A lot of people in Singapore and other countries think of it as a relief to have a business. Most people just don’t want the idea of being an employee or the ‘yes sir’ guy. They may feel that owning a business means that you get to lean back and watch other people breaking their sweat. But the sad truth is that you can never break free from the employee-related worries. So, if you are thinking that after starting a small business you have gone past those days where you had to deliver an assignment on time, but you might be wrong.
The truth is that after starting a small business or a start-up, your desk will always be filled with overwhelming responsibilities that might make you wish to go back to being an employee again. That is why most people choose outsourcing, which is about hiring experts from other companies and use them as your employees. Most small and medium business owners cannot afford to have an in-house finance department and that is why they outsource tax and accounting services.
Most of the account outsourcing agencies in Singapore are trustworthy, but even after that, you cannot risk your company’s repo. So, here in this article, we will tell you about certain risks that are associated with outsourcing, not to discourage you, but to make you aware.
Your Firm’s Long Term Interests Might Get Compromised
From a clinical point of view, dependence on an outsourcing company means liability and compromising your self-interest to expand your grip on the market. When you are outsourcing professional auditors, you are relying on foreign labor, which could create certain security concerns.
As a solution, you must make each point clear to the outsourcing company, which is about giving and restricting access and taking decisions. The best outsourcing companies are experienced enough to know their boundaries.
Lack of Deep Knowledge About Your Business
Now, you may rest assured after outsourcing an audit company in Singapore, but can you do that? Well, arguably an experienced audit company will know everything about finance, which revolves around filing taxes to managing payroll and bookkeeping. They are well aware of the change of regulations regarding tax filing, which is very difficult for you to keep track of.
But even after that if the outsourcing accounting agency is not aware of your business, it might not benefit you. So, before hiring, we would suggest you go through the testimonials and the previous client record to check if they are experienced enough to handle a client like you or not.
For example, if you own an advertising agency, try to find an outsourcing company that knows everything about this line of business.
Chance of Intellectual Property Leak
Depending on your outsourcing partner’s place of residence, you must ensure that their intellectual property protection is as good as yours. Choosing to outsource is filled with pros and cons as it may feel like a two-edged blade. These firms don’t work for a single client, but multiple and people whose business interests are somewhat similar to yours. So, there will always be a risk of data leak and you won’t even know it.
To avoid such mishaps, you need to have a simple counter strategy where you will restrict the outsourced employees at a certain point. You need to know where to draw the line between you and your outsourcing partner company. Again the best solution would be to hire a reputable outsourcing company and know about your business and have been in the market for more than 10 years.