Here’s the Real Cost of Accounting Services
Before you seek accounting services, it’s a good idea to calculate the costs first to make sure you can afford the accounting service fees. Here, we provide an essential guide to preparing you financially, including the major things to consider when engaging an accounting firm for your business.
How much can you spend on accounting services?
One of the first steps in getting professional accounting services is to ensure you have an ample budget to sustain the accounting service fees monthly, quarterly, or annually. You need to look at the bigger picture and see to it that you’ll be able to sustain it for years and not just for the first few months. It involves having a realistic budget and being able to afford what you actually need.
Accounting services come in various forms including accounts reconciliation, basic bookkeeping, payroll, preparation of registers, and more. And if extra services are offered, this might cost you additional fees. So, it’s best to ask for a quote if you feel you might need additional services in the future.
Even though it may seem tedious and complicated, setting up an accounting budget should be your first step in outsourcing accounting services. It will require you to identify ways on how to possibly save and get the most value for your money.
How affordable are accounting services?
With accounting being such a complicated task to do, it might be useful to do some research on the usual accounting service fees so you can determine how much it will cost to outsource such service and which firm best meets your budget.
In Singapore, for instance, affordable accounting service fees for standard transactions start from SGD 500 monthly. Fees increase based on the level of transaction and industry requirements. Annual fees, on the other hand, range from SGD 150 to SGD 400 for low-volume transactions, SGD 400 to SGD 700 for medium-volume transactions, and SGD 700 to SGD 1,200 for high-volume transactions.
How much more will you need?
Whenever you are looking at a potential accounting firm to work with, there are some important questions you need to ask. These questions can help you determine which firm is best suited to your needs and whether you can afford the accounting service fees they offer.
- How much is the service? While this is a no-brainer question, you’d be surprised how many business owners forget to ask the firm to confirm the accounting service fees. Sometimes, there are additional costs that aren’t included in the package. Ask the firm to be clear about the fees and if there is any chance that it will increase so you know you can afford it.
- How do you charge? Don’t settle for any accounting firm without understanding how they charge. It can be hourly, monthly, or yearly. And regardless of how they charge, does it include everything? Always ask what you’re paying for.
- How can you help grow my business? Outsourcing accounting services is a significant investment, and it is just proper to know how you can benefit from it. If the firm can confidently describe how it can help you, then there’s a good reason to hire it.
There are a lot of costs you need to consider when seeking accounting services. It’s more than just the monthly or annual fees. There’s a list of additional costs you’ll be accountable for, and depending on the type of transaction you’re involved with, you may also need to pay for filing, copying & returning of original tax documents, tallying of receipts, billable rates, consultation, and more.