as it might seem. The outsourcing of this function involves some risks that need to be known in order to assess whether, really, it is an option for the business or, on the contrary, it is worth working for internal capacity development, for example, increasing the qualification of executives in this area with a master’s degree in financial advice.
The advantages of bookkeeping and accounting service in Singapore in outsourcing
Increasingly, the outsourcing of accountant service in Singapore is becoming the standard among companies. Organizations put their benefits in balance, some as important as:
• It allows cost savings.
• Facilitates contact with experienced service providers.
• It promotes the quality of work in the company.
• Raises the level of business training.
• It supposes a great support when complying with the regulations.
• It makes it possible for the business to concentrate its efforts on activities that generate more value.
However, not all are advantages and, therefore, it is necessary to evaluate the disadvantages of outsourcing financial advice.
Disadvantages of outsourcing financial advice
When financial advice is left to third parties, you have to be prepared to face some disadvantages, such as the following:
• Loss of flexibility that, possibly, can be linked to an increase in some costs. The relationship is regulated by contract and, everything that exceeds the agreed agreement, can be charged separately.
• Loss of control. After all, it is not about approaching another department to make a query. When financial advice is outsourced, barriers begin to appear (displacements, communications, bureaucracy) that, in the end, limit the ability to control.
• Decrease in the motivation of staff in the workforce. The rest of the members of the accounting department or the financial area may feel displaced by an outsourcing decision like the one proposed. The result would be demonization, which could lead to a decrease in productivity levels, job dissatisfaction and even absenteeism.
Outsourcing of financial advice: managing the change
Once it has been decided to outsource the accounting service in Singapore, those responsible for the organization must specify a plan that helps facilitate the transition from the previous way of doing things to the new scenario. In this strategy, we must not forget aspects such as:
1. Communication. A clear communication is key to demonstrate respect for the employees of the affected area, avoid duplication of work, prevent confusion and promote the coordination of efforts. It may be convenient to accompany the communication with a clear timeline that shows what is expected of each person.
2. Quality. These types of changes usually reveal quality problems. To prevent the discovery of these issues from slowing down the start of the new relationship or minimizing the adverse effects that this finding could have on the morale of the team, it is important to prioritize the constructive resolution of issues related to the quality of information and processes.
3. Roles: The definition of roles and responsibilities is another substantial part of this process. The sooner you designate the people who will be responsible for each function, the better results will be obtained.