The Consequences Of Not Hiring Accountants For Your Business
Businesses tend to skip hiring an accountant, especially companies with less than 20 employees. But why do entrepreneurs run a business without hiring an accountant or a top accounting firm in Singapore? It is mainly because most entrepreneurs do accounting, auditing, and bookkeeping themselves using available software and tools. But do you know that you put your business at risk if you don't hire an accounting firm in Singapore?
Here are the risks of running a business without accountants:
- Tax Issues
One of the most significant roles of accountants is to prepare your annual tax report clearly and accurately. It means that you have to go through all financial transactions you had over the year to collect the data. Your business may face grave issues for submitting inaccurate tax reports. Hiring an accounting and audit firm in Singapore will prepare it for you with ease.
- Budgeting Troubles
Budget planning is a crucial part of keeping your business afloat. There are a lot of things that happen in budget planning. A few of them are planning the operational cost and managing business expansion. A top accounting firm in Singapore provides precise financial reports for an accurate business forecast. Without this, your business may come with wrong business decisions, leading to financial troubles.
- Fraud and Embezzlement
There is a higher chance of employee fraud and embezzlement in a company that operates without an accountant and auditors. In reality, a chunk of company money goes to small scale and large scale fraud and embezzlement. An independent audit firm in Singapore catches these illegal activities.
- Missed Opportunities
Investors and other businesses consider a company's previous financial reports before plunging into contracts and deals. Generally, they are likely to decline if you have a poor financial record. An accounting firm prepares an excellent account for you and provides additional services, like M&A advisory services and litigation support services, that will also help you score business opportunities.
Generally, entrepreneurs lose more if they run a business without accounting. Don't let it happen.
Nexia TS provides accounting and auditing services in Singapore. Visit Nexia TS today.
Resource:
https://visual.ly/community/Infographics/business/4-risks-running-business-without-accountants
